The growth in exports during the quarter was primarily driven by stronger demand for manufactured goods, particularly electrical and electronic (E&E) products, as well as optical and scientific equipment, alongside mining goods, notably metalliferous ores and metal scrap.
E&E products continued to anchor overall export growth, with exports increasing by more than RM40 billion, supported by sustained global demand and ongoing technological adoption across key markets. These products each attained their highest quarterly export values to date. Exports to key trading partners, namely the People’s Republic of China (China), the United States (US) and Taiwan, recorded robust double-digit growth, while exports to ASEAN registered moderate expansion.
Exports to Free Trade Agreement (FTA) partners also increased, with higher shipments to markets such as the Hong Kong Special Administration Region of China (Hong Kong SAR), Mexico, the Republic of Korea (ROK), India and the United Kingdom (UK). Notably, exports to the US, Taiwan, Hong Kong SAR and the ROK reached their highest quarterly values to date.
For March 2026, trade sustained its upward trajectory, expanding by 9.3% year-on-year (y-o-y) to RM272.95 billion, supported by growth in both exports and imports.
Exports rose 8.3% to RM148.75 billion, marking the second-highest monthly value ever recorded, while imports increased by 10.4% to RM124.20 billion. This resulted in a trade surplus of RM24.55 billion, sustaining Malaysia’s streak of 71 consecutive months of surplus since May 2020.
Trade, exports and imports also reached their highest monthly levels on record for the month of March. Heightened geopolitical tensions in West Asia have amplified volatility in global trade, exerting upward pressure on logistics costs and supply chain efficiency. The external outlook remains mixed, with the World Trade Organisation (WTO) projecting global merchandise trade volume to grow by a modest 1.9% in 2026.
At the same time, Bank Negara Malaysia (BNM) projected Malaysia’s exports to grow by 8.6% in 2026, while imports are expected to increase by 9%, reflecting comparatively more robust domestic and external demand dynamics. Malaysia’s strong integration into global trade is also reflected in its improved standing in the WTO 2025 rankings, with exports rising from 25th to 23rd globally, total trade from 24th to 23rd, and imports from 25th to 24th.
While this underscores Malaysia’s resilience and deep integration into global supply chains, the outlook remains subject to external risks. Continued vigilance remains essential, as prolonged geopolitical instability could weigh on global demand and disrupt supply chain dynamics.
MITI and MATRADE said they will continue to closely monitor global developments, while exporters are encouraged to leverage existing FTAs, tap into emerging markets and diversify product offerings to strengthen resilience amid ongoing uncertainties.
