(RTTNews) - Malaysia’s exports continued to decline for the second straight month in November as the global economic slowdown reduced demand from overseas.

A report from the Department of Statistics showed Wednesday that exports fell 4.9% year-on-year to 51.79 billion ringgits. Economists had expected a 5.7% fall in exports. In October, exports fell 2.6%.

On a month-on-month basis, exports declined 3.1% in November.

According to the statistical office, the year-on-year decline in total exports was mainly due to a fall in exports of electrical and electronic products, refined petroleum products, palm oil, chemicals and chemical products, crude rubber as well as iron and steel products.

Singapore, Japan, the United States of America, the People’s Republic of China and the Republic of Korea were the top five export destinations, accounting for 52.3% of Malaysia’s total exports in November 2008. Exports to Japan surged up by 40.9% to 7.02 billion ringgits. The increase was the result of higher exports of liquefied natural gas. Shipments to the USA totaled 6.3 billion ringgits, down from 7.61 billion ringgits recorded in the previous year. The decline was due mainly to a drop in exports of electronics and electrical products.

ASEAN accounted for 12.8 billion ringgits or 24.7% of total exports. This represented a 12.3% drop from November 2007, with the decline due to lower exports of refined petroleum products, iron and steel products as well as chemicals and chemical products.

Slowing overseas demand impacted Malaysia’s economic growth that slowed to 4.7% in the third quarter from 6.7% in the second quarter.

Imports dropped 8.6% to 40.29 billion ringgits in November, quicker than the expected decline of 5% and the 5.3% fall recorded in October. Compared to October, imports were down 8.1%.

However, the country managed to record a trade surplus of 11.49 billion ringgits in November 2008, making it the 133rd consecutive month of trade surplus since November 1997. Total trade amounted to 92.08 billion ringgits, a decrease of 6.5% from a year ago.

During the first eleven months of the year, total trade reached 1.105 trillion ringgits, an increase of 9.2% from the corresponding period of 2007. In the same period, exports rose 12.1% to 617.42 billion ringgits, an increase of 12.1%, while imports were 487.1 billion ringgits, an increase of 5.9% from the same period of 2007. This resulted in a trade surplus of 130.33 billion ringgits.

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