Malaysia’s Export Remains Resilient Amid Middle East Tensions

Malaysia’s total trade continued to expand albeit at a marginally softer pace of +9.3%yoy in Mar-26 (Feb-26: +9.5%yoy).

Exports maintained growth for the ninth straight month, growing at more moderate pace of +8.3%yoy (Feb-26: +10.7%yoy). Meanwhile, imports rose double-digits by +10.4%yoy (Feb-26: +8.2%yoy).

By sector, growth in manufacturing exports grew softer by +9.6%yoy (Feb-26: +12.8%yoy) with growth mainly supported by the rebound in petroleum products (+23.7%yoy) and the continued expansion for E&E products (+28.5%yoy). Mining exports declined by -0.4%yoy (Feb-26: +12.3%yoy) while agricultural exports fell slower by -7.8%yoy (Feb-26: -16.4%yoy).

Export resilient

By destination, exports to the US slowed down to +18.3%yoy (Feb-26: +42.3%yoy). Meanwhile, exports to Singapore fell softer by -10.3%yoy (Feb-26: -17.1%yoy) and exports to China slowed by +7.0%yoy (Feb-26: +13.2%yoy).

“For 2026, we continue to expect external trade to moderate, with exports projected to grow at +4.5% (2025: +6.5%) and imports at +5.0% (2025: +6.2%). Nonetheless, we see potential upside boost driven by front-loading of E&E shipments ahead of phased tariffs by the US on wider semiconductor products, in addition to the sustained global tech upcycle,” says MBSB.

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