KUALA LUMPUR: Malaysia’s halal exports are expected to grow at a moderate pace of 3% to 5% this year, in line with the country’s overall export outlook, despite the Middle East accounting for about 10% to 15% of halal exports, says the Malaysia External Trade Development Corp (Matrade).
Its chief executive officer Abu Bakar Yusof said the projection reflects a cautious stance given the current global economic environment, particularly the potential effects from geopolitical tensions in the Middle East.
“We expect total exports to grow between 3% and 5%, taking into account the current economic situation,” he told reporters at the sidelines of the soft launch of the Malaysia International Halal Showcase (Mihas) 2026 yesterday.
“That’s why we have a moderate growth projection. This includes halal products.”
Abu Bakar said Malaysia’s direct exposure to the Middle East remains relatively small, helping to cushion the broader trade impact.
“About 10% to 15% of halal exports go to the Middle East, but for total trade, only about 3% is with the region. So, the impact is quite limited,” he said.
Despite a strong start to the year, he noted that challenges are expected to emerge in the coming months.
“Based on the latest figures for the first quarter (1Q), exports are still increasing. But we expect the economic crisis to affect the 2Q,” he said.
“We think that in April and the 2Q, there will be an impact from the geopolitical crisis. It’s hard to predict the degree of impact now, even though we know that local companies and exporters have been affected by the movement of products.”
Despite geopolitical uncertainties, Malaysia’s trade remained resilient in the 1Q of 2026, with total trade expanding 10.4% year-on-year (y-o-y) to RM789.85bil.
Exports rose 12.7% to RM426.53bil, while imports increased 7.7% to RM363.31bil, resulting in a 1Q trade surplus of RM63.22bil, up 54% y-o-y.
In March alone, trade grew 9.3% to RM272.95bil, with exports rising 8.3% to RM148.75bil, and imports increasing by 10.4% to RM124.2bil. This resulted in a trade surplus of RM24.55bil, sustaining Malaysia’s streak of 71 consecutive months of surplus since May 2020.
Nonetheless, Abu Bakar stressed that diversification efforts are already underway to mitigate external risks.
“Since the end of last year, we have taken steps to diversify our markets. We don’t just rely on traditional markets such as Singapore, the United States, China and Japan,” he said.
“We are also looking at emerging markets such as Africa, South Asia and Central Asia, including Kazakhstan, Uzbekistan, Bangladesh and Sri Lanka, while also expanding within Asean.”
He added that Matrade, together with the Investment, Trade and Industry Ministry (Miti), is intensifying efforts to deepen intra-Asean trade.
“For Matrade and Miti, we want to have more activities in the Asean markets. We want to expand our exports to the 10 Asean countries,” he said.
Separately, Abu Bakar said Mihas 2026 is expected to generate RM4.5bil in sales, compared with last year’s RM4.3bil target, although Mihas 2025 ultimately achieved RM6.05bil in sales.
“This year, given the geopolitical situation and global crises, we target the Mihas exhibition to generate RM4.5bil,” he said.
Mihas 2026 will be held from Sept 23 to 26 at the Malaysia International Trade and Exhibition Centre in Kuala Lumpur, featuring both physical and digital platforms, including artificial intelligence-powered trade facilitation tools.
The event is expected to host over 2,300 participants from more than 50 countries, with about 2,380 booths and 45,000 visitors.
Malaysia’s halal exports reached RM68.52bil in 2025, accounting for 4.3% of total exports of RM1.45 trillion, led by food and beverages and halal ingredients.
The government’s 13th Malaysia Plan targets halal exports of RM80bil by 2030, alongside increasing the sector’s contribution to gross domestic product to 11%, up from the current 8%.
“The future lies in higher-value segments such as halal pharmaceuticals, wellness products, cosmetics, advanced ingredients and specialised consumer solutions.
“Malaysia is not only exporting more, but we are also exporting smarter, higher in value, and deeper across the supply chain,” Abu Bakar said.
