Malaysia Achieves Record-Breaking Monthly Trade Performance
Malaysia’s trade performance experienced a robust rebound in July, surging by 3.8% year-on-year to an all-time high of RM265.92 billion. This remarkable achievement, as announced by the Ministry of Investment, Trade and Industry (MITI), underscores the country’s export resilience and its strong competitiveness in the global market. The nation’s exports led the growth, increasing by 6.8% to RM140.45 billion, the highest value recorded since September 2024. This was primarily driven by steady and healthy global demand for Malaysian products. At the same time, imports also saw a slight increase of 0.6%, reaching RM125.47 billion. This combination of strong export growth and a more modest rise in imports resulted in a significant trade surplus of RM14.98 billion for the month, marking the 63rd consecutive month that Malaysia has maintained a positive trade balance. This consistent performance signals a stable and healthy external sector, which is a key indicator of the country’s overall economic strength.
Key Sectors Drive Export-Led Growth and Global Reach
A major contributor to Malaysia’s impressive export performance was the electrical and electronic (E&E) sector, which saw a substantial jump of nearly RM12 billion to RM63.31 billion in July 2025, representing a 22.5% year-on-year increase. E&E products continue to be the main driver of Malaysia’s export growth, supported by strong demand for optical and scientific equipment, as well as processed foods. Additional growth was also recorded in exports of machinery, equipment, and parts, along with palm oil-based manufactured products. The country’s export growth was broad-based, with shipments to all major trading partners—including ASEAN, China, the US, Taiwan, and the European Union—registering positive growth. Notably, exports to Taiwan reached an all-time high. Furthermore, exports to Free Trade Agreement (FTA) partners also rose significantly, with robust demand from Mexico and the Republic of Korea. This widespread growth across multiple partners and key product categories highlights the diversification and strength of Malaysia’s trade relationships and its ability to capitalize on global demand.
Positive Economic Indicators Amid Global Uncertainties
Malaysia’s encouraging trade performance in the first seven months of 2025, where total trade reached a record cumulative level of RM1.73 trillion, occurred amidst a cautiously improving global trade outlook. According to MITI, the World Trade Organization (WTO) recently revised its 2025 global trade growth forecast upward to 0.9%, a notable improvement from its earlier estimate of a 0.2% decline, which was primarily supported by stronger US import demand. This positive external environment, coupled with the effectiveness of MITI’s trade diplomacy—evidenced by the US government’s reduction of reciprocal tariffs on Malaysian exports—is expected to further enhance the country’s competitiveness. Despite facing global trade and tariff headwinds, Malaysia’s steady trade performance has contributed significantly to the expansion of its national GDP, which grew by 4.4% in the second quarter of 2025. This shows the direct link between a strong trade sector and overall economic health. MITI and the Malaysia External Trade Development Corporation (MATRADE) have stated their commitment to remaining vigilant in navigating the complex and shifting dynamics of global trade and rising geopolitical tensions to ensure Malaysia’s continued economic success.
