U.S. Tariff Decision on Malaysia Due Friday Amid Rare Earth, Halal Concessions

Malaysia’s trade surplus widened to MYR 16.7 billion in February 2026, from MYR 12.6 billion in the same month last year, though it fell short of market expectations of MYR 20.8 billion and marking the smallest trade surplus since November 2025. Imports rose 8.2% year-on-year to MYR 114.2 billion, as purchases increased across all three main categories by end use, namely intermediate goods (0.8%), capital goods (15.4%), and consumption goods (1.5%). Import growth was strongest from China (27.3%), South Korea (86.8%), and Taiwan (36.4%). Meanwhile, exports grew 10.8% year-on-year to an eight-month low of MYR 131 billion, despite higher sales in manufacturing (12.8%), mining (12.3%), and other sectors (30.4%), which offset a decline in agriculture exports (-16.4%). Among trading partners, exports rose the most to the US (42.3%), Taiwan (65.9%), and the EU (33.9%). Considering the first two months of the year, the country's trade surplus reached MYR 38.7 billion.

Malaysia’s trade surplus jumped to MYR 21.37 billion in January 2026 from MYR 3.66 billion a year earlier, far surpassing market expectations of MYR 10.1 billion. Exports rose 19.6% year-on-year, beating market forecasts of 13.7% and accelerating sharply from a marginally revised 10.2% increase in the previous month. It also marked the strongest annual export growth since September 2022, boosted by firm external demand ahead of the Lunar New Year and Ramadan across key Asian markets. Meanwhile, imports grew at a slower pace of 5.3%, easing from a downwardly revised 9.5% gain in December and missing the 9.9% consensus. The softer import growth, which was the mildest since a contraction last August, reflected more subdued domestic demand at the start of the year. In 2025, trade surplus stood at MYR 159.54 billion, up from MYR 139.05 billion in the prior year.

Malaysia’s trade surplus widened slightly to a record high of MYR 19.27 billion in December 2025 from MYR 19.26 billion in December 2024, above expectations of MYR 12.2 billion. Exports rose 10.4% yoy to a record high of MYR 153.0 billion, accelerating from a 7.0% increase in November and exceeding forecasts of a 2.4% rise. The acceleration was mainly driven by manufactured goods, which rose 13.6%, led by strong shipments of electrical and electronic products, which surged 25.3%. Among trading partners, outbound shipments rose to the US (48.8%), Hong Kong (12.0%), Taiwan (34.4%), and the EU (34.8%). Meanwhile, imports surged 12.0% to an all-time high of MYR 133.7 billion, also above expectations for an 8.5% gain. The rise was boosted by higher imports of consumption goods (27.6%), dual- use goods (60.1%), and intermediate goods (3.6%). For the whole of 2025, Malaysia registered a trade surplus of MYR 132.6 billion, with exports and imports falling 3.7% and 3.6%, respectively.