Dosm: Malaysia’s Current Account Balance Surplus Higher At Rm16.2 Bln In First Quarter

KUALA LUMPUR, May 17 (Bernama) -- Malaysia’s current account balance (CAB) surplus surged to RM16.2 billion, equivalent to 3.5 per cent of the gross domestic product (GDP) in the first quarter of 2024 (1Q 2024) mainly fuelled by the income and goods accounts. 

The Department of Statistics Malaysia (DoSM) said financial account registered a net outflow of RM18.7 billion, mainly in portfolio and direct investment.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the income accounts contributed to the higher CAB surplus in the first quarter of 2024. 

“The primary income account showed a smaller deficit of RM8.8 billion compared to RM20.3 billion from the previous quarter.

“This reduction resulted from higher receipts of RM28.4 billion, primarily driven by other investment due to increased investment income generated abroad.

“Concurrently, payments decreased to RM37.2 billion during the same period, especially from direct investment as foreign investors in Malaysia earned less income,” he said in a statement today.

Meanwhile, he said the secondary income account recorded a surplus of RM0.3 billion in 1Q 2024 from a deficit of RM2.2 billion in the preceding quarter following higher receipts of workers’ remittances and transfers received from overseas.

Mohd Uzir said the higher CAB surplus was also supported by the improved net exports of goods account, totalling RM32.0 billion.

“Exports of goods valued at RM272.2 billion compared to RM275.9 billion in the previous quarter,” he said, adding that imports of goods declined by 2.0 per cent quarter-on-quarter to RM240.2 billion.

With regard to trade in services, he said the services account recorded a lower deficit of RM7.3 billion compared to RM7.4 billion in the previous quarter.

Mohd Uzir said the financial account in 1Q 2024 recorded a net outflow of RM18.7 billion against RM20.1 billion last quarter.

According to DoSM, foreign direct investment (FDI) recorded a lower inflow of RM5.5 billion compared to RM19.6 billion in the preceding quarter due to lower injection of equity and turnaround in debt instruments.

“The FDI inflow was primarily channelled into services, particularly information and financial activities, followed by mining and quarrying sector. 

“At the same time, DoSM said direct investment abroad (DIA) by Malaysian investors also registered a lower net outflow of RM11.5 billion against RM14.3 billion in the previous quarter,” it said.

At the end of the first quarter, Malaysia's International Investment Position (IIP) enjoyed a higher net asset of RM157.1 billion. Malaysia's international reserves stood at RM538.9 billion.

-- BERNAMA