Tech, energy demand drives Malaysia's trade 18.3% higher in Jan-May

KUALA LUMPUR: Malaysia's total trade in January to May 2026 expanded 18.3% year-on-year to RM1.455 trillion as the result of an AI-led tech boom and elevated global energy demand, according to the Malaysia External Trade Development Corporation (Matrade). The trade agency said that during this period, exports surged 24.3% to RM793.84bil, while imports grew 11.8% to RM661.07bil. The trade surplus rose to a record of RM132.77bil, which was nearly three times the RM46.93bil recorded in the same period last year. By product, Malaysia's electrical and electronics (E&E) exports surged 39.7% to RM382.89bil, as semiconductor exports tailored for global AI infrastructure jumped 61.6%. Petroleum products and LNG posted growth of 22.9% and 1.5% respectively, supported by elevated global energy prices stemming from geopolitical tensions in the Middle East. High-growth high-value (HGHV) automotive components and electric vehicles (EVs and plug-in hybrid EVs) exports soared 115.8%. Matrade CEO Abu Bakar Yusof noted that Malaysia has risen to 15th place in the 2026 IMD World Competitiveness Ranking, an improvement from 23rd a year earlier. "Improvements across economic performance, government efficiency, business efficiency and infrastructure have significantly contributed to a more conducive operating environment that strengthens our trade and export ecosystem and enables our exporters and SMEs to be globally competitive and integrated deeper into global value chains. "The record-breaking trade performance and improved competitiveness ranking achieved in the same window tell the same story; Malaysia is becoming a more dependable, more efficient place to do business, and the world is taking notice," he said. He said Malaysia's export diversification into emerging and non-traditional markets have continued with exports to Latin America, Central Asia, Oceania, Africa and Central and Eastern Europe collectively posting strong growth. Standout performers included Mexico (growth of 46.2%), Brazil (18.5%), Uzbekistan (+3.8%), Croatia (+117.9%), Bulgaria (106.9%) and Hungary (64.6%), alongside exceptional gains in frontier markets such as Sudan (264%), Liberia (140.2%) and the Democratic Republic of the Congo (137.8%).