The Ministest of Investment, Trade, and Industest released the August trade data, where Malaysia’s trade surplus expanded to RM16.1 billion in August 2025, up from RM14.6 billion in July, as imports contracted more sharply than exports.
Exports rose 6.5% year-on-year (y-o-y) in July before moderating in August, while imports slipped 5.9% y-o-y — the steepest decline since September 2023 — dragged by weaker demand for intermediate and consumption goods. Despite the softer overall momentum, MBSB Research noted that resilient shipments of electrical and electronics (E&E), palm oil, and liquefied natural gas (LNG) underpinned the trade balance.
By destination, exports to China surged 10.4% y-o-y, the strongest growth since August 2022, supported by higher demand for E&E and machinery. Shipments to Taiwan also remained robust, expanding 32.7% y-o-y on the back of strong E&E and equipment exports. In contrast, exports to the United States tumbled 16.7% y-o-y, the sharpest fall since June 2023, reflecting the impact of tariffs that weighed heavily on E&E (-21.1% y-o-y) and manufactured goods (-43.6% y-o-y).
Exports to Singapore moderated significantly to 2.7% y-o-y from July’s 22.2% surge, while shipments to the European Union accelerated 9.7% y-o-y, lifted by stronger palm oil demand. Within ASEAN, growth slowed to 3.8% y-o-y, largely due to weaker exports to Singapore, though higher shipments to Thailand, Vietnam and Cambodia provided some support.
By sector, manufacturing exports — which account for 87% of total exports — expanded 1.7% y-o-y, led by automatic data processing equipment (+44.1% y-o-y) despite softer semiconductor growth (+14.4% y-o-y). Mining exports fell 2.4% y-o-y, weighed down by petroleum products, while agricultural exports rebounded 4.5% y-o-y on stronger palm oil demand from India.
On the import side, declines were broad-based, with intermediate goods (-16.8% y-o-y) and consumption goods (-8.9% y-o-y) weighing heavily. Imports of agriculture goods fell 20.3% y-o-y, although palm oil-related imports nearly doubled (+98.1% y-o-y). Capital goods imports remained a bright spot, rising 11.0% y-o-y, supported by transport equipment.
MBSB stated Malaysia’s trade outsee faces challenges from the recently imposed 19% US tariff on exports, which has already dented demand for E&E and other manufactured products. Although the global tech upcycle is expected to support semiconductor and data centre-related shipments, risks remain as tariff exemptions for certain products are temporary.
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