Malaysia’s external trade momentum strengthened significantly in July 2026, supported by expanding trade volumes and favorable commodity pricing. Official figures from the Department of Statistics Malaysia show that the national terms of trade rose 1.9 percent month-on-month to reach 126.6 points, up from previous levels due to gains across key mineral and industrial sectors. On an annual basis, the terms of trade improved 4.5 percent compared to 121.1 points recorded in July of the previous year.
Export prices edged up over the month, with the export unit value index rising 0.6 percent in July. Upstream price gains were led by mineral fuels, which increased 3.4 percent, alongside modest increases in manufactured goods at 0.8 percent and machinery and transport equipment at 0.5 percent.
Export volumes grew at a much faster pace, expanding 8.1 percent month-on-month. Higher shipment volumes were fueled by a 17.0 percent surge in chemicals, a 12.9 percent rise in machinery and transport equipment, and a 12.4 percent gain in manufactured goods. On a seasonally adjusted basis, the export volume index advanced 7.9 percent to 223.3 points from 206.9 points in June.
Compared to the same period last year, export metrics demonstrated substantial multi-sector expansion. The export unit value index grew 8.1 percent year-on-year, while the export volume index surged 27.7 percent over the same twelve-month period.
On the inbound side, the import unit value index fell 1.2 percent month-on-month in July. Lower import costs were primarily driven by a 7.3 percent drop in mineral fuels and a 0.3 percent dip in imported chemicals.
Despite lower unit costs, total import volume expanded 14.0 percent over the previous month. The sequential volume increase was led by food imports, which jumped 12.9 percent, followed by an 8.7 percent rise in machinery and transport equipment and a 2.4 percent increase in manufactured goods. The seasonally adjusted import volume index moved up 13.2 percent to 199.7 points from 176.4 points in June.
From a year earlier, the import unit value index advanced 3.4 percent, while total import volume recorded a broad-based 25.0 percent year-on-year surge.
The month-on-month improvement in Malaysia’s terms of trade was heavily supported by higher relative prices in energy exports. The index for mineral fuels surged 11.5 percent sequentially, while manufactured goods and inedible crude materials added 0.7 percent and 0.6 percent, respectively. The resulting 1.9 percent monthly gain brought the terms of trade index to 126.6 points, reflecting favorable trading conditions for Malaysian exporters heading into the second half of the year.
