Penang, Johor and S’gor account for 80% of Malaysia’s total trade in July

The Philippines experienced a widening trade deficit of $5.97 billion in July, according to preliminary data from the Philippine Statistics Authority (PSA). This represented a 35% increase compared to a $4.43 billion deficit in July of the previous year. The July deficit was also higher than the $5.5 billion gap in the previous month, which was the largest since May.

The country's exports of goods grew by 11% to $8.15 billion in July, from $7.36 billion a year ago, but still fell short of the May record of $7.95 billion. Electronics products dominated Philippine exports, accounting for 59% of total exports in July, with earnings rising by 22% to $4.79 billion. The United States was the top destination for Philippine exports, receiving $1.68 billion in July, or a 21% share of total exports.

Imports of goods increased by 20% to $14.12 billion in July, the lowest since May when imports totaled $14.05 billion. Electronic products once again led the imports, with a $4.6 billion value, accounting for 33% of total imports. From January to July, the country's trade deficit expanded by 29% to $37.34 billion from $28.91 billion in the same period last year.

Exports grew by 13% to $54.92 billion from $48.67 billion in the same period, making the year-to-date total export value the highest since records began in 1991. Total imports, however, climbed by 19% to $92.26 billion from $77.58 billion over the same period, also marking the highest since 1991. Chinabank Research noted that while the electronics sector is driving export growth, its heavy dependence on imported components is widening the trade deficit.

They also highlighted that electronic inputs are now rivaling oil as a major import item, and mentioned that the global AI boom could present an opportunity for the Philippines to deepen local manufacturing and up the value chain. However, they warned of potential risks from new semiconductor tariffs by US President Donald Trump, which could have a limited impact on the Philippine industry if targeted.