KUALA LUMPUR, May 12 (NNN-Bernama) — Malaysia’s current account balance (CAB) continued to record a surplus of RM4.3 billion (US$961 mln) or 1.0 per cent of the gross domestic product (GDP) in the first quarter of 2023 (1Q 2023), down from RM27.5 billion (US$6.15 billion) (5.9 per cent of GDP) in the previous quarter.
Department of Statistics Malaysia (DOSM) chief statistician Dr Mohd Uzir Mahidin said the CAB surplus this quarter was mainly supported by net exports of goods.
“The Goods account recorded a net export of RM39.9 billion (US$1 = RM4.475) in the 1Q 2023, which shrank 30.9 per cent quarter-on-quarter.
“Exports of goods amounted to RM261.5 billion, a decrease of 17.6 per cent as against the final quarter of 2022,” he said in a statement Friday.
Mohd Uzir shared the main exports were electrical and electronics (E&E) and petroleum and chemicals products, especially to Singapore, China and the United States (US).
At the same time, imports of goods fell by 14.6 per cent quarter-on-quarter to RM221.6 billion. Malaysia’s major imports were Intermediate, Capital and Consumption goods particularly from China, Singapore and Taiwan.
“The Services account posted a higher deficit of RM12.8 billion in 1Q 2023, as Travel witnessed a lower surplus and Construction turned around from a surplus to record a deficit.
“Exports of services were valued at RM41.0 billion as compared to RM43.8 billion in the previous quarter,” he added.
Meanwhile, the financial account registered a net outflow of RM2.4 billion as compared to RM1.1 billion in the preceding quarter.
“This was mainly led by outflows in Portfolio investment at RM33.3 billion and Financial derivatives at RM0.9 billion.
“Other investment registered a lower net inflow of RM20.9 billion as compared to RM36.6 billion in the previous quarter, while Direct Investment turned around to record a net inflow of RM10.9 billion from a net outflow RM9.3 billion in the final quarter of last year,” explained Mohd Uzir.
Direct Investment Abroad (DIA) logged a net outflow of RM1.1 billion as compared to RM28.5 billion in the fourth quarter of 2022.
The major contributors to the outflow were services particularly in electricity, followed by manufacturing and agriculture sectors. The top three DIA destinations were Singapore, the US and Vietnam.
“In the meantime, a lower net inflow of RM12.0 billion was recorded in Foreign Direct Investment (FDI) as compared to RM19.2 billion in the preceding quarter.
Services was the largest sector in FDI predominantly in Financial activities, followed by Mining & Quarrying and Manufacturing sectors.
“The main FDI sources were from Mauritius, Switzerland and Hong Kong,” he said.
Pertaining to the accumulated investment, Mohd Uzir said, “As at the end of 1Q 2023, the FDI position posted RM893.2 billion while DIA position was at RM617.0 billion.
“Malaysia’s International Investment Position registered a net asset of RM84.5 billion, while Malaysia’s international reserves stood at RM509.8 billion,” he added.
— NNN-BERNAMA
