Malaysia’s external trade rebounded strongly in September, with total trade surging 9.8% year-on-year (y-o-y) to RM257.51 billion, marking a turnaround from August’s contraction amid ongoing global uncertainties.
According to the Ministry of Investment, Trade and Industry (MITI), exports expanded 12.2% y-o-y to RM138.68 billion, the second-highest monthly export value recorded this year, while imports grew 7.3% to RM118.82 billion. This resulted in a trade surplus of RM19.86 billion, extending Malaysia’s streak of monthly surpluses to 65 consecutive months since May 2020.
E&E Exports Hit Record High
MITI noted that export growth in September was broad-based across all major sectors, led by the manufacturing sector, particularly electrical and electronic (E&E) products, which reached their highest export value to date, rising by nearly RM11 billion.
Other key contributors included machinery, equipment and parts, as well as optical and scientific instruments. The mining sector also rebounded after 13 consecutive months of contraction, driven by higher exports of metalliferous ores and metal scrap, while in the agriculture sector, palm oil and palm oil-based products saw the largest increase.
Exports to Major Markets Strengthen
Malaysia recorded higher exports to most major trading partners, including ASEAN, China, the United States, Taiwan, and the European Union.
Exports to Free Trade Agreement (FTA) partners also expanded significantly, led by Mexico, India, Australia, New Zealand, Türkiye, the United Kingdom (UK), Pakistan, and Canada — underscoring the continued importance of Malaysia’s 18 FTAs in facilitating trade growth.
Cumulative Trade at Record Levels
For the January–September 2025 period, Malaysia achieved its highest-ever cumulative values for trade, exports, and imports. Total trade rose 4.4% y-o-y to RM2.235 trillion Exports increased 4.8% to RM1.170 trillion Imports climbed 4.0% to RM1.064 trillion,
resulting in a trade surplus of RM105.65 billion.
Global Outlook Turning Positive
The World Trade Organization (WTO) recently raised its forecast for global merchandise trade volume growth in 2025 to 2.4%, up from 0.9% in April, supported by higher spending on AI-related products, robust North American imports ahead of expected tariff adjustments, and improving trade across several regions.
Reflecting these trends, the World Bank revised Malaysia’s 2025 GDP growth forecast upwards to 4.1% (from 3.9% previously), citing steady domestic demand and stronger-than-expected performance in the E&E sector. The Economic Outlook 2026 projects Malaysia’s trade to grow by 3.9% next year, with exports rising 3.3% and imports expanding 4.6%.
Despite the upbeat data, MITI cautioned that rising trade tensions and potential new tariff measures among major economies remain key downside risks. Such developments could trigger supply chain disruptions, higher export costs, and greater volatility in Malaysia’s trade environment.
MITI encouraged Malaysian exporters to diversify markets, strengthen supply chain resilience, and stay informed of global policy shifts. The ministry, along with MATRADE, pledged continued support to help businesses navigate global risks and leverage Malaysia’s network of FTAs to capture new growth opportunities.
