MALAYSIA’S trade value decreased by 10.3% to RM700.74 billion during the movement-control order (MCO) from March to July this year, said International Trade and Industry Minister Mohamed Azmin Ali.

He said this was due to the 9.5% year-on-year (y-o-y) reduction in exports and 11.4% y-o-y decline in imports.

“However, the balance of trade during this period still showed a surplus, with a marginal improvement of 1% to RM65.07 billion compared with RM64.45 billion in the same period in 2019,” he told the Dewan Negara today.

He was responding to a question from Senator Lim Hui Ying (PH-DAP) on the MCO’s impact on the country’s balance of trade.

Azmin said from March to July 2020, all main categories of imports such as intermediate goods, capital goods and consumption goods showed a decline.

He said exports in almost all main sectors also decreased, especially electrical and electronic products, petroleum products, crude petroleum, metal manufactures as well as liquefied natural gas due to operating restrictions imposed on most key sectors.

“The export contraction was expected, considering the lockdown imposed in most countries worldwide to curb the spread of the Covid-19 pandemic, which had seriously disrupted manufacturing activities and supply chain globally,” he said.

However, Azmin said import performance has started to recover, rising by 8% y-o-y in June 2020, while exports increased by 3.1% y-o-y in July 2020.

“The balance of trade also showed an encouraging performance, increasing by 88.5% in June and 57.5% in July.

“The RM25.15 billion trade surplus in July was the highest monthly value recorded in the last three decades,” he said.

Azmin said exports by the rubber production sector also increased, with rubber glove exports increasing by 65.5% due to the pandemic-driven high global demand for the product.

Overall, for the January to July 2020 period, the country’s trade value contracted by 6.8% y-o-y to 993.22 billion.

Exports during the period declined 6.2% y-o-y to RM541.47 billion and imports decreased 7.4% y-o-y to RM451.75 billion.

However, the trade surplus improved by 0.8% y-o-y to RM89.72 billion from RM88.98 billion previously. – Bernama, September 7, 2020.