Kuala Lumpur, 19 September 2025 — Malaysia’s export growth eased in August, registering a modest increase of 1.9% year-on-year to RM131.6 billion, weaker than both July’s growth and analysts’ forecasts. The Ministry of Investment, Trade and Industry (MITI) had expected stronger export momentum, with a Bloomberg poll forecasting a 3.0% growth. The result underscores a growing fragility in trade dynamics amid global economic uncertainties.
In contrast, July’s export figures showed a more robust 6.8% y-o-y growth, suggesting that August’s performance marks a notable slowdown. Some of the softness in Malaysia’s trade figures comes from contracting exports in petroleum goods, which fell by 17.6%, partially offset by continued strength in electrical & electronic (E&E) shipments. The E&E sector, which constitutes about 42% of total exports, rose 10.1%, while machinery, equipment, and parts climbed 14.5%.
Palm oil shipments also contributed positively, with exports increasing 9.7% over August last year. From a destination perspective, exports to key markets saw mixed results: shipments to China rose 10.4%, and to Taiwan by 32.7%, yet exports declined notably to the United States (-16.7%) and Japan (-15.4%).
On the import side, Malaysia registered a 5.9% decline in gross imports year-on-year to RM115.47 billion. Consumption goods fell by 8.9%, particularly processed foods and beverages evident in household use, while intermediate goods dropped 16.8%, pointing to weaker downstream demand. Imports of capital goods bucked the trend, rising 11% on the back of demand for industrial transport and production-related assets.
Malaysia’s trade surplus widened to RM16.13 billion in August, more than doubling year-on-year and showing a 10.4% increase month-on-month, as weaker imports joined the sluggish export performance.
MITI urged exporters to adapt strategies in light of the slowdown, including diversifying product offerings, enhancing supply chain efficiencies, and making better use of Malaysia’s 18 ratified free trade agreements. The ministry also pointed out that shifting global trade policies and economic headwinds make agility and competitiveness more crucial than ever.
