Malaysia Achieves Record-Breaking Trade Value in First Quarter of 2024

Malaysia has recorded its best-ever first quarter trade value in history, with total trade reaching RM690.59 billion, representing a 7.1% year-on-year growth. The country's exports increased by 2.2% to RM362.41 billion, driven by higher exports of manufactured and mining goods, particularly iron and steel products, machinery, equipment, and liquefied natural gas. Export growth was supported by increased trade with ASEAN, the United States, and Japan.

Imports also saw significant growth, rising by 13.1% to RM328.19 billion, driven by robust imports of capital and intermediate goods for manufacturing exports. In March 2024, trade, exports, and imports recorded double-digit month-on-month growth, with total trade reaching a record high of RM244.47 billion. Malaysia's trade surplus continued for the 47th consecutive month since May 2020.

The country's trade with Free Trade Agreement partners grew by 4.4% in Q1 2024. The World Trade Organization has projected global merchandise trade volume to grow by 2.6% in 2024, and Bank Negara Malaysia expects the Malaysian economy to likely grow between 4-5% this year, supported by the recovery in external trade and domestic demand.

Why this matters: Malaysia's record-breaking trade performance in the first quarter of 2024 highlights the country's resilience and economic recovery amid global challenges. The strong growth in exports and imports signifies Malaysia's competitiveness in the international market and its potential to attract foreign investments.

The Ministry of International Trade and Industry stated that it will continue to closely monitor and address risks to trade growth and investment inflows. "The government remains committed to strengthening Malaysia's position as a preferred investment destination and will continue to facilitate trade and investment activities to ensure sustainable economic growth," said Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali.

Key Takeaways

• Malaysia recorded its best-ever Q1 trade value of RM690.59 billion, up 7.1% YoY.
• Exports rose 2.2% to RM362.41 billion, driven by manufactured and mining goods exports.
• Imports grew 13.1% to RM328.19 billion, fueled by capital and intermediate goods imports.
• Trade surplus continued for 47 consecutive months since May 2020.
• Malaysia expects 4-5% GDP growth in 2024, supported by trade recovery and domestic demand.