Malaysia’s Exports Surge on Strong E&E Demand Despite Softer US Market

Malaysia’s trade performance strengthened in October 2025, with total trade rising +13.6% year-on-year, marking the second consecutive month of double-digit expansion. The improvement was driven by a sharp rebound in exports, which accelerated to +15.7%yoy, while imports grew +11.2%yoy, the fastest pace since April.

Exports Surge

Manufacturing remained the backbone of export activity, accounting for 87% of total shipments. The sector recorded robust growth of +15.7%yoy, lifted by strong demand for electrical and electronic (E&E) products (+26.5%), machinery (+17.0%), and optical and scientific instruments (+31.6%). Analysts attribute the surge to sustained global appetite for AI-related components and advanced technology goods.

Imports also strengthened, supported by a +51.9%yoy jump in capital goods tied to expanding data-centre investment.

Given the momentum, Malaysia’s exports are now projected to grow +6.0% in 2025, while import growth is expected to moderate to +4.9%, cushioning the impact of weaker US demand and higher tariffs.

Business News