Malaysia's Trade Performance in January 2026 Remained Robust, a Strong Start to the New Year

Malaysia’s trade performance in January 2026 remained robust, reflecting the country’s resilience and competitiveness in international trade at the start of the year. Trade rose 12.6% year-on-year (y-o-y) to RM272.37 billion, supported by the seventh consecutive month of export expansion, which recorded double-digit growth of 19.6% to RM146.87 billion while imports edged up by 5.3% to RM125.50 billion. Trade surplus sustained its positive momentum for the 69th consecutive month since May 2020, totaling RM21.37 billion. Trade, exports, imports and trade surplus also recorded their highest monthly values ever for the month of January.

This impressive monthly export performance was driven mainly by robust demand for manufactured goods, particularly electrical and electronic (E&E) products, which grew by 39.5% or almost RM20 billion. Export growth was further supported by higher shipments of optical and scientific equipment as well as machinery, equipment and parts.

In terms of markets, exports to all major trading partners increased, led by strong double-digit growth to the People’s Republic of China (China), the United States (US), Taiwan and the European Union (EU), while exports to ASEAN grew at a more moderate pace. Exports to Free Trade Agreement (FTA) partners also recorded broad-based expansion, particularly to the Hong Kong Special Administration Region of China (Hong Kong SAR), the Republic of Korea (ROK), Mexico, India, the United Kingdom, the United Arab Emirates (UAE) and New Zealand. Notably, exports to Taiwan and Hong Kong SAR reached their highest monthly values to date.

Building on this performance, Malaysia’s economy recorded its strongest growth in three years in 2025, underpinned by resilient domestic demand, firm export performance and sustained investment, according to the Department of Statistics Malaysia (DOSM). Gross Domestic Product (GDP) in 2025 expanded by 5.2% (cf. 2024: 5.1%), marking the country’s strongest annual performance since 2022.
Going forward, MITI and MATRADE remain focused on accelerating export growth by leveraging Malaysia’s network of FTAs, deepening engagement with key trading partners, exploring new markets and providing Malaysian exporters with the support needed to enhance competitiveness, strengthen resilience and achieve sustainable long-term growth.

Export Performance of Major Sector Sectors

E&E Products Drove Export Growth

In January 2026, exports of manufactured goods which accounted for 86.7% of Malaysia’s total exports, recorded strong growth, posting a double-digit expansion of 22.3% y-o-y to RM127.36 billion. This robust performance was driven mainly by higher exports of E&E products, which surged by 39.5% or nearly RM20 billion, followed by optical and scientific equipment as well as machinery, equipment and parts.

Exports of agriculture goods (6.0% share) edged down by 2.7% y-o-y to RM8.88 billion in January 2026. The decline was attributed to lower export prices of palm oil and palm oil-based agriculture products despite higher export volumes.

Meanwhile, exports of mining goods (6.0% share) rebounded by 2.7% y-o-y to RM8.76 billion, supported by stronger exports of metalliferous ores and metal scrap.

Major exports in January 2026:

• E&E products, valued at RM70.53 billion and accounted for 48.0% of total exports, increased by 39.5% compared to January 2025
• Petroleum products, RM8.13 billion, 5.5% of total exports, ↓16.7%
• Machinery, equipment and parts, RM6.63 billion, 4.5% of total exports, ↑13.0%
• Palm oil and palm oil-based agriculture products, RM6.53 billion, 4.4% of total exports, ↓2.3%
• Optical and scientific equipment, RM5.78 billion, 3.9% of total exports, ↑36.2%.

On a month-on-month (m-o-m) basis, exports of mining goods increased by 3.2%, while exports of manufactured and agriculture goods dipped by 4.2% and 9.3%, respectively.

Trade Performance with Major Markets

In January 2026, Malaysia’s trade with major trading partners namely ASEAN, China, the US, Taiwan and the EU comprised 70.3% of total trade.

ASEAN – Exports Recorded the Seventh Consecutive Month of Expansion

Trade with ASEAN in January 2026 which constituted 25.0% of Malaysia’s total trade rose 9.3% y-o-y to RM67.97 billion. Exports grew by 7.1% to RM39.42 billion, marking the seventh consecutive month of expansion, driven by stronger demand for E&E products, optical and scientific equipment as well as manufactures of metal. Imports from ASEAN expanded by 12.5% to RM28.55 billion.

Breakdown of exports to ASEAN countries:

• Singapore RM20.93 billion, increased by 0.4%, y-o-y
• Thailand RM5.60 billion, ↑9.8%
• Viet Nam RM5.05 billion, ↑60.0%
• Indonesia RM4.69 billion, ↑10.0%
• Philippines RM2.22 billion, ↓6.4%
• Myanmar RM342.9 million, ↑34.2%
• Cambodia RM322.8 million, ↑23.4%
• Brunei RM252.0 million, ↓52.5%
• Lao PDR RM9.6 million, ↑64.8%
• Timor-Leste RM2.0 million, ↓23.2%.

Export expansion was recorded to Singapore, increasing by RM82.4 million y-o-y, Thailand which grew by RM499.7 million and Viet Nam which rose RM1.90 billion, supported by strong demand for E&E products.

On a m-o-m basis, exports were up by 1.5%, while trade and imports were edged down by 0.5% and 3.0%, respectively.

China – Trade, Exports and Imports Posted Double-Digit Expansion

Trade with China in January 2026 comprised 17.8% of Malaysia’s total trade climbed 17.1% y-o-y to RM48.53 billion. Exports rebounded with double-digit growth of 16.1% to RM15.47 billion propelled by strong exports of metalliferous ores and metal scrap, E&E products as well as processed food. Imports from China grew by 17.6% to RM33.06 billion.

Compared to December 2025, trade, exports and imports fell 9.5%, 17.2% and 5.3%, respectively.

The US – E&E Products Supported Export Growth

In January 2026, trade with the US which represented 11.6% of Malaysia’s total trade expanded by 11.1% y-o-y to RM31.63 billion. Exports increased for the second month in a row, surged by 33.9% to RM23.10 billion driven by rising demand for E&E products. Imports from the US contracted by 24.0% to RM8.52 billion.

Compared to December 2025, trade, exports and imports slipped by 14.4%, 17.5% and 5.0%, respectively.

Taiwan – Exports Soared to a New Record High

In January 2026, trade with Taiwan, which accounted for 8.4% of Malaysia’s total trade, increased by 11.6% y-o-y to RM22.82 billion. This performance was driven by a surge in exports, which climbed to a new record high, expanding by 79.4% to RM9.93 billion and marking the fourth consecutive month of double-digit growth. The expansion was underpinned by strong exports of E&E products, optical and scientific equipment as well as machinery, equipment and parts. Meanwhile, imports from Taiwan declined by 13.6% to RM12.89 billion.

Compared to December 2025, trade, exports and imports rose 10.8%, 14.0% and 8.4%, respectively.

The EU – Exports Grew for the 12th Consecutive Month

In January 2026, trade with the EU which took up 7.5% of Malaysia’s total trade, expanded by 19.8% to RM20.53 billion compared to the corresponding month last year. Exports grew for the 12th month in a row, registering strong double-digit expansion of 26.0% to RM12.21 billion, spurred by larger exports of E&E products, petroleum products as well as transport equipment. Imports from the EU expanded by 11.9% to RM8.32 billion.

The top 10 markets within the EU which comprised 92.6% of Malaysia’s total exports to the region were:

• Netherlands RM4.36 billion, increased by 30.0%, y-o-y
• Germany RM2.83 billion, ↑1.2%
• France RM973.4 million, ↑147.5%
• Belgium RM684.0 million, ↑16.1%
• Czech Republic RM653.6 million, ↑104.8%
• Poland RM491.2 million, ↑84.2%
• Italy RM454.2 million, ↓13.9%
• Hungary RM312.6 million, ↑50.0%
• Spain RM280.0 million, ↓45.5%
• Austria RM261.6 million, ↑190.8%.

Among major markets that recorded increases in exports were the Netherlands, which rose RM1.00 billion y-o-y and France which expanded by RM580.1 million, supported by robust exports of E&E products. Meanwhile, exports to Germany grew by RM34.8 million following higher exports of optical and scientific equipment.

On a m-o-m basis, trade, exports and imports shrank 5.3%, 2.1% and 9.7%, respectively.

Trade with FTA Partners

In January 2026, trade with FTA partners which accounted for 65.7% of Malaysia’s total trade rose 14.0% y-o-y to RM178.86 billion. Exports to FTA partners climbed 14.5% to RM95.22 billion while imports expanded by 13.5% to RM83.64 billion.

Increases in exports were recorded to Hong Kong SAR, which surged by 58.0% to RM11.66 billion, to the ROK which rose 27.6% to RM4.65 billion and to Mexico which soared by 122.1% to RM3.03 billion, following strong exports of E&E products. Exports to Hong Kong SAR reached its highest monthly value to date.

Similarly, exports to India rose 35.7% to RM4.73 billion and exports to the UAE increased by 18.1% to RM1.42 billion, backed by higher shipments of palm oil and palm oil-based agriculture products.

Meanwhile, exports to the UK expanded by 35.3% to RM875.0 million, due to strong demand for paper and pulp products and exports to New Zealand rose 2.6% to RM518.4 million on higher demand for chemicals and chemical products.

Compared to December 2025, trade, exports and imports fell 3.7%, 1.5% and 6.0%, respectively.

Import Performance

Total imports in January 2026 expanded by 5.3% y-o-y to RM125.50 billion. The three main categories of imports by end use, which accounted for 67.9% of total imports were:

• Intermediate goods, valued at RM57.65 billion or 45.9% of total imports, contracted by 5.1% y-o-y, due to lower imports of parts and accessories of non-transport capital goods;
• Capital goods, valued at RM15.80 billion or 12.6% of total imports, decreased by 20.7%, as a result of reduced imports of non-transport capital goods; and
• Consumption goods, valued at RM11.73 billion or 9.3% of total imports, grew by 16.7%, following higher imports of durables.

Compared to December 2025, imports edged down by 4.0%. Imports of capital goods rose 4.4%, while imports of intermediate and consumption goods contracted by 5.5% and 5.8%, respectively.