(AFP) Trade surplus in September dropped 14.6 percent from a year earlier as the slowing global economy drove down exports by 21.1 percent, the government announced today.

It was the 47th consecutive month since November 1997 that Malaysia had registered a surplus, but the figure was down to RM5.3 billion from RM6.2 billion in September 2000, the Statistics Department said.

The lower surplus reflected a RM7.4 billion drop in exports to RM27.6 billion, while imports fell RM6.5 billion or 22.5 percent to RM22.3 billion.

Electrical and electronic products remained Malaysia's most important revenue earners and netted RM16 billion, or 58.1 percent of total earnings in September.

But the global slump in information technology took its toll with exports for electrical and electronic products falling 13.2 percent or RM21.4 billion to RM141.1 billion in the first nine months compared to the same period last year.

Imports of intermediate and capital goods - used mainly to produce goods for export and the local market and representing 86.7 percent of total imports - decreased by 25 percent in September.

During the first three quarters of 2001, Malaysia recorded a trade surplus of RM40.9 billion, 6.6 percent lower than the same period last year.

Total exports contracted by 9.5 percent to RM251.1 billion while imports dropped by 10 percent to RM210.2 billion.

Almost 21 percent of Malaysia's exports go to the United States and economists have predicted that trade will decline further due to the effects of the September 11 terror attacks.

Lower growth

Prime Minister Dr Mahathir Mohamad said Monday that Malaysia's third quarter economic growth would be less than one percent.

"We would have some positive growth but maybe 0.5 percent, maybe slightly more than that," said Mahathir, who is also finance minister.

The central bank is scheduled to release Malaysia's third quarter gross domestic product (GDP) growth figures on November 22.

The government this month revised downwards its 2001 GDP growth forecast to 1.0-2.0 percent because of the greater-than-expected slowdown in the world economy.

In March, the government had cut its growth estimate from 7.0 percent to 5.0-6.0 percent after strong expansion of 8.3 percent in 2000.