Larger Balance of Payments in 2007

May 2008

Malaysia's external position strengthened in 2007, as reflected by the larger overall balance of payments, due to a larger current account surplus, while net outflows in the financial account moderated, according to the central bank's annual report 2007. The sustained large trade surplus, underpinned by strong growth in commodity exports and an improvement in the services and income accounts, contributed to the larger current account surplus of RM99.3bn (US$31.47bn) or 15.8% of gross national income, compared to RM93.4bn (US$29.6bn) or 16.8% of gross national income in 2006. In particular, the services account recorded its first surplus, due mainly to higher tourism and transportation receipts.