Malaysian exports to exceeded Malaysia’s imports from other Asian nations by $22.4 billion in 2014. Similarly, Malaysia achieved a $4.7 billion trading surplus with North America as well as a $2.9 billion positive balance versus African countries.
The fact that Malaysia earns these country-specific trade surpluses indicates Malaysian competitive advantages for a specific set of export products highlighted below.
Major product supply advantages are root causes for Malaysia’s $25.3 billion surplus, which was the world’s twentieth-biggest surplus during 2014 — albeit far behind China’s $384.3 billion balance.
Malaysia’s trade surplus has shrunk by 26% since 2010 when its positive balance stood at $34.2 billion.
Malaysia Major Product Supply Advantages
Top 10
Presented in descending order, the following list showcases the general product categories under which Malaysia earned the highest trade surpluses in 2014.
- Mineral fuels including oil: US$16.6 billion (27.2% of all product surpluses)
- Animal/vegetable fats, oils: $14.4 billion (23.6%)
- Electronic equipment: $12.3 billion (20.2%)
- Wood: $3.7 billion (6.1%)
- Rubber, rubber articles: $3.4 billion (5.5%)
- Furniture, lighting , signs: $2.1 billion (3.5%)
- Optical, technical, medical apparatus: $1.5 billion (2.4%)
- Other chemical goods: $1.4 billion (2.2%)
- Machinery: $721.7 million (1.2%)
- Cereal/milk preparations: $616.4 million (1%)
The above top 10 product categories represent 93% of Malaysia’s overall product-category surplus subtotal which amounted to $60.9 billion. For that subtotal, 35 of Malaysia’s 97 general product categories delivered a surplus in 2014 while the remaining 62 categories incurred deficits.
Growth
Malaysia enriched its trade surplus amounts at the fastest-pace during 2010 to 2014 under the product categories below.
- Stone, plaster, cement: Up 299.9% since 2010 (US$394.7 million)
- Miscellaneous food preparations: Up 191.1% ($284.3 million)
- Electronic equipment: Up 171.5% ($12.3 billion)
- Miscellaneous manufactured articles: Up 99.3% ($53.5 million)
- Cereal/milk preparations: Up 98.6% ($522.6 million)
- Optical, technical, medical apparatus: Up 89.9% ($1.5 billion)
- Vegetable plaiting materials: Up 75.9% ($42.8 million)
- Tin: Up 74.2% ($484.9 million)
- Soaps, lubricants, candles: Up 40.2% ($252.6 million)
- Meat/seafood preparations: Up 30.6% ($81.5 million)
Detail
From the perspective of the more detailed 4-digit harmonized tariff system (HTS) level, below are 15 products that enabled Malaysia to achieve the highest surpluses in its international trade with other countries.
- Petroleum gases: US$18.5 billion
- Palm oil: $11.6 billion
- Computers, optical readers: $5.6 billion
- Solar power diodes/semi-conductors: $3.7 billion
- Clothing, accessories (vulcanized rubber): $3.2 billion
- TV receivers/monitors/projectors: $3.1 billion
- Crude oil: $2.8 billion
- Animal/vegetable hydrogenated fats, oils: $1.8 billion
- Integrated circuits/microassemblies: $1.8 billion
- Miscellaneous furniture: $1.6 billion
- Jewelry: $1.5 billion
- Laminated wood (including plywood, veneer panels): $1.4 billion
- Industrial fatty acids and alcohols: $1.4 billion
- Unrecorded sound media: $1.4 billion
- Computer parts, accessories: $1.3 billion
Among these, petroleum gases had the fastest-growing Malaysian surplus with a 47.4% gain since 2010. In second place were clothing and accessories of vulcanized rubber up 19.2% while exported unrecorded sound media moved ahead in value by 6.8%.
Malaysia Major Product Supply Advantages by Country
Top 10
Presented in descending order, the following list shows with which trade partners Malaysia earned the highest trade surpluses in 2014.
- Japan: US$8.5 billion (14.3% of Malaysian country-specific surpluses)
- Hong Kong: $8 billion (13.5%)
- Singapore: $7.1 billion (11.8%)
- India: $5.7 billion (9.5%)
- Netherlands: $4.7 billion (7.8%)
- Australia: $3.9 billion (6.5%)
- United States: $3.7 billion (6.2%)
- Philippines: $2.1 billion (3.5%)
- Indonesia: $1.2 billion (2.1%)
- Mexico: $1.2 billion (2%)
The above 10 trade partners represent 77.2% of Malaysia’s subtotal surplus of $59.6 billion from the 151 geographic entities with which Malaysia demonstrated competitive trade advantages. That subtotal excludes the 71 geographic entities with which Malaysia incurred trade deficits.
Growth
Malaysia enriched its trade surplus amounts with the countries below at the fastest-pace during 2010 to 2014.
- Anguilla: Up 6,850% since 2010 (US$64,000
- Grenada: Up 3,004% ($11.1 million)
- Timor-Leste: Up 1,973% ($61.8 million)
- Senegal: Up 1,538% ($98.6 million)
- Lithuania: Up 1,453% ($22.8 million)
- Antigua/Barbuda: Up 967.9% ($8.3 million)
- Kenya: Up 904.8% ($734.1 million)
- Wallis/Futuna Islands: Up 830% ($93,000)
- Saint Kitts/Nevis: Up 702% ($361,000)
- St. Pierre/Miquelon: Up 700% ($64,000)
From the above list, Malaysia showed major product supply advantages over trade partners with comparatively small populations and for generally small surplus amounts. However, Malaysia did generate a positive trade balances with African nation Kenya approaching three-quarters of a billion dollars.
Japan
Below are the products that gave Malaysia the highest surpluses in its international trade with Japan.
- Petroleum gases: US$12.8 billion (149.2% of Malaysia’s surplus vs. Japan)
- Laminated wood (including plywood, veneer panels): $810.2 million (9.5%)
- TV receivers/monitors/projectors: $707 million (8.3%)
- Crude oil: $558.4 million (6.5%)
- Palm oil: $397.2 million (4.6%)
- Computers, optical readers: $354.8 million (4.2%)
- Telecommunication receivers: $202.3 million (2.4%)
- Clothing, accessories (vulcanized rubber): $187.8 million (2.2%)
- Miscellaneous furniture: $177.7 million (2.1%)
- Plastic plates, sheets, film, tape, strips: $176.7 million (2.1%)
Among these, television receivers, monitors and projectors had the fastest-growing Malaysian surplus with Japan posting a 43.8% gain from 2010 to 2014.
Hong Kong
Below are the products that gave Malaysia the highest surpluses in its international trade with Hong Kong.
- Integrated circuits/microassemblies: US$5.6 billion (69.5% of Malaysia’s surplus vs. Hong Kong)
- Solar power diodes/semi-conductors: $1.1 billion (13.1%)
- Computers, optical readers: $584.7 million (7.3%)
- Unrecorded sound media: $154.7 million (1.9%)
- Electrical capacitators: $151.2 million (1.9%)
- Lower-voltage switches, fuses: $118.4 million (1.5%)
- Oscilloscopes, spectrum analyzers: $81.4 million (1%)
- Electric storage batteries: $65.1 million (0.8%)
- Processed petroleum oils: $63.9 million (0.8%)
- Air conditioners: $53.4 million (0.7%)
Among these, unrecorded sound media had the fastest-growing Malaysian surplus with Hong Kong posting a 187.4% gain from 2010 to 2014. In second place were computers and optical readers up 67.3% followed by Lower-voltage switches and fuses ahead by 50.7%.
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Below are the products that gave Malaysia the highest surpluses in its international trade with Singapore.
- Integrated circuits/microassemblies: US$3.4 billion (48.1% of Malaysia’s surplus vs. Singapore)
- Crude oil: $860.2 million (12.2%)
- Petroleum gases: $685.8 million (9.7%)
- Solar power diodes/semi-conductors: $569.6 million (8.1%)
- Unrecorded sound media: $373.2 million (5.3%)
- Jewelry: $370 million (5.2%)
- Concrete/artificial stone items: $355.8 million (5%)
- Palm oil: $297.9 million (4.2%)
- TV receivers/monitors/projectors: $243.3 million (3.4%)
- Cocoa beans: $213.3 million (3%)
Among these, crude oil had the fastest-growing Malaysian surplus with Singapore posting a 487.6% gain from 2010 to 2014. In second place were Integrated circuits and microassemblies up 299.5% followed by cocoa beans ahead by 183%.
See also Malaysia’s Top 10 Exports, Highest Value Malaysian Export Products, Malaysia’s Top 10 Imports and Malaysia’s Top Import Partners
Research Sources:
The World Factbook, Country Profiles, Central Intelligence Agency. Accessed on December 13, 2015
Trade Map, International Trade Centre. Accessed on December 13, 2015
Investopedia, Net Exports Definition. Accessed on December 13, 2015