Malaysia's Trade Performance May 2025

MALAYSIA’S TRADE CONTINUES UPWARD TRAJECTORY IN MAY 2025

Highest Monthly Trade Value for May, with E&E Sustaining Export Growth

Malaysia’s trade performance continued its upward momentum in May 2025, marking the 17th consecutive month of year-on-year (y-o-y) growth since January 2024. Trade increased by 2.6% to reach RM252.48 billion and was the highest monthly value ever posted for the month of May. Exports recorded a slight decrease of 1.1% to RM126.62 billion, while imports grew by 6.6% to RM125.86 billion. The country maintained a trade surplus for the 61st consecutive month since May 2020, amounting to RM766.3 million.

Exports of electrical and electronic (E&E) products continued to show resilient performance in May 2025, registering an increase of nearly RM4 billion. This is consistent with the World Semiconductor Trade Statistics (WSTS) forecast of an 11.2% increase in global semiconductor sales in 2025. As a key player in the global semiconductor supply chain, Malaysia stands to benefit significantly from this anticipated expansion. Nevertheless, potential challenges remain, notably the uncertainties in global economic conditions. While the sector’s outlook remains positive, proactive policy responses will be crucial to sustain this growth momentum.

By destination, exports to key trading partners, including the US and the European Union (EU) recorded robust growth, while exports to Taiwan not only expanded but also attained a new record-high. Exports to Free Trade Agreement (FTA) partners notably the United Kingdom and New Zealand also recorded increases, primarily due to higher shipments of palm oil-based manufactured products.

For the period of January to May 2025, trade, exports and imports achieved their highest cumulative value on record. Trade rose 6.2% to RM1.23 trillion compared to the corresponding period in 2024, with exports expanding 5.5% to RM638.48 billion and imports up by 6.9% to RM591.54 billion. Trade surplus stood at RM46.94 billion, a slip of 9.4%.

Recognising the impact of global trade uncertainties, MITI and MATRADE are ramping up efforts to build resilience in trade ecosystem. These strategic initiatives are also contributing to Malaysia’s growing global competitiveness. In the World Competitiveness Ranking (WCR) 2025 published recently, Malaysia advanced 11 spots to the 23rd position among 69 economies (cf. 2024: 34th position). This marked the country’s strongest performance since 2020 and signalled renewed investors' confidence in Malaysia’s economic governance and policy direction.

Export Performance of Major Sectors

Exports of Agriculture Goods Recorded the 14th Straight Month of Expansion

In May 2025, exports of manufactured goods which contributed 86.9% to total exports edged down by 0.3% y-o-y to RM110.01 billion, due to lower exports of petroleum products, chemicals and chemical products as well as iron and steel products. Nevertheless, the contraction was cushioned by robust exports of E&E products, machinery, equipment and parts as well as processed food.

Exports of agriculture goods (7.7% share) in May 2025 recorded the 14th straight month of expansion, rising by 8.3% y-o-y to RM9.81 billion. This was supported by higher exports of palm oil and palm oil-based agriculture products due to higher export volumes and prices.

Exports of mining goods (4.6% share) in May 2025 shrank 23.6% y-o-y to RM5.86 billion on lower export volume of liquefied natural gas (LNG), as well as crude petroleum following the decrease in export volumes and prices. On the other hand, exports of petroleum condensates and other petroleum oil increased.

Major exports in May 2025:

E&E products, valued at RM53.68 billion which accounted for 42.4% of total exports, increased by 7% compared to May 2024;
Petroleum products, RM8 billion, 6.3% of total exports, ↓28.9%;
Palm oil and palm oil-based agriculture products, RM7.37 billion, 5.8% of total exports, ↑8.3%;
Machinery, equipment and parts, RM6.39 billion, 5.1% of total exports, ↑16.4%; and
Manufactures of metal, RM5.83 billion, 4.6% of total exports, ↓3.1%.

On a month on month (m-o-m) basis, exports of agriculture goods rose 15.8%, meanwhile exports of manufactured and mining goods dropped 5% and 27.8%, respectively.

During the first five months of 2025, exports of manufactured goods were up by 7.1% to RM550.51 billion compared to the corresponding period in 2024 underpinned by strong exports of E&E products, machinery, equipment and parts as well as processed food. Exports of agriculture goods registered a double-digit expansion of 10.5%, reaching RM44.24 billion, backed by higher exports of palm oil and palm oil-based agricultural products. However, exports of mining goods declined by 17.9% to RM38.47 billion, as a result of reduced shipments of crude petroleum and LNG.

Trade Performance with Major Markets

In May 2025, Malaysia’s trade with major trading partners namely ASEAN, China, the US, Taiwan and the EU accounted for 70.8% share of total trade.

ASEAN – Trade Grew Marginally in the First Five Months of 2025

In May 2025, trade with ASEAN which constituted 24.5% of Malaysia’s total trade decreased by 9.6% y-o-y to RM61.86 billion. Exports slipped by 10.9% to RM35.74 billion, owing to lower demand for petroleum products and E&E products. Meanwhile, exports of petroleum condensates and other petroleum oil, machinery, equipment and parts, manufactures of metal and processed food recorded increases. Imports from ASEAN fell 7.7% to RM26.12 billion.

Breakdown of exports to ASEAN countries:

Singapore RM18.25 billion, decreased by 18%, y-o-y;
Thailand RM5.26 billion, ↑15.9%;
Viet Nam RM4.90 billion, ↑1.8%;
Indonesia RM4.05 billion, ↓5.9%;
Philippines RM2.26 billion, ↓24.2%;
Brunei RM480.2 million, ↓7.5%;
Cambodia RM296.7 million, ↑3.1%;
Myanmar RM245.3 million, ↓44.9%; and
Lao PDR RM5.0 million, ↓0.7%.

Major markets in ASEAN that recorded export growth were Thailand, which expanded by RM721.7 million y-o-y attributed to higher exports of E&E products and Viet Nam, which rose RM85.9 million driven by robust exports of manufactures of metal.

Compared to April 2025, trade, exports and imports reduced by 8.5%, 12.1% and 3%, respectively.

For the period of January to May 2025, trade with ASEAN edged up by 0.2% to RM315.43 billion compared to the same period in 2024. Exports grew by 2.3% to RM185.56 billion underpinned by strong exports of E&E products as well as machinery, equipment and parts. Imports from ASEAN were down by 2.7% to RM129.87 billion.

China – Trade Expanded

Trade with China in May 2025 rose 5.4% y-o-y to RM44.21 billion, accounting for 17.5% of Malaysia’s total trade. Exports fell 4.3% to RM15.05 billion underpinned by lesser exports of LNG, chemicals and chemical products as well as paper and pulp products. Amid the contraction, export expansions were recorded for E&E products, palm oil and palm oil-based agriculture products as well as crude petroleum. Imports from China climbed 11.3% to RM29.16 billion.

Compared to April 2025, trade and exports grew by 0.2% and 4.9%, respectively while imports slipped by 2%.

During the first five months of 2025, trade with China expanded by 6.8% to RM206.13 billion compared to the same period in 2024. Exports declined by 3.2% to RM71.97 billion on account of waning exports of LNG, manufactures of metal as well as paper and pulp products. The contraction however was softened by growing exports of E&E products, machinery, equipment and parts as well as palm oil-based manufactured products. Imports from China rose 13.1% to RM134.16 billion.

The US – The Eighth Consecutive Month of Double-Digit Export Growth

In May 2025, trade with the US which made up 13.7% of Malaysia’s total trade recorded a double-digit expansion of 28.5% y-o-y to RM34.71 billion. Exports posted the eighth consecutive months of double-digit expansion, growing by 16.1% to RM18.68 billion on robust exports of E&E products, processed food as well as machinery, equipment and parts. Imports from the US increased by 46.7% to RM16.03 billion.

On a m-o-m basis, trade, exports and imports reduced by 7.9%, 2.8% and 13.2%, respectively.

For the period of January to May 2025, trade with the US continued its upward trajectory, recording double-digit growth of 37.5% y-o-y to RM159.3 billion. Exports also grew significantly, rising 33.6% to RM95.32 billion, buoyed by higher shipments of E&E products, processed food as well as machinery, equipment and parts. Imports from the US surged by 43.8% to RM63.98 billion.

Taiwan – Exports Surged to a New Record High

In May 2025, trade with Taiwan which took up 7.6% of Malaysia’s total trade increased by 39.2% y-o-y to RM19.26 billion. Exports surged to a new record high, expanding by 41.4% to RM7.56 billion following higher demand for E&E products, optical and scientific equipment as well as petroleum products. Imports from Taiwan were up by 37.8% to RM11.7 billion.

On a m-o-m basis, exports rose 4.7%, while trade and imports declined by 7.3% and 13.7%, respectively.

Trade with Taiwan recorded strong double-digit expansion in the January to May 2025 period, growing by 36.8% to RM92.77 billion compared to the same period last year. Exports surged by 30.6% to RM32.3 billion, fuelled by higher shipments of E&E products, optical and scientific equipment as well as machinery, equipment and parts. Imports from Taiwan jumped 40.3% to RM60.47 billion.

The EU – the Fourth Successive Month of Export Expansion

In May 2025, trade with the EU which represented 7.4% of Malaysia’s total trade edged down by 0.4% y-o-y to RM18.62 billion. Exports grew by 6% to RM10.37 billion, the fourth successive month of expansion, spurred by robust demand for E&E products, machinery, equipment and parts as well as palm oil-based manufactured products. Imports from the EU dropped 7.5% to RM8.25 billion.

Within the EU, the top 10 markets which accounted for 90.9% of Malaysia’s total exports to the region were:

Netherlands RM3.41 billion, increased by 12.6%, y-o-y;
Germany RM2.84 billion, ↑7.6%;
Belgium RM686.6 million, ↑2.9%;
Italy RM614.8 million, ↓8.2%;
France RM434.8 million, ↓17.5%;
Spain RM381.5 million, ↓35.9%;
Czech Republic RM361.6 million, ↑63.1%;
Poland RM261.8 million, ↓9.0%;
Hungary RM224.1 million, ↓17.0%; and
Austria RM209.7 million, ↑191.4%.

Exports to the Netherlands rose RM381.6 million and exports to Germany expanded by RM199.7 million, boosted by higher exports of E&E products. Meanwhile, exports to Belgium climbed RM19.5 million led by higher exports of petroleum products.

Compared to April 2025, trade, exports and imports increased by 5.2%, 9.3% and 0.5%, respectively.

For the period of January to May 2025, trade with the EU edged up by 0.5% to RM89.16 billion compared to the same period last year. Exports rose 5.3% to RM49.82 billion on solid exports of E&E products, palm oil-based manufactured products as well as transport equipment. Imports from the EU slipped by 4.9% to RM39.34 billion.

Trade with FTA Partners

In May 2025, trade with FTA partners which comprised 62.2% of Malaysia’s total trade declined by 3.4% y-o-y to RM156.99 billion. Exports to FTA partners fell 7.6% y-o-y to RM81.53 billion and imports grew by 1.6% to RM75.46 billion.

Despite lower overall exports to FTA partners, increases in exports were recorded to the United Kingdom, which climbed 5.9% to RM784 million and New Zealand, which expanded by 24.4% to RM336.5 million, on the back of higher shipments of palm oil based manufactured products.

Similarly, exports to Hong Kong SAR were up by 4.6% to RM6.79 billion contributed by strong exports of E&E products and exports to Australia edged up by 1.1% to RM4.21 billion, due to higher exports of iron and steel products.

Meanwhile, exports to Pakistan increased by 29.2% to RM509 million owing to higher shipments of palm oil and palm oil-based agriculture products, exports to Chile surged by 35.9% to RM121.3 million following robust exports of chemicals and chemical products as well as exports to the Republic of Korea (ROK) rose 22.8% to RM4.24 billion on growing exports of LNG.

Compared to April 2025, trade, exports and imports shrank 4.4%, 7.6% and 0.7%, respectively.

Trade with FTA partners during the first five months of 2025 grew by 0.9% to RM779.12 billion compared to the corresponding period in 2024. Exports edged up by 0.2% to RM418 billion and imports increased by 1.8% to RM361.12 billion.

Import Performance

Total imports in May 2025 increased by 6.6% y-o-y to RM125.86 billion. The three main categories of imports by end use, which accounted for 77.8% of total imports were:

Intermediate goods, valued at RM65.13 billion or 51.8% of total imports, declined by 4.4%, due to lower imports of primary fuel and lubricants;
Capital goods, valued at RM22.72 billion or 18% of total imports, surged by 63.7%, as a result of higher imports of non-transport capital goods; and
Consumption goods, valued at RM10.07 billion or 8% of total imports, contracted by 1.1%, due to lower imports of primary food and beverages mainly for household consumption.

Compared to April 2025, imports reduced by 2%. Imports of intermediate and consumption goods were up by 11.9% and 3.7%, respectively while imports of capital goods were down by 3.5%.

During the period of January to May 2025, imports increased by 6.9% to RM591.54 billion compared to the same period last year. Imports of intermediate goods edged up by 0.3% to RM301.68 billion, capital goods surged by 43.2% to RM93.04 billion and consumption goods climbed 1.2% to RM48.63 billion.