Page 120 - Contributed Paper Session (CPS) - Volume 4

CPS2145 Jee, Hui-Siang Brenda et al.
Sarawak’s value of exports. This study proved the same results, which where
import values of LNG by Japan was always greater than exports values of LNG
by Sarawak throughout the period of ten years.
To make them more comparable internationally, the asymmetries caused
by differences in valuation had to be focused on. As pointed out in IMTS,
Revision 3, paragraph 4.8(b) and 4.9, while re-emphasizing the
recommendation to compile CIF-type value of import statistics, countries are
encouraged “to compile FOB-type value of imported goods as supplementary
information” and/ or “to compile separate data for freight and insurance, at
the most detailed commodity and partner level possible”. Ideally, the FOB-
type of imports value should be compiled by gathering transaction-level data
on freight and insurance. However, in practice, this method may be not
suitable for most countries.
In addition, the time lag between exports and imports is another possible
reason for trade discrepancies between trading partners. According to China-
Canada Joint Working Group on Trade Statistics Reconciliation (2018), the
shipment time lag difference referred to the difference in bilateral statistics
that generally results from long-distance ocean shipping, whereby shipment
of commodities departs from exporting country at the end of the year and
arrive importing country in the following year. For example, goods departing
from Sarawak in late December 2016 might only arrive Japan in early January
2017. In our study, the trade discrepancy index for a total ten-year period
(2008 to 2017) was only 6.5% which was at moderate discrepancy rate. This
revealed that time lag influenced the asymmetry in annual bilateral trade data.
Another factor of asymmetry is the currency exchange rate. Valuation of
LNG imports was at currency rate during arrival in Japan while valuation of
exports was at currency rate during the time of exportation. Exchange rate
fluctuations may, therefore, lead to statistical differences. This was clearly
shown in the year 2009 where there was major oil price volatility and a global
financial crisis, the trade discrepancy index was the highest throughout the
period. In 2015, again there was a sudden rise of trade discrepancy index,
which was due to depreciation in Malaysia currency against US Dollar, as well
as oil and gas price plunge.

4. Conclusion
In conclusion, this paper analysed the asymmetry trade statistics between
Sarawak’s exports of LNG to Japan using the empirical method. This was in
contrary to most empirical analyses that were less focused on specific products
by country. Particularly, we intended to identify the degree of data discrepancy
and assess the quality of data between both regions.
By analysing the asymmetry relationship using the bilateral trade index, the
following results were observed: First, Sarawak as the exporter of LNG showed

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