Malaysia's External Trade To Expand In 2025, Exports Up 4.9 Pct, Imports To Rise 4.5 Pct

KUALA LUMPUR, Jan 20 (Bernama) -- Malaysia's exports and imports are set to continue growing in 2025, with external trade expected to expand further.

According to MIDF Amanah Investment Bank Bhd (MIDF Amanah), exports are projected to grow by +4.9 per cent, while imports are expected to increase by +4.5 per cent.

In a note today, the investment bank highlighted a growing demand for electrical and electronics (E&E) products and other non-E&E commodities, which is expected to support export growth in the coming months.

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“Meanwhile, imports are expected to rise further, driven by growing domestic demand and increased business activities.

“However, we remain cautious as Malaysia’s external trade outlook could be adversely affected by escalating geopolitical conflicts, weaker final demand from major markets, and a slowdown in global production and trade activities,” it said.

The investment bank also said that escalating trade tensions between the United States and China (and other regions), coupled with stricter trade regulations, pose downside risks to global trade activity this year.

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“Despite the looming trade tensions between China and the US under the new administration, we believe Malaysia, as part of ASEAN, is well-positioned to capture a larger share of the US export market that China may potentially lose.

“This will support a positive trade outlook for Malaysia, contributing to sustained economic growth,” it added.

Looking ahead, MIDF Amanah expects shipments to key markets such as Singapore, the US, and Taiwan to continue benefiting from sustained demand for E&E products, driven by the ongoing upcycle in the sector.

“We anticipate minimal impact from the escalating trade tensions between China and the US. We see this as an opportunity for Malaysia to expand its share of the US export market, although this may be constrained by unfavourable tariffs, quotas, and heightened geopolitical tensions,” it said.

The bank expects more stable growth in imports to contribute positively to the recovery of the current account surplus.

“Overall, we anticipate that import growth will remain positive, supported by ongoing increases in domestic spending and expanding local business activities amidst Malaysia’s sustained economic growth,” it added.

-- BERNAMA