Malaysia’s Economy in October 2025: Exports Surge, Trade Surplus Jumps Nearly 60%

Malaysia’s economy showed renewed strength in October 2025, powered by accelerating exports, expanding domestic and regional demand, and a sharp improvement in trade surplus.

According to official trade data, total trade climbed 13.6% year-on-year (y-o-y) to RM277.6 billion, driven by broad-based growth across manufactured goods, agriculture, and mining.

Most notably, Malaysia recorded a trade surplus of RM19.0 billion, marking an impressive 58.9% increase compared with the same month in 2024 

This strong performance indicates that Malaysia’s external sector continues to benefit from resilient global demand, a rebound in electrical and electronics shipments, and strategic integration with ASEAN and major partners such as Singapore, China, and the United States.

1. Trade Performance: A Strong Upswing in October

Malaysia’s external trade in October showcased broad momentum:

• Total trade: RM277.6 billion
• Exports: RM148.3 billion (+15.7% y-o-y)
• Imports: RM129.3 billion (+11.2% y-o-y)
• Trade surplus: RM19.0 billion (+58.9% y-o-y)

Exports rebounded at nearly four times the pace of imports, reinforcing Malaysia’s role as a central exporting hub for global supply chains. Month-on-month (m-o-m), trade expanded 7.7%, though the surplus narrowed slightly by 6.1% due to stronger import growth. 

For the year to date (January–October 2025), Malaysia continues to outperform 2024:

• Exports: +6.0%
• Imports: +4.7%
• Trade surplus: +19.1%

These cumulative gains underscore Malaysia’s steady recovery amid fluctuating global economic conditions.

2. Exports: E&E Leads as Shipments Surge 15.7%

Malaysia’s exports surged to RM148.3 billion, marking one of the strongest monthly performances of 2025. The momentum was driven by:

Electrical & Electronic (E&E) Products

• RM67.1 billion (+26.5%), accounting for 45.2% of total exports
• Largest contributor to growth, up RM14.0 billion y-o-y
• Reflects stronger regional semiconductor demand and recovery in global tech spending 

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Palm Oil & Palm-Based Products

• RM13.1 billion (+23.9%)
• Higher export volumes (+26.4%) and stronger prices supported growth
• Crude palm oil averaged RM4,412.5 per metric ton (+0.6%)

Crude Petroleum

• RM1.7 billion (+38.1%)
• Export volume jumped 52% despite declining average oil prices

Natural Rubber

• RM417.8 million (+9.2%)
• Higher export volume (+10%) offset lower unit values

However, some commodity segments cooled:

• LNG fell 17.6% to RM4.3 billion
• Refined petroleum products declined 9.0% to RM8.2 billion
• Timber & timber-based products fell 4.0%

The export profile highlights Malaysia’s resilience in high-value manufacturing while still navigating downward pressure in energy-related categories.

3. Domestic Exports vs. Re-exports: A Balanced Growth Story

Malaysia saw growth in both primary categories of export activity:

• Domestic exports: RM109.2 billion (+9.7%)
• Re-exports: RM39.1 billion (+36.4%)

Re-exports accounted for 26.4% of total exports, reflecting Malaysia’s expanding role as a regional transshipment hub and in global value chains. On a m-o-m basis, re-exports rose 13.4%, while domestic exports climbed 4.5% 

4. Export Destinations: Singapore Dominates, U.S. Declines

Top Destinations (October 2025)

1. Singapore: RM24.0B (+27.2%)
2. United States: RM18.4B (-2.6%)
3. China: RM17.2B (+7.5%)
4. EU: RM13.0B (+23.8%)
5. Hong Kong: RM10.2B (+36.7%) 

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Key Trends

• Singapore and the U.S. together accounted for 28.6% of Malaysia’s exports.
• Exports to the U.S. fell, mainly due to weaker electronics (-12.2%).
• ASEAN remained Malaysia’s fastest-growing regional market, with exports rising 20.1% to RM42.5 billion.
• Within ASEAN, Singapore represented 56.4% of regional exports.

The divergence between Singapore and the United States highlights a geographical shift in Malaysia’s export engine—a pivot toward regional markets and East Asia amid softer demand from Western economies.

5. Imports: Strong Demand for Capital Goods Signals Domestic Investment

Malaysia’s imports rose 11.2% y-o-y to RM129.3 billion, signaling healthy domestic demand and manufacturing activity.

Import Composition

• Manufactured goods: RM110.1B (+12.7%)
• Mining goods: RM9.6B (-5.8%)
• Agriculture goods: RM6.3B (-6.4%)

End-Use Breakdown

• Intermediate goods: RM59.2B (-5.7%)
• Capital goods: RM18.7B (+51.9%)
• Consumption goods: RM10.0B (+3.6%) 

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The standout performance was capital goods, which surged by more than 50%, suggesting improving business confidence, expansions in manufacturing capacity, and increased investment in equipment and machinery.

Imports by Country of Origin

• China: RM33.6B (+34.7%)
• Singapore: RM13.4B (-0.5%)
• Taiwan: RM12.4B (+34.8%)
• United States: RM9.9B (-8.8%)

China remained Malaysia’s largest import source, representing 26% of total imports, driven by strong inflows of E&E products.

6. Sectoral Insights: Manufacturing Dominates, Agriculture Rebounds

Manufacturing Sector

• Exports: RM126.7B (+15.7%)
• Accounts for 85.4% of total exports
• Growth driven by:
  • E&E (+26.5%)
  • Optical & scientific equipment (+31.6%)
  • Metals (+24.4%)
  • Machinery & parts (+17.0%)
  • Palm-oil-based manufactured goods (+24.1%) 

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Manufacturing continues to anchor Malaysia’s export economy, with high-tech goods strengthening their share of the global market.

Agricultural Sector

• Exports: RM11.7B (+20.3%)
• Led by palm oil and palm-based products (+23.8%)

This sector benefited from higher global commodity demand, volume expansion, and improved pricing.

Mining Sector

• Exports: RM8.4B (+8.0%)
• Growth driven by strong performance in metalliferous ores & scrap (+91.1%)

Mining remains volatile, but contributed positively in October.

7. Malaysia’s ASEAN Integration Strengthens

ASEAN continues to be Malaysia’s most strategic trade region:

• Exports to ASEAN: RM42.5B (+20.1%)
• Imports from ASEAN: RM29.5B (+12.0%)

Top ASEAN partners:

• Singapore, Thailand, Vietnam, and Indonesia account for over 95% of regional exports and imports combined.

Malaysia’s deepening integration with ASEAN supply chains enhances its role as a hub for electronics, petrochemicals, agricultural commodities, and re-exports.

8. Outlook: What October’s Numbers Mean for Malaysia’s 2026 Trajectory

The October 2025 trade data points toward a cautiously optimistic outlook for Malaysia:

Positive Indicators

• Strong export growth in high-tech industries
• Expanding trade surplus
• Substantial capital goods imports reflect investment confidence
• Robust ASEAN trade dynamics

Risks Ahead

• Continued weakness in U.S. imports may dampen E&E growth
• Falling LNG and refined petroleum prices could weigh on energy exports
• Global uncertainty around interest rates and geopolitical tensions

Yet, as of October 2025, Malaysia is well-positioned to close the year with a solid external sector performance, supported by diversified export markets and resilient manufacturing capacity.

Moving ahead with Risk Management 

Malaysia delivered strong economic results in October 2025, with exports soaring, imports expanding at a solid rate, and the trade surplus growing significantly. The country’s export sector continues to fuel national growth, supported by robust regional demand and strategic integration into ASEAN and Asian supply chains.

As Malaysia enters 2026, its trade trajectory appears robust, underpinned by strong fundamentals and expanding industrial capabilities.