KUALA LUMPUR: Malaysia recorded its highest ever trade value of RM3.06 trillion despite challenges threatening its exports, says Datuk Seri Johari Ghani (pic).
The Investment, Trade and Industry Minister said the record achieved last year was the 28th year that Malaysia had a trade surplus.
With Malaysia’s trade having grown 6.3%, he said trade was expected to grow by between 3% and 5% this year.
He said this at the post-announcement of Malaysia’s Trade Performance 2025: Shaping New Opportunities at Menara Matrade here yesterday. His speech was delivered by his deputy, Sim Tze Tzin.
Johari said exports amounted to RM1.61 trillion and imports at RM1.45 trillion, resulting in a surplus of RM151.8bil.
He said higher exports were largely contributed by electrical & electronic (E&E) products, particularly higher demand for electronic integrated circuits, reflecting the acceleration of global technology adoption, including AI.
“The manufacturing sector remained the main driver of export growth, supported by strong demand for palm oil-based products, as well as continued expansion in machinery, equipment and parts.
“In the commodity sector, palm oil continues to be the nation’s key export. Malaysia’s active participation in global supply chains, namely in the area of technology, has led to healthy and higher imports mainly capital goods to support increased manufacturing activities,” he added.
To ensure sustainable growth, Johari said Malaysia must diversify its trade partnerships.
“Broadening trade relations beyond traditional markets and forging stronger ties with emerging economies will reduce reliance on any single region, mitigating potential risks.
“These are non-traditional partners whose economies have grown exponentially in recent years, including regions such as Africa, the Middle East and Latin America.
“Last year, Miti and its agencies participated in several of the Prime Minister’s official visits including to Ethiopia, South Africa, Kenya, the UK, Switzerland, Brazil, United Arab Emirates, Russia and China.
“These bilateral engagements were strategically undertaken to further strengthen trade relations and expand market presence. We look forward to signing the Malaysia-Korea FTA by the middle of the year,” he added.
Johari said the role of imports must not be disregarded, adding that high-value and specialised products not produced locally was especially vital in supporting downstream industries and driving industrial advancement.
“These imports enable local industries to move up the value chain, improve productivity and produce higher-value goods for export,” he explained.
Malaysia External Trade Development Corporation (Matrade) chairman Datuk Seri Reezal Merican Naina Merican said strategic diversification was one of the strongest drivers behind the success.
“It is not just in markets but in mindset. When global companies began looking for new partners, new supply chain locations and more stable hubs, Malaysia chose to step up and scale up.
“For instance, our E&E and semiconductor industries didn’t just ride demand, they reinforced Malaysia’s position as a crucial link in the global innovation chain. And that’s why global players keep coming back,” he added.
He said another major driver was the Free Trade Agreements (FTAs) clinched. “In 2025, trade with FTA partners surpassed RM2 trillion, making up 65.5% of Malaysia’s total trade.
“All credit goes to Miti and to the negotiators who do the real hard work beyond the scenes - patiently, strategically and consistently across 17 FTAs,” said Reezal.
Reezal said Malaysia’s expansion into non-traditional markets turned emerging markets into new corridors of growth.
He said last year, Matrade organised 10 trade and investment missions, six export acceleration missions and participated in 28 global trade fairs complemented by flagship business-matching through the International Sourcing Programme (INSP).
“Over 19,000 companies have benefited from Matrade’s initiatives, more than 14,000 of them are SMEs. Together, they generated nearly RM65bil in sales. This is only the beginning.
“The year 2026 will test our resilience but it will also reveal our capacity to lead,” said Reezal.
Speaking to reporters later, Sim said Malaysia should no longer position itself as a low-cost producer, adding that the focus should be on higher value-added products.
“There may be challenges for certain “Made in Malaysia” goods, but exporters can adapt by moving up the value chain. If we help them add value and improve product quality, they can remain competitive.”
