KL trade surplus edges down, but exports show strength

KL trade surplus edges down, but exports show strength

Agence France-Presse, Kuala Lumpur

Malaysia's trade surplus fell in July from the previous month, but exports showed better-than-expected strength, the trade ministry said Monday.

Malaysia posted a surplus of 4.05 billion ringgit (US$1.07 billion) in July, down one percent from 4.09 billion in June, the International Trade and Industry ministry (MITI) said in a statement.

This marks Malaysia's 57th consecutive monthly surplus since November 1997.

MITI said total exports rose 6.7 percent from higher exports of electrical and electronic products, wood products, liquefied natural gas, transport equipment, chemical and chemical products, machinery, appliances and parts, as well as palm oil.

"Total exports of goods in July 2002 was 31 billion ringgit, up by 6.7 percent from June 2002, due to increases in exports of all major products... together, these products contributed 72.2 percent Malaysia's total exports," it said in a statement.

Economists said the July trade surplus was within expectations but the export figure was higher than expected.

"Generally, I think the numbers look good. It shows the trade picture continues to improve... exports have strengthened more than expected," IDEAGlobal.com regional economist Paul Schymyck said.

Electrical and electronic rose 5.1 percent from June at 7.4 billion ringgit, remaining the top revenue earner and accounting for 56.2 percent of total exports, while crude petroleum dropped 5.2 percent to 970 million ringgit in the same month.

Total imports rose 7.9 percent from June to 26.9 billion ringgit as an increase in intermediate goods and consumption goods offset a decline in capital goods.

Countries from the Association of Southeast Asian Nations, the United States, the European Union, Japan, China and Hong Kong remained the top six export destinations, jointly accounting for 82.4 percent of total exports in July.