KUALA LUMPUR: Malaysia’s trade strategy for 2025 will be anchored on digital growth and regional transformation, says Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
According to him, 2025 will be a year of not only challenges but also opportunities that Malaysia can leverage on.
“Last year was indeed a great year for Malaysia’s economy.
“Trade rebounded 9.2% year-on-year (y-o-y) to a historical high of RM2.9 trillion, thus achieving its highest total trade value in history.
“Trade has long been the backbone of our nation’s economic growth, providing jobs, spurring innovation and serving as a vital bridge to the global economy,” he said in a recorded speech at the Insightful Talk on Malaysia’s Trade Performance 2024.
The minister highlighted that imports rose 13.2% y-o-y to RM1.37 trillion, crossing the RM1 trillion mark for the third consecutive year.
This resulted in a trade surplus of RM136.8bil, marking the 27th consecutive year of surplus since 1998.
Tengku Zafrul attributed the strong performance in imports to the electrical and electronics (E&E) sector, driven by robust demand for electronic integrated circuits due to the global acceleration of technology, particularly artificial intelligence.
“Additionally, the strong demand for machinery, equipment and parts, which grew by 20.6%, followed by processed food and palm oil and palm oil products, also contributed to the positive growth of exports.”
He said the increase in imports was also due to Malaysia’s active participation in the global supply chain, leading to higher imports of intermediate and capital goods to support the growing manufacturing activities.
Meanwhile, exports rose 5.7% to RM1.51 trillion, with increased exports to major trading partners, such as Asean, the United States, the European Union and Taiwan.
Exports to the United States and Taiwan reached all-time highs, with Taiwan officially becoming Malaysia’s fourth-largest trading partner.
Export growth in 2024 was mainly driven by strong performances in both manufactured and agriculture products.
This growth was led by increased shipments of E&E products, machinery, equipment and parts, processed food, and optical and scientific equipment, all of which had recorded their highest value ever.
“One of the strategies identified to increase exports was to enhance our engagement with emerging markets.
“These markets are not our traditional partners, but economies that have been rapidly growing over the years,” Tengku Zafrul said.
He added that these include regions such as Africa, the Middle East and Latin America.Intensifying outreach into second-tier cities has also become a priority to Malaysia, with countries like China and Indonesia being key focuses, he noted.
“Cities like Chengdu, Nanjing, Chongqing, Medan, Surabaya and Burkina Faso are currently undergoing rapid urbanisation and economic growth with a fast-growing population that will create huge demand for products and services,” he added.
Tengku Zafrul said Malaysia External Trade Development Corp (Matrade) has been effective in intensifying efforts to leverage Malaysia’s free trade agreements (FTAs).
“The benefits of the FTAs include zero-waste knowledge and preferential market access that will make Malaysian products and services more competitive.
“Our ministries will continue to vigorously undertake export promotion activities across the globe and pursue more bilateral trade agreements,” he said.
Exports to FTA markets saw a rebound this year, reversing the contraction in 2023.
Canada recorded growth, driven by higher demand for E&E products, while exports to Turkiye and Mexico hit record highs, fuelled by increased shipments of iron and steel products, and chemicals and chemical products, respectively.
Matrade chairman Datuk Seri Reezal Merican Naina Merican said Malaysia pursued strategic trade expansions last year with 18 high-impact missions to global markets, concluding RM48.53bil in sales.
Matrade has several programmes planned this year, including 24 trade fairs.
“We will have our first ever Madani Digital Trade. This is an interactive and intelligent platform for all our partners, exporters, importers, customers and everyone in the ecosystem.”
Reezal Mericansaid a dedicated “Women in Export” conference will be held to recognise women entrepreneurs and empower them to thrive in local and global markets.
Other initiatives include participation in the International Healthcare Week and its flagship Malaysia International Halal Showcase.
“I firmly believe that we are geared up for the year ahead. We are a steadfast and resilient economy, ever ready to navigate any forthcoming winds there may be.”
