MALAYSIA'S TRADE MAINTAINS ROBUST PERFORMANCE, ACHIEVES RECORD HIGH FOR MONTH OF FEBRUARY#

Highest Trade, Exports and Imports Recorded for February Malaysia’s trade performance maintained its positive momentum in February 2025, recording a 5.9% year-on-year (y-o-y) growth to reach RM223.89 billion. Exports rose 6.2% to RM118.26 billion while imports increased by 5.5% to RM105.64 billion. This marked the 14th consecutive month of y-o-y trade expansion and the fifth consecutive month of export growth. Meanwhile, trade surplus rebounded to RM12.62 billion, marking the 58th consecutive month of surplus since May 2020. Trade, exports and imports also delivered the highest monthly value in history for the month of February.

The increase in exports was primarily driven by higher demand for manufactured goods (85.7% of total exports) which expanded by 8.8% y-o-y to RM101.3 billion. The increase was attributed mainly to robust exports of electrical and electronic (E&E) products, which increased more than RM7 billion in value. Agriculture goods, particularly palm oil and palm oil-based agriculture products, also helped increase exports. In terms of markets, exports to major trading partners namely ASEAN, the United States (US), the European Union (EU) and Taiwan recorded expansion, largely due to the rising demand for E&E products, especially semiconductor devices and integrated circuits (ICs). This increase was in alignment with the projected 2025 growth of 11.2% for global semiconductor sales by the World Semiconductor Trade Statistics (WSTS). Exports to Free Trade Agreement (FTA) markets including Mexico and Canada have also increased y-o-y, driven by the continued demand for E&E products from these countries.

For the first two months of 2025, the country’s trade performance continued its upward trajectory, rising 4.4% to RM465.86 billion compared to the corresponding period in 2024. Exports increased by 3.1% to RM241.07 billion while imports grew by 5.9% to RM224.79 billion, making up a trade surplus of RM16.28 billion. Trade, exports and imports registered the highest values ever for the period.

The World Trade Organization (WTO) has projected 3.0% growth in 2025 world trade volume, while the International Monetary Fund (IMF) has anticipated a 3.2% increase. Nonetheless, the pace of expansion may be tempered by ongoing geopolitical developments. To sustain growth in international trade, MITI and its trade promotion agency, MATRADE, are committed to expanding exports to existing markets and exploring new markets.

Export Performance of Major Sectors      

E&E Products Drives Export Growth

In February 2025, exports of manufactured goods which contributed 85.7% to total exports expanded by 8.8% y-o-y to RM101.3 billion, the fifth straight month of growth. The increase was attributed mainly to robust exports of E&E products, which recorded an increase of more than RM7 billion. Other products that posted growth were machinery, equipment and parts, optical and scientific equipment as well as processed food. 

Exports of agriculture goods (7.3% share) registered double-digit expansion of 27.4% y-o-y to RM8.65 billion, the 11^th consecutive month of expansion. This was a result of higher exports of palm oil and palm oil-based agriculture products due to higher export volumes and prices.

Meanwhile, exports of mining goods (6.1% share) contracted by 33% y-o-y to RM7.23 billion on account of decreased exports of crude petroleum and liquefied natural gas (LNG), following lower export volumes and prices.

Major exports in February 2025:   

• E&E products, valued at RM47.27 billion and accounted for 40% of total exports, increased by 18.1% compared to February 2024;
• Petroleum products, RM9.25 billion, 7.8% of total exports, ↓12.3%;
• Palm oil and palm oil-based agriculture products, RM6.31 billion, 5.3% of total exports, ↑31.8%;
• Machinery, equipment and parts, RM5.83 billion, 4.9% of total exports, ↑12.4%; and
• Chemicals and chemical products, RM5.64 billion, 4.8% of total exports, ↓2.8%.

On a month-on-month (m-o-m) basis, exports of manufactured, agriculture and mining goods fell 2.7%, 5.2% and 15.2%, respectively.

Exports of manufactured goods maintained its positive performance for the period of January to February 2025, rose 4.4% to RM205.44 billion compared to the same period last year, supported by robust demand for E&E products, machinery, equipment and parts as well as palm oil-based manufactured products. Exports of agriculture goods grew strongly with double-digit expansion of 18.4% to RM17.77 billion, backed by higher exports of palm oil and palm oil-based agriculture products as well as natural rubber. On the other hand, exports of mining goods shrank 23.2% to RM15.75 billion, following reduced exports of LNG and crude petroleum. 

Trade Performance with Major Markets   

In February 2025, Malaysia’s trade with major trading partners namely ASEAN, China, the US, the EU and Taiwan accounted for 68.5% share of Malaysia’s total trade.

ASEAN – Trade, Exports and Imports Rebounded  

In February 2025, trade with ASEAN absorbed 26.7% of Malaysia’s total trade, improved by 7.4% y-o-y to RM59.72 billion. Exports to ASEAN rebounded by 8.3% to RM34.62 billion, mainly due to strong exports of E&E products, machinery, equipment and parts as well as LNG. Imports from ASEAN recovered by 6.1% to RM25.1 billion.

Breakdown of exports to ASEAN countries: 

Exports to major markets in ASEAN that recorded increases were Singapore, which rose RM2.7 billion y-o-y and Thailand, which grew by RM600.4 million, owing to solid exports of E&E products. Meanwhile, exports to Indonesia were higher by RM362.2 million, due to strong exports of petroleum products. 

Compared to January 2025, trade, exports and imports reduced by 3.9%, 5.9% and 1.1%, respectively.

For the period of January to February 2025, trade with ASEAN edged up by 1.2% to RM121.88 billion compared to the same period in 2024. Exports to this region expanded by 3.1% to RM71.41 billion on strong exports of E&E products. Imports from ASEAN edged down by 1.4% to RM50.47 billion.

China – Trade Improved

In February 2025, trade with China which accounted for 15.8% of Malaysia’s total trade improved by 4.8% y-o-y to RM35.38 billion. Exports reduced by 8.1% to RM13.14 billion on account of lower exports of LNG, manufactures of metal as well as petroleum condensates and other petroleum oil. Despite the decline, export expansion was registered for petroleum products, machinery, equipment and parts as well as E&E products. Imports from China expanded by 14.2% to RM22.24 billion. 

Compared to January 2025, trade, exports and imports fell 14.6%, 1.4% and 20.9%, respectively.

Trade with China during the period of January to February 2025 expanded by 4.7% to RM76.81 billion compared to the same period in 2024. Exports declined by 6.1% to RM26.46 billion underpinned by lower exports of LNG, manufactures of metal as well as petroleum condensates and other petroleum oil. On the contrary, higher exports were seen for E&E products, palm oil-based manufactured products as well as machinery, equipment and parts. Imports from China rose 11.5% to RM50.35 billion.

The US – Double-Digit Growth for Trade, Exports and Imports 

Trade with the US in February 2025 which comprised 12.2% of Malaysia’s total trade grew by 28.9% y-o-y to RM27.38 billion. Exports to the US posted expansion for the 14^th successive month, expanding by 28.9% to RM17.5 billion. This was aided by robust exports of E&E products, palm oil and palm oil-based agriculture products as well as processed food. Imports from the US increased by 28.9% to RM9.88 billion.

On a m-o-m basis, exports were up by 1.4%, while trade and imports decreased by 3.8% and 11.9%, respectively.

For the period of January to February 2025, trade with the US rose 28.9% to RM55.85 billion compared to the corresponding period in 2024. Exports increased with doubledigit growth of 28.5% to RM34.76 billion, driven by robust exports of E&E products, palm oil and palm oil-based agriculture products as well as machinery, equipment and parts. Imports from the US were up by 29.4% to RM21.1 billion.

The EU – Trade and Exports Improved 

In February 2025, trade with the EU which constituted 7.5% of Malaysia’s total trade improved by 2.7% y-o-y to RM16.71 billion from negative growth recorded last month. Exports to the EU rebounded by 7.7% to RM9.46 billion as a result of rising demand of E&E products as well as palm oil-based manufactured products. Imports from the EU edged down by 3.1% to RM7.25 billion. 

Within the EU, the top 10 markets which accounted for 92.7% of Malaysia’s total exports to the region were:

Exports to the EU major markets that recorded growth were Germany which rose RM590.1 million, supported by robust exports of E&E products and the Netherlands which climbed RM59.8 million, buoyed by higher exports of palm oil-based manufactured products. 

Compared to January 2025, trade, exports and imports shrank 2.4%, 2.4% and 2.5%, respectively. 

For the first two months of 2025, trade with the EU decreased marginally by 0.9% to RM33.85 billion compared to the corresponding period in 2024. Exports increased by 2.2% to RM19.15 billion following solid exports of E&E products as well as palm oilbased products. Imports from the EU slipped by 4.6% to RM14.69 billion.

Taiwan – Trade, Exports and Imports Posted Expansion

In February 2025, trade with Taiwan which made up 6.4% of Malaysia’s total trade expanded by 17.9% y-o-y to RM14.24 billion. Exports grew by 6.8% to RM5.05 billion, supported by higher exports of optical and scientific equipment as well as E&E products. Imports from Taiwan increased by 25.1% to RM9.2 billion.

On a m-o-m basis, trade, exports and imports were down by 30.4%, 8.8% and 38.3%, respectively.

For the period of January to February 2025, trade with Taiwan climbed 43.3% to RM34.69 billion compared to the same period in 2024. Exports increased by 16.2% to RM10.58 billion contributed by strong exports of E&E products, optical and scientific equipment as well as machinery, equipment and parts. Imports from Taiwan surged by 59.7% to RM24.11 billion.

Trade with FTA Partners   

In February 2025, trade with FTA partners which made up 63.7% of Malaysia’s total trade edged up by 2.3% y-o-y to RM142.68 billion. Exports to FTA partners rebounded by 2.1% to RM77.36 billion and imports grew by 2.5% to RM65.31 billion. 

In terms of markets, increases in exports were registered to Hong Kong SAR, which expanded by 35.5% to RM6.77 billion, Mexico which climbed 24.6% to RM1.76 billion and Canada which surged by 64.6% to RM587.4 million, supported by higher exports of E&E products. Exports to Turkiye rose 18.2% to RM1.76 billion and exports to Chile were up by 6.8% to RM53.4 million, propelled by higher exports of palm oil and palm oil-based agriculture products. 

Meanwhile, exports to New Zealand were up by 6.9% to RM543.7 million and exports to Peru grew by 29.3% to RM55.2 million, bolstered by higher exports of processed food. Compared to January 2025, trade, exports and imports contracted by 6.7%, 4.9% and 8.7%, respectively.

Trade with FTA partners during the first two months of 2025 declined marginally by 0.3% to RM295.59 billion compared to the corresponding period in 2024. Exports edged down by 0.7% to RM158.7 billion while imports increased by 0.2% to RM136.89 billion.

Import Performance 

Total imports in February 2025 grew by 5.5% y-o-y to RM105.64 billion. The three main categories of imports by end use, which accounted for 77.2% of total imports were: 

• Intermediate goods, valued at RM58.73 billion or 55.6% of total imports, increased by 5.8% y-o-y, following higher imports of parts and accessories of non-transport capital goods;

• Capital goods, valued at RM13.82 billion or 13.1% of total imports, rose 35.3%, due to higher imports of industrial transport equipment; and

• Consumption goods, valued at RM9.05 billion or 8.6% of total imports, grew by 7.4%, as a result of higher imports of processed food and beverages mainly for household consumption.

Compared to January 2025, imports edged down by 11.3%. Imports of intermediate, capital and consumption goods shrank 3.3%, 30.7% and 10%, respectively. 

During the period of January to February 2025, imports expanded by 5.9% to RM224.79 billion compared to the same period last year. Imports of intermediate goods edged up by 4.6% to RM119.48 billion, capital goods (↑41.2% to RM33.75 billion) and consumption goods (↑1.9% to RM19.1 billion).