Steady Growth For Trade Surplus in First Two Months of 2026 Amid Surge in E&E Exports and Emerging Market Expansion

KUALA LUMPUR, 19 MARCH 2026 (THURSDAY) – Malaysia’s trade performance for the first two months of 2026 has demonstrated exceptional resilience, with the trade surplus widening by a staggering 137.6% to reach RM38.67 billion. Total trade grew by 11.0% to RM516.89 billion, underpinned by export growth that outpaced imports.

The surge was primarily fueled by the Electrical and Electronic (E&E) products sector, which saw a 34.2% increase, contributing RM131.34 billion (47.3% of total exports). Other notable performers include:

Machinery, Equipment & Parts: Grew significantly by 39.8% to RM12.49 billion.

Palm Oil & Agriculture: Remained a steady contributor at RM12.41 billion, marking a 6.6% growth.

While traditional markets like USA (+38.1%) and Hong Kong (+45.8%) showed massive gains, Malaysia is successfully pivoting toward high-growth emerging regions. A significant growth in exports for countries such as Uzbekistan (+19.5%), Mexico (+64.6%), Brazil (+39.1%), South Africa (+106.9%), Egypt (+28.2%), Mozambique (+55.2%), Sudan (+723.1%) and Ethiopia (+887.0%), led a vital part of the national diversification strategy to mitigate risks associated with traditional hubs and global volatility. 

Despite these stellar figures, the Malaysia External Trade Development Corporation (MATRADE) is embarking on pre-emptive measures to cushion the impact of the ongoing geopolitical conflicts in West Asia. The conflicts have led to maritime blockades, surging logistics costs, global trade and exports. 

Commenting on this performance, MATRADE Chief Executive Officer, Mr. Abu Bakar Yusof, stated that:

"The significant leap in our trade surplus is a clear indicator that Malaysia continues to sustain its momentum from the performance recorded in 2025. However, our immediate priority now is to mitigate the 'double-ended' blockade affecting our cargo by leveraging our local presence in West Asia to gauge real-time feedback on the logistical hurdles that are possibly affecting Malaysia’s exports. Insights from our recent survey reveal that 63.9% of our exporters are anticipating that their exports will be affected, citing shipment delays and significant increases in ocean freight.”

“We are mobilising our Middle Eastern offices in Dubai, Jeddah, Cairo and Doha to provide ground-level intelligence and assist exporters in navigating the total Mideast maritime lockdown. While we anticipate operational strain, we are positioning Malaysia as reliable alternative suppliers for trade partners seeking to diversify away from regional risks. We strongly encourage exporters to explore logistics diversification, such as rerouting shipments to lower-risk ports like Fujairah or Salalah, and to accelerate diversification into less-impacted regions such as South Asia, Latin America and Africa," he added.

“We are sharing critical ground intelligence with our business communities, advising on alternative logistics routes and supply chain adjustments to bypass disruptions in the Red Sea. For this purpose, MATRADE has also been engaging with exporters through trade and industry associations such as the Federation of Malaysian Manufacturers (FMM), the Malaysian Consortium of Mid-Tier Companies (MCMTC) and the Malaysian International Chamber of Commerce and Industry (MICCI)".

Moving forward, MATRADE will intensify efforts to integrate Malaysian exporters into global value chains and facilitate market access amid the disruptions caused by the crisis.