The country's exports in 2003 breached the RM380 billion mark for the first time, driving the trade surplus up 45.7 percent year-on-year to a record high of RM75.04 billion, the trade ministry said today.

Exports had surged since March last year to grow eight percent to an all-time high of RM382.30 billion, up from RM354.08 billion in 2002, the ministry said in a statement. Total imports rose 1.6 percent to RM307.27 million

"Buoyed by the strong export performance, the trade surplus in 2003 expanded by 45.7 percent to reach RM75.04 billion, the highest ever recorded," it said.

The ministry said Malaysia's exports in December rose nearly 17 percent from a month earlier to RM38.78 billion, while imports were up 21 percent to RM32.65 billion.

Although the ministry did not make the point, analysts say part of the powerful export performance can be attributed to the ringgit's peg to the weak US dollar.

Both the export and import values were the highest monthly levels ever achieved, with the sharp increase in imports due to higher imports of intermediate and capital goods to support increasing production activities in the country, it said.

December's trade surplus dipped by three percent from November to RM6.13 billion, but it represented the 74th consecutive month of trade surplus since November 1997, showing the resilience of Malaysia's exports, it added.

Asean market

Exports of electrical and electronic products, which accounted for 51 percent of total exports in 2003, dipped 1.6 percent to RM194.78 billion. But this was offset by a 35.7 percent surge in palm oil exports to RM23.32 billion or six percent of total exports.

Manufactured exports rose 3.4 percent to reach RM300.01 billion, accounting for 78.5 percent of total exports.

Electrical and electronic products led imports last year, accounting for nearly 49 percent of total imports and rising 0.2 percent to RM149.72 billion.

The Association of Southeast Asian Nations, the United States, the European Union, Japan, China and Hong Kong jointly accounted for nearly 80 percent of total exports in 2003.

Exports to Asean shot up seven percent to RM98.54 billion, and the ministry said almost 23 percent of the increase in Malaysia's global exports last year was due to stronger exports to the region.

Exports to the US showed an upward trend since March to reach RM68.81 billion, with exports in December surging 22 percent to RM7.62 billion, the highest monthly figure ever recorded, due to stronger demand for electrical and electronic products, it said.

Exports to Japan in 2003 increased 5.3 percent to RM41.81 billion, reversing a decline in the past two years.

Exports to the EU rose 9.4 percent to RM48 billion, China by 22.6 percent to RM24.47 billion, Hong Kong by 15.5 percent to 23.28 percent, India by 42.6 percent to RM9.54 billion and Middle East nations by 24.4 percent to RM9.38 billion. - AFP