In the second quarter of this year, Malaysia’s Current Account Balance (CAB) continued to record a surplus of RM7.6 billion despite the global economic uncertainties and continuous spread of COVID-19. The surplus in CAB was mainly contributed by net exports in Goods of RM25.9 billion and a lower deficit in Secondary Income at RM1.9 billion. Imports of goods dropped at a faster pace as compared to the decline in exports resulting in a favourable performance of overall Goods account. In addition, Secondary Income reached the lowest deficit as the number of foreign workers declined in this quarter that led to lesser money sent abroad.
Meanwhile, Financial account continued to register a net outflow of RM19.8 billion in the second quarter this year. The predominant contributor was Other investment with net outflow of RM41.3 billion from net inflow of RM22.1 billion in the first quarter of 2020. This reflected mainly on net interbank lending abroad by the domestic financial sector.
Foreign Direct Investment (FDI) slowed down to RM2.2 billion from RM6.4 billion in the previous quarter attributed to lower investment in Manufacturing sector. The FDI in this quarter was primarily from Netherlands, the British Virgin Islands and Singapore in Mining and quarrying, Financial and Utilities. On the other hand, Direct Investment Abroad (DIA) expanded to RM3.5 billion and the main destinations were Indonesia, Canada and United Kingdom, channelled to Financial, Manufacturing and Information and communication.
The international reserves stood at RM443.0 billion as compared to RM440.0 billion in the preceding quarter.
Download: Summary Table of Balance of Payments, Q2 2020 Quarterly Bulletin FDI and DIA, Q2 2020
DATO' SRI DR. MOHD UZIR MAHIDIN
CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS, MALAYSIA
14 August 2020
Mohd Yusrizal Ab Razak
Public Relation Officer
Strategic Communication and International Division
Department of Statistics, Malaysia
Tel : +603-8885 7942
Fax : +603-8888 9248
E-mail : yusrizal.razak[at]dosm.gov.my