KUALA LUMPUR, May 11 — Malaysia’s current account balance recorded a surplus of RM12.3 billion in the first quarter (Q1) of 2021, down from RM18.6 billion in the previous quarter, said the Department of Statistics today.
Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said a favourable performance in goods was seen in Q1 since most countries had eased on Covid-19 related curbs, giving space for smooth sailing in economic activities while adhering to strict standard operating procedures.
“As such, exports of goods increased to RM225.5 billion compared to RM217.2 billion in the fourth quarter (Q4) of last year,” he said in a statement.
The main exports were electrical and electronics, rubber and chemicals based products, principally to China, Singapore and the United States (US).
Concurrently, imports of goods surged by RM14.3 billion quarter-on-quarter to RM188.9 billion due to the increase in intermediate and capital goods, which were mainly from China, Singapore and Japan.
Mohd Uzir said the current account surplus in Q1 2021 was also supported by the lower deficit in primary income at RM5.7 billion compared to RM7.2 billion in Q4 2020, mainly contributed by Malaysian companies abroad earning a higher income of RM17.3 billion, or a 19.1 per cent increase from the preceding quarter.
“Most of the sectors were financial, mining and manufacturing, which are primarily located in Singapore, Indonesia and the US. Nevertheless, services logged a higher deficit of RM15.0 billion compared to Q4 2020 due to travel, construction and other business services,” he added.
In Q1 2021, the financial account turned around to a net inflow of RM16.0 billion from a net outflow of RM10.2 billion in the previous quarter, led by a higher inflow in other investment at RM13.9 billion, mainly contributed by interbank borrowing from abroad.
Mohd Uzir pointed out that as at end-Q1 2021, foreign direct investment position stood at RM713.4 billion while direct investment abroad position was at RM539.8 billion.
Malaysia’s international investment position registered a higher net assets position of RM106.4 billion compared to RM67.5 billion in the previous three months while the international reserves stood at RM450.8 billion compared to RM432.3 billion in the preceding year.
On sectoral economic performances, he said the manufacturing sector’s production grew by 6.6 per cent in Q1 2021 compared to 3.0 per cent in Q4 2020, driven by electrical, electronics & optical products (10.6 per cent) and petroleum, chemical, rubber & plastics products (7.3 per cent).
“Agriculture sector (output) grew marginally by 0.4 per cent, a turnaround from a decrease of 1.0 per cent in the fourth quarter of 2020, supported by a better performance in ‘other agriculture’ at 5.7 per cent (Q4 2020: 3.6 per cent) and livestock, which increased by 3.5 per cent (Q4 2020: 2.9 per cent),” Mohd Uzir said.
Meanwhile, the forestry and logging sub-sector rebounded with double-digit growth of 11.5 per cent (Q4 2020: -9.2 per cent).
The services sector, a major contributor to Malaysia’s GDP, contracted 2.3 per cent in Q1 2021 compared with a decline of 4.8 per cent in the previous quarter. The slower pace of decrease was due to the rebound in the wholesale and retail trade sub-sector, which recovered modestly at 1.2 per cent in the quarter under review (Q4 2020: -1.4 per cent).
The mining and quarrying sector improved to a -5.0 per cent compared to a 10.4 per cent decline in Q4 2020 while the construction sector declined by 10.4 per cent, an improvement from -13.9 per cent in the preceding quarter.
— Bernama
