Malaysia’s total trade reached a record RM2.160 trillion for the January-July 2026 period, expanding by 24.7% year-on-year (y-o-y), as strong export demand continued to drive the country’s external trade performance.
Exports surged 29.2% to RM1.165 trillion, crossing the RM1 trillion mark earlier than in 2025, while imports increased by 19.8% to RM994.71 billion.
The trade surplus also jumped 138.7% to RM170.50 billion, more than doubling the RM71.42 billion recorded during the corresponding period last year.
Malaysia’s external trade recorded its strongest performance to date for the first seven months of 2026. Exports crossed RM1 trillion in January-July, compared with January-August in 2025, while total trade surpassed RM2 trillion two months earlier than it did last year.
With five months remaining in 2026, Malaysia’s trade performance remains on track for another record year, building on three consecutive years of trade expansion since the pandemic-induced contraction in 2020.
MATRADE focuses on broadening Malaysia’s export base
Commenting on the latest trade figures, MATRADE Chief Executive Officer Dato’ Indera Abu Bakar Yusof said the figures demonstrate the resilience of Malaysian exporters, while highlighting the need to strengthen the country’s wider trade ecosystem.
MATRADE is reinforcing its focus on expanding Malaysia’s export base to drive sustainable, long-term trade growth while mitigating market and product concentration risks.
“While these numbers are encouraging, our data points to increasing concentration in both export products and the companies driving that growth,” said Dato’ Indera Abu Bakar. “MATRADE is doubling down on empowering MSMEs and mid-tier companies to ensure our expansion is broad-based, homegrown, and deeply integrated into global supply chains.”
To address these vulnerabilities, the agency is expanding its flagship global value chain integration programmes, connecting local businesses directly to major international trade platforms including the Farnborough International Airshow, SEMICON West and ADIPEC.
Alongside international exposure, MATRADE is accelerating its capacity-building efforts through the development of the MATRADE Academy, a structured initiative designed to expand Malaysia’s pool of high-performing, export-ready enterprises.
Digital export infrastructure is also being scaled up through closer integration of cross-border e-commerce platforms, including the MADANI Digital Trade Platform (MDTP), eBizLink and eTrade, giving local MSMEs more direct access to international marketplaces.
Public-private partnerships to support export growth
These strategic trade initiatives are being reinforced through deeper public-private partnerships with key industry leaders such as DHL, MARA and the Federation of Malaysian Manufacturers (FMM).
The initiatives operate under the Whole-of-Government (WoG) framework through the Jawatankuasa Koordinasi Eksport (JK-X) to support coordinated execution of Malaysia’s trade agenda.
“None of this can be achieved in isolation,” Dato’ Indera Abu Bakar added. “Through strong public-private partnerships and a coordinated Whole-of-Government approach via Jawatankuasa Koordinasi Eksport (JK-X), we remain committed to delivering Malaysia’s trade agenda effectively on the world stage.”
MSMEs strengthen their contribution to exports
Malaysia’s micro, small and medium enterprises (MSMEs) continued to strengthen their contribution to the country’s exports of goods and services.
In 2025, MSME exports increased 10.5% to RM214.5 billion, with their share of Malaysia’s total exports rising to 14.7%.
Manufacturing remained the backbone of MSME exports, accounting for 9.1% of Malaysia’s total exports and growing 8.8% to RM132.7 billion. The performance underscores the growing contribution of MSMEs to Malaysia’s export growth and their role in bringing homegrown products to international markets.
For January-July 2026, food and beverages remained a key MSME industry, with exports of food and confectionery products increasing by 6.3%.
Automotive products expanded by 13.8%, driven by higher exports of motor vehicle parts and accessories. Pharmaceutical products also recorded strong growth of 29.7%, while metal furniture rose 27.8% and palm oil-based and oleochemical products increased 13.4%.
The broad-based expansion across food, automotive and other value-added manufacturing segments highlights the role of MSMEs as catalysts for producing high-value goods, contributing to Malaysia’s exports and competing within global value chains.
Strong demand from major trading partners
Malaysia’s export performance was supported by strong demand from key trading partners, particularly the United States, ASEAN, Taiwan, Hong Kong SAR, China and the European Union.
Exports to the United States rose 58.3% to RM206.59 billion, while exports to ASEAN increased 20.3% to RM315.67 billion.
Exports to Taiwan surged 71.4% to RM80.81 billion, while Hong Kong SAR recorded growth of 49.8% to RM77.86 billion. Exports to China increased 24.3% to RM127.87 billion, while exports to the European Union grew 29.8% to RM90.73 billion.
Malaysia expands into non-traditional markets
MATRADE’s market diversification strategy also continued to open opportunities in non-traditional markets across Africa, Central Asia, South Asia and Latin America.
Collectively, exports to these markets surged 18.2% to RM100.94 billion, driven by significant growth in Angola, Zimbabwe, Sudan and the Democratic Republic of the Congo.
Exports to Angola increased 231.2%, while Zimbabwe recorded growth of 242.7%. Exports to Sudan rose 203.5% and those to the Democratic Republic of the Congo increased 117.1%.
Exports to Sudan, the Democratic Republic of the Congo, Ethiopia and Zimbabwe have already surpassed their respective full-year export values recorded in 2025.
The expansion reflects Malaysia’s efforts to diversify its export markets and reduce exposure to concentration risks while identifying new opportunities for Malaysian businesses overseas.
FTAs remain a key driver of Malaysia’s exports
Malaysia’s Free Trade Agreements (FTAs) continued to underpin export growth, with exports to FTA partner countries expanding 22.4% to RM737.97 billion.
FTA partner countries accounted for 63.3% of Malaysia’s total exports, with 21 of the 24 FTA partner countries recording export growth.
Exports to Regional Comprehensive Economic Partnership (RCEP) markets increased 19.7% to RM564.02 billion, while exports to Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) markets grew 18.1% to RM330.42 billion.
The continued expansion across major trading partners, FTA markets and emerging destinations provides further momentum for Malaysia’s external trade as the country seeks to sustain export growth and strengthen its position within global supply chains.
