PETALING JAYA: Malaysia’s trade trajectory remains positive heading into 2025, but mounting global uncertainties and tariff tensions are set to test the resilience of its external sector, according to the Investment, Trade and Industry Ministry (Miti), which cautioned that global demand challenges may temper both investment and domestic growth prospects.
“For now, exports for this year are anticipated to grow by 5.2%. Moving forward, however, there is a need for caution given the uncertainties of global demands, which may temper growth in investments and domestic demand,” Miti said in a statement.
Malaysia registered a growth of 5.7% in exports last year.
Miti noted that as a small and open economy, Malaysia remains inevitably exposed to heightened external uncertainties in the global trading landscape. To that end, it said it would continue to work closely with its key export agency, Malaysia External Trade Development Corp, to monitor global trade trends and safeguard the country’s economic interests.
Despite the intensifying trade policy tensions, particularly from the United States, Malaysia maintained growth in its external sector. In March 2025, total trade expanded by 2.2% year-on-year (y-o-y) to RM249.89bil – the highest March figure on record.
Exports surged 6.8% to RM137.31bil, also a record for the month, while imports fell by 2.8% to RM112.59bil.
The trade surplus widened 94.4% y-o-y to RM24.72bil, the highest monthly value since June 2023 and the 59th consecutive surplus since May 2020.
Export gains were supported by strong demand for manufactured goods, especially electrical and electronics products, which recorded their highest monthly value to date.
Agricultural exports, led by palm oil and related products, also contributed to the growth.
Export destinations saw positive trends, with notable increases to Asean, the United States, the European Union and Taiwan.
For the first quarter of financial year 2025, Malaysia recorded its highest-ever values for quarterly trade, exports, and imports.
Total trade rose 3.6% y-o-y to RM715.73bil. Exports climbed 4.4% to RM378.36bil, while imports rose 2.8% to RM337.37bil.
The trade surplus widened by 20.1% to RM41bil.
