Malaysian exports boom by 6.7% yoy in May

Electronics and mining goods helped boost performance.

According to OSK-DMG, export performance in May exceeded expectations, rebounding by 6.7% yoy (from Apr’s 0.1% contraction) vs. market and our expectations for just a 5.0% and 5.3% increase. Imports rose 16.2% yoy in May, more than doubled Apr’s 7.4% rise. This resulted in a narrower trade surplus of RM4.6b in May as compared to RM7.5b in Apr.

Here's more from OSK-DMG:

Helping to drive export higher in May were shipments of electrical & electronics products (E&E) and mining goods, which rose 1.1% yoy, a rebound after contracting for two consecutive months by at least 6%, and 26.3% yoy led by a 40.6% yoy increase in liquefied natural gas (LNG) shipment and 78.1% yoy jump in refined petroleum products. However, crude petroleum exports fell 22.4% yoy in May from 18.9% in Apr.

As for imports, the strong gains in May were largely due to the recovery in the import of intermediate goods, which expanded 6.6% yoy vs. Apr’s -0.6%. Providing support also were gains in capital goods import, which was up 41.9% yoy and consumption goods imports (up 14.9% yoy).

In terms of export destination, exports to ASEAN more than doubled to 19.7% yoy in May, while exports to the US rebounded 10.2% in May from -1.7% in Apr. Also posting double-digit growth in May was shipments to Japan, which rose 12.1% yoy on the back of higher exports of LNG. Exports to China were lackluster, rising by just 1.4% yoy. Shipment to the EU contracted for the third consecutive month by 3.2% yoy, but this was smallest drop since the beginning of the year.