Malaysia flag Malaysia: Economic and Political Overview

Foreign trade figures of Malaysia

Foreign Trade in Figures

Malaysia is well known for its openness to international trade, which represents roughly 131% of its GDP (World Bank, latest data available), making the country vulnerable to external demand. Malaysia mainly exports electrical & electronics products (38.2% of the total in 2022, up by 30.2% to MYR 593.49 billion, driven by robust demand for semiconductors due to the acceleration of global technology upcycle and business digitalisation). In the same year, exports of agricultural goods were valued at MYR 120.94 billion and comprised a 7.8% share of total exports; whereas mining goods had a share of 7.5%. Increases in exports were seen for all products except rubber products as well as crude fertilisers and crude minerals. The three primary import categories included: intermediate goods (54.4% share, driven by robust imports of primary fuel and lubricants), capital goods (9.3%), and consumption goods (8%, expanding by 24.1%, primarily due to increased imports of processed food and beverages for household consumption - data Malaysia External Trade Development Corporation).

China remained as the largest import source since 2011, followed by Singapore, Taiwan, the U.S. and Japan. These markets contributed 54.1% to Malaysia’s total imports. Meanwhile, imports from ASEAN accounted for 24.6%, while those from the EU had a share of 7% (data Malaysia External Trade Development Corporation). As per exports, Singapore (15%), China (13.6%), the United States (10.8%), Japan (6.3%), Hong Kong SAR, and China (6.2%) were the main destinations (Comtrade). The government supported the creation of the Trans-Pacific Partnership (TPP), a multilateral free-trade agreement negotiated between Asia-Pacific and North American countries. The treaty, signed by Malaysia and eleven other nations in order to boost inter-regional trade, was renamed the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) after the withdrawal of the United States in January 2017. It was signed in March 2018 but the Malaysian government has not set any deadline for ratifying. In 2020, Malaysia has signed the Regional Comprehensive Economic Partnership (RCEP) with 14 other Indo-Pacific countries. This free trade agreement is the largest trade deal in history, covering 30 per cent of the global economy. It includes the Association of Southeast Asian Nations (ASEAN: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam) and ASEAN’s free trade agreement partners (Australia, China, India, Japan, New Zealand and the Republic of Korea). The RCEP covers goods, services, investment, economic and technical cooperation. It also creates new rules for electronic commerce, intellectual property, government procurement, competition, and small and medium-sized enterprises.

According to WTO data, exports of goods amounted to USD 352.4 billion and imports reached USD 294.3 billion in 2022. With regard to services, Malaysia exported USD 31.6 billion and imported USD 44.6 billion. The overall trade balance was estimated to be positive by 7.2% of GDP (World Bank). According to preliminary figures from the Ministry of Trade and Industry, from January to October 2023, Malaysia's overall trade exceeded the MYR 2 trillion milestone, totalling MYR 2.181 trillion. Exports constituted MYR 1.186 trillion, and imports were valued at MYR 995.55 billion. Trade, exports and imports each posted an 8% decrease compared to the corresponding period one year earlier, while trade surplus was lower by 7.9%, amounting to MYR 190.04 billion.

 
Foreign Trade Values 20192020202120222023
Imports of Goods (million USD) 204,998190,860238,240293,797265,755
Exports of Goods (million USD) 238,195234,766299,425352,094312,846
Imports of Services (million USD) 43,71133,38137,08044,59051,754
Exports of Services (million USD) 41,08922,15521,24631,68342,525

Source: World Trade Organisation (WTO) ; Latest available data

Foreign Trade Indicators 20182019202020212022
Foreign Trade (in % of GDP) 130.4123.0116.8130.6140.7
Trade Balance (million USD) 28,42630,12332,82942,81442,162
Trade Balance (Including Service) (million USD) 24,05427,50121,60326,98029,256
Imports of Goods and Services (Annual % Change) 1.5-2.4-7.917.714.2
Exports of Goods and Services (Annual % Change) 1.9-1.0-8.615.412.8
Imports of Goods and Services (in % of GDP) 61.857.855.261.766.9
Exports of Goods and Services (in % of GDP) 68.665.361.668.873.8

Source: World Bank ; Latest available data

Foreign Trade Forecasts 20232024 (e)2025 (e)2026 (e)2027 (e)
Volume of exports of goods and services (Annual % change) -4.74.25.83.64.1
Volume of imports of goods and services (Annual % change) -5.18.65.63.74.7

Source: IMF, World Economic Outlook ; Latest available data

Note: (e) Estimated Data

 
International Economic Cooperation
Malaysia is a member of the following international economic organisations: IMF, Asia-Pacific Economic Cooperation (APEC), ICC, Association of Southeast Asian Nations (ASEAN), Commonwealth, G-15, G-77, WTO, among others. For the full list of economic and other international organisations in which participates Malaysia click here. International organisation membership of Malaysia is also outlined here.
Free Trade Agreements
Malaysia is a member of Regional Comprehensive Economic Partnership (RCEP) signed on 15 November 2020. The complete and up-to-date list of Free Trade Agreements signed by Malaysia can be consulted here.
 

Main Partner Countries

Main Customers
(% of Exports)
2023
Singapore 15.4%
China 13.5%
United States 11.3%
Hong Kong SAR, China 6.3%
Japan 6.0%
See More Countries 47.5%
Main Suppliers
(% of Imports)
2023
China 21.3%
Singapore 11.9%
United States 7.4%
Japan 5.9%
Indonesia 5.0%
See More Countries 48.6%

Source: Comtrade, 2024. Because of rounding, the sum of the percentages may be smaller/greater than 100%.

 
 

Main Products

312.6 bn USD of products exported in 2023
Electronic integrated circuits; parts thereofElectronic integrated circuits; parts thereof 23.9%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 9.4%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 4.7%
Palm oil and its fractions, whether or not refined...Palm oil and its fractions, whether or not refined (excl. chemically modified) 3.8%
Diodes, transistors and similar semiconductor...Diodes, transistors and similar semiconductor devices; photosensitive semiconductor devices, incl. photovoltaic cells whether or not assembled in modules or made up into panels (excl. photovotaic generators); light emitting diodes; mounted piezoelectric crystals; parts thereof 3.2%
See More Products 55.0%
265.6 bn USD of products imported in 2023
Electronic integrated circuits; parts thereofElectronic integrated circuits; parts thereof 16.5%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 10.8%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 5.1%
Telephone sets, incl. telephones for cellular...Telephone sets, incl. telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, incl. apparatus for communication in a wired or wireless network [such as a local or wide area network]; parts thereof (excl. than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528) 2.1%
Coal; briquettes, ovoids and similar solid fuels...Coal; briquettes, ovoids and similar solid fuels manufactured from coal 2.0%
See More Products 63.5%

Source: Comtrade, 2024. Because of rounding, the sum of the percentages may be smaller/greater than 100%.

 
 

To go further, check out our service Import-Export Flows.

 

Main Services

Source: United Nations Statistics Division, 2024. Because of rounding, the sum of the percentages may be smaller/greater than 100%.

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Latest Update: November 2024