MALAYSIA’S external trade remained on a strong footing in June 2026, supported by robust export growth and higher imports.
Total trade expanded by 44.7% year-on-year (YoY) to RM340.9 bil, extending the strong momentum seen in the previous months, underpinned by the surge of import figures.
On a month-on-month basis, total trade increased by 4.0% from May’s RM327.8 bil. Exports surged by 45.4% YoY to RM177.9 bil, marginally higher than the previous month’s 44.7% YoY growth but below market expectations of 47.3% YoY.
The US and Singapore continued to be the main export markets, contributing 33.6% of total exports. However, on a sequential basis, exports
declined by 3.2% month-on-month, indicating early signs of normalisation following the strong export momentum recorded in recent months.
The US remained Malaysia’s largest export destination, accounting for RM34.7 bil or 19.5% of total exports.
Exports to the US surged by 108.6% YoY, driven mainly by higher exports of electrical & electronic (E&E) products (137.9%), other manufactures (226.9%) and optical & scientific equipment (13.0%). Percentages are on a YoY basis.
Exports to Singapore accounted for 14.1% of total exports, valued at RM25.1 bil, and increased by 47.6%. The increase was driven by higher exports of E&E products (74.8%), machinery, equipment & parts (52.0%), petroleum products (28.0%) and optical & scientific equipment (34.2%).
Besides, exports to all major destinations registered a growth in June 2026, including China, Taiwan, the EU, Japan, Thailand, Indonesia, Hong Kong and Vietnam.
Sector wise, manufactured goods exports (88.4% of total exports) surged by 47.3%, led by strong growth in E&E products, other manufactures, and petroleum products.
Mining exports (6.2% of total exports) also rose significantly by 97.5%, supported by higher LNG and crude petroleum exports. In contrast, agricultural exports (4.7% of total exports) declined by 7.2%, mainly due to weaker palm oil and timber-related exports.
Imports registered strong growth in June 2026, outperforming consensus expectations and marking a significant acceleration from the previous month.
Total imports surged by 43.9% to RM163.0 bil, reaching a new record high. On a monthly basis, imports rose by 13.2% from RM144 bil in May 2026, supported by resilient domestic activity and continued demand for intermediate and capital goods.
By source, China and Singapore were Malaysia’s two major countries of origin for imports in June 2026, accounting for 40.1% of total imports.
The continued expansion in exports, coupled with a wider trade surplus, suggests that net exports continued to provide meaningful support to overall GDP growth.
This is consistent with DOSM’s 2Q26 advance estimate, which showed Malaysia’s economy expanded by 5.8% during the quarter, underpinned by broad-based growth across key sectors.
“Looking ahead, we continue to expect trade growth to gradually moderate in the second half of 2026 following the exceptionally strong performance in the first half of 2026,” said TA.
While demand for Malaysian exports has remained resilient, supported by the E&E upcycle and sustained global demand, several headwinds could weigh on external performance, including a stronger ringgit and ongoing geopolitical uncertainties.
In addition, part of the recent strength may have been driven by front-loading activities ahead of potential trade and policy developments.—July 21, 2026
Main image: dhl.com
