PETALING JAYA: Malaysia’s exports to the United States surged 69.1% to RM282.07 billion in the first nine months of 2026, driven by strong semiconductor demand despite US tariffs putting pressure on several local industries.
The Investment, Trade and Industry Ministry (MITI) said total trade between Malaysia and the US rose 39.6% to RM378.70 billion from January to September, largely driven by the rapid development of artificial intelligence (AI) technology and data centres.
“The strong export performance was driven mainly by a surge in demand for electrical and electronics (E&E) products, particularly semiconductors, following the rapid development of AI technology and data centres,” it said in a written reply to the Dewan Rakyat.
MITI was responding to Amirudin Shari (Gombak-PH), who asked about the impact of US tariffs on Malaysian industries in 2026 and the alternative markets the government was exploring to help local micro, small and medium enterprises (MSMEs) export their products.
The ministry said Malaysia’s strategic advantage in securing exemptions from additional US tariffs on most semiconductor and E&E products had also supported export growth.
“The E&E sector accounted for about 64.2% of Malaysia’s total exports to the US, with semiconductors making up 44% of E&E exports.
“However, exports of rubber gloves to the US fell 1.6% to RM5 billion, furniture exports dropped 19.2% to RM3.77 billion, and medical device exports declined 12% to RM8.74 billion amid tariff pressures,” it said.
MITI said these sectors were among those examined because the US accounted for between 32% and 47% of Malaysia’s total exports of the respective products, which were subject to additional tariffs and were not covered by tariff exemptions.
“This shows that although overall exports to the US continued to record positive growth, several key Malaysian industries faced pressure to absorb US tariff costs or offer discounts to buyers to remain competitive, sustain exports and maintain access to the US market,” it said.
To mitigate these risks, the government was diversifying export destinations through free trade agreements (FTAs) and exploring non-traditional markets in the Middle East, Africa, Latin America and South Asia.
MITI added that the strategy had yielded encouraging results, with exports of products affected by US tariffs recording growth in several alternative markets between January and September 2026.
“Rubber glove exports rose 712% to Oman, 84.6% to Brazil, 80.8% to Sweden, 48.1% to Denmark, 43.7% to the Netherlands, 34% to Estonia and 18.4% to Canada.
“Medical device exports increased 206% to South Korea, 74.9% to Singapore, 65% to Sweden, 59.1% to Brazil, 43.9% to Turkiye, 26.6% to Canada and 5% to the United Kingdom.
“Meanwhile, furniture exports surged 586.1% to Guyana, 140% to Taiwan, 135.4% to Switzerland, 99% to Vietnam and 68.3% to New Zealand,” it said.
MITI said the government was also supporting local industries, particularly MSMEs, through grants, targeted incentives, and participation in trade and investment promotion missions to strengthen their export capabilities.
“Diversifying markets and reducing excessive dependence on any single market is the best approach to minimise exposure to external shocks and strengthen the resilience of the country’s trade.”
The ministry added that it would continue monitoring developments in US trade policy and taking proactive measures to safeguard Malaysian exporters, maintain market access, diversify export destinations and strengthen the competitiveness of domestic industries.
