Trade, Exports and Imports in the First Quarter (Q1) of 2026 Remained on An Upward Trajectory, Registering Highest Value Ever for Q1 Despite Ongoing Global Uncertainties

KUALA LUMPUR, 20 APRIL 2026 (MONDAY) –Malaysia’s trade remained on an expansionary path in the first quarter (Q1) of 2026,  expanding by 10.4% to RM789.85 billion compared with the same period in 2025.  Exports rose 12.7% to RM426.53 billion, marking the second-highest quarterly value  ever recorded, while imports increased by 7.7% to RM363.31, resulting in a trade  surplus of RM63.22 billion. Notably, these were the highest ever Q1 values for trade,  exports and imports. 

The expansion in exports during the quarter was primarily driven by stronger demand  for manufactured goods, particularly electrical and electronic (E&E) products as well as  optical and scientific equipment, alongside mining goods, notably metalliferous ores and  metal scrap. E&E products continued to anchor overall export growth, with exports  increasing by more than RM40 billion, underpinned by sustained global demand and  ongoing technological adoption across key markets. These products each attained their  highest quarterly export values to date. 

In terms of markets, exports to key trading partners, namely the People’s Republic of  China (China), the United States (US) and Taiwan, recorded robust double-digit growth,  while exports to ASEAN registered moderate expansion. Exports to Free Trade  Agreement (FTA) partners also recorded increases, with higher shipments going to  markets such as the Hong Kong Special Administration Region of China (Hong Kong SAR), Mexico, the Republic of Korea (ROK), India and the United Kingdom (UK). Notably, exports to the US, Taiwan, Hong Kong SAR and the ROK reached their highest  quarterly values to date.

For the month of March 2026, trade sustained its upward trajectory, expanding by 9.3%  year-on-year (y-o-y) to RM272.95 billion, supported by growth in both exports and  imports. Exports rose 8.3% to RM148.75 billion, marking the second-highest monthly  value ever recorded, while imports increased by 10.4% to RM124.20 billion. This  resulted in a trade surplus of RM24.55 billion, sustaining Malaysia’s streak of 71  consecutive months of surplus since May 2020. Trade, exports and imports reached  their highest monthly levels on record for the month of March. 

Heightened geopolitical tensions in West Asia have amplified volatility in global trade,  exerting upward pressure on logistics costs and supply chain efficiency. Amid these  developments, the external outlook remains mixed, with the World Trade Organization (WTO) projecting global merchandise trade volume to grow by a modest 1.9% in 2026.  In parallel, Bank Negara Malaysia (BNM) projected Malaysia’s exports to grow by 8.6% in 2026, while imports are expected to increase by 9%, reflecting comparatively more  robust domestic and external demand dynamics. 

In other developments, Malaysia’s strong integration into global trade is reflected in its  improved standing in the WTO 2025 rankings, with exports rising from 25th to 23rd globally, total trade from 24th to 23rd, and imports from 25th to 24th. While this  underscores its resilience and deep integration into global supply chains, the outlook  remains subject to external risks. Continued vigilance is therefore essential, as  prolonged geopolitical instability could weigh on global demand and disrupt supply chain  dynamics. MITI and MATRADE will continue to closely monitor global developments  while exporters are encouraged to leverage existing FTAs, tap into emerging markets and diversify product offerings to strengthen resilience amid ongoing uncertainties.

Export Performance of Major Sectors 

Exports of All Five Major Products Recorded Growth

In March 2026, exports of manufactured goods which represented 88.0% of total  exports, maintained their upward trajectory for the ninth consecutive month, expanding  by 9.6% y-o-y to RM130.83 billion. The expansion was led by strong demand for E&E  products, petroleum products as well as optical and scientific equipment.

Exports of mining goods (5.8% share) in March 2026 edged down by 0.4% y-o-y to RM8.69 billion underpinned by lower exports of liquefied natural gas (LNG). Conversely, higher exports were registered for metalliferous ores and metal scrap, as well as crude petroleum following increased export prices and volumes.

Exports of agriculture goods (5.1% share) in March 2026 fell 7.8% y-o-y to RM7.55 billion due to lower export prices of palm oil and palm oil based agriculture products despite higher export volumes.

Major exports in March 2026:

• E&E products, valued at RM71.67 billion and accounted for 48.2% of total exports, increased by 15.0% compared to March 2025;
• Petroleum products, RM9.27 billion, 6.2% of total exports, ↑23.7%;
• Machinery, equipment and parts, RM7.22 billion, 4.9% of total exports, ↑2.4%;
• Manufactures of metal, RM6.77 billion, 4.5% of total exports, ↑21.2%; and
• Optical and scientific equipment, RM6.66 billion, 4.5% of total exports, ↑29.3.

On a month-on-month (m-o-m) basis, exports of manufactured, mining and agriculture goods grew by 14.6%, 7.2% and 3.7%, respectively.

During Q1 2026, exports of manufactured goods recorded double-digit expansion of 14.7% to RM372.34 billion compared to Q1 2025, buoyed by higher demand for E&E products, optical and scientific equipment as well as manufactures of metal. Exports of mining goods grew by 4.4% to RM25.57 billion, driven by robust exports of metalliferous ores and metal scrap. However, exports of agriculture goods contracted by 8.6% to RM23.73 billion due to lower exports value of palm oil and palm oil-based agriculture products as well as natural rubber.

Trade Performance with Major Markets

In March 2026, Malaysia’s trade with major trading partners namely ASEAN, China,the US, Taiwan and the European Union (EU), accounted for 71.7% share of total trade.

ASEAN – Trade, Exports and Imports Improved

In March 2026, trade with ASEAN which absorbed 25.3% of Malaysia’s total trade grew by 7.9% y-o-y to RM69.17 billion. Exports to ASEAN increased by 2.0% to RM38.51 billion bolstered by strong exports of E&E products. Imports from ASEAN rebounded with double digit growth of 16.4% to RM30.66 billion.

Breakdown of exports to ASEAN countries:

• Singapore RM18.98 billion, decreased by 10.3%, y-o-y;
• Thailand RM6.58 billion, ↑18.6%;
• Viet Nam RM5.84 billion, ↑38.1%;
• Indonesia RM3.52 billion, ↓4.7%;
• Philippines RM2.43 billion, ↑1.3%;
• Cambodia RM485.3 million, ↑93.9%;
• Brunei RM419.4 million, ↑107.5%;
• Myanmar RM246.8 million, ↓16.4%;
• Lao PDR RM7.4 million, ↑158.9%; and
• Timor-Leste RM4.3 million, ↑34.2%.

Exports to major markets in ASEAN that recorded increases were to Thailand, which reached the highest monthly value thus far, rose RM1.03 billion y-o-y and Viet Nam, which expanded by RM1.61 billion, led by higher exports of E&E products. Meanwhile, exports to the Philippines increased by RM31.0 million, following higher exports of LNG.

Compared to February 2026, trade, exports and imports increased by 23.1%, 22.9% and 23.3% respectively.

For Q1 2026, trade with ASEAN rose 3.8% to RM193.06 billion compared to Q1 2025. Exports edged up by 0.1% to RM109.26 billion contributed by higher exports of E&E products, optical and scientific equipment as well as metalliferous ores and metal scrap. Imports from ASEAN increased by 9.1% to RM83.80 billion.

China – Double-Digit Trade Growth

In March 2026, trade with China increased by 19.6% y-o-y to RM49.04 billion, contributing 18.0% to Malaysia’s total trade. Exports grew by 7.0% to RM17.25 billion attributed to robust exports of E&E products as well as metalliferous ores and metal scrap. Imports from China rose 27.8% to RM31.79 billion.

On a m-o-m basis, trade, exports and imports expanded by 13.6%, 16.0% and 12.3%, respectively.

Trade with China in the first three months of 2026 increased by 19.5% to RM140.76 billion compared to the same period in 2025. Exports climbed 11.8% to RM47.60 billion, driven by strong exports of metalliferous ores and metal scrap as well as E&E products. Imports from China grew by 23.8% to RM93.16 billion.

The US – Fourth Consecutive Month of Export Expansion

In March 2026, trade with the US increased by 16.7% y-o-y to RM36.24 billion, representing 13.3% of Malaysia’s total trade. Exports recorded the fourth consecutive month of growth, expanding by 18.3% to RM26.82 billion on higher demand for E&E products. Imports from the US rebounded by 12.3% to RM9.42 billion.

On a m-o-m basis, trade, exports and imports climbed 9.8%, 7.7% and 16.3%, respectively.

During Q1 2026, trade with the US rose 16.1% to RM100.86 billion compared to Q1 2025. Exports increased by 30.3% to RM74.81 billion following strong exports of E&E products. Imports from the US reduced by 11.7% to RM26.05 billion.

Taiwan – Highest Export Value Ever Posted

In March 2026, trade with Taiwan which made up 8.3% of Malaysia’s total trade increased by 24.9% y-o-y to RM22.53 billion. Exports surged by 45.0% to a new monthly record high, valued at RM10.06 billion, as a result of higher demand for E&E products, optical and scientific equipment as well as machinery, equipment and parts. Imports from Taiwan rose 12.3% to RM12.46 billion.

On a m-o-m basis, trade and exports grew by 7.7% and 20.2%, respectively while imports shrank 0.6%.

During Q1 2026, trade with Taiwan climbed 25.7% to RM66.26 billion compared to the corresponding period in 2025. Exports soared by 61.9% to RM28.37 billion, on the back of higher exports of E&E products, optical and scientific equipment as well as machinery, equipment and parts. Imports from Taiwan were up 7.6% to RM37.89 billion.

The EU – Higher E&E Exports Amid Overall Export Contraction

In March 2026, trade with the EU which absorbed 6.8% of Malaysia’s total trade edged down by 2.2% y-o-y to RM18.59 billion. Exports fell 4.1% to RM10.36 billion, due to lower exports of palm oil-based manufactured products as well as manufactures of metal. Amid the contraction, growing exports were seen for E&E products and other vegetable oil. Imports from the EU expanded by 0.4 % to RM8.23 billion.

Within the EU, the top 10 markets which accounted for 89.6% of Malaysia’s total exports to the region were:

• Netherlands RM2.96 billion, decreased by 14.4%, y-o-y;
• Germany RM2.40 billion, ↓15.7%;
• Ireland RM892.6 million, ↑191.5%;
• France RM664.3 million, ↑9.0%;
• Belgium RM483.3 million, ↓28.0%;
• Poland RM422.9 million, ↑29.0%;
• Italy RM422.9 million, ↓32.2%;
• Spain RM395.5 million, ↓8.1%;
• Hungary RM353.8 million, ↑66.0%; and
• Czech Republic RM282.7 million, ↓33.2%.

Exports to Ireland which reached the highest monthly value thus far, rose RM586.4 million, while exports to France expanded by RM55.1 million and exports to Poland increased by RM95.1 million, all driven by increased exports of E&E products.

On a m-o-m basis, imports were up by 4.2%, while trade and exports declined by 9.6% and 18.2%, respectively.

During Q1 2026, trade with the EU increased by 12.7% to RM59.58 billion compared to Q1 2025. Exports expanded by 17.6% to RM35.24 billion, supported by greater exports of E&E products, metalliferous ores and metal scrap as well as petroleum products. Imports from the EU rose 6.3% to RM24.34 billion.

Trade with FTA Partners

In March 2026, trade with FTA partners which comprised 66.5% of Malaysia’s total trade expanded by 11.1% y-o-y to RM181.59 billion. Exports to FTA partners improved by 6.2% to RM95.01 billion and imports grew by 17.1% to RM86.58 billion.

On a m-o-m basis, trade, exports and imports climbed 16.9%, 20.6% and 13.1%, respectively.

During Q1 2026, trade with FTA partners was up by 10.4% to RM515.45 billion compared to the corresponding period in 2025. Exports grew by 6.8% to RM269.01 billion while imports rose 14.7% to RM246.44 billion.

Export growth during the period was recorded to Hong Kong SAR, which expanded by 35.3% to RM31.71 billion, Mexico which surged by 78.7% to RM8.03 billion as well as the ROK which climbed 25.4% to RM14.80 billion, aided by higher exports of E&E products.

Additionally, exports to India rose 18.3% to RM13.90 billion following strong exports of palm oil and palm oil-based agriculture products, while exports to the UK grew by 17.2% to RM2.44 billion following higher exports of chemicals and chemical products.

Import Performance

Total imports in March 2026 expanded by 10.4% y-o-y to RM124.20 billion. The three main categories of imports by end use, which accounted for 67.3% of total imports were:

• Intermediate goods, valued at RM58.30 billion or 46.9% of total imports, decreased by 1.1%, due to lower imports of primary fuel and lubricants;
• Capital goods, valued at RM16.26 billion or 13.1% of total imports, rose 24.7%, as a result of higher imports of non-transport capital goods; and
• Consumption goods, valued at RM8.97 billion or 7.2% of total imports, contracted by 7.8%, following lower imports of processed food and beverages mainly for household consumption.

Compared to February 2026, imports climbed 8.7% due to higher imports of capital goods by 2.3%, while imports of intermediate and consumption goods shrank 1.5% and 2.4%, respectively.

During the period of January to March 2026, imports rose 7.7% to RM363.31 billion compared to the corresponding period last year. Imports of capital goods were up by 2.4% to RM47.88 billion, consumption goods increased by 2.0% to RM29.42 billion and intermediate goods declined by 1.8% to RM175.20 billion.