RHB Investment sees strong Malaysia export outlook in 2026 on E&E demand


KUALA LUMPUR: RHB Investment Bank Bhd remains positive on Malaysia's export prospects for 2026, citing resilient external demand and sustained momentum in the electrical and electronics (E&E) sector, driven by the technology upcycle and artificial intelligence (AI)-related investments.

In a research note today, the investment bank said that following the stronger-than-expected export performance in recent months, it sees scope for further upside to its current in-house export growth forecast of 15.3 per cent for 2026.

"This optimism is reinforced by the continued resilience of Malaysia’s trade performance, with exports expanding by 24.3 per cent during the first five months of the year despite lingering geopolitical uncertainties,” it said. 

Looking ahead, RHB Investment said the external outlook will continue to be influenced by developments in the United States tariff policies and geopolitical conditions, which may affect global demand and trade flows.

"Nonetheless, Malaysia remains well-positioned to weather external challenges, supported by its diversified economic structure, deep integration into regional and global supply chains, and ongoing efforts to diversify export markets and broaden its product offerings.

"Collectively, these factors should help sustain export growth and strengthen the economy’s resilience against external headwinds,” it added. 

RHB Investment also said Malaysia’s exports in May accelerated by 45.3 per cent year-on-year (y-o-y), significantly surpassing the market consensus estimate of 29.7 per cent y-o-y and our in-house projection of 16.1 per cent y-o-y. 

Today, the Department of Statistics Malaysia (DOSM) said Malaysia’s total trade in May 2026 rose by 29.8 per cent y-o-y to RM327.6 billion from RM252.5 billion a year ago, driven by stronger growth in both exports and imports.

It said Malaysia’s exports grew 45.3 per cent, valued at RM184.0 billion, and imports rose 14.1 per cent, amounting to RM143.6 billion, while trade surplus surged by 5,214.0 per cent to RM40.4 billion in the month reviewed. - Bernama

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