Country records RM3 trillion trade, 28th year in trade surplus, says Miti minister

KUALA LUMPUR: Despite trade challenges threatening Malaysian exports, the country has recorded its highest-ever trade value of RM3.06 trillion, says International Trade and Industries (Miti) Minister Datuk Seri Johari Ghani.

He said this is the 28th year Malaysia has had a trade surplus.

He added that the country’s trade is expected to grow further between 3% and 5% this year, already having grown 6.3%.

In a speech delivered by Deputy Miti minister Sim Tze Tzin, Johari said exports amounted to RM1.61 trillion and imports amounted to RM1.45 trillion, resulting in a surplus of RM151.8bil.

This was stated at the post-announcement of Malaysia’s Trade Performance 2025: Shaping New Opportunities on Tuesday (Jan 27) at Menara Matrade.

“Higher exports were largely contributed by electrical & electronic (E&E) products, particularly higher demand for electronic integrated circuits, reflecting the acceleration of global technology adoption, including Artificial Intelligence (AI).

“The manufacturing sector remained the main driver of export growth, supported by strong demand for palm oil-based products, as well as continued expansion in machinery, equipment and parts.

“Meanwhile, in the commodity sector, palm oil continues to be the nation’s key export.

“Malaysia’s active participation in global supply chains, namely in the area of technology has led to healthy and higher imports mainly capital goods to support increased manufacturing activities,” said Johari.

He further said that to ensure sustainable growth, Malaysia must diversify its trade partnerships.

“Broadening trade relations beyond traditional markets and forging stronger ties with emerging economies will reduce reliance on any single region.

“These are non-traditional partners whose economies have grown exponentially in recent years, including regions such as Africa, the Middle East and Latin America.

“Last year, Miti and its agencies participated in several of the Prime Minister’s official visits, including to Ethiopia, South Africa, Kenya, the UK, Switzerland, Brazil, the United Arab Emirates, Russia and China.

“These bilateral engagements, including the signing of the Malaysia-Korea FTA by mid of this year, are strategically undertaken to further strengthen trade relations and expand market presence,” he added.

Johari also said that the role of imports must not be disregarded.

“The importation of high-value and specialised products not produced locally is especially vital in supporting downstream industries and driving industrial advancement.

“These imports enable local industries to move up the value chain, improve productivity, and produce higher-value goods for export,” he said.

He said that in 2026, Malaysia’s economy is projected to expand between 4% and 4.5%.

At the same event, Matrade chairman Datuk Seri Reezal Merican Naina Merican said that strategic diversification is one of the strongest drivers behind the success.

“It is not just in markets, but in mindset. When global companies began looking for new partners, new supply chain locations and more stable hubs, Malaysia chose to step up and scale up.

“For instance, our E&E and semiconductor industries did not just ride demand; they reinforced Malaysia’s position as a crucial link in the global innovation chain. And that is why global players keep coming back.

“Another major driver was our Free Trade Agreements (FTAs). In 2025, trade with FTA partners surpassed RM2 trillion, making up 65.5% of Malaysia’s total trade.

“All credit goes to Miti and to the negotiators who do the real hard work beyond the scenes – patiently, strategically and consistently across 17 FTAs,” said Reezal, who commended former Miti minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

He further said that Malaysia’s expansion into non-traditional markets turned emerging markets into new corridors of growth.

Listing Latin America, the Middle East, Africa, and Central Asia, he said that there was strong export growth in markets like Yemen (49.7%), Uzbekistan (27%), Puerto Rico (10%) and Kenya (9.9%).

“Even countries with smaller trade volumes saw exponential growth, such as Sudan (325.2%), Kyrgyzstan (225.8%), Uruguay (193.4%), Zambia (173.3%) and Palestine (76.2%).

“It’s proof that Malaysian businesses can go far when we open the right doors.

“In 2025, our work spoke loudly: Matrade organised ten trade and investment missions, six export acceleration missions, and participated in 28 global trade fairs, all complemented by our flagship business-matching through the International Sourcing Programme (INSP).

“Mihas 2025 generated RM6.05bil in sales, a striking increase of nearly 41% from 2024 – attracting more than 50,000 trade visitors from 80 countries. Mihas@Shanghai also delivered powerfully, generating RM3.2bil in sales and further strengthening Malaysia’s role in the halal economy,” said Reezal.

He said that Matrade empowers entrepreneurs through State Export Day.

“Over 19,000 companies have benefited from Matrade’s initiatives, more than 14,000 of them are SMEs. Together, they generated nearly RM65bil in sales. This is only the beginning.

“2026 will test our resilience – but it will also reveal our capacity to lead,” said Reezal.

At a media conference, Sim said that Malaysia should no longer position itself as a low-cost producer and should focus on higher-value-added products.

“There may be challenges for certain ‘Made in Malaysia’ goods, but exporters can adapt by moving up the value chain. If we help them add value and improve product quality, they can remain competitive.

“Malaysia should no longer position itself as a low-cost producer. We should focus on higher-value-added products.

“For example, instead of exporting basic goods, we should improve packaging, branding and quality.

“By doing so, the stronger ringgit will not significantly affect exporters, because higher-value products generate better margins.

“Today, at just under RM4, the situation remains manageable.

“One key factor behind the strengthening of the ringgit is Malaysia’s trade surplus — we sell more than we buy. A trade surplus does help strengthen the currency. ‘Made in Malaysia’  today contributes to mid-to-high-value global supply chains, expanding national wealth creation,” said Sim.