THE nation is aiming to sustain its record-breaking trade momentum this year despite mounting global uncertainty, with the country’s trade promotion agency expressing confidence that total trade value can once again surpass the RM3 trillion mark.
Malaysia External Trade Development Corporation, better known as MATRADE, said continued export growth, expanding digital trade adoption and broader market diversification strategies are expected to help cushion Malaysian exporters from worsening geopolitical and logistical pressures affecting international commerce.
Malaysia achieved a historic milestone in 2025 when total national trade exceeded RM3 trillion for the first time, reaching RM3.06 trillion — a 6.3 per cent increase from the previous year and one of the country’s strongest trade performances on record.
MATRADE chief executive officer Abu Bakar Yusof said the agency remained optimistic that export growth of between three and five per cent could still be achieved this year, despite escalating global headwinds.
He said the revised target reflected a more realistic assessment of ongoing international challenges, including geopolitical instability, shipping disruptions and rising logistics costs.
“If we followed the original target, the projection would certainly have been higher. However, taking into account the current global crises, we see an export growth target of around three to five per cent as more appropriate and realistic. We are confident the target can still be achieved,” he said in an interview with BH.
Abu Bakar said one of MATRADE’s key priorities was helping Malaysian businesses, particularly micro, small and medium enterprises, diversify export destinations to reduce dependence on individual markets vulnerable to conflict or economic disruption.
He stressed that diversification was no longer merely a temporary response to current instability, but a long-term strategy to strengthen the resilience of Malaysian exports.
“If one market is affected due to conflict or logistics issues, our companies will still have opportunities in other markets,” he said.
MATRADE has also accelerated efforts to strengthen digital trade capabilities through the Madani Digital Trade platform introduced last year, enabling Malaysian firms to conduct cross-border business online and connect directly with foreign buyers and importers.
According to Abu Bakar, approximately 5,000 micro, small and medium enterprises are already using the platform.
“During the COVID-19 pandemic, many trade activities could not be conducted physically. We learned from that experience that digital platforms are extremely important to ensure export activities can continue,” he said.
While geopolitical tensions in West Asia continue to unsettle global markets, Abu Bakar noted that Malaysia’s direct trade exposure to the region remained relatively limited, with exports to those countries accounting for only around three per cent of total national trade.
Nevertheless, he said MATRADE was closely monitoring developments affecting shipping routes and freight costs linked to instability in the region.
“MATRADE offices abroad continuously provide updated information, including alternative shipping routes and logistics cost developments, so that local exporters can prepare early,” he said.
The agency is also collaborating with state governments, industry associations and financial institutions to strengthen export readiness among local businesses.
Abu Bakar identified limited production capacity, compliance with foreign regulations and weak understanding of Free Trade Agreements as among the key obstacles facing Malaysian exporters.
“FTAs actually provide many advantages, including reductions in export taxes, but many SMEs still lack understanding regarding the documentation and processes required to utilise those facilities,” he said. - May 18, 2026
