Malaysia's trade hits record high in first half of 2026, driven by E&E sector resilience

Malaysia's trade performance hit an all-time high in the first half of 2026, reaching RM1.796 trillion. This robust growth, a 22.4% year-on-year increase, was primarily fueled by the strong resilience of the electrical and electronics (E&E) sector despite global economic uncertainties.

Exports saw a significant jump of 27.5% to RM971.59 billion, while imports grew by 16.9% to RM824.44 billion. This resulted in a substantial trade surplus of RM147.15 billion. The Ministry of Investment, Trade and Industry (MITI) highlighted that the manufacturing sector, particularly E&E, was a key driver, with exports from this industry alone nearing RM140 billion. This growth is attributed to sustained global demand, technological advancements, and increased digital technology adoption in major world markets.

Beyond E&E, other sectors like petroleum products, optical and scientific goods, and metal manufactured products also contributed to export expansion. Exports of mineral products, including metal ores, scrap, and liquefied natural gas (LNG), also performed positively. Key trading partners such as ASEAN, China, the United States, Taiwan, and the European Union continued to provide strong demand, supporting the nation's export growth. Trade with Free Trade Agreement (FTA) partners also expanded, led by markets including Hong Kong SAR, South Korea, Mexico, India, Australia, the United Kingdom, Japan, Pakistan, Canada, and New Zealand.

The nation's trade momentum reached a new peak in June 2026, setting a monthly record of RM340.89 billion, a 44.7% increase from the previous year. This surge included a 45.4% rise in exports to RM177.89 billion and a 43.9% increase in imports to RM163 billion. The RM14.89 billion trade surplus recorded in June also extended the streak of consecutive monthly surpluses to 74 months, dating back to May 2020.

This stronger trade performance has bolstered Malaysia's global competitiveness. The IMD World Competitiveness Ranking 2026 saw Malaysia climb eight spots to 15th place, attributed to improvements in economic performance, government efficiency, and business practices. Despite ongoing risks from geopolitical tensions and global trade uncertainties, Malaysia's external trade sector demonstrates remarkable resilience, positioning it as a competitive trade and investment destination.