Current Account Surplus Widens In 3Q Amid Larger Merchandise Surplus

Economic Research	14 November 2016
Malaysia
Economic Highlights
Current Account Surplus Widens In 3Q Amid Larger Merchandise Surplus The current account surplus in the balance of payments widened to MYR6.0bn in 3Q 2016, from a surplus of MYR1.9bn in 2Q. This was attributed to a larger merchandise trade surplus and a smaller deficit in current transfers.   Overall, the current account surplus is expected to improve to MYR20.2bn or 1.6% of GDP in 2017, from an estimate of MYR15.9bn or 1.3% of GDP this year. Meanwhile, the financial account registered an outflow of MYR6.3bn in 3Q, a reversal from an inflow of MYR9.5bn in the previous quarter, due to a reversal of portfolio investments into an outflow and lower inflows in the direct and other investment account. Errors & omissions registered a reversal into an inflow of MYR14.9bn during the quarter, from an outflow of MYR2.7bn in 2Q, partly attributed to a revaluation gain from the country’s foreign exchange reserves. As a whole, the overall balance of payments recorded a surplus of MYR14.6bn in 3Q, which widened from a surplus of MYR8.8bn in 2Q. Economist:  Vincent Loo Yeong Hong  | +603 9280 2172 Economist: Aris Nazman Maslan | +603 9280 2184
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