Malaysia External Trade - 21 December 2023

November exports decline driven by E&E slump and weak commodity demand

Exports declined for the ninth straight month in November (-5.9% YoY; Oct: -4.5%). The contraction was smaller than the house forecast (-7.9%) but slightly above consensus estimate (-5.2%)

  • MoM (-3.2%; Oct: 1.4%): dropped to a four-month low after two consecutive months of expansion.

Lower shipments to major trading partners and weaker exports of key sectors and products dampened overall export growth

  • By destination: exports to major destinations remained subdued, with Japan (-18.3%; Oct: -23.8%) leading, followed by Singapore (-17.0%; -8.2%), the US (-8.5%; Oct: 3.9%) and China (-8.4%; Oct: -7.1%).
  • By sector: broad-based slowdown led by manufacturing (-6.7%; Oct: -3.6%) and agriculture (-5.5%; Oct: 3.2%) sectors. This was also due to a sharp moderation in the mining (0.5%; Oct: -21.9%) sector.
  • By product: weighed down by further downtrend in electrical and electronics (E&E) exports (-13.8%; Oct: -2.3%), the largest export product accounting for 44.4% of total exports, as well as continued weakness in commodityrelated exports, especially LNG (-14.8%; Oct: -34.9%) and palm oil-based manufactured products (-10.9%; Oct: 0.8%).