Malaysia's trade surplus shrank 29 percent in September compared to August as exports slipped on slower demand for electrical and electronic products, government statistics showed today.

The September surplus of RM4.44 billion compared with a RM6.29 billion surplus in August but still marked the 71 consecutive monthly trade surplus since November 1997, the trade ministry said in a statement.

Exports in September dipped 0.8 percent to RM30.72 billion from RM30.13 billion in August while imports increased 6.7 percent to RM25.45 billion, the ministry said.

The lower export value for September was mainly attributed to declines in electrical and electronic products, refined petroleum products, textiles and clothing, and optical and scientific equipment.

However, increases were registered in exports of other major products, namely palm oil, crude petroleum and chemicals and chemical products.

For the nine months to September, the trade surplus rose nearly 43 percent year-on-year to RM51.89 billion, with total exports rising 3.4 percent to RM271.54 billion and imports declining 2.9 percent to 219.65 billion, the ministry said.

Largest market

The Association of Southeast Asian Nations (Asean), the United States, the European Union (EU), Japan, China and Hong Kong were top markets in September, accounting for 78 percent to Malaysia's total exports, it said.

Asean remained the single largest export market, absorbing 27 percent or RM8.19 billion of total exports, up 5.9 percent over August. Shipments to the US, which accounted for 15 percent of total exports, fell eight percent to RM4.54 billion.

Exports to China declined sharply by 18 percent in September to RM1.75 billion, reversing an uptrend in the past two months due to lower exports of palm oil and other products.

The ministry said the increase in imports for September was due to higher demand for intermediate goods. Electrical and electronic products accounted for nearly half of total imports. Major sources of imports were Asean, Japan, US, EU and China. - AFP