KUALA LUMPUR, Feb 5: Malaysia’s trade surplus fell 5.9 per cent last year to 50.9 billion ringgit (13.4 billion dollars) as the growth of imports outstripped rising exports, the government said.

The Ministry of International Trade and Industry (MITI) said exports increased six per cent to 354.4 billion ringgit while imports rose by 8.3 per cent to 303.5 billion ringgit.

Exports of most products rose in 2002, with electrical and electronic products accounting for 197.9 billion ringgit or 55.8 per cent of the total, it said.

Economists attributed the rise in imports to inventory build-up ahead of an expected improvement in demand in 2003.

“Imports were expected to grow faster than exports last year due to inventory build-up in anticipation of an economic recovery in 2003,” OSK Research economist Lee Soo Kai said.

“With the likelihood of war, exports to the US may slow down. Malaysia’s GDP is likely to be driven by its strong intra-regional trade,” he said.

An economist from Mayban Securities has projected 2003 GDP to grow 5.4 per cent, with the trade surplus expected to rise to 55.4 billion ringgit.

Palm oil exports rose 46.3 per cent to 17.2 billion ringgit, accounting for 4.9 per cent of total exports. Chemical shipments expanded by 17.1 per cent and crude petroleum by 3.7 per cent.

Liquefied natural gas exports, however, declined by 8.2 per cent to 11.4 billion ringgit, while textiles and clothing fell 5.2 per cent to 8.4 billion ringgit and refined petroleum products exports were down 10.7 per cent at 6.8 billion.

The Association of Southeast Asian Nations (ASEAN) remained Malaysia’s largest export market in 2002, absorbing 92.3 billion ringgit or 26 per cent of the country’s total exports.

Exports to the United States rose 5.7 per cent to 71.5 billion ringgit, while shipments to China were up 36 per cent at 20 billion ringgit and Hong Kong was up 30.4 per cent at 20.1 billion ringgit.

MITI said exports to Japan declined 10.4 per cent to 39.8 billion ringgit and shipments to the European Union decreased by 3.3 per cent to 43.9 billion ringgit.—AFP