This study is focused on the analysis of Malaysia’s balance of payment for last six quarters ( from Q3/2011 to Q3/2012 ) . It will demo the impact of balance of payment to economic system or the fiscal crisis. The last portion of this study will affect the sum-up and the prognosis the Malaysia’s balance of payment in the hereafter.

Third one-fourth of 2011

Current history: the current history balance recorded a excess of RM26. 6 billion. an addition of RM3. 2 billion ( 13. 8 per centum ) . This higher excess was attributed to: the lower net payments on income of RM3. 8 billion higher excess on goods of RM38. 2 billion. Goods Account: the excess on goods increased to RM38. 2 billion by Exports FOB expanded by RM5. 0 billion to enter RM176. 7 billion. The demands for exports FOB was chiefly contributed by electrical & A ; electronic merchandises. thenar oil & A ; palm oil based merchandises and liquefied natural gas ( LNG ) . Furthermore. Imports FOB posted RM138. 5 billion. an addition of RM3. 1 billion ( 2. 3 per centum ) .

This was attributed to higher value of imports Services History: Exports of services registered RM26. 6 billion. Meanwhile. imports of services posted RM29. 0 billion. On net footing. the services account experienced higher shortage of RM2. 4 billion from RM0. 7 billion antecedently. This was chiefly due to: 1. lower cyberspace grosss in travel history of RM5. 5 billion from RM6. 7 billion ; and 2. higher cyberspace payments in transit history of RM6. 7 billion from RM6. 3 billion.

Income History: income grosss recorded RM13. 9 billion from RM11. 2 billion antecedently. of which investing income recorded RM13. 0 billion and compensation of employees RM0. 9 billion. On the payments side. income history registered RM17. 8 billion from RM18. 0 billion. of which investing income recorded RM16. 3 billion and compensation of employees RM1. 4 billion. So there was more investing in Malaysia. Current Transportations: Internet payments on current transportations remained unchanged.

Capital history: In the current one-fourth of 2011. the capital history recorded a higher net escape of RM58. 0 million from that of RM26. 0 million posted last one-fourth. Year-on-year. net escape of capital history narrowed from RM63. 0 million. Cumulatively. the capital history recorded lower net escape of RM97. 0 million from RM166. 0 million in the first nine months of 2010.

Fiscal history: The fiscal history reverted to net escape of RM23. 3 billion from net influx of RM44. 5 billion antecedently. This was chiefly due to a swing in portfolio investing from net influx of RM48. 1 billion to net escape of RM23. 4 billion. Direct Investing: direct investing posted net escape of RM7. 7 billion. dwelling of DIA: higher net escape of RM12. 9 billion. The major sectors attributed to DIA were fiscal & A ; insurance. oil & A ; gas. and building. FDI: lower cyberspace influx of RM5. 2 billion. FDI influxs were chiefly channeled into fabrication. oil & A ; gas. and sweeping & A ; retail trade sectors. Portfolio Investing: Portfolio investing reverted to net escape of RM23. 4 billion from net influx of RM48. 1 billion antecedently. Year-on-year. portfolio investing besides showed a turnaround from net influx of RM18. 3 billion a twelvemonth ago. Reserve assets: The international militias Bank Negara Malaysia increased by RM10. 9 billion in the current one-fourth as compared to an addition of RM61. 7 billion in Q2 2011.

Fourth one-fourth of 2011

Current history: the current history recorded a excess of RM22. 0 billion. a lessening of RM4. 6 billion. The lower excess was reflected in: higher cyberspace payments on income of RM5. 6 billion. higher net payments on services of RM4. 0 billion. and lower excess on goods of RM36. 9 billion. Goods Account: goods registered a lower excess amounting to RM36. 9 billion from RM38. 2 billion a one-fourth ago. This was attributed to the higher imports FOB. The demand for exports FOB was chiefly associated to electrical & A ; electronic merchandises. thenar oil & A ; palm oil based merchandises and liquefied natural gas ( LNG ) . In the interim. there was the higher imports FOB Services Account: exports of services registered higher net grosss of RM28. 1 billion. an addition of RM1. 5 billion. Meanwhile. imports of services increased by RM3. 0 billion ( 10. 3 per cent ) to enter RM32. 0 billion from RM29. 0 billion in Q3 2011. In footings of cyberspace. the net payments on services account broadened to RM4. 0 billion from RM2. 4 billion antecedently. This was chiefly due to higher net payments on other services amounting to RM3. 2 billion as compared to RM1. 1 billion in July – September 2011.

Income History: In the current one-fourth. income grosss recorded RM14. 7 billion from RM13. 9 billion in the preceding one-fourth. The RM0. 8 billion addition was reflected in higher grosss on investing income of RM13. 8 billion. while compensation of employees systematically maintained grosss of RM0. 9 billion. On net footing. the spending on income history widened to RM5. 6 billion from RM3. 8 billion. This was contributed by higher cyberspace spending on both investing income of RM4. 8 billion and compensation of employees of RM0. 8 billion. Current Transportations: Internet payments on current transportations continued to enter RM5. 3 billion for three back-to-back quarters.

Current transportations saw an addition in both grosss and payments amounting to RM1. 5 billion and RM6. 8 billion. Capital history: In Q4 2011. capital history posted lower net escape of RM54. 0 million from RM58. 0 million in Q3 2011. This was chiefly due to take down net payments on capital transportations from RM34. 0 million to RM16. 0 million. Fiscal history: In the one-fourth under reappraisal. fiscal history posted net influx of RM0. 2 billion. a reversal from net escape of RM23. 3 billion. This scenario was supported by the lower escape in portfolio investing of RM2. 7 billion. coupled with higher influx in other investing of RM11. 2 billion.

Direct Investing: Direct investing posted a net escape of RM7. 9 billion from RM7. 7 billion last one-fourth. of which: Defense intelligence agency: higher net investing escape of RM14. 3 billion. The major sectors attributed to DIA were oil & A ; gas. fiscal & A ; insurance. and public-service corporations. FDI: higher net influx of RM6. 5 billion. FDI influxs were chiefly channeled into fabrication. oil & A ; gas. and sweeping & A ; retail trade sectors. Portfolio Investing: Portfolio investing registered lower net escape of RM2. 7 billion from RM23. 4 billion attained last one-fourth. Year-on-year. portfolio investing reverted from net influx of RM3. 5 billion to net escape of RM2. 7 billion.

Reserve Assetss

The international militias of Bank Negara Malaysia increased by RM6. 3 billion in Q4 2011 as compared to an addition of RM10. 9 billion in Q3 2011. stood at RM423. 4 billion as at terminal of 2011.

First one-fourth of 2012

Current history: In the period January – March 2012. current history recorded lower excess of RM18. 1 billion from RM22. 4 billion in Q4 2011. This was chiefly attributed to: Income history: A higher net escape of RM8. 6 billion

Goods history: A lower excess of RM35. 8 billion.

Goods Account: goods registered lower excess of RM35. 8 billion ( -RM1. 0 billion or -2. 8 per cent ) from RM36. 8 billion last one-fourth. This was due to diminish in exports FOB larger than that of imports FOB Services Account: exports of services registered RM27. 9 billion from RM29. 0 billion during Q4 2011. consisting of the undermentioned constituents: transit of RM3. 3 billion. travel of RM14. 7 billion. other services of RM9. 9 billion. and authorities minutess of RM49. 0 million. Meanwhile. imports of services decreased. On net footing. services account remained unchanged Income Account: On net footing. the income spending widened by RM3. 3 billion to RM8. 6 billion from RM5. 3 billion recorded in the preceding one-fourth. specifically due to higher net spending on investing income of RM7. 8 billion from RM4. 5 billion. Current Transportations: current transportations continued to enter cyberspace payments RM5. 3 billion. Both grosss and payments saw an addition amounting to RM1. 5 billion and RM6. 8 billion. Capital history: capital history posted higher net escape of RM166. 0 million from RM55. 0 million in Q4 2011.

This was chiefly due to higher net payments on capital transportations to RM93. 0 million from RM17. 0 million. Fiscal history: fiscal history recorded a higher net escape of RM10. 3 billion from RM0. 2 billion posted in old one-fourth. This higher net escape was chiefly attributed to other investing: reverted to net escape RM26. 1 billion from net influx RM11. 0 billion. and direct investing: higher net escape of RM9. 4 billion from RM8. 2 billion. Direct Investing: Direct investing registered a net escape of RM9. 4 billion from RM8. 2 billion last one-fourth. of which: Defense intelligence agency: higher net escape of RM16. 9 billion which were sweeping & A ; retail trade. fiscal & A ; insurance. and wellness services.

FDI: higher net influx of RM7. 5 billion. FDI influxs were chiefly channeled into oil & A ; gas. fiscal & A ; insurance. and fabricating sectors. Portfolio Investing: The portfolio investing switched to net influx of RM25. 3 billion from net escape of RM2. 7 billion antecedently. Meanwhile year-on-year. portfolio investing registered higher net influx by RM16. 9 billion to RM25. 3 billion. Other Investing: In the current one-fourth. other investing reverted to a net escape of RM26. 1 billion from a net influx of RM11. 0 billion. This was attributable to a turnaround in the private sector to -RM25. 6 billion from a net influx of RM11. 1 billion. Reserve Assets: The international militias of Bank Negara Malaysia decreased by RM7. 2 billion in Q1 2012 as compared to an addition of RM6. 2 billion in Q4 2011. stood at RM416. 1 billion as at terminal of March 2012.

Second one-fourth of 2012

Current history: In April – June 2012. current history balance showed a lower excess of RM9. 6 billion. a lessening of RM8. 5 billion from RM18. 1 billion attained a one-fourth ago. The lower excess was reflected in: Goods account: recorded lower excess by RM6. 4 billion to RM29. 4 billion from RM35. 8 billion ; and Income history: the net spending widened by RM3. 1 billion to RM11. 7 billion from RM8. 6 billion. Goods Account: the current one-fourth. the goods account registered a lower excess of RM29. 4 billion as compared to RM35. 8 billion in the old one-fourth. This was due to imports FOB which expanded at a faster gait ( 7. 3 per cent ) relation to that of exports FOB ( 2. 1 per cent ) . Exports FOB increased to RM177. 7 billion compared to RM174. 0 billion in Q1 2012. This was chiefly contributed by higher exports for electrical & A ; electronic merchandises and palm oil & A ; palm oil based merchandises. Imports FOB rose to RM148. 2 billion.

This was due to higher domestic demands for imports by end-use for three major classs viz. intermediate goods. capital goods. and ingestion goods. Services History: In the one-fourth under reappraisal. exports of services registered RM28. 9 billion from RM27. 9 billion last one-fourth. Meanwhile. imports of services increased by RM0. 7 billion from RM31. 7 billion a one-fourth ago. of which: transit of RM10. 4 billion. travel of RM9. 0 billion. other services of RM12. 8 billion ; and. authorities minutess of RM194. 0 million. On net footing. services account posted lower net payments of RM3. 6 billion from RM3. 8 billion last one-fourth. This was led by a lower shortage on other services from RM2. 5 billion to RM1. 8 billion. On the contrary. transit posted higher net payments of RM7. 1 billion while travel recorded lower cyberspace grosss of RM5. 4 billion. Income History: In the current one-fourth. income grosss registered RM9. 0 billion from RM9. 6 billion in Q1 2012.

On net footing. the income spending broadened to RM11. 7 billion from RM8. 6 billion posted in the old one-fourth. This was entirely due to higher net spending in investing income amounting to RM11. 1 billion. Meanwhile. compensation of employees recorded a lower net escapes of RM0. 6 billion. For the first half of 2012. the shortage on income history broadened to RM20. 3 billion. affected by higher cyberspace payments on investing income Current Transportations: In the one-fourth under reappraisal. the net payments on current transportations narrowed to RM4. 6 billion. Both grosss and payments increased to enter RM2. 3 billion and RM6. 9 billion. Capital history: In Q2 2012. the capital history registered lower net escape of RM67. 0 million from RM166. 0 million last one-fourth. This was due to take down net escape on both capital transportations and non-produced. nonfinancial assets by RM60. 0 million and RM40. 0 million. severally.

Fiscal history: In the one-fourth ended June 2012. the fiscal history turned about to a net influx of RM5. 4 billion from net escape of RM10. 3 billion antecedently. This motion was driven by a switch in both other investing and direct investing. On the contrary. portfolio investing saw a reversal to net escape of RM5. 0 billion. from net influx of RM25. 3 billion. Direct Investing: The direct investing switched to a net influx of RM3. 5 billion from a net escape of RM9. 4 billion last one-fourth. of which: Defense intelligence agency: recorded lower net escape of RM2. 5 billion. These investings were mostly directed into oil & A ; gas. existent estate. and fiscal & A ; insurance sectors.

FDI: lower cyberspace influx of RM6. 1 billion. decreased by RM1. 4 billion from RM7. 5 billion antecedently. FDI influxs were chiefly channeled into oil & A ; gas. fabrication. and fiscal & A ; insurance sectors. Portfolio Investing: Portfolio investing reverted to net escape of RM5. 0 billion from net influx of RM25. 3 billion antecedently. Meanwhile year-on-year. portfolio investing turned around to net escape of RM5. 0 billion from net influx of RM48. 0 billion in Q2 2011. On the contrary. for the period January – June 2012. portfolio investing registered lower net influx of RM20. 3 billion from RM56. 5 billion. a lessening of RM36. 1 billion.

Reserve Assetss

The international militias of Bank Negara Malaysia increased by RM12. 7 billion in Q2 2012 as compared to a lessening of RM7. 2 billion in Q1 2012. stood at RM428. 8 billion as at terminal of June 2012.

Third one-fourth of 2012

Current history: The current history balance recorded a lower excess of RM9. 5 billion for the period of July – September 2012. as compared to RM9. 6 billion in the preceding one-fourth. This lower excess was reflected in: Goods account: lower excess RM25. 5 billion

Current transportations: the net payments widened to RM4. 7 billion Meanwhile. income and services account recorded lower net payments of RM7. 9 billion and RM3. 4 billion Goods Account: In the one-fourth under reappraisal. the goods account registered a lower excess of RM25. 5 billion as compared to RM29. 4 billion in the old one-fourth. This was due to diminish in exports FOB by 1. 8 per cent relation to increase in imports FOB by 0. 5 per cent. Services History: exports of services remained the same as old one-fourth Income Account: the income grosss recorded RM11. 4 billion increased by RM2. 5 billion from RM9. 0 billion in Q2 2012. Compensation of employees remained RM1. 0 billion and investing income attained RM10. 4 billion. The investing income comprises of: direct investing abroad ( DIA ) : higher grosss of RM3. 8 billion. chiefly generated from fiscal & A ; insurance. oil & A ; gas. and information & A ; communicating sectors portfolio investing: higher grosss of RM1. 3 billion

other investing: higher grosss of RM5. 4 billion

However. income payments ( debit ) recorded RM19. 4 billion decreased by RM1. 3 billion from RM20. 7 billion in Q2 2012. On net footing. the income history shortage reduced to RM7. 9 billion from RM11. 7 billion antecedently. This was chiefly due to a lower cyberspace payments in investing income amounting to RM7. 2 billion. while compensation of employees recorded higher net payments of RM0. 7 billion. Current Transportations: In the 3rd one-fourth 2012. both grosss and payments decreased to enter RM1. 4 billion and RM6. 1 billion. On net footing. this history recorded higher net payments RM4. 7 billion. Capital history: In Q3 2012. the net escape decreased to RM42. 0 million from RM67. 0 million last one-fourth. This was due to take down escape on both capital transportations and nonproduced nonfinancial assets which recorded RM24. 0 million and RM18. 0 million Fiscal history: In the current one-fourth. the fiscal history reverted to a net escape of RM8. 7 billion from net influx of RM5. 4 billion reported antecedently.

This was due to a swing in both portfolio investing from net escape of RM5. 0 billion to net influx of RM27. 6 billion and other investing to net escape of RM38. 1 billion from net influx of RM5. 9 billion. On the contrary. direct investing recorded lower influx RM1. 9 billion from RM3. 5 billion. Direct Investing: Direct investing posted a lower net influx of RM1. 9 billion from RM3. 5 billion during old one-fourth. Portfolio Investing: Portfolio investing recorded a net influx of RM27. 6 billion. turned around from net escape of RM5. 0 billion antecedently. Similarly. year-on-year. portfolio investing switched to net influx from net escape of RM28. 0 billion in Q3 2011. Reserve Assets: The international militias of Bank Negara Malaysia decreased RM7. 5 billion in Q3 2012 as compared to an addition of RM12. 7 billion in Q2 2012. stood at RM421. 3 billion as at terminal of September 2012.

Summary and Forecasting of Balance of Payment

As you seen that. the balance of trade ( export-import ) both of goods and services continually decrease between 3rd one-fourth of 2011 to 3rd one-fourth of 2011. Particularly. the last two one-fourth ( Q2/2012 and Q3/2012 ) . The major grounds are the Eurozone Crisis and Hamburger crisis in United State of America that provide a big impact to Malaysia in term of export of goods and services. In 2nd one-fourth of 2012 it decrease 19. 78 per centum from the first one-fourth of 2012 and it besides decrease 14. 54 in the 3rd one-fourth. For these grounds makes Malaysia’s export diminution because the European states and USA are the big market for Malayan exporter. The fiscal history is really fluctuating between these five quarters. The causes are Eurozone crisis and Hamburger crisis same as above jobs.

The investors’ confident are diminution. It make the direct investing lessening in the 3rd one-fourth of 2012 and other investing was negative RM 38. 083 million. On the other manus. a batch of investors move their portfolio to Malaysia for avoid the hazard and uncertainness in Europe and USA. That makes the portfolio investing excess RM 27. 588 million. In the close hereafter. the balance of payment of Malaysia will be continually diminish in term of balance of trade. current history and the fiscal history will be increasing.

The cardinal bank of Malaysia will cut the involvement rate and utilize the financial shortage policy. This cause will do the Malaysia’s citizen has more income and more ingestion. Next. Malaysia will import more goods and services to server their people due to the higher buying power. In term of fiscal history will be alteration in positive manner. When the Malayan authorities cut the involvement rate. it will pull the foreign investors to put and hike the economic system. The portfolio investing will be besides surplus because the jobs in Europe and USA. So. the investors will avoid their hazard by puting in Malaysia’s fiscal market.

Mentions:

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