MALAYSIA’S 2024 TRADE INCREASED 9.2% YEAR-ON-YEAR, RECORDING THE  HIGHEST VALUE EVER AT RM2.879 TRILLION

Outstanding Trade Performance in 2024, Setting New Record Highs 

Malaysia’s trade performance in 2024 continued to deliver outstanding performance,  recording another milestone with trade reaching new heights. Trade, exports and  imports rebounded in 2024 with trade amounting to RM2.879 trillion, an increase of  9.2% year-on- year (y-o-y), surpassing the RM2 trillion mark for four consecutive years.  Similarly, exports exceeded RM1 trillion for four consecutive years, rising 5.7% to  RM1.508 trillion. This achievement accounted for 87.2% of the target set for 2025  exports under the Mid-term Review of the Twelfth Malaysia Plan (RMKe-12).  Meanwhile, imports were up by 13.2% y-o-y to RM1.371 trillion, crossing the RM1 trillion  mark for the third successive year. This exceptional performance has resulted in a trade  surplus of RM136.88 billion, for the 27th consecutive year since 1998. 

Exports to major trading partners, namely ASEAN, the United States (US), the  European Union (EU) and Taiwan increased, with exports to the US and Taiwan reaching an all-time high. Taiwan officially became Malaysia's fourth largest trading  partner, reflecting the strengthening bilateral trade partnerships and growing trade  opportunities.  

Notably, Free Trade Agreements (FTAs) have played a pivotal role in providing local  businesses with greater access to international markets. Exports to FTA markets  expanded this year, reversing the contraction seen in 2023. Canada was one of those  export destinations which recorded growth, driven by higher demand for electrical and  electronic (E&E) products, while exports to Turkiye and Mexico soared to a new record high, fuelled by the increased shipments of iron and steel products as well as chemicals  and chemical products, respectively.

Diversification strategies targeting emerging markets have also played an equally  important role in contributing to export growth, particularly to countries such as  Bangladesh, Costa Rica, Egypt, Nigeria, Angola, Ethiopia, Algeria, Togo, Libya and  notably Kenya, Oman and Namibia which rose to a new record level.  

In terms of products, export expansion in 2024 were driven by strong performance in  both manufactured and agriculture products. This growth was led by increased  shipments of E&E products, machinery, equipment and parts, processed food as well  as optical and scientific equipment which had recorded the highest value ever. Palm oil  and palm oil-based agriculture products, manufactures of metal and rubber products  also contributed to the expansion. Additionally, exports of E&E products along with  machinery, equipment and parts posted increases of more than RM10 billion,  respectively. 

Despite the challenging global economic landscape, MITI and its trade promotion  agency, MATRADE, are committed to strengthening international trade as a  cornerstone for sustaining long-term economic growth. This will be supported through  strategic initiatives outlined in the RMKe-12, the National Trade Blueprint (NTBp) and  the New Industrial Master Plan (NIMP 2030). By leveraging these frameworks, MITI and  its agencies will support the government to help the country achieve sustained and  resilient economic growth in the years ahead. 

TRADE PERFORMANCE FOR YEAR 2024 

Trade Performance with Major Markets 

In 2024, Malaysia’s major trading partners were ASEAN, China, the US, the EU and  Taiwan, representing 68.4% share of Malaysia’s total trade.

 

ASEAN - Trade, Exports and Imports Rebounded in 2024

In 2024, as a strategic trading partner for Malaysia, trade with ASEAN amounted to  RM765.09 billion, accounting for 26.6% of Malaysia’s total trade. Trade improved by  6.1% after recording a decline in 2023. 

As a major regional export destination, exports to ASEAN improved by 4.2% to  RM437.92 billion on the back of larger exports of machinery, equipment and parts,  manufactures of metal as well as petroleum products.

Breakdown of exports to ASEAN countries: 

• Singapore RM230.86 billion, increased by 5.3%, compared to 2023; • Thailand RM58.98 billion, ↑0.1%; 
• Indonesia RM54.40 billion, ↑6.9%; 
• Viet Nam RM53.86 billion, ↑3.6%;  
• Philippines RM27.82 billion, ↑5.2%; 
• Brunei RM5.69 billion, ↓11.1%; 
• Myanmar RM3.17 billion, ↓20.9%;  
• Cambodia RM3.05 billion, ↑30.1%; and 
• Lao PDR RM67.9 million, ↓49.7%. 

The top three export destinations within ASEAN were Singapore, Thailand and  Indonesia, accounting for 78.6% of Malaysia’s total exports to the region. Exports to Singapore with a share of 52.7% of total exports to the region, increased by RM11.57  billion compared to 2023 due to strong exports of E&E products. Exports to Thailand (13.5% share) grew by RM71.9 million following higher exports of manufactures of metal  while exports to Indonesia (12.4% share) expanded by RM3.49 billion on account of higher shipments of petroleum products. Exports to Viet Nam and Cambodia recorded  the highest value ever.

Imports from ASEAN picked up by 8.9% to RM327.17 billion with main imports being  E&E products, petroleum products as well as chemicals and chemical products. 

 

China – the 16th Consecutive Year as Largest Trading Partner  

In 2024, China continued to be Malaysia’s largest trading partner for the 16th consecutive year since 2009. Trade rebounded by 7.6% to RM484.12 billion from the  preceding year, representing 16.8% share of Malaysia’s total trade. 

Exports dropped by 2.2% to RM187.67 billion as a result of weaker demand for E&E  products as well as metalliferous ores and metal scrap. However, the impact of the contraction was cushioned by robust exports of paper and pulp products, rubber  products as well as optical and scientific equipment. 

Imports from China increased by 14.8% to RM296.45 billion with major imports  comprising E&E products, machinery, equipment and parts as well as chemicals and  chemical products.

 

The US - Highest Trade, Export and Import Value Thus Far

In 2024, trade with the US, Malaysia’s third largest trading partner since year 2015,  rebounded by 29.9% to RM324.91 billion compared to 2023. Trade with the country  made up 11.3% of Malaysia’s total trade, highlighting its significant contribution to the  nation’s trade performance and economic growth. 

Exports to the US in 2024 soared to a new record high, registering double-digit growth  of 23.2% to RM198.65 billion resulting from robust exports E&E products, machinery,  equipment and parts as well as rubber products.

Imports from the US surged by 42.1% to RM126.26 billion with the main imports being  E&E products, machinery, equipment and parts as well as chemicals and chemical  products. 

 

The EU – Trade and Exports Improved in 2024

Trade with the EU in 2024 which constituted 7.6% of Malaysia’s total trade picked up  by 5.8% to RM218.85 billion compared to 2023. 

Exports rebounded by 2.6% to RM115.78 billion buoyed by higher exports of palm oil  and palm oil-based products, rubber products and processed food. 

Within the EU, the top 10 markets which accounted for 92.3% of Malaysia’s total exports  to the region were: 

• Netherlands RM35.67 billion, decreased by 0.5%, compared to 2023;
• Germany RM32.32 billion, ↑5.7%; 
• Belgium RM7.98 billion, ↓14.6%; 
• Italy RM6.71 billion, ↑7.0%; 
• Spain RM6.33 billion, ↑12.0%;  
• France RM6.14 billion, ↑0.4%; 
• Poland RM3.82 billion, ↑19.1%;  
• Hungary RM3.64 billion, ↑52.9%;  
• Czech Republic RM2.50 billion, ↓5.0%; and
• Sweden RM1.74 billion, ↑20.6%.

Among the major export markets in the EU that recorded expansion were, Germany  which increased by RM1.76 billion compared to the previous year on account of growing  exports of E&E products. Meanwhile, exports to Italy were up by RM436.7 million on  solid exports of manufactures of metal and Spain expanded by RM676.8 million buoyed  by higher exports of palm oil and palm oil-based agriculture products. Exports to  Germany, Spain, Poland and Hungary reached the highest values ever recorded.

Imports from the EU climbed 9.8% to RM103.07 billion with the main products being  E&E products, machinery, equipment and parts as well as chemicals and chemical  products. 

 

Taiwan – Replaced Japan as Fourth Largest Trading Partner 

In 2024, Taiwan surpassed Japan to become Malaysia's fourth-largest trading partner,  registering a robust double-digit growth of 38.5% to RM176.1 billion compared to 2023  and contributing 6.1% to Malaysia’s total trade. This was the highest trade value  registered thus far. 

Exports reached to a new high, surged by 54.4% to RM66.99 billion due to strong  demand for E&E products, optical and scientific equipment as well as machinery,  equipment and parts.  

Imports from Taiwan increased by 30.2% to RM109.12 billion and main imports was led  by E&E products, petroleum products as well as chemicals and chemical products.

 

Trade with FTA Partners – Trade, Exports and Imports Improved

Participating in FTAs demonstrates Malaysia's commitment to an open and liberalised  trade environment. To date, Malaysia has signed 16 bilateral and regional FTAs,  creating opportunities for Malaysian businesses to increase exports through favourable  quotas and lower tariffs. In 2024, trade with FTA partners improved by 5.2% to RM1.870  trillion compared to 2023, making up 65% of Malaysia’s total trade.  

Exports to FTA partners which accounted for 67.1% of Malaysia’s total exports  rebounded by 1.9% to RM1.012 trillion. Major export products to FTA partners were  E&E products, petroleum products, chemicals and chemical products, liquefied natural  gas (LNG) as well as manufactures of metal, attributing to 63.8% of Malaysia’s total  exports to FTA markets.  

Increases in exports were recorded to India which rose 14.5% from a year ago to  RM52.13 billion and exports to Pakistan were up by 29% to RM5.66 billion, supported by higher exports of palm oil and palm oil-based agriculture products. Exports to  Mexico expanded by 0.8% to RM18.86 billion, exports to Chile grew by 18.2% to  RM720.8 million and exports to Peru edged up by 3% to RM670.3 million, backed by  robust exports of chemicals and chemical products.  

Meanwhile, exports to Turkiye climbed 17.1% to RM20.54 billion following a rise in  exports of iron and steel products and exports to Canada surged by 55.9% to RM6.51  billion due to robust exports of E&E products.  

Exports to Mexico, Turkiye and Canada achieved their highest export value ever.

Imports from FTA partners recovered by 9.6% to RM857.93 billion with main imports  consisting of E&E products, petroleum products, machinery, equipment and parts,  chemicals and chemical products as well as manufactures of metal. These products  absorbed 64.9% of Malaysia’s total imports from FTA markets. 

 

Diversification Strategies Contributed to Growth in Exports to Emerging  Markets

In 2024, several emerging markets registered export expansion, especially to  Bangladesh, Kenya, Costa Rica, Egypt, Nigeria, Oman, Togo, Angola, Ethiopia, Algeria,  Libya and Namibia. Exports to Kenya, Oman and Namibia climbed to a new record  level. 

Exports to Bangladesh grew by 5.7% compared to 2023 to RM11.84 billion, Kenya rose 2.1% to RM5.52 billion, Egypt soared by 53.6% to RM3.55 billion, Togo increased  by 6.2% to RM1.43 billion and Algeria higher by 27.9% to RM552.1 million following  increased shipments of palm oil and palm oil-based agriculture products. 

Exports to Oman rose 10.1% to RM1.6 billion, Costa Rica grew by 17.6% to RM3.43 billion, Ethiopia surged by 56.4% to RM580 million and Libya expanded by 19.7% to  RM116.7 million, propelled by rising demand for E&E products.

Meanwhile, exports to Namibia was higher by 2.9% to RM221.6 million, Angola surged  by 59.3% to RM894.1 million, owing to increased demand for petroleum products while  exports to Nigeria grew by 5.7% to RM2.51 billion, buoyed by growing exports of  machinery, equipment and parts. 

 

Export Performance of Major Sectors 

Manufactured Goods - E&E Products Recorded the Highest Export Value  Ever

In 2024, exports of manufactured goods surpassed the RM1 trillion mark for the fourth consecutive year, accounting for 85.5% of total Malaysia’s exports or RM1.289 trillion,  an increase of 6% compared to 2023. E&E products continued to dominate Malaysia's  exports, capturing the largest share at 39.9%, increased by 4.5% to RM601.18 billion,  the highest value ever recorded. The increase was led by robust demand for electronic  integrated circuits which rose 4.8% to RM313.1 billion mainly due to the acceleration of  global technology.

Other E&E products that recorded significant export growth in 2024 were: 

• Computers, increased by 77.7% compared to 2023 to RM32.31 billion;
• Other computers and data processing equipment, ↑53% to RM15.43 billion;
• Parts and accessories for office machines, ↑24.5% to RM13.72 billion;
• Electro-diagnostic apparatus, medical and radiological apparatus, ↑75.8% to  RM5.54 billion; and
• Parts and accessories for computers, ↑16.3% to RM10.68 billion.

Expansion in exports of E&E products were recorded to the US, Taiwan, Singapore, the  Republic of Korea (ROK) and Canada.

Other manufactured products that registered significant export expansion in 2024 were: 

• Machinery, equipment and parts, increased by 20.6% compared to 2023 to  RM69.04 billion; 
• Manufactures of metal, ↑9.3% to RM61.55 billion; 
• Processed food, ↑16.7% to RM35.37 billion; 
• Rubber products, ↑22.6% to RM26.16 billion; and
• Optical and scientific equipment, ↑8.4% to RM59.17 billion.

Exports of E&E products, machinery, equipment and parts, processed food as well as  optical and scientific equipment achieved their highest export value ever. 

Agriculture Goods – Palm Oil Driven Export Growth 

In 2024, exports of agriculture goods made a strong recovery, rising with a double-digit  growth of 11.4% to RM105.67 billion compared to 2023, contributing 7% to Malaysia’s total exports. The increase was fuelled by higher exports of palm oil and palm oil-based  agriculture products which grew by 11.7% to RM79.22 billion following higher export  prices and volumes. 

Exports of LNG Increased Amid Lower Overall Mining Exports 

In 2024, exports of mining goods which made up 6.8% share of Malaysia’s total exports  decreased by 3.1% to RM102.84 billion compared to 2023. This was attributed to lower  exports of crude petroleum by 9.1% to RM26.11 billion due to lower export prices and  volumes. Nevertheless, exports of LNG increased by 1% to RM60.84 billion on higher  export volumes.

 

Performance of Imports

The Highest Import Value Thus Far 

In 2024, Malaysia’s total imports rose 13.2% to RM1.371 trillion compared to 2023, the  highest value recorded thus far. The three main categories of imports by end use which  accounted for 75.4% of total imports in 2024 were: 

• Intermediate goods, valued at RM748.84 billion or 54.6% share of total imports,  increased by 20.7%, due to higher imports of parts and accessories of non transport capital goods; 
• Capital goods, amounted to RM166.86 billion or 12.2% of total imports, grew by  29.6%, on account of rising imports of non-transport capital goods; and  
• Consumption goods, totalled RM117.44 billion or 8.6% of total imports,  expanded by 12.8%, as a result of growing imports of processed food and  beverages mainly for household consumption. 

China remained as the largest import source since 2011, followed by Singapore, the  US, Taiwan and Japan. These markets contributed 56% to Malaysia’s total imports.  Meanwhile, imports from ASEAN totalled RM327.17 billion or 23.9% share of Malaysia’s  total imports and imports from the EU amounted to RM103.07 billion with a share of  7.5%.

 

TRADE PERFORMANCE FOR DECEMBER 2024 

The Highest Trade Surplus Since October 2023 

Trade for the month of December 2024 marked its 12th consecutive month of year-on year (y-o-y) growth, with a double-digit rise of 14.6% to RM257.86 billion. Exports  posted a robust expansion of 16.9% to RM138.52 billion while imports rose 11.9% to  RM119.34 billion. Subsequently, a trade surplus of RM19.18 billion was recorded, the 56th consecutive month of surplus since May 2020 and the highest value recorded since  October 2023. Trade, exports and imports registered the highest monthly value for  December.

Compared to November 2024, trade, exports, imports and trade surplus grew by 8.5%,  9.7%, 7.3% and 27.4%, respectively.

 

Export Performance of Major Sectors 

Exports of Manufactured and Agriculture Goods Recorded Double-Digit  Expansion

In December 2024, exports of manufactured goods which absorbed 84.6% of total  exports recorded an encouraging growth of 18.5% y-o-y to RM117.21 billion as higher  exports were recorded for E&E products, manufactures of metal as well as machinery,  equipment and parts. 

Exports of agriculture goods (7.7% share) posted a double digit expansion of 28.9%  y-o-y to RM10.6 billion compared to December 2023 attributed mainly to growing  exports of palm oil and palm oil-based agriculture products amid higher export prices  and volumes. 

Exports of mining goods declined by 5.1% y-o-y to RM9.9 billion (7.1% share) due to reduced shipments of LNG and crude petroleum following lower export prices. 

Compared to November 2024, exports of manufactured, agriculture and mining goods rose 9.1%, 11.5% and 19.2%, respectively. 

 

Performance of Imports 

Imports Recorded Double-Digit Expansion

In December 2024, imports expanded by 11.9% y-o-y to RM119.34 billion, the 14th consecutive month of positive growth. Imports of intermediate goods grew by 1.4% to RM60.89 billion, capital goods (↑41.5% to RM17.39 billion) and consumption goods  (↑11.9% to RM10.3 billion).

Compared to November 2024, imports grew by 7.3%. Meanwhile, imports of capital and  consumption goods increased by 31.1% and 2.3%, respectively while imports of  intermediate goods declined by 3.7%.

 

TRADE PERFORMANCE FOR THE FOURTH QUARTER 2024

The Highest Trade and Import Value for the Fourth Quarter 

Total trade for the fourth quarter (Q4) of 2024 rebounded by 6.4% to 739.84 billion  compared to Q4 of 2023. Exports improved by 7.3% to RM392.97 billion and imports  grew by 5.3% to RM346.87 billion. Trade and imports recorded the highest quarterly  value for the fourth quarter thus far. Meanwhile, trade surplus increased by 25% to  RM46.1 billion. 

Compared to the third quarter (Q3) of 2024, exports and trade surplus rose 2.4% and  86.8%, respectively while trade and imports slipped by 0.4% and 3.4%.

 

TRADE OUTLOOK FOR 2025

In year 2025, Malaysia’s trade is expected to expand in tandem with the outlook  published by the World Trade Organization (WTO) which projected world merchandise  trade volume to grow by 3%.  

Accordingly, the MOF’s Economic Outlook 2025 forecast Malaysia’s trade to expand by  4% in 2025 with exports and imports growing by 3.9% and 4.1% respectively, while  Gross Domestic Product (GDP) was projected to expand between 4.5% to 5.5%. 

Continuous demand for E&E products this year will be supported by an upcycle trend  in the sector, aligned with the projection made by World Semiconductor Trade Statistics  (WSTS) that global semiconductor sales will increase by 11.2% in 2025. 

In terms of markets, utilisation of FTAs will be crucial in facilitating Malaysian products’  access into wider markets subsequently boosting export growth.  

As an open trading nation, Malaysia remains susceptible to global vulnerabilities that  could impact its economic growth, including the global uncertainties arising from  prolonged geopolitical tensions, disruption in global supply chains and fluctuations in  commodity prices. Moreover, anticipation builds leading to the inauguration of the US  president-elect with regards to new policies which may affect regional trade.  

As such, MITI and MATRADE will remain vigilant to ensure that risks to trade growth  are closely monitored and mitigated, particularly through intensified market promotion  activities and the expansion into new export markets for Malaysian products.