Malaysia’s external trade made a strong comeback in September 2025, rebounding 9.8% year-on-year to reach RM257.51 billion, reversing the contraction seen in the previous month. Exports grew 12.2% to RM138.68 billion, marking the second-highest monthly export value of the year, while imports rose 7.3% to RM118.82 billion. The country recorded its 65th consecutive month of trade surplus, amounting to RM19.86 billion since May 2020.
Electrical and Electronic Exports Reach Historic High
Malaysia’s manufacturing sector remained the backbone of its export performance, fuelled by the electrical and electronic (E&E) segment, which hit a historic high with nearly RM11 billion in additional export value compared to last year. Other strong contributors included machinery, equipment and parts, as well as optical and scientific instruments.
The mining sector also showed signs of recovery after more than a year of decline, supported by higher shipments of metalliferous ores and metal scrap. Meanwhile, agriculture exports were boosted by stronger palm oil and palm oil-based product sales, both in volume and value.
Exports Rise to All Major Markets and FTA Partners
Exports expanded across Malaysia’s major trading partners, with notable increases to ASEAN countries, China, the United States, Taiwan, and the European Union. Shipments to Free Trade Agreement (FTA) partners also grew significantly, particularly to Mexico, India, Australia, New Zealand, Turkiye, the United Kingdom, Pakistan and Canada.
This broad-based export expansion underscores Malaysia’s growing integration into global supply chains and its competitiveness in high-value sectors like E&E and industrial machinery.
Strong Year-to-Date Performance
For the first nine months of 2025, Malaysia achieved record cumulative values for trade, exports, and imports.
- Total trade: Up 4.4% year-on-year to RM2.235 trillion
- Exports: Up 4.8% to RM1.170 trillion
- Imports: Up 4.0% to RM1.064 trillion
- Trade surplus: RM105.65 billion
These figures affirm the resilience of Malaysia’s export-oriented economy amid a challenging global environment.
Global Outlook: AI and North American Demand Boost Trade
According to the World Trade Organization (WTO), world merchandise trade volume growth for 2025 has been revised upward to 2.4% (from 0.9% in April 2025), driven by AI-related product demand and North American imports ahead of potential tariff hikes. Reflecting this, the World Bank has revised Malaysia’s 2025 growth forecast from 3.9% to 4.1%, citing stronger domestic consumption and rising external demand, especially in the E&E sector.
The Economic Outlook 2026 projects Malaysia’s trade to grow 3.9% in 2025, with exports and imports expected to rise 3.3% and 4.6% respectively.
Navigating Challenges and Seizing Opportunities
Despite the positive trend, Malaysia faces headwinds from geopolitical tensions and potential tariff measures among major economies. Such developments could raise costs, disrupt supply chains and add volatility to trade flows.
Exporters are urged to diversify markets, strengthen supply chain resilience, and stay informed about shifting trade policies. With the guidance of the Ministry of Investment, Trade and Industry (MITI) and MATRADE, Malaysian exporters can leverage the country’s 18 Free Trade Agreements to access new opportunities and maintain competitiveness in global markets.
