Latest news with #RM38.5
The Sun
2 days ago
- Business
- The Sun
Data centre investments expected to boost Malaysia's export capacity: BNM governor
KUALA LUMPUR: Ongoing investments in data centres are expected to boost Malaysia's export capacity from the second half of 2025, despite a temporary increase in imports, said Bank Negara Malaysia (BNM) governor Datuk Seri Abdul Rasheed Ghaffour. He explained that the spike in imports is mainly due to the building and upgrading of data centres. 'Our workforce and machinery are strong, which is positive. We are increasing our productivity and export capacity for the future,' he said at a press conference today on Malaysia's second-quarter economic performance. Some data centres have already begun serving overseas clients, an encouraging early sign. 'While the benefits might be modest now, these investments will pay off by boosting Malaysia's ability to earn from exports in the future, especially in the second half of the year and beyond,' he added. BNM reported that Malaysia's economy grew 4.4% year‑on‑year in Q2 2025, matching the performance of the first quarter and slightly below the 4.5% forecast. On a seasonally adjusted quarter-to-quarter basis, growth was 2.1%, up from 0.7% in the first quarter. The central bank has revised its full-year GDP growth outlook to 4.0%–4.8%, down from the earlier 4.5%–5.5% range, citing global trade uncertainties. BNM cut interest rates in July for the first time in five years to forestall economic headwinds. Inflation has remained tame, with consumer prices in June rising just 1.1% year‑on‑year, the slowest pace in over four years. Abdul Rasheed noted that while exports faced challenges, including a 19% US tariff on Malaysian goods introduced earlier this month and a potential 100% tariff on semiconductors, there are still sources of strength. Rising global demand for electrical and electronic goods, along with a rebound in tourist arrivals, is expected to support exports moving forward. Meanwhile, Malaysia's current account surplus narrowed sharply in Q2 to RM16.7 billion (0.1% of GDP) from RM38.5 billion (3.4% of GDP) in Q1. The drop was mainly due to planned maintenance at oil and gas facilities, which pushed exports lower. Oil and gas exports fell to RM16 billion, down from RM20 billion, while LNG exports were worth over RM5 billion. LNG exports rose 4.3% from May to June, as most maintenance work was completed. This should help lift the current account balance in the second half, with the full-year surplus still expected to land within the 1.5%–2.5% of GDP range. Foreign direct investment also cooled significantly, with net inflows in Q2 falling to RM1.6 billion from RM15.6 billion in Q1. While fresh equity injections totalled RM8.6 billion and debt instrument inflows added RM5 billion, these were more than offset by RM12 billion in reinvested earnings outflows as multinational corporations repatriated profits.
The Star
16-05-2025
- Business
- The Star
Malaysia posts RM16.7bil surplus in current account balance in 1Q 2025
KUALA LUMPUR: Malaysia's current account balance (CAB) recorded a RM16.7 billion surplus in the first quarter of 2025 (1Q 2025), equivalent to 3.4 per cent of the gross domestic product (GDP), supported by net exports of goods and a smaller deficit in the secondary income account, said Statistics Department Malaysia (DOSM). In a statement, chief statistician Datuk Seri Mohd Uzir Mahidin said the improvement was driven by net exports of goods, which amounted to RM38.5 billion. "Exports of goods reached RM283.2 billion, a 4.0 per cent decrease compared to the previous quarter. Malaysia's leading export items include electrical and electronics; petroleum products; and machinery, equipment and parts, with Singapore, the United States (US) and China being the top trading partners," he said. Mohd Uzir said imports of goods declined by 5.2 per cent quarter-on-quarter to RM244.7 billion, primarily reflecting lower imports of intermediate goods, capital goods and consumption goods, with key sources of imports being China, Singapore and Taiwan. DOSM said the higher CAB was due to a smaller deficit in the secondary income account of RM1.2 billion in 1Q 2025 against RM5.9 billion in the preceding quarter, driven by higher settlement receipts from abroad. DOSM said the financial account registered a RM20.3 billion net outflow versus RM9.3 billion in the last quarter, driven by a significant increase in portfolio investment. There was a RM48.3 billion net outflow compared with RM42.0 billion in the previous quarter, contributed by resident subscription of foreign equity securities. According to DOSM, foreign direct investment recorded a net inflow of RM15.6 billion in 1Q 2025 against RM18.7 billion in 4Q 2024 due to lower investment in debt instruments. It said FDI inflows were mostly channelled to the services sector, largely within financial activities and information and communication subsectors related to data centre activities; major FDI investors were from Singapore, Hong Kong and Germany. At the same time, direct investment abroad (DIA) registered a lower RM3.5 billion net outflow versus RM5.2 billion in 4Q 2024. "The outflows were principally in the form of equity and investment fund shares, mainly directed towards the services sector, with the majority concentrated in financial activities. Indonesia, Brunei and Thailand were DIA main destinations during the quarter,' DOSM said. At the end of 1Q 2025, its international investment position amounted to RM37.8 billion in net assets, and its international reserves at RM520.7 billion as at end-March 2025. - Bernama
The Sun
16-05-2025
- Business
- The Sun
Malaysia posts RM16.7b surplus in current account balance in 1Q 2025
KUALA LUMPUR: Malaysia's current account balance (CAB) recorded a RM16.7 billion surplus in the first quarter of 2025 (1Q 2025), equivalent to 3.4 per cent of the gross domestic product (GDP), supported by net exports of goods and a smaller deficit in the secondary income account, said Statistics Department Malaysia (DOSM). In a statement, chief statistician Datuk Seri Mohd Uzir Mahidin said the improvement was driven by net exports of goods, which amounted to RM38.5 billion. 'Exports of goods reached RM283.2 billion, a 4.0 per cent decrease compared to the previous quarter. Malaysia's leading export items include electrical and electronics; petroleum products; and machinery, equipment and parts, with Singapore, the United States (US) and China being the top trading partners,' he said. Mohd Uzir said imports of goods declined by 5.2 per cent quarter-on-quarter to RM244.7 billion, primarily reflecting lower imports of intermediate goods, capital goods and consumption goods, with key sources of imports being China, Singapore and Taiwan. DOSM said the higher CAB was due to a smaller deficit in the secondary income account of RM1.2 billion in 1Q 2025 against RM5.9 billion in the preceding quarter, driven by higher settlement receipts from abroad. DOSM said the financial account registered a RM20.3 billion net outflow versus RM9.3 billion in the last quarter, driven by a significant increase in portfolio investment. There was a RM48.3 billion net outflow compared with RM42.0 billion in the previous quarter, contributed by resident subscription of foreign equity securities. According to DOSM, foreign direct investment recorded a net inflow of RM15.6 billion in 1Q 2025 against RM18.7 billion in 4Q 2024 due to lower investment in debt instruments. It said FDI inflows were mostly channelled to the services sector, largely within financial activities and information and communication subsectors related to data centre activities; major FDI investors were from Singapore, Hong Kong and Germany. At the same time, direct investment abroad (DIA) registered a lower RM3.5 billion net outflow versus RM5.2 billion in 4Q 2024. 'The outflows were principally in the form of equity and investment fund shares, mainly directed towards the services sector, with the majority concentrated in financial activities. Indonesia, Brunei and Thailand were DIA main destinations during the quarter,' DOSM said. At the end of 1Q 2025, its international investment position amounted to RM37.8 billion in net assets, and its international reserves at RM520.7 billion as at end-March 2025.
The Sun
16-05-2025
- Business
- The Sun
Malaysia posts RM16.7b surplus in current account balance
KUALA LUMPUR: Malaysia's current account balance (CAB) recorded a RM16.7 billion surplus in the first quarter of 2025 (1Q 2025), equivalent to 3.4 per cent of the gross domestic product (GDP), supported by net exports of goods and a smaller deficit in the secondary income account, said Statistics Department Malaysia (DOSM). In a statement, chief statistician Datuk Seri Mohd Uzir Mahidin said the improvement was driven by net exports of goods, which amounted to RM38.5 billion. 'Exports of goods reached RM283.2 billion, a 4.0 per cent decrease compared to the previous quarter. Malaysia's leading export items include electrical and electronics; petroleum products; and machinery, equipment and parts, with Singapore, the United States (US) and China being the top trading partners,' he said. Mohd Uzir said imports of goods declined by 5.2 per cent quarter-on-quarter to RM244.7 billion, primarily reflecting lower imports of intermediate goods, capital goods and consumption goods, with key sources of imports being China, Singapore and Taiwan. DOSM said the higher CAB was due to a smaller deficit in the secondary income account of RM1.2 billion in 1Q 2025 against RM5.9 billion in the preceding quarter, driven by higher settlement receipts from abroad. DOSM said the financial account registered a RM20.3 billion net outflow versus RM9.3 billion in the last quarter, driven by a significant increase in portfolio investment. There was a RM48.3 billion net outflow compared with RM42.0 billion in the previous quarter, contributed by resident subscription of foreign equity securities. According to DOSM, foreign direct investment recorded a net inflow of RM15.6 billion in 1Q 2025 against RM18.7 billion in 4Q 2024 due to lower investment in debt instruments. It said FDI inflows were mostly channelled to the services sector, largely within financial activities and information and communication subsectors related to data centre activities; major FDI investors were from Singapore, Hong Kong and Germany. At the same time, direct investment abroad (DIA) registered a lower RM3.5 billion net outflow versus RM5.2 billion in 4Q 2024. 'The outflows were principally in the form of equity and investment fund shares, mainly directed towards the services sector, with the majority concentrated in financial activities. Indonesia, Brunei and Thailand were DIA main destinations during the quarter,' DOSM said. At the end of 1Q 2025, its international investment position amounted to RM37.8 billion in net assets, and its international reserves at RM520.7 billion as at end-March 2025.
