This report is focused on the analysis of Malaysia’s balance of payment for last six quarters (from Q3/2011 to Q3/2012). It will show the impact of balance of payment to economy or the financial crisis. The last part of this report will involve the summary and the forecast the Malaysia’s balance of payment in the future. Third quarter of 2011
Current account: the current account balance recorded a surplus of RM26.6 billion, an increase of RM3.2 billion (13.8 percent). This higher surplus was attributed to: the lower net payments on income of RM3.8 billion higher surplus on goods of RM38.2 billion. Goods Account: the surplus on goods increased to RM38.2 billion by Exports FOB expanded by RM5.0 billion to record RM176.7 billion. The demands for exports FOB was mainly contributed by electrical & electronic products, palm oil & palm oil based products and liquefied natural gas (LNG). Moreover, Imports FOB posted RM138.5 billion, an increase of RM3.1 billion (2.3 percent). This was attributed to higher value of imports Services Account: Exports of services registered RM26.6 billion. Meanwhile, imports of services posted RM29.0 billion. On net basis, the services account experienced higher deficit of RM2.4 billion from RM0.7 billion previously. This was mainly due to: 1. lower net receipts in travel account of RM5.5 billion from RM6.7 billion; and 2. higher net payments in transportation account of RM6.7 billion from RM6.3 billion.
Income Account: income receipts recorded RM13.9 billion from RM11.2 billion previously, of which investment income recorded RM13.0 billion and compensation of employees RM0.9 billion. On the payments side, income account registered RM17.8 billion from RM18.0 billion, of which investment income recorded RM16.3 billion and compensation of employees RM1.4 billion. So there was more investment in Malaysia. Current Transfers: Net payments on current transfers remained unchanged.
Capital account: In the current quarter of 2011, the capital account recorded a higher net outflow of RM58.0 million from that of RM26.0 million posted last quarter. Year-on-year, net outflow of capital account narrowed from RM63.0 million. Cumulatively, the capital account recorded lower net outflow of RM97.0 million from RM166.0 million in the first nine months of 2010.
Financial account: The financial account reverted to net outflow of RM23.3 billion from net inflow of RM44.5 billion previously. This was mainly due to a swing in portfolio investment from net inflow of RM48.1 billion to net outflow of RM23.4 billion. Direct Investment: direct investment posted net outflow of RM7.7 billion, consisting of DIA: higher net outflow of RM12.9 billion. The major sectors attributed to DIA were financial & insurance, oil & gas, and construction. FDI: lower net inflow of RM5.2 billion. FDI inflows were primarily channeled into manufacturing, oil & gas, and wholesale & retail trade sectors. Portfolio Investment: Portfolio investment reverted to net outflow of RM23.4 billion from net inflow of RM48.1 billion previously. Year-on-year, portfolio investment also showed a turnaround from net inflow of RM18.3 billion a year ago. Reserve assets: The international reserves Bank Negara Malaysia increased by RM10.9 billion in the current quarter as compared to an increase of RM61.7 billion in Q2 2011.
Fourth quarter of 2011
Current account: the current account recorded a surplus of RM22.0 billion, a decrease of RM4.6 billion. The lower surplus was reflected in: higher net payments on income of RM5.6 billion, higher net payments on services of RM4.0 billion, and lower surplus on goods of RM36.9 billion. Goods Account: goods registered a lower surplus amounting to RM36.9 billion from RM38.2 billion a quarter ago. This was attributed to the higher imports FOB. The demand for exports FOB was mainly associated to electrical & electronic...