Malaysia’s Gross Domestic Product (GDP) was an estimated US$222.2 billion in 2008, making Malaysia the world’s 39th richest country.
With a population of 25.7 million Malaysians who enjoyed an average GDP of $15,200 per person last year, Malaysia placed 74th among other nations in terms of GDP per capita.
As the world’s 21st biggest exporting nation, Malaysia shipped $198.9 billion worth of exports in 2008. Malaysian exports include electronic equipment, petroleum, liquefied natural gas, wood, rubber and textiles. Based on 2008 statistics, Malaysia’s largest export clients were Singapore (15.6%), the United States (12.9%), China (12.5%), Japan (9.6%) and Thailand (4.1%).
According to the CIA World Factbook, Malaysia imported $154.7 billion worth of foreign goods last year. Major commodities imported into Malaysia include machinery, petroleum products, plastics, vehicles, iron and steel products and chemicals. Leading suppliers to Malaysia were Singapore (23%), China (12.7%), Japan (9.8%), the United States (7.8%), Thailand (5.7%) and South Korea (4.3%).
In total, Malaysia’s international trade amounted to $353.6 billion or 159.1% in relation to its overall GDP. This compares with roughly 25% for the U.S. and 60% for Canada.
Malaysian Trade with the U.S.
Last year, Malaysian exports to America fell 5.8% to $30.7 billion. Over that same period, Malaysia bought $12.9 billion worth of U.S. imports – an increase of 10.9%.
After subtracting imports from exports, one can quickly calculate Malaysia’s trade surplus with the U.S. to equal a healthy $17.8 billion in 2008.
The lists below present the top 10 exports and imports that American and Malaysian enterprises exchanged in 2008. The fastest-growing trade product categories are also listed.
Malaysia’s Top Exports to America
Malaysia’s top 3 exports were hi-tech products that represented 51.8% of Malaysian exports to the U.S. last year. In total, the following 10 Malaysian exports generated 77.1% of the total value of shipments from Malaysia to America in 2008.
- Computers … US$6.7 billion, down 17.2% from 2007 (21.9% of US imports from Malaysia)
- Computer accessories and parts … $4.8 billion, down 14.4% (15.6%)
- Telecommunications equipment … $4.4 billion, down 1.2% (14.3%)
- Semiconductors … $2.9 billion, up 2% (9.6%)
- Food oils and oilseeds … $1.2 billion, up 76.7% (3.9%)
- Other household goods including clocks … $964.8 million, down 21.8% (3.1%)
- Other scientific, medical and hospital equipment … $899.5 million, up 19.4% (2.9%)
- Household items including baskets and furniture … $710.5 million, down 8.2% (2.3%)
- Stereo equipment including radios … $566.1 million, down 6.3% (1.8%)
- Video equipment (DVD players, VCRs, TV receivers) … $516.6 million, up 12.3% (1.7%).
Fastest-Growing Malaysian Exports to the U.S.
Malaysian exported tin had the most dramatic increase in sales to the U.S., while 7 other product categories showed impressive triple-digit gains.
- Tin … US$34.9 million, up 1,881% from 2007
- Oilfield and drilling equipment … $14.1 million, up 990.4%
- Feedstuff and food grains … $21.2 million, up 183.3%
- Crude oil… $63.2 million, up 169.8%
- Synthetics (cork, gums, resins, rubber, wood)… $6.8 million, up 162.4%
- Vegetables and preparations … $6.4 million, up 153.4%
- Paper and paper products … $9.7 million, up 137%
- Miscellaneous non-ferrous metals … $12.6 million, up 121.6%
- Agricultural machinery and equipment … $2.7 million, up 91.4%
- Fertilizers and pesticides … $43.2 million, up 87.1%.
Malaysia’s Top Imports from America
Semiconductors, steelmaking and plastic materials illustrate the fact that many of America’s exports to Malaysia are source inputs for Malaysian manufacturers. The following top 10 exports from America to Malaysia accounted for 74.6% of Malaysia overall imports from the U.S.
- Semiconductors … US$6.1 billion, up 21.7% from 2007 (47.3% of US exports to Malaysia)
- Computer accessories … $586.7 million, up 7.4% (4.5%)
- Steelmaking materials … $525.6 million, up 45.4% (4.1%)
- Other industrial machines … $421.8 million, down 20.3% (3.3%)
- Electric apparatus … $421 million, down 8.5% (3.3%)
- Telecommunications equipment… $416.7 million, down 13.2% (3.2%)
- Measuring, testing and control instruments … $369.8 million, up 29.9% (2.9%)
- Civilian aircraft… $346.8 million, down 31.6% (2.7%)
- Generators and accessories … $245.5 million, up 98.6% (1.9%)
- Plastic materials … $163.5 million, up 5.7% (1.3%).
Fastest-Growing Malaysian Imports from the U.S.
The top 10 list of Malaysian growth imports were for relatively small dollar amounts. Three of these import categories were up by triple-digits while the remaining 7 product categories had double-digit gains.
- Artillery, guns, missiles and tanks … US$28.6 million, up 653.1% from 2007
- Food oils and oilseeds … $8.4 million, up 553.9%
- Other iron and steel products … $27.3 million, up 111.7%
- Generators and accessories … $245.5 million, up 98.6%
- Chemical fertilizers… $22 million, up 97.3%
- Marine engines and parts … $34.1 million, up 84.7%
- Trucks, buses and special purpose vehicles … $2.3 million, up 79.3%
- Textile and sewing machines … $6.3 million, up 69.2%
- Unmanufactured agriculture industry products … $27.1 million, up 67.4%
- Unmanufactured tobacco … $20.9 million, up 66%.
Comparative Trade Advantages
During 2008, Malaysia exported $11.5 billion worth of computers and accessories to the U.S. while importing $715 million of those same product categories from America.
These Malaysian-American trade statistics show that Malaysia has a comparative advantage over the U.S. in the trade of computers and accessories between the 2 nations.
On the other hand, America exported $6.1 billion worth of corn to Malaysia in 2008 compared with $2.9 billion in Malaysian semiconductors imported into the U.S.
That the U.S. shipped to Malaysia over twice the value of imported Malaysian semiconductors clearly shows that America has a comparative advantage in trading semiconductors with Malaysia.
Sources
This analysis is based on latest statistics from the US Census Bureau- Foreign Trade Statistics and CIA World Factbook as of the date of article publication.
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