KUALA LUMPUR: Malaysia’s current account balance (CAB) recorded a RM16.7 billion surplus in the first quarter of 2025 (1Q 2025), equivalent to 3.4 per cent of the gross domestic product (GDP), supported by net exports of goods and a smaller deficit in the secondary income account, said Statistics Department Malaysia (DOSM).

In a statement, chief statistician Datuk Seri Mohd Uzir Mahidin said the improvement was driven by net exports of goods, which amounted to RM38.5 billion.

“Exports of goods reached RM283.2 billion, a 4.0 per cent decrease compared to the previous quarter. Malaysia’s leading export items include electrical and electronics; petroleum products; and machinery, equipment and parts, with Singapore, the United States (US) and China being the top trading partners,“ he said.

Mohd Uzir said imports of goods declined by 5.2 per cent quarter-on-quarter to RM244.7 billion, primarily reflecting lower imports of intermediate goods, capital goods and consumption goods, with key sources of imports being China, Singapore and Taiwan.

DOSM said the higher CAB was due to a smaller deficit in the secondary income account of RM1.2 billion in 1Q 2025 against RM5.9 billion in the preceding quarter, driven by higher settlement receipts from abroad.

DOSM said the financial account registered a RM20.3 billion net outflow versus RM9.3 billion in the last quarter, driven by a significant increase in portfolio investment.

There was a RM48.3 billion net outflow compared with RM42.0 billion in the previous quarter, contributed by resident subscription of foreign equity securities.

According to DOSM, foreign direct investment recorded a net inflow of RM15.6 billion in 1Q 2025 against RM18.7 billion in 4Q 2024 due to lower investment in debt instruments.

It said FDI inflows were mostly channelled to the services sector, largely within financial activities and information and communication subsectors related to data centre activities; major FDI investors were from Singapore, Hong Kong and Germany.

At the same time, direct investment abroad (DIA) registered a lower RM3.5 billion net outflow versus RM5.2 billion in 4Q 2024.

“The outflows were principally in the form of equity and investment fund shares, mainly directed towards the services sector, with the majority concentrated in financial activities. Indonesia, Brunei and Thailand were DIA main destinations during the quarter,” DOSM said.

At the end of 1Q 2025, its international investment position amounted to RM37.8 billion in net assets, and its international reserves at RM520.7 billion as at end-March 2025.