KUALA LUMPUR, Aug 22 – Malaysia’s total trade has reached RM2.16 trillion for the period of January-July 2026, expanding by 24.7% year-on-year (y-o-y), driven by strong export demand, according to the Malaysia External Trade Development Corporation (Matrade).
Matrade said exports rose 29.2% to RM1.165 trillion, while imports increased by 19.8% to RM994.71 billion.
“The trade surplus surged by 138.7 % to RM170.5 billion, more than doubling the RM71.42 billion recorded in the corresponding period last year,” it said in a statement.
Matrade said 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 and 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,” the agency said.
Meanwhile, micro, small and medium enterprises (MSMEs) continued to strengthen their contribution to Malaysia’s exports in goods and services, with MSME exports rising 10.5% to RM214.5 billion in 2025, and 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 (+13.8%), while pharmaceutical products (+29.7%), metal furniture (+27.8%), palm oil-based and oleochemical products (+13.4%) also recorded strong double-digit growth,” it said.
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 (+49.8%, RM77.86 billion), China (+24.3%, RM127.87 billion) and the European Union (+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 Congo (+117.1%).
Exports to Sudan, 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.
On the trade performance, Matrade chief executive officer Datuk Abu Bakar Yusof said 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 doubling down on empowering MSMEs and mid-tier companies to ensure our expansion is broad-based, homegrown and deeply integrated into global supply chains,” he said.
The agency is expanding its flagship global value chain integration programmes, connecting local businesses directly to high-impact international trade platforms including the Farnborough International Airshow, Semicon West and Abu Dhabi International Petroleum Exhibition and Conference (Adipec).
