Malaysia’s trade performance remained resilient in the first half of 2026, achieving record-breaking results despite ongoing geopolitical tensions, logistics disruptions and uneven global demand.
According to the Ministry of Investment, Trade and Industry (MITI), total trade expanded by 22.4% year-on-year to RM1.796 trillion between January and June 2026. Exports rose by 27.5% to RM971.59 billion, while imports increased by 16.9% to RM824.44 billion, resulting in a trade surplus of RM147.15 billion.
Notably, trade, exports, imports and trade surplus all recorded their highest-ever values for the January-to-June period, reflecting Malaysia’s continued integration into regional and global supply chains.
E&E Exports Continue to Power Growth
A key driver behind Malaysia’s export growth was the strong performance of the manufacturing sector, particularly electrical and electronic (E&E) products.
Export value for E&E products increased by almost RM140 billion during the six-month period, supported by sustained global demand, technological innovation and the continued adoption of digital technologies across major markets.
Beyond E&E products, several other manufactured goods also delivered positive results, including:
- Petroleum products
- Optical and scientific equipment
- Manufactures of metal
The mining sector also contributed to export growth, particularly through higher shipments of metalliferous ores, metal scrap and liquefied natural gas (LNG).
Major Trading Partners Fuel Export Expansion
Malaysia’s export momentum was reinforced by strong demand from key trading partners across multiple regions.
Exports recorded significant growth to:
- ASEAN markets
- The People’s Republic of China
- The United States
- Taiwan
- The European Union
Trade with Free Trade Agreement (FTA) partners also expanded considerably, supported by stronger exports to:
- Hong Kong SAR
- Republic of Korea (ROK)
- Mexico
- India
- Australia
- United Kingdom
- Japan
- Pakistan
- Canada
- New Zealand
The broad-based expansion highlights the effectiveness of Malaysia’s trade diversification efforts and its ability to tap into growth opportunities across multiple international markets.
June 2026 Sets New Monthly Trade Record
Malaysia’s positive trade trajectory accelerated further in June 2026, when the country recorded its highest monthly trade value on record.
Total trade grew by 44.7% year-on-year to RM340.89 billion, supported by strong double-digit growth in both exports and imports.
During the month:
- Exports increased by 45.4% to RM177.89 billion
- Imports rose by 43.9% to RM163.00 billion
- Trade surplus reached RM14.89 billion
The June performance also marked Malaysia’s 74th consecutive month of trade surplus since May 2020, underlining the strength and consistency of the country’s external trade sector.
Improved Global Competitiveness Strengthens Investor Confidence
Malaysia’s robust trade performance has been complemented by improvements in its international competitiveness.
In the IMD World Competitiveness Ranking 2026, Malaysia climbed eight places to rank 15th globally. The improvement was driven by stronger economic performance, enhanced government efficiency and increased business competitiveness.
The higher ranking reinforces Malaysia’s attractiveness as both a regional trade hub and a preferred destination for foreign investment amid a challenging global economic environment.
Outlook Remains Positive Despite Global Challenges
While global uncertainties continue to persist, including geopolitical tensions and supply chain disruptions, Malaysia’s trade sector has demonstrated considerable resilience.
MITI noted that several key export products and markets are on track to achieve new record highs for the full year, supported by continued strength in E&E exports and sustained demand from major trading partners.
Moving forward, efforts to maximise existing Free Trade Agreements, diversify export destinations and promote higher value-added exports will remain critical to sustaining growth and strengthening Malaysia’s long-term trade resilience.
Building Momentum for the Rest of 2026
The strong first-half performance provides a solid foundation for Malaysia’s trade outlook in the remainder of 2026. With record export values, resilient manufacturing activity and expanding demand from major international markets, the country remains well-positioned to strengthen its role within global supply chains while supporting economic growth and investment attraction.
As global trade conditions continue to evolve, Malaysia’s focus on export diversification, competitiveness and high-value industries is expected to remain a key pillar of its economic strategy.
