Imports are valued on a c.i.f. (cost, insurance and freight) basis, that is, the value of the goods in the market at the statistical/customs frontier of the importing country, including all charges for transport and insurance whilst in transit but excluding the cost of unloading from the carrier unless it is borne by the carrier.
Exports are valued on a f.o.b. (free on board) basis, that is, the value of the goods in the market at the statistical/customs frontier of the exporting country, including all costs of transporting the goods to the statistical/customs frontier, export and other duties payable as well as the cost of loading the goods onto the carrier unless the latter cost is borne by the carrier.
The balance of trade is the difference between the value of exports and imports. When exports exceed imports it is recorded as a surplus while a deficit is registered when imports exceed exports.
The balance of payments covers all economic transactions between Malaysian residents and non-residents (residents of the rest of the world) in two accounts, the current account and the capital & financial account. The current account covers transactions in goods, services, income and current transfers, while the financial account record changes in the country's foreign financial assets and liabilities.
Current account shows the flows of goods, services, primary and secondary income between Malaysia residents and non-residents.
