KUALA LUMPUR, June 18 — Malaysia is expected to maintain strong trade momentum in the coming months after recording the best trade performance in the country’s history for the first four months of 2026 despite facing global geopolitical uncertainties and supply chain disruptions, said Deputy Investment, Trade and Industry Minister Sim Tze Tzin.

He said the performance was driven by strong trade in the electrical and electronics (E&E) sector, which continued to benefit from the strong global artificial intelligence (AI) growth cycle.

“Malaysia has recorded the best ever trading numbers in its history in April. That shows that Malaysia’s trade and exports are very resilient. We registered double-digit growth with major trading countries in the world, including the United States, China, Taiwan and Japan.

“So this trajectory, we believe that it will go on for a few more months because we are riding the AI super cycle. The trading among E&E sectors is robust. Whether it will go up until the end of 2026 remains to be seen but I am cautiously optimistic,” he told the media after addressing the 53rd annual general meeting of the Malaysian International Chamber of Commerce and Industry (MICCI).

On Malaysia’s achievement in attracting investments exceeding RM1 trillion in three years, Sim said global geopolitical conflicts indirectly made Malaysia a more attractive investment destination due to its position as a stable country in South-east Asia.

He said the government’s continuous efforts through agencies such as the Malaysian Investment Development Authority (MIDA) also played an important role in attracting foreign investments.

On the development of a local vendor database, Sim said the initiative aims to create a centralised platform that allows companies to identify products and services offered by local enterprises, thus facilitating business collaboration.

“We want to gather the data of all companies in one centralised database so that when they are looking for partners, they can identify the right company.

“If we have a complete database, we can connect local companies more effectively. This helps reduce dependence on imports and ensures that more money remains in the Malaysian economy,” he said.

On Malaysia’s prospects in exiting the middle-income trap, Sim said the country has the potential to achieve high-income status within two years if the current economic growth momentum can be maintained.

He said Malaysia needs to maintain the economic momentum of 2025 to achieve high-income status, but will have to face various uncertainties such as the global geopolitical crisis.

“We are capable of achieving that status but a lot of uncertainties remain. So we have to work hard, including the government, the private sector and the people. All Malaysian citizens must work hard in terms of productivity. 

“Also, we need stable politics. If we have continuous chaos in politics, then we will have problems in terms of moving to high income nation. Political stability is very important. Too much is at stake. If we have disruptive politics, if we don’t have a stable government, if we keep changing the government, then we will be left behind,” he added. — Bernama