Malaysia’s Trade Hits Record RM364.7 Bn as Electronics Lift Exports and Imports

Malaysia’s merchandise trade jumped 37.3% YoY to a record RM364.7 Bn in July, with exports and imports also reaching their highest monthly values, according to the Department of Statistics Malaysia (DOSM). The unusually balanced surge points to a technology cycle pulling goods into the country almost as strongly as it is lifting outbound shipments.

Exports rose 38% to RM193.6 Bn while imports climbed 36.4% to RM171.1 Bn. Trade surplus widened 51.9% to RM22.5 Bn, marking Malaysia’s 75th consecutive monthly surplus since May 2020.

Electrical and electronic products did most of the heavy lifting. E&E exports grew 51% to RM95.65 Bn, equivalent to 49.4% of all exports. E&E imports increased 58.1% to RM76.76 Bn and represented 44.9% of total imports.

Calculations from DOSM’s underlying tables show that E&E products generated 60.5% of the RM53.36 Bn YoY increase in exports and 61.8% of the RM45.68 Bn rise in imports.

That near symmetry matters. It is consistent with greater production throughput across Malaysia’s technology supply chain rather than an expansion driven by export demand alone. The E&E category extends beyond semiconductors, however, while the published tables do not establish that imported E&E products were subsequently processed and exported.

The broader import mix supports the production-chain reading. Intermediate goods imports rose 40.8% to RM80.0 Bn, accounting for 46.8% of total imports, led by parts and accessories for non-transport capital goods.

Capital-goods imports advanced 24.0% to RM22.5 Bn, while consumption-goods imports grew a comparatively modest 5.2% to RM11.0 Bn. The composition is more consistent with production requirements than consumer demand.

Domestic exports provide another check on the source of expansion. They rose 36.9% to RM141.3 Bn and accounted for 73% of exports. Re-exports rose faster, by 41.2%, but remained considerably smaller at RM52.3 Bn.

Based on the published figures, domestic exports supplied roughly seven-tenths of the overall export increase, showing that the surge extended beyond transhipment. However, domestic exports should not be confused with domestic value added. Gross trade statistics record the full border value of goods, not how much income, technology or intellectual property value ultimately remains in Malaysia.

But growth went beyond electronics. Other manufactures added RM10.5 Bn from a year earlier; machinery, equipment and parts added RM2.8 Bn; petroleum products added RM2.2 Bn and optical and scientific equipment added RM2 Bn. Even then, E&E’s RM32.3 Bn contribution was about three times the gain from the next-largest product category.

The geographical distribution shows simultaneous growth across major export destinations and Asian import sources. The US made the largest contribution to export growth, adding RM14.7 Bn, followed by Taiwan at RM7.5 Bn, China at RM4.8 Bn and Singapore at RM4.3 Bn. On the import side, China contributed RM17.2 Bn to the increase, followed by Singapore at RM7.9 Bn and South Korea at RM6.4 Bn. These aggregate figures illustrate Malaysia’s extensive regional linkages but do not trace individual goods from origin to final destination.

July capped an exceptional first seven months of 2026. Total trade grew 24.7% to RM2.16 Tn, exports expanded 29.2% to RM1.17 Tn and imports increased 19.8% to RM994.71 Bn. The cumulative surplus more than doubled, rising 138.7% to RM170.5 Bn. Hence, the surplus had widened despite rapid import growth because exports rose even faster.

The broader economy has moved in the same direction. Malaysia’s gross domestic product expanded 6% in the second quarter, accelerating from 5.4% in the preceding three months, while manufacturing growth strengthened to 7.3%. Bank Negara Malaysia has identified global technology expansion, robust E&E demand and investment associated with artificial intelligence as important supports for exports.

The headline increase, however, is expressed in nominal ringgit terms, and DOSM has not yet published the corresponding July volume and unit-value indices. It is, therefore, not possible to determine how much of the 37.3% increase reflected additional physical shipments and how much came from prices or changes in the product mix. UN Trade and Development has estimated that rising prices contributed significantly to global trade-value growth during the first half of 2026.

Bank Negara expects Malaysia’s economy to grow between 4-5% in 2026, with the global technology cycle continuing to support E&E activity. Trade policy uncertainty, geopolitical conflict, tighter global financial conditions and high-base effects remain risks, particularly as Malaysia’s export growth becomes more concentrated in technology products.

The July record points to a deeper technology production cycle in which imports, domestic exports and re-exports are all expanding rapidly. The longer-term test is whether that scale produces sustained gains in local value added, productivity and industrial capacity.