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Wednesday, December 9, 2009

Malaysia's Overall Balance Of Payments Records A Larger Surplus Of RM11.5 Billion In Q3'09

KUALA LUMPUR, Dec 9 -- Malaysia's overall balance of payments (BOP) recorded a larger surplus of RM11.5 billion in the third quarter of this year compared to RM2.1 billion in the previous quarter, said the Department of Statistics.

Year-on-year, the BOP showed a turnaround, to an inflow of RM11.5 billion from an outflow of RM31.5 billion, due to lower net outflow on financial account of RM11.1 billion from the RM62.0 billion posted in the same quarter of 2008, it said in a statement here on Wednesday.

The department said the current account also remained positive, albeit with a lower surplus of RM25.3 billion (equivalent to 14.9 per cent of gross domestic product), down 12.2 per cent from RM28.8 billion a quarter ago.

The decline was mainly due to a higher leakage on current transfers by RM2.8 billion to RM6.7 billion and lower surplus on services by RM921 million to RM99 million.

Meanwhile, net outflow on the financial account improved by RM13.1 billion to post RM11.1 billion. This was attributed to a switch in portfolio investment to a net inflow of RM18.6 billion from a net outflow of RM9.9 billion posted in the preceding quarter.

"The surplus in the current account was partly utilised by the economy as indicated by the investment net outflows in the financial account," the department highlighted.

Bank Negara Malaysia's international reserves increased by RM11.5 billion in the third quarter of this year. This resulted in errors and omission of RM2.7 billion.

For the period of January-September 2009, the country's BOP recorded a lower surplus of RM16.9 billion, compared to the RM43.6 billion posted in 2008.

Correspondingly, the current account registered a surplus of RM85.4 billion, down from RM99.9 million while the financial account recorded a higher net outflow of RM65 billion.

In the third quarter of this year, the surplus on goods of RM33.4 billion experienced a nominal increase of RM309.0 million or 0.9 per cent from RM33.1 billion in the second quarter.

The net receipt in the services account reduced to RM99.0 million from the RM1.0 billion registered previously.

The income account recorded a higher net outlay of RM1.6 billion from RM1.5 billion posted in the last quarter and the net payments on current transfer widened by 71.8 per cent to RM6.7 billion from RM3.9 billion in the second quarter.

The capital account showed a lower net outflow amounting to RM29 million from RM36 million posted in the previous quarter.