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New Straits Times
20-05-2025
- Business
- New Straits Times
Malaysia's trade hits record high in April, economists see room for optimism
S. Birruntha KUALA LUMPUR: Malaysia's trade performance maintained its upward trajectory in April, with both exports and imports posting strong double-digit growth, a development economists view as a promising start to the second quarter of 2025. According to the Ministry of Investment, Trade and Industry (Miti), trade rose 18.2 per cent year-on-year (YoY) to RM261.94 billion, the highest monthly value recorded since August 2022. Exports increased by 16.4 per cent to RM133.56 billion, while imports climbed 20 per cent to RM128.37 billion. This marked the 60th consecutive month of trade surplus, reaching RM5.19 billion. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the latest export figures far exceeded expectations, with the April performance outpacing the consensus estimate of 7.5 per cent growth. He said this encouraging trend could set a strong base for the second quarter of 2025 (2Q25), although the sharp increase may also be linked to front-loading activities by trade partners. "Exports to the US, which accounted for 14.4 per cent of total exports in April, rose 45.6 per cent, albeit slightly lower than the 50.8 per cent growth recorded in the previous month," he told Business Times. "Other jurisdictions such as Taiwan, Thailand and Singapore also posted notable gains, with growth of 29.9 per cent, 17.8 per cent and 12.4 per cent respectively in April," he added. Afzanizam cautioned, however, that uncertainties tied to US trade policy could influence future performance. He noted that negotiations with the US remain fluid and the 10 per cent universal tariff rate is still in effect. He said import tariffs could raise the cost of doing business and potentially lead to higher prices in both the US and China as both countries continue to retaliate with new measures. "Demand in the US may weaken, which could translate into fewer export orders. This makes it crucial for Malaysian companies to diversify their customer base," he said, adding that agencies such as Miti and Matrade play a vital role in helping businesses access new markets. Afzanizam also flagged risks related to excess supply from China, which could negatively affect local industries, particularly in sectors such as iron and steel, plastics, ceramics, solar panels and textiles. Despite these challenges, April marked Malaysia's 16th straight month of YoY export growth since January 2024. Miti said the expansion was largely driven by strong demand for manufactured goods, particularly electrical and electronic (E&E) products, which alone saw an increase of almost RM16 billion. Palm oil and related agriculture products also contributed significantly to export growth. Strong export growth was registered to major trading partners, including Asean, China, the United States, the European Union and Taiwan, which posted a new record high. Exports to free trade agreement partners also rebounded sharply. Meanwhile, UOB economists Julia Goh and Loke Siew Ting attributed the strong April performance to accelerated shipments ahead of anticipated US tariffs, under a 90-day reciprocal tariff pause. They said re-exports surged 46 per cent — the highest since September 2022 — outpacing domestic exports. However, they cautioned that the momentum may not be sustained. "Bank Negara has indicated that the front-loading of exports will likely normalise in the coming months as inventories are drawn down and trade flows stabilise," they said in a research report. The economists highlighted Malaysia's deep exposure to the global E&E supply chain, noting that semiconductors make up 40 per cent of the nation's total exports and accounted for 23 per cent of its shipments to the US in 2024. "Malaysia ranks as the ninth-largest E&E exporter globally and is the third-largest source of electrical machinery to the US in Asia after China and Taiwan," they said. In light of these risks, UOB is maintaining its export growth forecast for 2025 at 3.8 per cent, down slightly from 4.5 per cent in 2024. Nonetheless, the World Trade Organisation recently reported that Malaysia improved its global trade ranking to 24th position in 2024 from 26th in 2023, a testament to the country's growing trade relevance. To strengthen resilience and support continued growth, Miti and its export promotion arm Matrade are ramping up efforts to diversify markets. Initiatives such as international trade fairs, export acceleration missions, business matching programmes and the Madani Digital Trade platform are actively helping Malaysian exporters expand their global reach.
New Straits Times
20-05-2025
- Business
- New Straits Times
Malaysia hits RM261.9bil trade record in April, extends growth to 16 months
KUALA LUMPUR: Malaysia's trade momentum remained strong in April 2025, charting its 16th consecutive month of year-on-year (YoY) growth and recording the highest monthly trade value since August 2022. According to the Ministry of Investment, Trade and Industry (MITI), total trade surged 18.2 per cent YoY to RM261.94 billion — supported by robust expansion in both exports and imports. Exports climbed 16.4 per cent to RM133.56 billion, while imports grew 20 per cent to RM128.37 billion, resulting in a trade surplus of RM5.19 billion. This marks the country's 60th straight month of surplus since May 2020. MITI said the solid export performance was driven largely by higher global demand for manufactured goods, particularly electrical and electronic (E&E) products, which contributed nearly RM16 billion to overall export growth. Another equally important sector was agricultural goods, especially palm oil and palm oil-based agricultural products, which also played a significant role in supporting the overall expansion in exports. In terms of markets, strong export growth was posted to major trading partners, namely Asean, China, the United States (US), the European Union (EU), and Taiwan, which reached a new record high. Overall exports to Free Trade Agreement (FTA) partners also saw a strong rebound. Among markets that recorded export increases were Mexico, India and the Republic of Korea (ROK), attributed to higher shipments of E&E products. Meanwhile, during the period January to April 2025, trade, exports and imports recorded the highest periodic value to date. Trade was up by 7.2 per cent YoY to RM977.61 billion, exports rose 7.3 per cent to RM511.92 billion and imports climbed seven per cent to RM465.69 billion. Trade surplus recorded double-digit growth of 10.4 per cent to RM46.23 billion. Net exports contributed to Malaysia's achievement of a 4.4 per cent gross domestic product (GDP) in the first quarter of 2025 (1Q25), as reported by Bank Negara Malaysia (BNM). Additionally, the World Trade Organisation's (WTO) recent report also showed Malaysia's improvement in global trade ranking to 24th position in 2024, from the 26th place in 2023. In recognition of how global trade challenges may hamper the pace of growth, MITI and its export promotion agency, the Malaysia External Trade Development Corporation (MATRADE), are intensifying efforts to increase exports while also diversifying Malaysia's export destinations. In addition to maintaining strong ties with established trade partners, MATRADE is actively exploring emerging markets through strategic initiatives such as international trade fairs, export acceleration missions, business matching programmes and the Madani Digital Trade (MDT) platform. These initiatives are aimed at empowering Malaysian exporters, particularly small and medium enterprises (SMEs) and mid-tier companies (MTCs), to boost their global competitiveness and broaden their international reach.
