Global economic uncertainty: How will it affect Malaysian trade?

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Global Economic Uncertainty Poses Challenges to Malaysian Trade

Malaysian trade has demonstrated resilience, with a 2.6 per cent increase in May 2025 reaching RM252.48 billion, marking the 17th consecutive month of year-on-year growth. However, the Ministry of Investment, Trade and Industry (MITI) has identified persistent uncertainties in global economic conditions as a notable challenge. While the electrical and electronics (E&E) sector, a key component of the global semiconductor supply chain, shows a positive outlook with exports increasing by nearly RM4 billion, sustaining this growth momentum will necessitate proactive policy responses.
Sustained Growth Amidst Global Headwinds

Malaysia's trade has experienced continuous expansion, achieving a 2.6 per cent year-on-year increase to RM252.48 billion in May 2025. This performance extends a trend of 17 consecutive months of growth since January 2024. Exports saw a slight decrease of 1.1 per cent to RM126.62 billion, while imports grew by 6.6 per cent to RM125.86 billion, resulting in a trade surplus of RM766.3 million. This marks the 61st consecutive month of trade surplus since May 2020, indicating a stable trade balance.
E&E Sector's Positive Trajectory and Future Needs

The electrical and electronics (E&E) sector continues to be a strong performer, with exports showing a resilient increase of nearly RM4 billion. This aligns with global forecasts predicting an 11.2 per cent rise in semiconductor sales for 2025, positioning Malaysia to benefit significantly as a key player in the global semiconductor supply chain. Despite this positive outlook, MITI has cautioned that global economic uncertainties remain a significant concern.
Proactive Policy Responses Are Crucial

To navigate the potential challenges posed by global economic uncertainties and to ensure the sustained growth of the E&E sector and broader trade, MITI has emphasised the critical need for proactive policy responses. While the report does not detail specific policy measures, it highlights that strategic interventions will be essential to maintain the current growth momentum in the face of an unpredictable international economic landscape.
Record Cumulative Trade Performance

From January to May 2025, Malaysia's trade, exports, and imports collectively achieved their highest recorded values. Overall trade grew by 6.2 per cent to RM1.23 trillion compared to the same period in 2024. Exports expanded by 5.5 per cent to RM638.48 billion, and imports rose by 6.9 per cent to RM591.54 billion, with a trade surplus of RM46.94 billion during this period, despite a 9.4 per cent slip in the surplus value.

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Global economic uncertainty: How will it affect Malaysian trade?

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