Malaysia’s Terms of Trade Strengthen 1.2% in March, Stocks Jump 0.82%

Key Moments:

Terms of Trade and Unit Value Indices See Positive Movement

March saw Malaysia’s terms of trade expand by 1.2% month-over-month to reach 119.5 points, according to data released on Monday by the Department of Statistics Malaysia. Compared with the same month a year earlier, the terms of trade improved by 3.8% from 2024’s 115.2 points.

The export unit value index advanced 0.2% in March compared to February, supported by higher values in mineral fuels, animal and vegetable oils and fats, and chemicals. The machinery and transport equipment index’s rise of 0.8% also played a key role in the improved figures. In addition, the export volume index also registered gains, jumping 15.9% month-over-month

Trade Volumes Decline Despite Price Gains

Malaysia’s import unit value index fell by 0.9% month-over-month in March. This decline was attributed to a contraction in the mineral fuels sector, as its index declined by 2.7%. Figures tied to machinery and transport dropped by 0.5% as well. In contrast, the import volume index witnessed an increase of 7.6%.

Bursa Malaysia Index Edges 0.82% Upwards

The Malaysian stock market responded positively to the data. Following the encouraging disclosure from the Department of Statistics, the country’s FTSE Bursa Malaysia KLCI Index registered a climb of 0.82%.

Trade Surplus Climbs

Today’s figures follow data released last week, according to which the country recorded a trade surplus of 24.7 billion ringgit ($5.65 billion) in March, a notable YoY increase of 94%. Meanwhile, total trade climbed 2.2% year-over-year, reaching 249.9 billion ringgit ($57 billion).