Malaysia's Exports Surge 29.2% to Cross RM1 Trillion, Lifting Total Trade to Record RM2.16 Trillion

KUALA LUMPUR, 21 AUGUST 2026 (FRIDAY) – For the period of January-July 2026, total trade reached RM2.160 trillion, expanding by 24.7% year-on-year (y-o-y). The performance was driven by strong export demand, with exports rising 29.2% to RM1.165 trillion, while imports increased by 19.8% to RM994.71 billion. The trade surplus surged by 138.7% to RM170.50 billion, more than doubling the RM71.42 billion recorded in the corresponding period last year.

Malaysia's external trade recorded its strongest performance to date for the first seven months of 2026. Exports crossed RM1 trillion, faster than in 2025 when the same achievement was recorded in January-August. Total trade exceeded RM2 trillion, faster than in January-September 2025.

With five months remaining in 2026, Malaysia's trade performance remains on track for another record year, building on three consecutive years of trade expansion since the pandemic-induced contraction in 2020.

CEO’s Quote

Commenting on the nation’s latest trade figures, Chief Executive Officer Dato' Indera Abu Bakar Yusof noted that while the current numbers reflect the strong resilience of Malaysian exporters, long-term success requires deliberate effort to expand the country's overall trade ecosystem. MATRADE is reinforcing its focus on expanding Malaysia’s export base to drive sustainable, long-term trade growth while actively mitigating market and product concentration risks.

“While these numbers are encouraging, our data points to increasing concentration in both export products and the companies driving that growth,” said Dato' Indera Abu Bakar. “MATRADE is doubling down on empowering MSMEs and mid-tier companies to ensure our expansion is broad-based, homegrown, and deeply integrated into global supply chains.”

To address these vulnerabilities, the agency is expanding its flagship global value chain integration programs, connecting local businesses directly to high-impact international trade platforms including the Farnborough International Airshow, SEMICON West, and ADIPEC.

Parallel to international exposure, MATRADE is accelerating its capacity-building efforts through the development of the MATRADE Academy, a structured initiative designed to expand the nation's baseline of high-performing, export-ready enterprises. 

Digital export infrastructure is also being scaled up through the tighter integration of cross-border e-commerce platforms, specifically the MADANI Digital Trade Platform (MDTP), eBizLink and eTrade, which provide local MSMEs direct access to international marketplaces.

These strategic trade directives are further reinforced through deepened public-private alliances with key industry leaders such as DHL, MARA, and the Federation of Malaysian Manufacturers (FMM), operating under the Whole-of-Government (WoG) framework via the JK-X platform to guarantee coordinated execution.

“None of this can be achieved in isolation,” Dato' Indera Abu Bakar added. “Through strong public-private partnerships and a coordinated Whole-of-Government approach via Jawatankuasa Koordinasi Eksport (JK-X), we remain committed to delivering Malaysia’s trade agenda effectively on the world stage. 

MSMEs strengthen export contribution and competitiveness

Small and medium enterprises (MSMEs) continued to strengthen their contribution to Malaysia's export in goods and services. In 2025, MSME exports rose 10.5% to RM214.5 billion, with their share of Malaysia’s total exports increasing to 14.7%. Manufacturing remains the backbone of MSME exports, accounting for 9.1% of Malaysia's total exports and growing 8.8% to RM132.7 billion, underscoring the growing contribution of MSMEs to export performance and their role in bringing homegrown products to international markets.

For the period of January-July 2026, food and beverages remained the key MSME industry, with exports of food and confectionery products growing by 6.3%. Automotive products expanded by 13.8%, driven by higher exports of parts and accessories of motor vehicles, while pharmaceutical products (+29.7%), metal furniture (+27.8%), palm oil based and oleochemical products (+13.4%) also recorded strong double-digit growth. The broad-based expansion across the food, automotive and other value-added manufacturing segments shows that MSMEs play an important role as a catalyst in producing high-value goods and contributing to exports, while being able to compete within the global value chain ecosystem.

Broad-based demand across traditional and non-traditional markets

Malaysia's export performance was supported by strong demand from key trading partners, particularly the United States (+58.3%, RM206.59 billion), ASEAN (+20.3%, RM315.67 billion), Taiwan (+71.4%, RM80.81 billion), Hong Kong SAR (+49.8%, RM77.86 billion), China (+24.3%, RM127.87 billion) and the EU (+29.8%, RM90.73 billion).

MATRADE’s market diversification strategy into non-traditional markets across Africa, Central Asia, South Asia, and Latin America surged collectively by 18.2% to RM100.94 billion, driven by significant growth in Angola (+231.2%), Zimbabwe (+242.7%), Sudan (+203.5%) and the Democratic Republic of the Congo (+117.1%). Exports to Sudan, the Democratic Republic of the Congo, Ethiopia and Zimbabwe have already surpassed their respective full-year export values recorded in 2025. 

Malaysia's Free Trade Agreements (FTAs) continued to underpin export growth, with exports to FTA partner countries expanding by 22.4% to RM737.97 billion, representing 63.3% of Malaysia's total exports. Of the 24 FTA partner countries, 21 registered growth. Exports to Regional Comprehensive Economic Partnership (RCEP) markets rose 19.7% to RM564.02 billion, while exports to Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) markets grew 18.1% to RM330.42 billion.