JANUARY – AUGUST 2001

1. Balance of Trade

Sabah continued to register a favourable balance of trade during January – August 2001 with a surplus amounting to RM971.1 million. This surplus was however lower when compared to RM1,212.3 million for the same period last year, a decrease of RM240.6 million or 19.8 %. The lower surplus was attributed to the substantial slowing down in the exports of downstream wood based industries namely sawn timber (-RM266.0 million) and veneer sheets (-RM149.7million) while higher imports was registered in particular manufactured goods (+RM108.9 million) and food (+RM28.5 million) during the review period.

2. Exports

Sabah recorded export receipts amounting to RM8,389.6 million during January- August, this year as against RM8,528.8 million for the same period last year, a decline of RM139.2 million or 1.6 %. Sabah’s major export commodities during the current review period were crude petroleum, palm oil, plywood, sawn timber, palm kernel oil, methanol and uncoated printing and writing paper which together accounted for RM6,304.9 million or 75.2% of total exports.

Crude petroleum retained its position as the leading revenue earner during the current review period, with a higher revenue amounting to RM2,346.3 million as against RM2,199.7 million during the review periods. This increase was resulted from the higher volume exported from 2,843 thousand tonnes to 3,043 thousand tonnes (+200 thousand tonnes). This increase was however partially offset by the lower f.o.b export price from RM773.7 per tonne to RM771.1 per tonne (-RM2.6 per tonne) during the current review period. The Republic of Korea, India, and Peninsular Malaysia together imported about 70% of Sabah’s crude petroleum during the current review period.

Revenue from palm oil, Sabah’s second major export commodity amounted to RM2,106.0 million and contributed to a quarter or 25.1 % of total export earnings during the first eight months of 2001 as against RM1,994.3 million of the previous period (+RM111.7 million). The increased receipts was resulted from the higher volume exported by 864.7 thousand tonnes whilst the f.o.b export price plummeted by 29.9% from RM1,169.8 per tonne to RM819.6 per tonne during the review periods. India (529.8 thousand tonnes), the Republic of China (507.3 thousand tonnes), the Netherlands (406.4 thousand tonnes) and Pakistan (404.9 thousand tonnes) were the main buyers during the current review period.

Plywood registered export receipts amounting to RM764.4 million as against RM758.6 million during the periods under review. The export volume rose by 100.1 thousand cubic metres to 718.2 thousand cubic metres while its f.o.b export price was lowered by RM163.1 per cubic metre to RM1,064.2 per cubic metre. The main importers for Sabah’s plywood during the current review period were Japan (230.5 thousand cubic metres), the Republic of Korea (114.9 thousand cubic metres), the U.S.A (111.0 thousand cubic metres), and Peninsular Malaysia (92.7 thousand cubic metres).

3. Imports

Sabah’s imports for January-August 2001 amounted to RM7,417.9 million as against RM7,316.5 million recorded for the same period in 2000. Machinery and transport equipment, manufactured goods, mineral fuels, lubricants & related materials together amounted to RM4,482.9 million and accounted for 60.4% of total imports during the first eight months of 2001.

Machinery and transport equipment tops the list of Sabah’s import bill with value amounting to RM2,282.0 million or 30.8% of total imports. Road vehicles (RM856.3 million), machines for particular industries (RM334.7 million), general industrial machinery and equipment, n.e.s & machine parts n.e.s (RM317.1 million) and electrical machinery & appliances n.e.s (RM253.3 million) were the main component items imported. Peninsular Malaysia (RM1,523.0 million), the U.S.A (RM239.3 million), Japan (RM205.5 million) and the European Union (RM150.3 million) were the main suppliers of machinery and transport equipment to Sabah.

Imports of manufactured goods valued at RM1,122.4 million accounts for 15.1% of total imports during January-August 2001. Iron and steel (RM311.1 million), manufactured of metals n.e.s (RM266.2 million), non-metallic mineral manufactures (RM147.1 million) and rubber manufacture (RM130.5 million) were the main goods imported. Peninsular Malaysia alone supplies RM664.3 million or 59.2% of total imports of manufactured goods into Sabah.

The import bill for mineral fuels, lubricants and related materials during January-August of 2001 amounted to RM1,078.5 million or 14.5% of total imports. Petroleum, petroleum products & related materials was the single major item which amounted to RM1,013.4 million. Peninsular Malaysia, Singapore and Sarawak were the major suppliers of mineral fuels, lubricants and related materials to Sabah during the current review period.

4. Direction of Trade

Sabah’s major trading partners during the first eight months of 2001 were Peninsular Malaysia, ASEAN, Japan, India, the Republic of Korea, Sarawak, the European Union, the U.S.A., the People’s Republic of China and Taiwan in that order of importance.

(Sabah Branch), Kota Kinabalu

8 October, 2001.

Note: Figures may not add up to totals due to rounding. x - Less than 0.05% + - Less than RM0.05 Million