Total trade expanded by 12.6% to RM272.37 billion compared to the same period last year. Exports increased by 19.6% to RM146.87 billion, marking the seventh consecutive month of positive growth since July 2025, while imports rose by 5.3% to RM125.5 billion. This resulted in a trade surplus of RM21.37 billion, a surge of 483.9% compared to January 2025.
In terms of export destinations, Malaysia recorded double-digit growth across nearly all major markets except for ASEAN. Exports to ASEAN, the United States, China, the European Union (EU) and Taiwan collectively accounted for 68.2% of Malaysia’s total exports in January 2026.
Exports to the United States rose by 33.9% to RM23.1 billion, the highest value ever recorded for January. Exports to China increased by 16.1% to RM15.47 billion, while exports to Taiwan surged by 79.4% to RM9.93 billion, representing the highest monthly value ever recorded. Exports to ASEAN grew by 7.1% to RM39.42 billion, supported by increased exports to the seven-member states, reflecting resilient regional demand and strengthening supply chain integration among member countries.
Electrical and Electronics (E&E) products remained the largest contributor to exports with a 48% share, following a 39.5% increase to RM70.53 billion. This performance is consistent with the rise in global semiconductor demand, driven by rapid advancements in artificial intelligence (AI) applications and continuous technology upgrade cycles.
Other key products contributing to export growth were optical and scientific equipment, which surged by 36.2%, processed food (↑16.5%), transport equipment (↑13.8%), as well as machinery, equipment and parts (↑13%).
“The encouraging export performance at the start of 2026 underscores the resilience and global competitiveness of Malaysian exporters. The surge in E&E exports, particularly in semiconductors including electronic integrated circuits (ICs), strategically positions Malaysia to capitalise on the projected 26.3% expansion in the global semiconductor market this year,” said Abu Bakar Yusof, MATRADE Chief Executive Officer.
“Furthermore, high-growth and high-value (HGHV) sectors such as optical and scientific equipment, transport equipment, particularly aerospace and food products also recorded robust growth. This performance aligns with the aspirations of the New Industrial Master Plan 2030 (NIMP 2030) and the nation’s development path under the 13th Malaysia Plan (RMK13), which emphasise high-value-added activities, innovation, and the strengthening of both domestic and global supply chains,” he added.
“In response, MATRADE will continue to play a proactive role in enhancing the nation’s global export competitiveness by implementing exporter development programs and export promotions to ensure this growth momentum remains sustainable throughout the year. This includes intensifying efforts to encourage exporters and Micro, Small, and Medium Enterprises (MSMEs) to utilise 17 Free Trade Agreements (FTAs) to strengthen market access and global competitiveness. For 2026, MATRADE has outlined 203 high-impact programs, including trade missions, international business matching sessions and capacity-building initiatives, aimed at empowering over 13,400 Malaysian companies to penetrate and maintain their positions in global markets,” he said.
Malaysia’s trade performance with FTA partners also showed strong momentum as exports increased by 14.5% to RM95.22 billion, contributing 64.8% to the country’s total exports. Growth was driven by strategic markets such as Mexico (↑122.1% to RM3.03 billion), alongside Hong Kong SAR (↑58%), India (↑35.7%), the United Kingdom (↑35.3%), the Republic of Korea (↑27.6%), and New Zealand (↑2.6%).
Key contributors to FTA export growth included E&E products, metal ores and metal scrap, optical and scientific equipment, palm oil and palm oil-based agriculture products, as well as machinery, appliances and equipment. E&E products dominated 42.9% of total exports to FTA markets in January 2026, reinforcing Malaysia’s strategic role in the global technology supply chain.
Moving forward, the Ministry of Finance’s Economic Outlook 2026 estimates that Malaysia’s export growth will expand by 2.8% for the full year, supported by stable demand in the global technology market acting as a primary catalyst for high-value export performance.
