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MALAYSIA’S exports rose modestly in August 2025, as stronger shipments of electronics and machinery were offset by weaker petroleum exports and lower demand from key markets, signalling a more subdued external trade environment.
According to the Ministry of Investment, Trade and Industry (MITI), exports increased 1.9% year-on-year to RM131.6 billion, falling short of the 3.0% median forecast in a Bloomberg survey.
This was a marked deceleration from July’s 6.8% annual growth. Imports contracted by 5.9% to RM115.47 billion, resulting in a trade surplus of RM16.13 billion — the country’s 64th consecutive monthly surplus since May 2020.
“This positive trend in exports was driven by stronger performance in both manufactured and agricultural goods,” MITI said in a statement.
“However, exporters are strongly encouraged to improve and diversify their product offerings, as well as strengthen supply chain efficiencies to mitigate the transitional effects of shifts in trade policies and uncertainties in the global trading landscape.”
The ministry also urged exporters to maximise the potential of Malaysia’s 18 ratified free trade agreements with various countries and economic blocs.
Electrical and electronic products — which accounted for 42% of total exports — saw a 10.1% year-on-year rise, while machinery, equipment and parts rose by 14.5%. Exports of petroleum products, however, declined sharply by 17.6%, though palm oil shipments rebounded with a 9.7% increase.
Export growth was uneven across major trading partners. Shipments to China, Malaysia’s largest trading partner, rose 10.4%, and exports to Taiwan surged 32.7%.
However, exports to the United States fell 16.7%, while deliveries to Japan dropped 15.4%.
On the import side, declines were driven primarily by reduced demand for intermediate goods (down 16.8%) and consumption goods (down 8.9%), particularly processed foods and beverages. Imports of capital goods, by contrast, increased 11% due to higher demand for industrial transport equipment.
Overall imports declined 8% on a month-on-month basis.
Over the first eight months of the year, Malaysia’s trade performance remained solid, with total trade reaching RM1.98 trillion — a 3.8% increase compared to the same period in 2024.
Exports rose 3.9% to RM1.03 trillion, while imports grew 3.6% to RM945.62 billion, contributing to a cumulative trade surplus of RM86.07 billion.
“The overall strength of Malaysia’s trade in 2025 so far reflects the resilience of the manufacturing and palm-based agriculture sectors,” Miti said, noting a record-high value for exports of optical and scientific equipment in August.
Nonetheless, the ministry emphasised the importance of long-term competitiveness. “Exporters must prepare for volatility and reorient themselves to align with global trade transformations. Efficiency, adaptability and strategic use of trade agreements will be crucial going forward.” - September 19, 2025