Malaysia's current account surplus shrinks to 28-year low
MALAYSIA'S current account surplus sank to just RM0.3 billion, or 0.1% of gross domestic product (GDP), in the second quarter of 2025 (Q225) – the smallest since 1997 – as weaker mining exports and surging imports for electronics and data centres hit the balance of payments.
The figure marked a steep drop from RM16.7 billion (3.4% of GDP) in Q125, with the goods account surplus narrowing to RM17.0 billion.
The services account deficit improved slightly to RM3.3 billion on higher travel receipts, but the secondary income deficit widened sharply to RM4.6 billion due to lower receipts into the country.
Chief Statistician Datuk Sri Mohd Uzir Mahidin said the weaker goods surplus reflected 'planned maintenance activities' in the mining sector and higher capital imports, particularly in E&E products and data centre equipment.
He noted that FDI inflows fell to RM1.6 billion from RM15.6 billion in Q125, mainly into the services sector – particularly financial activities and ICT – from Singapore, Japan and the UK.
These inflows were partly offset by reinvestment outflows, driven by higher dividend payments and losses by some foreign manufacturers.
BNM Governor Datuk Sri Abdul Rasheed Ghaffour stressed the deterioration was 'largely attributable to cyclical factors', including a RM5.1 billion quarter-on-quarter drop in mining-related exports.
He said the rise in capital imports tied to data centre projects 'will strengthen our exports in the long term' as these facilities come online, adding that some are already ramping up service exports.
He also pointed to continued strength in tourism, with travel receipts jumping to RM95.3 billion in 2024 from RM68 billion in 2023, a trend expected to continue into 2026 with better flight connectivity and the Visit Malaysia 2026 campaign.
The financial account recorded a much smaller net outflow of RM2.2 billion in Q225, versus RM20.3 billion in Q125, mostly from interbank transactions with overseas financial institutions.
Abdul Rasheed said the current account surplus for 2025 is projected at 1.5%–2.5% of GDP, compared to 1.7% in the first half, supported by sustained global demand for E&E, rising data centre services, and inbound tourism.
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