KUALA LUMPUR, April 20 — Malaysia’s trade remained on an expansionary path in the first quarter (1Q) of 2026, expanding by 10.4 per cent to RM789.85 billion versus the same period in 2025, despite ongoing global uncertainties, said the Ministry of Investment, Trade and Industry (Miti).

The ministry said exports rose 12.7 per cent to RM426.53 billion, marking the second-highest quarterly value ever recorded, while imports increased by 7.7 per cent to RM363.31 billion, resulting in a trade surplus of RM63.22 billion.

“Notably, these were the highest ever 1Q values for trade, exports and imports,” Miti said in a statement today on Trade Performance For The Period Of January-March 2026 And March 2026.

It said expansion in exports during the quarter was primarily driven by stronger demand for manufactured goods, particularly electrical and electronic (E&E) products as well as optical and scientific equipment, alongside mining goods, notably metalliferous ores and metal scrap.

E&E products continued to anchor overall export growth, with exports increasing by more than RM40 billion, underpinned by sustained global demand and ongoing technological adoption across key markets.

These products each attained their highest quarterly export values to date, said the ministry.

In terms of markets, exports to key trading partners, namely China, the United States and Taiwan, recorded robust double-digit growth, while exports to Asean registered moderate expansion.

“Exports to Free Trade Agreement (FTA) partners also recorded increases, with higher shipments going to markets such as Hong Kong, Mexico, South Korea, India and the United Kingdom.

“Notably, exports to the US, Taiwan, Hong Kong and the South Korea reached their highest quarterly values to date,” said Miti.  

For the month of March 2026, trade sustained its upward trajectory, expanding by 9.3 per cent year-on-year (y-o-y) to RM272.95 billion, supported by growth in both exports and imports.

Exports rose 8.3 per cent to RM148.75 billion, marking the second-highest monthly value ever recorded, while imports increased by 10.4 per cent to RM124.20 billion.

This resulted in a trade surplus of RM24.55 billion, sustaining Malaysia’s streak of 71 consecutive months of surplus since May 2020.

Trade, exports and imports reached their highest monthly levels on record for the month of March.

“Heightened geopolitical tensions in West Asia have amplified volatility in global trade, exerting upward pressure on logistics costs and supply chain efficiency,” Miti said.

Amid these developments, it noted that the external outlook remains mixed, with the World Trade Organisation (WTO) projecting global merchandise trade volume to grow by a modest 1.9 per cent per cent in 2026.

In parallel, Bank Negara Malaysia (BNM) projected Malaysia’s exports to grow by 8.6 per cent in 2026, while imports are expected to increase by nine per cent, reflecting comparatively more robust domestic and external demand dynamics.  

In other developments, Miti said Malaysia’s strong integration into global trade is reflected in its improved standing in the WTO 2025 rankings, with exports rising from 25th to 23rd globally, total trade from 24th to 23rd, and imports from 25th to 24th.

While this underscores its resilience and deep integration into global supply chains, the outlook remains subject to external risks.

Continued vigilance is therefore essential, as prolonged geopolitical instability could weigh on global demand and disrupt supply chain dynamics.

“Miti and the Malaysia External Trade Development Corporation (Matrade) will continue to closely monitor global developments while exporters are encouraged to leverage existing FTAs, tap into emerging markets and diversify product offerings to strengthen resilience amid ongoing uncertainties,” it added. — Bernama