KUALA LUMPUR, May 17 — Malaysia’s current account balance (CAB) surplus surged to RM16.2 billion, equivalent to 3.5 per cent of the gross domestic product in the first quarter of (1Q) 2024, mainly fuelled by the income and goods accounts.
The Statistics Department (DOSM) said the financial account registered a net outflow of RM18.7 billion, mainly in portfolios and direct investment.
Chief statistician Datuk Seri Mohd Uzir Mahidin said the income account 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 with RM20.3 billion from the previous quarter.
“This reduction resulted from higher receipts of RM28.4 billion, primarily driven by other investments 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 RM300 million 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.
Uzir said the higher CAB surplus was supported by the improved net exports of goods account, totalling RM32 billion.
“Exports of goods were valued at RM272.2 billion compared with RM275.9 billion in the previous quarter,” he said, adding that imports of goods declined by 2 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 with RM7.4 billion in the previous quarter.
Uzir said the financial account in 1Q 2024 recorded a net outflow of RM18.7 billion against RM20.1 billion last quarter.
The DOSM said foreign direct investment (FDI) recorded a lower inflow of RM5.5 billion compared with RM19.6 billion in the previous 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 the mining and quarrying sector.
“DOSM said direct investment abroad by Malaysian investors also registered a lower net outflow of RM11.5 billion against RM14.3 billion the previous quarter,” it said.
At the end of 1Q, Malaysia’s International Investment Position enjoyed a higher net asset of RM157.1 billion. Malaysia’s international reserves stood at RM538.9 billion.
— Bernama
