Malaysian BOP records US$2.2b surplus in Q2

Surplus in goods accounts increased its current account balance.

Malaysia's balance of payments (BOP) posted a higher surplus of US$2.2b (RM9.6b) in Q2.

According to the Department of Statistics Malaysia (DOSM), financial account recorded a net inflow of US$1.7b (RM7.3b) from a net outflow of US$2.1b (RM8.8b).

International reserves also rose by US$630.2m (RM2.7b) compared to the US$420.1b (RM1.8b) cut in Q1.

Current account balance increased by US$1b (RM4.4b) thanks to a higher surplus in goods accounts amounting to US$6.3b (RM27b).

Accounts for services and primary income also had a lower deficit of US$1.2b (RM5m) and US$1.9b (RM8.2b) respectively.

The financial account also switched to a net inflow of US$1.7b (RM7.3b) from a net outflow of US$2.1b (RM8.8b) mainly due to a reversal of portfolio investment to net inflow RM16b.

As for direct investment flows, Direct Investment Abroad (DIA) posted a higher net outflow of US$3.6b (RM15.4b), whilst Foreign Direct Investment (FDI) had a net inflow of US$1.9b (RM8.3b).