AI boom, strong energy demand drove trade growth in Jan-May, says Matrade

KUALA LUMPUR: Strong global demand for artificial intelligence infrastructure and energy products continued to support Malaysia’s trade growth in the first five months of 2026, according to the Malaysia External Trade Development Corporation (Matrade).

This follows the release of Malaysia’s trade data last Friday, which showed that total trade from January to May 2026 expanded 18.3% year-on-year to RM1.455 trillion, with exports rising 24.3% to RM793.84 billion and imports increasing 11.8% to RM661.07 billion.

Matrade said the strong trade performance pushed Malaysia’s trade surplus to a record RM132.77 billion in the five-month period, nearly three times higher than the RM46.93 billion recorded in the corresponding period last year.

Commenting on the trade performance, Matrade CEO Abu Bakar Yusof said electrical and electronic exports alone surged 39.7% to RM382.89 billion, led by a 61.6% jump in semiconductor exports tailored for global AI infrastructure.

“Petroleum products and liquefied natural gas posted growth of 22.9% and 1.5% respectively, supported by elevated global energy prices stemming from geopolitical tensions in West Asia.

“Furthermore, our high-growth high-value automotive components and electric vehicles (EVs and plug-in hybrid EVs) exports soared 115.8%, proving that Malaysia is successfully moving up the global value chain,” he said.

Matrade said Malaysia continued to diversify its export footprint into emerging and non-traditional markets, with exports to Latin America, Central Asia, Oceania, Africa, and Central and Eastern Europe recording strong growth.

The trade agency said exports to Mexico, Brazil, Uzbekistan, Croatia, Bulgaria and Hungary recorded growth of 46.2%, 18.5%, 33.8%, 117.9%, 106.9%, and 64.6%, respectively.

It said frontier markets also posted significant increases, led by Sudan at 264.0%, followed by Liberia at 140.2%, and the Democratic Republic of Congo at 137.8%.

Meanwhile, Abu Bakar also pointed to Malaysia’s rise to 15th place in the 2026 International Institute for Management Development (IMD) World Competitiveness Ranking from 23rd a year earlier.

“The record-breaking trade performance and improved IMD competitiveness ranking achieved during the same period tell the same story that Malaysia is becoming a more dependable, more efficient place to do business, and the world is taking notice,” he said.

He added that Matrade will continue to monitor ongoing developments in West Asia to address global supply disruptions faced by industry players and exporters in Malaysia.

“Through Matrade’s 47 overseas trade offices and the Trade Resilience Task Force that was established, we will consistently engage with local industry players, exporters and relevant stakeholders to facilitate market access.

“This is to ensure disruptions can be overcome effectively and trade and exports continue to grow,” he said.