(AFP) Malaysia's trade surplus in October fell 22.8 percent from a year earlier as the worsening world economy drove down exports by 12.7 percent, government statistics showed today.

It was the 48th consecutive month since November 1997 that Malaysia had registered a surplus, but the figure was down to RM4.4 billion from RM5.7 billion a year earlier.

The statistics department said a lower surplus was posted after exports fell 12.7 percent year-on-year to RM28.8 billion compared to a 10.5-percent decline in imports to RM24.4 billion.

Exports of electrical and electronics products remained the largest revenue earner, accounting for 58.2 percent of total exports, while imports of intermediate and capital goods, which account for 86.3 percent of the total, fell 13.1 percent.

For the 10 months to October, the trade surplus fell to RM45.3 billion from RM50.1 billion in the same period last year.

Exports and imports each fell 9.8 percent year-on-year to RM279.9 billion and RM234.6 billion over the 10 months.

Decline predicted

Exports of electrical and electronic products fell 13.2 percent, while imports of intermediate goods and capital goods declined 13.1 percent and 0.8 percent but consumption goods imports rose 1.1 percent.

Almost 21 percent of Malaysia's exports go to the United States and economists have predicted that trade will decline further due to the effects of the Sept 11 terror attacks.

Malaysia last plunged into recession in 1998 amid the Asian financial crisis, but it rebounded the following year and recorded a heady 8.5 percent growth last year.

The government in October cut its growth forecast for this year for a second time, to between 1.0-2.0 percent, and has imposed a range of fiscal measures to boost consumer spending.