Malaysia’s Q2 records lower surplus of RM16b

KUALA LUMPUR, Aug 15 — Malaysia’s current account balance posted a lower surplus of RM16.0 billion for the second quarter (Q2) of 2014 compared with RM19.8 billion in Q1 2014, the Statistics Department said.

The lower surplus in Q2 2014 was mainly contributed by lower surplus of RM30.1 billion on goods account, due mainly to higher imports of intermediate goods.

In a statement today, the department said on a yearly basis, the surplus on current account balance increased significantly by RM14.2 billion from RM1.8 billion recorded in the same quarter last year.

For the first six months of 2014, the current account balance continued to record a surplus of RM35.8 billion against RM15.0 billion in the first half of 2013.

In Q2 2014, exports of services decreased by 3.0 per cent to RM31.6 billion while imports of services amounted to RM35.3 billion, down by 0.2 per cent from Q1 2014.

Direct investment registered a lower net outflow of RM4.4 billion from RM14.6 billion in the preceding quarter.

Direct investment on assets saw an outflow of RM16.6 billion (Q1 2014:  -RM20.4 billion) while liabilities recorded an inflow of RM12.2 billion (Q1 2014: RM5.8 billion).

On annual basis, direct investment posted a lower net outflow from RM8.3 billion in the same period last year.

For the first half year, direct investment posted a higher net outflow of RM19.0 billion from RM11.1 billion in corresponding period of 2013.

Foreign direct investment (FDI) in Malaysia recorded a higher net inflow of RM10.2 billion (Q1 2014: RM7.0 billion).

FDI inflow were primarily channelled into mining, financial and insurance, as well as wholesale and retail. The top three sources of FDI were the Netherlands, Singapore and Japan.

Year-on-year, FDI posted higher net inflow from RM8.8 billion in Q2 2013, while for the first half year, it recorded lower inflow of RM17.2 billion from RM17.7 billion in the same period in 2013.

Bank Negara Malaysia’s international reserves as at end-June 2014 decreased by RM1.0 billion to RM423.6 billion as compared to a quarter ago. — Bernama