Malaysia’s current account surplus widens in Q3 on higher goods account surplus

In the third quarter of this year, Malaysian current account surplus widened from the previous quarter. According to the Department of Statistics Malaysia, the current account balance came in at MYR 6 billion, an increase from MYR 1.9 billion in the June quarter.

Increased surplus on goods account and a lower deficit on secondary income account mainly led to the widening of the current account surplus. Goods account surplus rose to MYR 26.5 billion from MYR 19.8 billion, whereas secondary income account deficit narrowed to MYR 4.6 billion from MYR 5.1 billion.

In the meantime, financial account recorded a net outflow of MYR 6.3 billion. Also, the international reserves of the central bank rose by MYR 14.6 billion in the September quarter, as compared with the rise of MYR 8.8 billion in the second quarter.

A turnaround in the net outflow was mainly because of a reversal of portfolio investment to net outflow of MYR 10.6 billion. Direct Investment Abroad recorded a net outflow of MYR 3.6 billion, whereas Foreign Direct Investment in Malaysia registered a net inflow of MYR 6.5 billion.