KUALA LUMPUR, August 19 – Malaysia’s current account balance (CAB) increased to RM9.1 billion in the second quarter of 2023 compared to RM4.3 billion in the previous quarter, primarily driven by net exports of goods, according to the Department of Statistics Malaysia (DOSM). The higher surplus contributed 2.1 percent of the gross domestic product (GDP), up from 1 percent of GDP in the first quarter of 2023, it said. DOSM stated that the goods account recorded a net export of RM29.5 billion in the second quarter of 2023, a decrease of 26.1 percent quarter-on-quarter.
“Major exports include electrical and electronic (E&E) products, petroleum, and chemicals, mainly to Singapore, China, and the United States,” it said. However, it mentioned that goods imports increased by 1.7 percent quarter-on-quarter to RM225.4 billion from RM221.6 billion, mainly contributed by capital and consumption goods, with China, Singapore, and Taiwan being the main sources of imports. Regarding foreign direct investment (FDI), DOSM said it recorded a lower net inflow of RM3.1 billion in the second quarter of 2023 compared to RM12.0 billion in the previous quarter.
“The largest recipients of FDI were in the services sector, particularly in the professional, scientific, and technical sector, as well as the financial subsector,” it said, adding that the main sources of FDI were Singapore, Taiwan, and Germany. Concerning the net outflow in foreign direct investment abroad (DIA), DOSM stated that it expanded to RM8.0 billion in the second quarter of 2023 from RM1.1 billion in the previous quarter. “The main sectors contributing to DIA were services, particularly in the financial, information, and communication subsectors.
Followed by agriculture and construction,” it said, adding that the top three DIA destinations were Singapore, Indonesia, and Norway. In terms of cumulative investment by the end of the second quarter of 2023, it said FDI recorded RM900.0 billion, while DIA amounted to RM652.1 billion. DOSM said Malaysia’s international investment position (IIP) recorded net assets of RM160.9 billion, while Malaysia’s international reserves amounted to RM522.0 billion.
