Kuala lumpur: Malaysia's total trade has reached RM2.16 trillion for the period of January-July 2026, expanding by 24.7 per cent year-on-year (y-o-y), driven by strong export demand, according to the Malaysia External Trade Development Corporation (MATRADE).
According to BERNAMA News Agency, MATRADE reported that exports rose 29.2 per cent to RM1.165 trillion, while imports increased by 19.8 per cent to RM994.71 billion. The trade surplus surged by 138.7 per cent to RM170.5 billion, more than doubling the RM71.42 billion recorded in the corresponding period last year.
MATRADE highlighted that Malaysia's external trade recorded its strongest performance to date for the first seven months of 2026. Exports crossed RM1 trillion faster than in 2025, when the same milestone was achieved in January-August, and total trade exceeded RM2 trillion quicker than in January-September 2025. With five months remaining in 2026, Malaysia's trade performance remains on track for another record year, building on three consecutive years of trade expansion since the pandemic-induced contraction in 2020.
Meanwhile, micro, small, and medium enterprises (MSMEs) continued to strengthen their contribution to Malaysia's exports in goods and services. MSME exports rose 10.5 per cent to RM214.5 billion in 2025, with their share of Malaysia's total exports increasing to 14.7 per cent. Manufacturing remains the backbone of MSME exports, accounting for 9.1 per cent of Malaysia's total exports and growing 8.8 per cent to RM132.7 billion.
For the period of January-July 2026, food and beverages remained the key MSME industry, with exports of food and confectionery products growing by 6.3 per cent. Automotive products grew by 13.8 per cent, pharmaceutical products by 29.7 per cent, metal furniture by 27.8 per cent, and palm oil-based and oleochemical products by 13.4 per cent.
Malaysia's export performance was supported by strong demand from key trading partners, particularly the United States, ASEAN, Taiwan, Hong Kong, China, and the European Union. MATRADE's market diversification strategy into non-traditional markets across Africa, Central Asia, South Asia, and Latin America surged collectively by 18.2 per cent to RM100.94 billion. This growth was driven by significant increases in Angola, Zimbabwe, Sudan, and Congo, with exports to Sudan, Congo, Ethiopia, and Zimbabwe surpassing their respective full-year export values recorded in 2025.
Malaysia's free trade agreements (FTAs) continued to underpin export growth, with exports to FTA partner countries expanding by 22.4 per cent to RM737.97 billion, representing 63.3 per cent of Malaysia's total exports. Of the 24 FTA partner countries, 21 registered growth, with exports to Regional Comprehensive Economic Partnership (RCEP) markets rising 19.7 per cent and exports to Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) markets growing 18.1 per cent.
On the trade performance, MATRADE chief executive officer Datuk Abu Bakar Yusof stated that while the current numbers reflect the strong resilience of Malaysian exporters, long-term success requires deliberate efforts to expand the country's overall trade ecosystem. MATRADE is focusing on empowering MSMEs and mid-tier companies to ensure the expansion is broad-based, homegrown, and deeply integrated into global supply chains. The agency is expanding its flagship global value chain integration programmes, connecting local businesses directly to high-impact international trade platforms, including the Farnborough International Airshow, SEMICON West, and Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).