Malaysia’s trade performance remained on a strong footing in the first half (1H) of 2026, reflecting the resilience of the external sector amid geopolitical uncertainties, logistics volatility and uneven demand conditions. During 1H 2026, trade expanded by 22.4% year-on-year (y-o-y) to RM1.796 trillion, with exports rising 27.5% to RM971.59 billion and imports expanding by 16.9% to RM824.44 billion, resulting in a trade surplus of RM147.15 billion. Trade, exports, imports and trade surplus registered their highest values ever recorded for the January to June period, supported by Malaysia’s deep integration into regional and global supply chains.
Export expansion during 1H 2026 was driven by Malaysia’s strength of manufactured exports, particularly electrical and electronic (E&E) products, with export value increasing by almost RM140 billion, attributed to sustained global demand, technological advancements and continued adoption of digital technologies across major markets. Other manufactured goods that performed well were petroleum products, optical and scientific equipment as well as manufactures of metal. Mining goods also contributed positively, particularly metalliferous ores and metal scrap as well as liquefied natural gas (LNG).
From a market perspective, export growth was underpinned by robust demand from major trading partners, namely ASEAN, the People’s Republic of China (China), the United States (US), Taiwan and the European Union (EU), all of which recorded remarkable growth. Exports to Free Trade Agreement (FTA) partners also expanded strongly across a diverse range of products, with higher shipments to key markets including Hong Kong SAR, the Republic of Korea (ROK), Mexico, India, Australia, the United Kingdom (UK), Japan, Pakistan, Canada and New Zealand.
Robust performance in June 2026 reinforced the positive momentum established throughout the first half of the year, with trade reaching an all-time monthly high. Trade expanded by 44.7% y-o-y to RM340.89 billion, boosted by double-digit growth in both exports and imports. Exports expanded by 45.4% to RM177.89 billion, while imports rose 43.9% to RM163.00 billion, resulting in a trade surplus of RM14.89 billion, the 74th consecutive month of surplus since May 2020.
Malaysia’s stronger trade performance was also reflected in its improved global competitiveness standing. In the IMD World Competitiveness Ranking 2026, Malaysia climbed eight positions to the 15th place, underscored by improved performance across key pillars such as economic performance, government and business efficiency. This reinforced the nation’s attractiveness as a trade and investment destination amid an increasingly challenging global environment.
While downside risks remain from prolonged geopolitical tensions, Malaysia’s trade has thus far demonstrated resilience. Based on the strong performance in 1H 2026, several key export products and markets are poised to achieve new record highs for the full year, driven by continued strength in E&E products and robust demand from major trading partners. Going forward, continued efforts to leverage existing FTAs, diversify export destinations and strengthen higher value-added exports will be crucial in sustaining momentum and reinforcing Malaysia’s trade resilience.
