Malaysia’s total trade is expected to grow between 3% and 5% this year after reaching a record RM3.061 trillion in 2025, despite geopolitical uncertainties and technological disruptions, said Deputy Investment, Trade and Industry Minister Sim Tze Tzin.
Total trade in 2025 surpassed the RM3 trillion mark for the first time, rising 6.3% year on year. Exports exceeded RM1 trillion for the fifth consecutive year, climbing 6.5% to a record RM1.607 trillion, while imports grew 6.2% to RM1.455 trillion.
This resulted in a trade surplus of RM151.8 billion, marking the 28th consecutive year of surplus since 1998.
“We hope total trade will continue to grow and reach another record. But in this environment, trade wars are uncertain,” Sim told reporters after the release of Malaysia’s 2025 trade performance.
“2026 will be another challenging year, whether from geopolitical tensions or technological disruptions. We must continue striving to achieve our targets amid shifting global megatrends,” he added.
He said the Investment, Trade and Industry Ministry, through the Malaysia External Trade Development Corporation (Matrade), will step up export promotion efforts and pursue more bilateral trade agreements.
“We are also pursuing more bilateral trade agreements. Last year, we concluded the negotiations on a free trade agreement (FTA) with South Korea, which covers goods, services, investments, customs facilitation, sanitary and phytosanitary, digital trade, green economy, bioeconomy and economic cooperation. We look forward to signing the Malaysia-Korea FTA by [middle] of this year,” he said.
On concerns over a potential trade slowdown, Matrade chairman Datuk Seri Reezal Merican Naina Merican said it would be moderate “as some countries had front-loaded their purchases earlier and are now working through existing inventories”.
“To sustain the growth achieved last year, we will be rolling out more than 200 promotion and development activities this year,” he added.
“This is why we need to step up market diversification, leverage our FTAs and work closely with strategic partners across the trade ecosystem, including industry associations,” said Matrade chief executive officer Abu Bakar Yusof.
Industrial and skills upgrading key to staying competitive
In his keynote address earlier, Sim said Malaysia’s competitiveness will be further strengthened through the digital economy, including cross-border e-commerce.
“Technologies and digital platforms provide Malaysian businesses with access to new opportunities in e-commerce, digital services and cross-border data flows. This digital transformation not only expands market reach but also improves operational efficiency and fosters innovation, positioning Malaysia as a forward-thinking hub in the region,” he said.
To remain competitive in the current trade environment, he highlighted the need for industrial and skills upgrading, as well as competitiveness across all industries in order to assert greater influence in the global economy.
“Among the strategies are to raise the quality and productivity of human capital and industrial competitiveness while addressing issues along the ecosystem such as low wages, overdependence on unskilled foreign labour and income inequalities and regional disparities,” he added.
Source: theedgemalaysia