Malaysia Exports Reach Record RM1.57 Trillion as Electronics Drive Nine Months of Growth

September surge lifts exports to a new peak

Malaysia exported RM1.57 trillion in goods, approximately US$384.4 billion, in the first nine months of 2026, up 34% from the same period a year earlier. September delivered the strongest monthly result: exports reached RM215.11 billion, crossing RM200 billion for the first time and growing at their fastest annual pace since April 2021.

The Malaysia External Trade Development Corporation (MATRADE) said electrical and electronic products drove much of the expansion, with their export value increasing by RM253.88 billion over the nine months. Demand connected to artificial intelligence, semiconductors and digital technology helped lift shipments, while petroleum products, machinery and scientific equipment also contributed.

Imports increased 25.7% to approximately RM1.34 trillion between January and September, taking total trade to RM2.91 trillion, up 30.1%. Malaysia's trade surplus reached RM232.38 billion, an increase of 115.7%. A trade surplus means the country sold more goods abroad than it bought from other countries.

The figures show a manufacturing expansion with several moving parts. Factories shipped more electronics, businesses imported more components and equipment, and exporters increased sales across both established and newer markets. Agricultural exports, however, fell during the same period.

Two economists offered different views of how long the pace could last. Putra Business School professor Dr Ahmed Razman Abdul Latiff expects growth to moderate in 2027, while economist Dr Geoffrey Williams expects strong demand to continue. Their assessments turn on how much of the increase comes from shipment volumes, prices and continued spending on technology.

How September accelerated the expansion

The Ministry of Investment, Trade and Industry (MITI), citing Department of Statistics Malaysia data released on October 19, put September's total trade at RM396.5 billion, up 53.7% from a year earlier. Imports rose 52.7% to RM181.39 billion, leaving a monthly surplus of RM33.72 billion.

September's export growth of 54.5% accelerated from 45.5% in August. The surplus widened by approximately 65% from September 2025 and by 20.1% from August 2026. Malaysia had recorded a surplus for 77 consecutive months.

The main milestones show how the latest result fits into that longer run:

• May 2020: Malaysia began its uninterrupted sequence of monthly trade surpluses.
• August 2026: Exports grew 45.5% compared with the same month a year earlier.
• September 2026: Exports reached RM215.11 billion, and the surplus streak reached 77 months.
• October 19, 2026: MITI released the September trade figures.

Domestic exports reached RM162 billion in September, growing 54.7% and accounting for 75.3% of total exports. The remaining share consisted of re-exports, goods brought into Malaysia and subsequently shipped abroad. Both activities contribute to the country's role in international supply chains.

Electronics account for nearly half of exports

Electrical and electronic exports reached RM766.38 billion between January and September, up 49.5%. Against total exports of approximately RM1.57 trillion, electronics represented about 49% of the country's goods sold abroad.

September electronics exports reached RM110.23 billion, or 51.2% of the monthly total. The detailed sector figures put their annual growth at 69.2%; another published figure was 68%. Department of Statistics Malaysia figures put the sector's contribution to September's export increase at RM45.1 billion.

Artificial intelligence systems require chips, computing equipment and data centres to process large amounts of information. Investment in that equipment creates demand across electronics supply chains, including the components and manufacturing activities in which Malaysia participates.

Ahmed Razman, a professor at Putra Business School, described the connection between technology investment and Malaysian production:

"Sustained investment in AI infrastructure, data centres and advanced computing supports demand for Malaysian electronics," he said.

He also warned that weaker semiconductor demand or slower technology spending could affect exports. His recommendation was to develop semiconductor activities that create more value while widening Malaysia's manufacturing base.

Other industries grow while agriculture declines

Manufactured goods generated RM191.57 billion in September exports, up 58.6%, and accounted for 89.1% of the monthly total. Beyond electronics, petroleum product exports rose 33.2% to RM12.17 billion, machinery, equipment and parts increased 38.4% to RM8.73 billion, and optical and scientific equipment grew 43.2% to RM8.11 billion.

Optical and scientific equipment, including specialised medical equipment and instruments used to test semiconductors, reached a monthly export record. Mining exports also reached a record RM11.43 billion, up 56.3%, supported by liquefied natural gas, crude petroleum, ores and metal scrap.

Agriculture moved in the opposite direction. Agricultural exports fell 5.7% to RM9.03 billion in September, mainly because of lower export quantities of palm oil and related agricultural products. Over the first nine months, agricultural exports declined 8.5% to RM74.44 billion.

Manufactured products made from palm oil performed differently. These downstream products, particularly oleochemicals, maintained growth of at least 10%. Oleochemicals are chemicals made from oils and fats and used in products such as soaps, detergents and cosmetics. Processing a crop into industrial products can give it a different market from the raw agricultural commodity.

Automotive parts, pharmaceuticals, metal furniture and aerospace products also recorded growth. MATRADE identified these industries as areas with substantial participation by Malaysian small and medium enterprises. Its director general, Indera Abu Bakar Yusof, said exporters and smaller businesses had shown resilience amid global economic uncertainty.

Imports reveal the production behind the exports

Malaysia's September imports included RM92.10 billion in intermediate goods, up 69.6% and equal to 50.8% of all imports. Intermediate goods are materials or components used to make another product, such as parts assembled into computers or vehicles.

Capital goods imports, which include machinery and equipment used by businesses, rose 20.9% to RM22.32 billion. Consumption goods, bought for direct use rather than production, increased 18.2% to RM10.91 billion. Across January to September, intermediate goods imports rose 21.1% to RM645.77 billion, while capital goods increased 9.3% to RM174.76 billion.

Electronics imports contributed RM42.2 billion to September's import increase. China accounted for RM21.1 billion of the growth in imports by trading partner. Those figures show the scale of the incoming supplies accompanying Malaysia's expanding exports.

Ahmed Razman said imports needed to be examined by category to separate productive investment from consumer purchases and inventory accumulation. Williams also pointed to stronger domestic activity, goods imported for re-export and consumer purchases. For businesses, the practical question is whether incoming materials and machinery translate into sustained production and sales.

Major markets deliver large increases

Exports to the Association of Southeast Asian Nations (ASEAN) rose 46.2% to a record RM59.55 billion in September. Singapore took RM35.45 billion, up 50.4%; Thailand received RM8.68 billion, up 57.3%; and Vietnam received RM7.68 billion, up 55%. Electronics helped drive growth in all three markets.

ASEAN exports increased 25.5% to RM427.61 billion over the first nine months. September was the sixth consecutive month in which exports to the regional grouping grew by at least 10%, and all ASEAN markets recorded growth during the month.

MITI put September exports to the United States at a record RM38.03 billion, up 89.9%; another published figure put growth at 72%. Exports to Taiwan reached a record RM21.45 billion, up 175.2%, supported by electronics, liquefied natural gas, and optical and scientific equipment.

The detailed September market figures put exports to China at RM20.39 billion, up 22.1%; another published figure gave growth of 52%. European Union exports increased 24.7% to RM14.79 billion. Across the nine months, exports to the United States rose 69.1% to RM282.07 billion.

Department of Statistics Malaysia figures show the United States contributing the largest increase in September export demand, at RM18 billion, followed by Taiwan at RM13.7 billion and Singapore at RM11.9 billion. These established markets therefore remained central to the record result.

Newer destinations expand, but remain a smaller share

Exports to markets described by MATRADE as nontraditional, across Africa, Central Asia, South Asia and Latin America, increased 21.5% to RM136.36 billion during the first nine months. Namibia recorded growth of 426.1%, South Africa 101%, Libya 79.3%, Angola 55.6% and Brazil 41%.

RM136.36 billion represents about 8.7% of Malaysia's approximately RM1.57 trillion in total exports. Sales to these destinations grew more slowly than the national export total, which increased 34%. The expansion broadened sales opportunities while leaving established destinations responsible for most exports.

MATRADE's director general said efforts to help domestic businesses enter emerging markets with strong growth potential had helped turn barriers and risks into business opportunities. Williams expects expansion into these destinations to gradually reduce dependence on established partners.

Ahmed Razman said a wider export base also required more varied products and industries. He explained his recommendation this way:

"Crucially, diversification must involve a broader range of products and industries, not simply more destinations for the same exports," he said.

Trade agreement partners take most shipments

Malaysia exported RM986.38 billion to its free trade agreement partners during January to September, an increase of 25.8%. These destinations accounted for 62.8% of all exports, or nearly RM63 out of every RM100 in overseas goods sales.

Free trade agreements set rules that can reduce import duties and improve market access between participating economies. Exporters still need customers and competitive products, but lower trade barriers can make it easier to sell across borders.

Exports grew to 21 of Malaysia's 24 agreement partners. Mexico led the percentage increases at 52.1%, followed by Vietnam at 44.9%, the United Kingdom at 41.1% and Thailand at 32.3%.

September trade with these partners reached RM261.73 billion, up 53.1%, while exports increased 42% to RM130.78 billion. The monthly results included record export values to Hong Kong, the United Kingdom and Canada. Product demand varied: electronics supported Mexico, transport equipment supported the United Kingdom, and iron and steel products supported Canada.

What could sustain growth into 2027?

The Finance Ministry's Economic Outlook 2027 projected growth for the whole of 2026 of 27.2% in total trade, 31% in exports and 23.1% in imports. The first nine months exceeded each of those rates. The ministry also forecast economic growth of between 4.8% and 5.3% for 2026.

Ahmed Razman expects export growth to moderate in 2027 as global demand normalises and businesses compare their results against the much higher sales recorded in 2026. Maintaining the same percentage growth becomes harder when the starting total is larger.

He said shipment volumes and prices needed closer examination to understand the increase. Higher export earnings can come from selling more goods, receiving more money for each item, or shifting towards more expensive products. The headline totals leave that breakdown unresolved.

Williams expects strength to continue into 2027, citing external demand, higher prices and greater volumes. His outlook places more weight on the demand already supporting electronics and traditional sectors such as oil, gas and palm oil.

MITI identified changing trade policies, geopolitical tensions and conflicts in West Asia as risks to trade flows and costs. It said the ministry and MATRADE would monitor developments, widen market access and help exporters adjust. For Malaysian businesses, continued orders will depend both on demand for their products and on the cost and reliability of moving goods across borders.

Key Points

• Malaysia's exports rose 34% to a record RM1.57 trillion in the first nine months of 2026.
• September exports reached RM215.11 billion, the first monthly total above RM200 billion.
• The nine month trade surplus rose 115.7% to RM232.38 billion.
• Electronics exports reached RM766.38 billion between January and September, while agricultural exports fell 8.5%.
• Trade agreement partners received 62.8% of exports; newer markets across four regions received about 8.7%.
• Economists differ on the 2027 outlook, with technology demand, export prices and trade conditions central to their assessments.