QUARTERLY BALANCE OF PAYMENTS PERFORMANCE JANUARY - MARCH, 2013 (Updated: 15/05/2013)

INTRODUCTION

Starting first quarter 2013, DOSM commenced the implementation of the latest international statistical standards as set forth in the Balance of Payments Manual Sixth Edition (BPM6), 2009 by International Monetary Fund (IMF). Previously the compilations were based on Balance of Payments Manual Fifth Edition (BPM5), 1993 published by the same organization. The back series data from first quarter 2005 are also published based on BPM6.

The current adoption of BPM6 mainly involves reclassifications and refinements to existing data items. The main reclassifications and publication format between BPM5 and BPM6 are shown in Appendix I and Appendix II, respectively. For the purpose of facilitating the users, direct investment data are presented on both assets & liabilities (as per BPM6) and directional basis (as per BPM5).

CURRENT ACCOUNT

In the period January - March 2013, current account recorded lower surplus RM8.7 billion from RM22.9 billion last quarter. This was mainly attributed to:

• Goods account
  A lower surplus of RM24.7 billion (Q4 2012: RM34.3 billion); and

• Primary income account
  A higher net outflow of RM8.8 billion (Q4 2012: -RM5.6 billion).

Year-on-year, the surplus on current account reduced by RM8.2 billion to RM8.7 billion from RM16.9 billion posted in the same period last year. This was mainly due to lower surplus on goods account by RM11.3 billion from RM36.0 billion last year.

Goods Account

In the quarter ending March 2013, goods registered lower surplus of RM24.7 billion from RM34.3 billion last quarter. This was due to lower value in exports f.o.b. and higher value in imports f.o.b.

• Exports f.o.b. reduced by RM7.3 billion to RM169.4 billion (Q4 2012: RM176.7 billion). This was attributed to slow down in demands for electrical & electronic products and palm oil & palm oil based products compared to last quarter. The top three exports destinations were Singapore, Japan, and The People’s Republic of China.

• Imports f.o.b. increased by RM2.4 billion to RM144.8 billion (Q4 2012: RM142.4 billion). This was due to higher demands for imports by end-use for intermediate goods. The top three imports sources were The People’s Republic of China, Singapore, and Japan.

Year-on-year, goods account recorded lower surplus by RM11.3 billion from RM36.0 billion a year ago. This was due to increase in imports f.o.b. larger than the decreased of exports f.o.b. where imports f.o.b. increased to RM144.8 billion (Q1 2012: RM138.1 billion) and exports f.o.b. recorded RM169.4 billion (Q1 2012: RM174.1 billion).

Services Account

In Q1 2013, exports of services registered RM29.8 billion from RM31.6 billion in Q4 2012, mainly consisting of the following components:

• travel of RM16.1 billion (Q4 2012: RM17.1 billion);
• other business services of RM6.2 billion (Q4 2012: RM6.5 billion);
• transport of RM3.3 billion (Q4 2012: RM3.5 billion); and
• telecommunications, computer, and information services of RM2.1 billion (Q4 2012: RM2.3 billion).

Meanwhile, imports of services decreased by RM0.6 billion to RM33.2 billion from RM33.8 billion a quarter ago, of which:

• transport of RM10.2 billion (Q4 2012: RM10.2 billion);
• travel of RM9.2 billion (Q4 2012: RM9.5 billion);
• other business services of RM7.1 billion (Q4 2012: RM6.7 billion); and
• telecommunications, computer, and information services of RM2.2 billion (Q4 2012: RM2.4 billion).

On net basis, services account recorded higher net payments of RM3.4 billion (Q4 2012: -RM2.2 billion).

Year-on-year, exports of services recorded higher receipts by RM3.1 billion (11.5 per cent) from RM26.8 billion in the same period last year. Meanwhile, imports recorded higher payments by RM1.4 billion (4.4 per cent) from RM31.8 billion.

Primary Income Account

In the current quarter, primary income receipts (credit) registered RM9.9 billion from RM12.2 billion in Q4 2012, of which:

• compensation of employees of RM1.0 billion (Q4 2012: RM1.1 billion); and
• investment income of RM8.8 billion (Q4 2012: RM11.1 billion).

The investment income receipts derived from:

• direct investment of RM3.8 billion (Q4 2012: RM5.6 billion), mainly generated from oil & gas, financial & insurance, and entertainment & recreation sectors;
• portfolio investment of RM0.4 billion (Q4 2012: RM1.2 billion); and
• other investment of RM4.7 billion (Q4 2012: RM4.3 billion).

• compensation of employees of RM2.0 billion (Q4 2012: RM1.9 billion); and
• investment income of RM16.7 billion (Q4 2012: RM15.8 billion).

• direct investment of RM13.3 billion (Q4 2012: RM12.1 billion), mainly generated from manufacturing, oil & gas, and financial & insurance sectors;
• portfolio investment of RM3.0 billion (Q4 2012: RM3.0 billion); and
• other investment of RM0.4 billion (Q4 2012: RM0.7 billion).

On net basis, the primary income outlay widened by RM3.2 billion to RM8.8 billion from RM5.6 billion recorded in the preceding quarter, specifically due to higher net outlay on investment income of RM7.9 billion from RM4.7 billion.

Year-on-year, primary income receipts rose by RM0.1 billion (0.7 per cent) from RM9.8 billion, mainly due to higher direct investment income. In the meantime, primary income payments increased by RM0.2 billion (1.2 per cent) from RM18.5 billion last year. On net basis, primary income account recorded higher net payments by RM0.1 billion from RM8.7 billion a year ago.

Secondary Income

In the first three months of 2013, receipts on secondary income saw a decrease amounting to RM1.5 billion (Q4 2012: RM1.7 billion) whilst payments showed an increase of RM5.3 billion (Q4 2012: RM5.2 billion). Secondary income recorded higher net payments RM3.8 billion (Q4 2012: -RM3.5 billion).

Year-on-year, net payments on secondary income narrowed by RM1.5 billion or 28.5 per cent from RM5.4 billion in the same quarter of last year.

CAPITAL ACCOUNT

In Q1 2013, capital account reverted to net outflow of RM6.0 million from net inflow of RM372.0 million in Q4 2012. This was mainly due to higher net payments on capital transfers by RM6.0 million. Year-on-year, capital account showed lower net outflow by RM141.0 million (Q1 2012: -RM147.0 million).

FINANCIAL ACCOUNT

During January - March 2013, financial account recorded a turnaround to net inflow of RM1.0 billion from net outflow of RM10.3 billion posted in previous quarter. These changes were mainly attributed to:

• direct investment: lower net outflow of RM2.2 billion from RM18.4 billion; and
• other investment: lower net outflow of RM1.0 billion from RM2.3 billion.

Year-on-year, financial account switched to net inflow by RM11.2 billion from net outflow of RM10.3 billion a year ago. This was mainly due to:

• other investment: lower net outflow of RM1.0 billion from RM25.9 billion; and
• direct investment: lower net outflow of RM2.2 billion from RM9.5 billion.

Direct Investment

Direct investment registered a net outflow of RM2.2 billion from RM18.4 billion last quarter. The details breakdown of direct investment is presented on the following basis:

i. Direct investment on assets and liabilities basis:

• Assets : an outflow of RM11.5 billion (Q4 2012: -RM16.5 billion); and
• Liabilities : an inflow of RM9.4 billion (Q4 2012: -RM1.9 billion).

ii. Direct investment on directional basis:

• DIA: lower net outflow of RM11.3 billion (Q4 2012: -RM24.3 billion). The major sectors attributed to DIA were financial & insurance, entertainment & recreation, and manufacturing. The top three immediate investing countries were Isle of Man, United Kingdom, and Singapore.
• FDI in Malaysia: higher net inflow of RM9.1 billion (Q4 2012: RM5.9 billion). FDI inflows were primarily channelled into manufacturing, oil & gas, and financial & insurance sectors. The top three sources of FDI were Netherlands, Singapore, and Japan.

Year-on-year, direct investment registered a lower net outflow by RM7.3 billion from RM9.5 billion in Q1 2012. This was contributed by:

• DIA: lower net outflow by RM6.7 billion to RM11.3 billion (Q1 2012: RM18.0 billion); and
• FDI in Malaysia: higher net inflow by RM0.5 billion to RM9.1 billion (Q1 2012: RM8.6 billion).

Portfolio Investment

The portfolio investment registered lower net inflow of RM3.9 billion from RM10.4 billion previously, of which:

• Assets : an outflow of RM5.3 billion (Q4 2012: -RM4.1 billion); and
• Liabilities : an inflow of RM9.2 billion (Q4 2012: RM14.5 billion).

Year-on-year, portfolio investment registered lower net inflow from RM25.1 billion to RM3.9 billion.

Other Investment

In the current quarter, other investment posted a lower net outflow of RM1.0 billion from -RM2.3 billion. This was attributed to a smaller net outflow in the private sector to RM0.2 billion from RM1.7 billion.

While year-on-year, other investment posted lower net outflow by RM24.9 billion from -RM25.9 billion.

RESERVE ASSETS

The international reserves of Bank Negara Malaysia as at end March 2013 was RM431.2 billion, an increase of RM4.0 billion as compared to a quarter ago. 

Appendix I

Appendix II

Download :	Table 1: Quarterly Balance Of Payments (Net), 2010 - 2013
	Table 2: Current Account, 2010 - 2013
	Table 3: Capital Account, Financial Account And Reserve Assets, 2010 - 2013