Malaysia's External Trade in 2025: Stability Despite Global Uncertainty

In an increasingly turbulent global economy, Malaysia stands out not only for its resilient trade figures but also for its transparency and advanced statistical systems. The country recently topped the Open Data Inventory (ODIN) 2024/25 ranking, surpassing nearly 200 other nations in data openness—a significant jump from 67th place just two years ago.

This achievement reinforces confidence in the reliability of Malaysia’s economic data, especially its External Trade Indices (ETI), a monthly publication that tracks unit value, volume, and terms of trade across key product categories.

Export Trends: Solid Value Growth, Volume Pressures

In August 2025, Malaysia recorded RM131.6 billion in exports, a 1.9% year-on-year increase, despite a monthly decline of 6.0%. This suggests global demand for Malaysian goods remains steady annually, even as short-term trade dips slightly due to seasonal or macroeconomic fluctuations.

The Export Unit Value Index rose 1.0% month-over-month and 1.7% year-over-year, with significant price increases in food, machinery & transport equipment, and miscellaneous manufactured goods. However, the Export Volume Index fell 6.9% month-over-month, reflecting reduced manufactured goods, machinery, and food shipments.

This pattern indicates that Malaysia exports fewer goods at higher prices, pointing to a shift toward value-based trade and possibly rising global commodity or input prices.

Import Activity: Decline in Fuel, Food, and Chemicals

Malaysia’s total imports in August 2025 were RM115.5 billion, marking a 5.9% drop year-on-year and an 8.0% decline month-over-month. This contributed to a substantial trade surplus of RM16.1 billion, a 153.8% increase from the previous year.

The Import Unit Value Index dropped 0.2% month-over-month and 3.7% year-on-year, led by price contractions in mineral fuels, chemicals, and transport equipment. Meanwhile, the Import Volume Index also declined, especially in food (-22.3%), manufactured goods (-10.6%), and chemicals (-9.1%).

This reflects decreased domestic demand and possible import substitution with local alternatives—trends often seen in cost-sensitive or transitional economies.

Terms of Trade: Malaysia Gains Ground

Malaysia’s Terms of Trade (TOT) rose 1.2% month-over-month and 5.6% year-over-year, reaching an index level of 122.5 points. This improvement, which has continued since late 2023, indicates that Malaysia is gaining more purchasing power globally, receiving more value per unit of imports relative to exports.

Sectors contributing to TOT growth included mineral fuels, food, and manufactured goods areas, where Malaysia has been improving quality and processing capacity. This indicates a maturing export profile and increased global pricing power.

Regional Leadership and Future Outlook

Beyond trade performance, Malaysia is preparing to chair the 15th ASEAN Community Statistical System (ACSS15) in 2025, reinforcing its regional data and economic leadership role. The government’s launch of OpenDOSM NextGen, a public-facing portal offering real-time visualization of trade data, further highlights its commitment to transparency and innovation in policymaking.

While short-term volume declines raise caution, Malaysia’s trade fundamentals remain solid. Export quality is improving, terms of trade are rising, and domestic substitution is progressing. Coupled with an internationally trusted statistical infrastructure, these trends position Malaysia for continued resilience.

The key going forward will be diversification of markets, supply chain strengthening, and continued transparency, allowing Malaysia to weather global uncertainty with confidence and clarity.

References

1. Department of Statistics Malaysia (DOSM). Monthly External Trade Indices – August 2025.
2. Open Data Watch. Open Data Inventory (ODIN) 2024/2025 Global Rankings.
3. Malaysia External Trade Development Corporation (MATRADE) official portal.
4. OpenDOSM NextGen – Government of Malaysia Trade Statistics Dashboard.
5. ASEANstats – Regional integration statistics and ACSS documentation.