Malaysia’s trade plays a central role in shaping its economic structure and development path. 

As a highly open economy, the country has long relied on international markets for growth, with trade flows influencing industrialisation, employment, and fiscal stability. 

The government has positioned Malaysia as a regional hub for manufacturing and services, leveraging its geographic location along key shipping routes to deepen ties with global partners.

Over the years, Malaysia has diversified its trade base beyond commodities to include electronics, machinery, and services. 

This transformation has been supported by foreign investment, free trade agreements, and policies aimed at integrating domestic industries with international supply chains. 

The result is a trade landscape that balances traditional strengths in palm oil, petroleum, and rubber with emerging competitiveness in high-value sectors such as semiconductors and digital services.

At the same time, Malaysia’s trade is shaped by external pressures, from shifts in global demand and commodity prices to geopolitical tensions and regional competition. 

Its ability to adapt has kept it resilient, but the challenges of maintaining competitiveness and sustainability remain pressing. 

Trade policy, infrastructure development, and regional cooperation will continue to define how Malaysia navigates its position in the global economy.

Malaysia trade data 2024

Malaysia recorded a strong trade balance in 2024, with exports reaching RM1.508 trillion (US$326.7 billion) and imports totalling RM1.371 trillion (US$297.0 billion). 

This resulted in a trade surplus of RM136.88 billion (US$29.8 billion), marking the 27th consecutive year of surplus since 1998, according to a release from MATRADE.

Exports

Malaysia’s exports in 2024 totalled RM1.508 trillion (US$326.7 billion), up 5.7 percent year-on-year and staying above RM1 trillion for the fourth consecutive year. 

This represented 87.2 percent of the 2025 export target under the Twelfth Malaysia Plan. 

Growth came from ASEAN, the United States, the European ｕｎｉｏｎ, and Taiwan, with shipments to the US and Taiwan reaching record highs. Exports to Free Trade Agreement markets also rebounded, with strong gains in Canada, Turkey, and Mexico, driven by electrical and electronic goods, iron and steel, and chemical products.

Imports

Imports rose 13.2 percent year-on-year to RM1.371 trillion (US$297.0 billion) in 2024, crossing the RM1 trillion level for the third consecutive year. 

Combined with robust exports, this generated a trade surplus of RM136.88 billion (US$29.8 billion), maintaining Malaysia’s streak of 27 consecutive annual surpluses since 1998.

Malaysia free trade agreements

Malaysia has a range of free trade agreements. These include:

Bilateral free trade agreements

Malaysia has seven bilateral FTAs. 

These are with Australia, Chile, India, Japan, New Zealand, Pakistan, and Turkey. 

Each agreement provides preferential tariff access and aims to strengthen bilateral investment and services flows.

Regional and multilateral agreements

Malaysia participates in nine regional or multilateral FTAs. 

Key frameworks include ASEAN Free Trade Area (AFTA), ASEAN’s agreements with China, Japan, Korea, India, Australia–New Zealand, and Hong Kong, as well as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP).

Ongoing negotiations

Malaysia is also engaged in negotiations with the European ｕｎｉｏｎ and has explored other preferential arrangements such as the Malaysia–Iran Preferential Trade Agreement (MIPTA). 

These potential deals focus on expanding market access and diversifying trade relationships.

Tariffs and trade barriers

Malaysia’s trade regime combines open market access with measures designed to protect strategic sectors. 

As part of its commitments under the WTO and ASEAN frameworks, the country has progressively lowered tariffs to encourage greater integration into global supply chains. 

At the same time, Malaysia maintains a series of tariff peaks and regulatory measures that reflect domestic policy priorities, especially in agriculture, automotive, and consumer goods. 

This balance of openness and protection shapes the opportunities and challenges faced by foreign businesses operating in Malaysia.

Malaysia’s average tariff rates

Malaysia applies relatively moderate tariff rates by regional standards. 

As a member of the World Trade Organization (WTO) and ASEAN, it follows commitments to reduce duties on a wide range of goods. 

Most industrial products face low or zero tariffs, while higher duties remain in place for certain agricultural goods, automotive products, and sensitive industries.

Non-tariff barriers in Malaysia

Beyond tariffs, Malaysia maintains a range of non-tariff measures. 

These include import licensing, halal certification requirements, sanitary and phytosanitary standards, and local content rules in selected sectors. 

Technical regulations, bureaucratic procedures, and product approval processes can also pose barriers, particularly for foreign firms entering regulated markets such as food, pharmaceuticals, and telecommunications.

Key Malaysia  trade bodies

Malaysia’s trade ecosystem is supported by a mix of government agencies, chambers of commerce, and industry associations that shape policy and promote international engagement. 

These bodies play a crucial role in facilitating exports, setting standards, and representing the interests of businesses across different sectors. 

Together, they provide the institutional framework that enables Malaysia to strengthen its global trade links and maintain competitiveness in an evolving international market.

Government trade promotion bodies

The Malaysia External Trade Development Corporation (MATRADE) leads national export promotion, assisting firms to expand abroad. 

The Standards and Industrial Research Institute of Malaysia (SIRIM) sets standards and ensures compliance in industrial sectors.

Chambers and industry associations

The National Chamber of Commerce and Industry of Malaysia (NCCIM) is the main umbrella organisation for chambers nationwide. 

The Federation of Malaysian Manufacturers (FMM) represents the manufacturing sector, while the Malaysian International Chamber of Commerce & Industry (MICCI) and the Associated Chinese Chambers of Commerce & Industry (ACCCIM) play important advocacy roles for business communities.

Sectoral and bilateral councils

The Halal Development Corporation (HDC) oversees halal industry standards and promotion.

The Malaysia South-South Association (MASSA) supports partnerships with developing nations, while bilateral councils such as the Malaysia-Australia Business Council (MABC) facilitate country-specific trade and investment ties.

Malaysia trade zones

Malaysia’s trade zones are a central feature of its strategy to attract investment and integrate into global supply chains. 

Types of trade zones

Malaysia operates three main types of zones. Free Industrial Zones (FIZs) focus on manufacturing for export, generally requiring 80 percent of output to be shipped overseas. 

Free Commercial Zones (FCZs) handle trade, logistics, repackaging, and distribution, usually located near ports. Digital Free Trade Zones target e-commerce and services, supporting online fulfilment and cross-border digital trade.

Key locations

Major FIZs include Bayan Lepas and Perai in Penang, both hubs for electronics and heavy industry. 

The Sama Jaya zone in Sarawak is centred on high-tech industries, while Port Klang Free Zone (PKFZ) serves as a commercial and logistics hub linked to Malaysia’s busiest port.

Legal framework and benefits

Established under the Free Zones Act 1990, these zones are overseen by the Ministry of Finance and MITI. 

Companies in zones benefit from duty and tax exemptions on inputs and re-exported goods. 

However, goods moved into Malaysia’s domestic market from a free zone are treated as imports and subject to normal tariffs and taxes.

Trade logistics in Malaysia 

Malaysia’s trade logistics system underpins its role as a regional hub for commerce and manufacturing. 

Infrastructure and connectivity

Malaysia has developed a strong logistics network anchored by major ports, airports, and highways. 

Port Klang and Tanjung Pelepas are leading container hubs in Southeast Asia, while Kuala Lumpur International Airport (KLIA) handles significant cargo volumes alongside passenger traffic. 

Road and rail links provide efficient connections between industrial zones and export gateways.

Policy and facilitation

The government promotes trade facilitation through initiatives such as the National Transport Policy and digitalisation of customs procedures. 

Free trade zones and bonded warehouses support smoother flows of goods, while Malaysia’s participation in ASEAN frameworks helps streamline cross-border logistics.

Challenges and opportunities

While logistics infrastructure is relatively advanced, bottlenecks remain in areas such as last-mile delivery, rural connectivity, and port congestion. 

The rise of e-commerce and regional supply chain shifts create opportunities for further investment in warehousing, cold chain, and digital logistics solutions. 

Malaysia’s geographic position along the Straits of Malacca continues to underpin its role as a key regional logistics hub.

Regional comparison

Malaysia ranks in the upper tier of ASEAN trade performers. 

It is more diversified and export-oriented than Indonesia and the Philippines, but less globally dominant than Singapore. 

Its trade structure most closely resembles Vietnam’s, centred on electronics and integration into regional supply chains.

Singapore

Singapore is ASEAN’s leading trade hub, with total trade several times its GDP. Its role as a global financial and logistics centre gives it higher overall trade volumes than Malaysia, despite its smaller population and economy.

Vietnam

Vietnam has become one of the region’s fastest-growing exporters, particularly in electronics, garments, and textiles. Its export growth often outpaces Malaysia’s, making it a close comparator in terms of supply chain integration.

Thailand

Thailand’s trade is anchored by automotive, machinery, and agricultural exports. While its trade value is strong, it sits slightly below Malaysia’s overall totals, reflecting a more sector-focused profile.

Indonesia

Indonesia is the region’s largest economy but less dependent on trade relative to GDP. Its exports are dominated by commodities such as coal, palm oil, and minerals, and overall trade value is lower compared to Malaysia’s.

Philippines

The Philippines maintains steady trade flows but lags behind Malaysia in both value and diversification. Electronics and business process outsourcing dominate, with less manufacturing depth than Malaysia or Vietnam.

FAQ: Trade in Malaysia

These are some of the most commonly asked questions about trade in Malaysia.

What are Malaysia ’s biggest exports?

Malaysia’s biggest exports are electrical and electronic products, petroleum and liquefied natural gas, palm oil, chemicals, and machinery.

What are Malaysia ’s biggest imports?

Malaysia’s biggest imports are intermediate goods for manufacturing, machinery and equipment, chemicals, mineral fuels, and food products.

What free trade agreements is Malaysia  a part of?

Malaysia is a member of the ASEAN Free Trade Area, the Regional Comprehensive Economic Partnership (RCEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and has bilateral FTAs with Australia, Chile, India, Japan, New Zealand, Pakistan, and Turkey.

Outlook for Malaysia trade

Malaysia’s trade outlook is cautiously positive.

Exports of electronics, palm oil, and machinery are expected to support continued surpluses, helped by strong demand from FTA partners. 

However, global headwinds such as U.S. tariffs, weaker external demand, and rising input costs will likely slow growth compared to past record years. 

Overall, Malaysia should maintain a trade surplus, but expansion will be moderate and reliant on policy support and high-value manufacturing.

That said, Southeast Asian economies can be dynamic and change quickly.

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