KUALA LUMPUR: Despite challenges that threatened domestic exports and the US reciprocal tariffs, Malaysia’s trade reached its highest-ever level of RM3.06 trillion in 2025.
Exports exceeded RM1 trillion for the fifth consecutive year, rising 6.5% to the highest-ever recorded value of RM1.607 trillion, while imports grew by 6.2% to RM1.455 trillion.
This outstanding performance resulted in a trade surplus of RM151.8 billion, marking the 28th consecutive year of surplus since 1998.
Higher exports were largely contributed by electrical and electronic products, particularly higher demand for electronic integrated circuits, reflecting the acceleration of global technology adoption, including artificial intelligence (AI).
The domestic manufacturing sector remained the main driver of export growth, supported by strong demand for palm oil-based products and continued expansion in machinery, equipment and parts.
Meanwhile, in the commodity sector, palm oil continues to be the nation’s key export.
However, to ensure sustainable growth, Malaysia must diversify its trade partnerships, said Deputy Investment, Trade and Industry Minister Sim Tze Tzin.
“Broadening trade relations beyond traditional markets and forging stronger ties with emerging economies will reduce reliance on any single region, mitigating potential risks.
“Diversification will also open new trade channels, enabling Malaysia to tap into rapidly expanding markets and enhancing its global competitiveness,“ he told delegates when unveiling Malaysia’s 2025 trade performance today.
Sim said one of the key strategies to increase exports is close engagement with emerging markets. “These are non-traditional partners whose economies have grown exponentially in recent years, including regions such as Africa, the Middle East and Latin America.”
He noted that the Ministry of Investment, Trade and Industry (Miti) and its agencies participated in several official overseas visits by Prime Minister Datuk Seri Anwar Ibrahim, including trips to Ethiopia, South Africa, Kenya, the United Kingdom, Switzerland, Brazil, the United Arab Emirates, Russia and China.
“These bilateral engagements are strategically undertaken to further strengthen trade relations and expand market presence,“ Sim said.
While focusing on exports, he added, Malaysia must not disregard the role of imports, as they are integral to the growth and competitiveness of the domestic economy.
“The importation of high-value and specialised products not produced locally is especially vital in supporting downstream industries and driving industrial advancement.
“This includes advanced machinery, specialised equipment, high-end components, and critical raw materials that are not produced locally or cannot be supplied at the required scale or quality.
“These imports enable local industries to move up the value chain, improve productivity, and produce higher-value goods for export. Malaysia can enhance competitiveness while maintaining a robust and sustainable trade balance,“ he said.
Moving ahead, Sim said 2026 will be another year of challenges, whether geopolitical or technological.
“We should continuously strive to achieve whatever targets are set upon us, amid changes in the economic megatrends.
“Malaysia’s competitiveness will be further strengthened through the digital economy, including cross-border e-commerce.
“Technologies and digital platforms provide Malaysian businesses with access to new opportunities in e-commerce, digital services and cross-border data flows.
“This digital transformation not only expands market reach but also improves operational efficiency and fosters innovation, positioning Malaysia as a forward-thinking hub in the region,“ Sim said.
According to the 2025 trade report, notable export growth underpinned by record-high shipments to traditional trading partners, namely Asean, the US, Taiwan and the European Union, reflecting Malaysia’s strong integration into high-value, technology-driven global supply chains.
This performance was achieved despite rising global uncertainties, including geopolitical tensions, supply chain realignments and rising risks of protectionism.
Exports to China, however, expanded at a more moderate pace.
Furthermore, Malaysia’s broad network of free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership, continued to support market access, diversify exports, and reduce trade risks.
Exports remained on an upward trend, reaching new highs in markets such as Hong Kong, Mexico and Canada, alongside broad-based product growth.
Export diversification into emerging markets – including Nigeria, Kenya, Morocco, Uzbekistan and Algeria – further underscored Malaysia’s success in expanding beyond traditional trading partners.
Malaysia’s strong trade performance in 2025 highlights the importance of sustained policy support and strategic export promotion led by Miti and Malaysia External Trade Development Corporation
