Malaysia Export Growth Below Expectations

Malaysia’s exports rose 10.8% year-on-year to MYR 131.0 billion in February 2026, below the expected 11.9% increase and slowing from January’s 19.6% jump. Growth was led by manufacturing, which expanded 12.8%, particularly in electrical and electronic products (28.5%) and optical and scientific equipment (42.9%). Mining exports also increased 12.3%, driven mainly by metalliferous ores and metal scrap (443.7%) and crude petroleum (6.4%). However, these gains were partially offset by a 16.4% decline in agricultural exports, reflecting lower sales of palm oil and palm-based products (-13.7%), other vegetable oils (-8.8%), and natural rubber (-47%). By destination, exports rose sharply to the US (42.3%), with notable increases to China (13.2%), the EU (33.9%), Hong Kong (32.6%), and Taiwan (65.9%). Overall, for the first two months of 2026, exports were 15.2% higher than the same period last year.

Malaysia’s exports soared 19.6% yoy to MYR 146.87 billion in January 2026, exceeding market forecasts of 13.7% and picking up strongly from a marginally revised 10.2% gain in the prior month. It also marked the strongest annual export growth since September 2022, boosted by solid external demand ahead of the Lunar New Year and Ramadan across key Asian markets. Manufacturing shipments climbed 22.3%, supported by E&E products (39.5%) and optical & scientific equipment (36.2%). Mining exports grew 2.7%, mainly lifted by metalliferous ores and metal scrap (207.7%). In contrast, arrivals of agricultural products fell 2.7%, largely weighed by palm oil (-2.3%). By destinations, sales increased to most countries, including the U.S. (33.9%), China (16.1%), the EU (26.0%), Hong Kong (58.0%), Taiwan (79.4%), Vietnam (60%), India (35.7%), and ASEAN (7.1%). In contrast, exports fell to Japan (-0.4%) and Australia (-22.0%). In 2025, total exports dipped 3.7% from a year earlier to MYR 1.6 trillion.

Exports from Malaysia increased 10.4% year-on-year to a record high of MYR 153 billion in December 2025, accelerating from 7.0% growth in November and surpassing market 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%. By contrast, agricultural exports fell 7.4%, weighed down by weak demand for palm oil and palm-based products, which declined 8.4%. Mining shipments also plunged 15.2%, due to lower exports of crude petroleum (-24.9%) and liquefied natural gas (-38.8%). Among trading partners, outbound shipments rose to the United States (48.8%), Hong Kong (12.0%), Taiwan (34.4%), and the European Union (34.8%). For the whole of 2025, total exports shrank 3.7% to MYR 1.45 trillion compared with a year earlier.