KUALA LUMPUR — Malaysia’s trade remained on an expansionary path in the first quarter (Q1) of 2026, expanding by 10.4 per cent to RM789.85 billion compared with the same period in 2025. Exports rose 12.7 per cent to RM426.53 billion, marking the second-highest quarterly value ever recorded, while imports increased by 7.7 per cent 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 per cent year-on-year (y-o-y) to RM272.95 billion, supported by growth in both exports and imports. Exports rose 8.3 per cent to RM148.75 billion, marking the second-highest monthly value ever recorded, while imports increased by 10.4 per cent 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 per cent in 2026. In parallel, Bank Negara Malaysia (BNM) projected Malaysia’s exports to grow by 8.6 per cent in 2026, while imports are expected to increase by 9 per cent, 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 per cent of total exports, maintained their upward trajectory for the ninth consecutive month, expanding by 9.6 per cent 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 per cent share) in March 2026 edged down by 0.4 per cent 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 per cent share) in March 2026 fell 7.8 per cent 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 per cent of total exports, increased by 15.0 per cent compared to March 2025;
- Petroleum products, RM9.27 billion, 6.2 per cent of total exports, ↑23.7 per cent;
- Machinery, equipment and parts, RM7.22 billion, 4.9 per cent of total exports, ↑2.4 per cent;
- Manufactures of metal, RM6.77 billion, 4.5 per cent of total exports, ↑21.2 per cent; and
- Optical and scientific equipment, RM6.66 billion, 4.5 per cent 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 per cent, 7.2 per cent and 3.7 per cent, respectively.
During Q1 2026, exports of manufactured goods recorded double-digit expansion of 14.7 per cent 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 per cent to RM25.57 billion, driven by robust exports of metalliferous ores and metal scrap. However, exports of agriculture goods contracted by 8.6 per cent 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 per cent share of total trade.
ASEAN – Trade, Exports and Imports Improved
In March 2026, trade with ASEAN which absorbed 25.3 per cent of Malaysia’s total trade grew by 7.9 per cent y-o-y to RM69.17 billion. Exports to ASEAN increased by 2.0 per cent to RM38.51 billion bolstered by strong exports of E&E products. Imports from ASEAN rebounded with double digit growth of 16.4 per cent to RM30.66 billion.
Breakdown of exports to ASEAN countries:
- Singapore RM18.98 billion, decreased by 10.3 per cent, y-o-y;
- Thailand RM6.58 billion, ↑18.6 per cent;
- VietNam RM5.84 billion, ↑38.1 per cent;
- Indonesia RM3.52 billion, ↓4.7 per cent;
- Philippines RM2.43 billion, ↑1.3 per cent;
- Cambodia RM485.3 million, ↑93.9 per cent;
- Brunei RM419.4 million, ↑107.5 per cent;
- Myanmar RM246.8 million, ↓16.4 per cent;
- Lao PDR RM7.4 million, ↑158.9 per cent; and
- Timor-Leste RM4.3 million, ↑34.2 per cent.
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 per cent, 22.9 per cent and 23.3 per cent respectively.
For Q1 2026, trade with ASEAN rose 3.8 per cent to RM193.06 billion compared to Q1 2025. Exports edged up by 0.1 per cent 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 per cent to RM83.80 billion.
China – Double-Digit Trade Growth
In March 2026, trade with China increased by 19.6 per cent y-o-y to RM49.04 billion, contributing 18.0 per cent to Malaysia’s total trade. Exports grew by 7.0 per cent 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 per cent to RM31.79 billion.
On a m-o-m basis, trade, exports and imports expanded by 13.6 per cent, 16.0 per cent and 12.3, r per cent espectively.
Trade with China in the first three months of 2026 increased by 19.5 per cent to RM140.76 billion compared to the same period in 2025. Exports climbed 11.8 per cent 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 per cent to RM93.16 billion.
The US – Fourth Consecutive Month of Export Expansion
In March 2026, trade with the US increased by 16.7 per cent y-o-y to RM36.24 billion, representing 13.3 per cent of Malaysia’s total trade. Exports recorded the fourth consecutive month of growth, expanding by 18.3 per cent to RM26.82 billion on higher demand for E&E products. Imports from the US rebounded by 12.3 per cent to RM9.42 billion.
On a m-o-m basis, trade, exports and imports climbed 9.8 per cent, 7.7 per cent and 16.3 per cent, respectively.
During Q1 2026, trade with the US rose 16.1 per cent to RM100.86 billion compared to Q1 2025. Exports increased by 30.3 per cent to RM74.81 billion following strong exports of E&E products. Imports from the US reduced by 11.7 per cent to RM26.05 billion.
Taiwan – Highest Export Value Ever Posted
In March 2026, trade with Taiwan which made up 8.3 per cent of Malaysia’s total trade increased by 24.9 per cent y-o-y to RM22.53 billion. Exports surged by 45.0 per cent 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 per cent to RM12.46 billion.
On a m-o-m basis, trade and exports grew by 7.7 per cent and 20.2 per cent, respectively while imports shrank 0.6 per cent.
During Q1 2026, trade with Taiwan climbed 25.7 per cent to RM66.26 billion compared to the corresponding period in 2025. Exports soared by 61.9 per cent 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 per cent 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 per cent of Malaysia’s total trade edged down by 2.2 per cent y-o-y to RM18.59 billion. Exports fell 4.1 per cent 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 per cent to RM8.23 billion.
Within the EU, the top 10 markets which accounted for 89.6 per cent of Malaysia’s total exports to the region were:
- Netherlands RM2.96 billion, decreased by 14.4 per cent, y-o-y;
- Germany RM2.40 billion, ↓15.7 per cent;
- Ireland RM892.6 million, ↑191.5 per cent;
- France RM664.3 million, ↑9.0 per cent;
- Belgium RM483.3 million, ↓28.0 per cent;
- Poland RM422.9 million, ↑29.0 per cent;
- Italy RM422.9 million, ↓32.2 per cent;
- Spain RM395.5 million, ↓8.1 per cent;
- Hungary RM353.8 million, ↑66.0 per cent; and
- Czech Republic RM282.7 million, ↓33.2 per cent.
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 per cent, while trade and exports declined by 9.6 per cent and 18.2 per cent, respectively.
During Q1 2026, trade with the EU increased by 12.7 per cent to RM59.58 billion compared to Q1 2025. Exports expanded by 17.6 per cent 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 per cent to RM24.34 billion.
Trade with FTA Partners
In March 2026, trade with FTA partners which comprised 66.5 per cent of Malaysia’s total trade expanded by 11.1 per cent y-o-y to RM181.59 billion. Exports to FTA partners improved by 6.2 per cent to RM95.01 billion and imports grew by 17.1 per cent to RM86.58 billion.
On a m-o-m basis, trade, exports and imports climbed 16.9 per cent, 20.6 per cent and 13.1 per cent, respectively.
During Q1 2026, trade with FTA partners was up by 10.4 per cent to RM515.45 billion compared to the corresponding period in 2025. Exports grew by 6.8 per cent to RM269.01 billion while imports rose 14.7 per cent to RM246.44 billion.
Export growth during the period was recorded to Hong Kong SAR, which expanded by 35.3 per cent to RM31.71 billion, Mexico which surged by 78.7 per cent to RM8.03 billion as well as the ROK which climbed 25.4 per cent to RM14.80 billion, aided by higher exports of E&E products.
Additionally, exports to India rose 18.3 per cent 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 per cent to RM2.44 billion following higher exports of chemicals and chemical products.
Import Performance
Total imports in March 2026 expanded by 10.4 per cent y-o-y to RM124.20 billion. The three main categories of imports by end use, which accounted for 67.3 per cent of total imports were:
- Intermediate goods, valued at RM58.30 billion or 46.9 per cent of total imports, decreased by 1.1 per cent, due to lower imports of primary fuel and lubricants;
- Capital goods, valued at RM16.26 billion or 13.1 per cent of total imports, rose 24.7 per cent, as a result of higher imports of non-transport capital goods; and
- Consumption goods, valued at RM8.97 billion or 7.2 per cent of total imports, contracted by 7.8 per cent, following lower imports of processed food and beverages mainly for household consumption.
Compared to February 2026, imports climbed 8.7 per cent due to higher imports of capital goods by 2.3 per cent, while imports of intermediate and consumption goods shrank 1.5 per cent and 2.4 per cent, respectively.
During the period of January to March 2026, imports rose 7.7 per cent to RM363.31 billion compared to the corresponding period last year. Imports of capital goods were up by 2.4 per cent to RM47.88 billion, consumption goods increased by 2.0 per cent to RM29.42 billion and intermediate goods declined by 1.8 per cent to RM175.20 billion. —MATRADE
