MALAYSIA’S trade performance surged to an unprecedented RM2.235 trillion in the first nine months of 2025, marking a 4.4% increase despite global uncertainties, according to Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz.
In a written reply to Parliament on Wednesday, Tengku Zafrul highlighted that Malaysia’s trade-to-GDP ratio of 134% – among the highest worldwide – reflects the nation’s deep integration with the global economy.
“Trade has always been the heartbeat of the Malaysian economy. Our focus remains on strengthening diversification, fully leveraging free trade agreements, accelerating export digitalisation, expanding high-value industries and reinforcing our industrial ecosystem,” he said.
The minister emphasised that Malaysia has maintained resilience in international trade despite ongoing geopolitical tensions, including the Russia-Ukraine conflict, US-China rivalry, and retaliatory tariff measures by the United States.
Last year, total trade reached a record RM2.879 trillion, generating a surplus of RM136.88 billion – the country’s 27th consecutive year of trade surplus since 1998.
For the January-September 2025 period, exports rose 4.8% to RM1.170 trillion while imports grew 4.0% to RM1.064 trillion, producing a surplus of RM105.65 billion.
Growth was primarily driven by electrical and electronics (E&E) products such as semiconductors, machinery and equipment, palm oil and related products, and processed food.
Tengku Zafrul noted that early 2025 front-loading of E&E exports helped mitigate the effects of US tariff measures, coupled with a strengthening global tech upcycle.
Exports to major markets including the US, Taiwan, ASEAN, the European Union and Hong Kong also increased during the period.
Trade in the second quarter grew moderately by 6.1% to RM749.04 billion, with exports rising 3.3% to RM381.67 billion and imports surging 9.0% to RM367.37 billion, narrowing the surplus by 55.9% year-on-year.
“The temporary dip in surplus was largely due to higher imports of E&E goods, particularly integrated circuits and electrical components, driven by rapid development in domestic data centres and 5G infrastructure,” Tengku Zafrul explained.
The third quarter showed a stronger performance, with total trade climbing 3.7% to RM769.81 billion.
Exports jumped 6.7% to RM410.06 billion, imports edged up 0.4% to RM359.75 billion, and the trade surplus nearly doubled to RM50.31 billion, supported by robust growth in E&E, machinery, equipment, optical and scientific products.
Tengku Zafrul also reported encouraging investment inflows. In the first half of 2025, approved investments reached RM190.3 billion, up 18.7% compared with the same period in 2024.
The 3,011 approved projects across manufacturing, services and primary sectors are projected to create 89,294 jobs. - November 27, 2025
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