Malaysia’s neutral foreign policy has underpinned a record RM3.06 trillion in trade for 2025, with robust growth seen across both traditional and emerging markets
KUALA LUMPUR: Malaysia’s neutral and non-aligned foreign policy is a key driver behind its record-breaking trade performance, a deputy minister said today. Deputy Minister of Investment, Trade and Industry Sim Tze Tzin revealed that total trade for 2025 surpassed RM3 trillion, reaching RM3.06 trillion.
He said this milestone was achieved despite global trade policy uncertainty and geopolitical tensions. “This achievement was recorded despite the global economy facing trade policy uncertainty, geopolitical tensions and challenges in international supply chains,” Sim told the Dewan Negara.
The country’s position as “friends to everyone” helped navigate global uncertainty and retaliatory tariffs. Strong growth with both China and the United States supported the overall performance.
Trade with China, Malaysia’s largest partner for 17 years, grew 11.8% to RM541.45 billion. Meanwhile, trade with the United States rose 12.3% to RM365.07 billion, solidifying its position as the third-largest partner.
Sim was responding to a question on balancing geopolitical pressure while maintaining export market access. The Ministry of Investment, Trade and Industry has devised strategies to ensure export resilience through 2026.
A key strategy involves expanding market reach into regions like West Asia, Africa, and South America. “In 2025, significant export growth to several new markets, including Kyrgyzstan, Yemen, Tanzania, Kazakhstan, Uzbekistan, Algeria and Kenya, was recorded,” Sim said.
Malaysia will also leverage existing free trade agreements, which covered 66.4% of total exports last year. Export promotion will focus on high-value sectors aligned with the New Industrial Master Plan 2030.
These sectors include electrical and electronics, aerospace, automotive, and pharmaceuticals. The government is also pushing digital exports through platforms like Alibaba and Amazon via the e-Trade programme.
The Madani Digital Trade Platform will be strengthened to broaden global market reach. “As of December 2025, more than 4,500 exporters have registered,” Sim added.
