Malaysia's August trade surplus surged 38.7 percent from July but only as a result of imports falling more sharply than exports, government statistics showed today.

The August surplus rose to RM6.14 billion from RM4.42 billion in July, marking the 70th consecutive monthly trade surplus since November 1997, the International Trade and Industry Ministry said in a statement.

Exports in August, however, fell 1.9 percent to RM30.13 billion from RM30.72 billion in July while imports declined 8.7 percent to RM24.00 billion from RM26.29 billion, the ministry said.

The lower export value for August was mainly attributed to declines in demand for electrical and electronic products, palm oil and crude petroleum.

However, increases were registered in exports of other products, namely machinery appliances and parts, iron and steel, wood products and refined petroleum products.

For the eight months to August, the trade surplus rose 49.8 percent year-on-year to RM47.36 billion, with total exports rising 4.4 percent to RM241.71 billion and imports declining 2.7 percent to RM194.35, the ministry said.

Largest export market

Countries in the Association of Southeast Asian Nations (Asean) remained Malaysia's largest export market in August, absorbing 25.7 percent or RM7.73 billion of total exports, a decline of 3.2 percent from July.

Exports to the United States fell 1.5 percent to RM4.94 billion in August after declining for the previous four consecutive months.

Exports to Hong Kong declined 24 percent and to the Middle East by 5.3 percent but shipments to the European Union increased by 6.3 percent and to China by 7.2 percent.

The decline in exports to the US was attributed mainly to the fact that there were no shipments of crude petroleum to the US in August compared to RM236 million in July.

Lower exports of electrical and electronic products, optical and scientific equipment, transport equipment and rubber products also contributed to the decline. - AFP