FX.co ★ Malaysia Trade Surplus Smallest in Over 5 Years

In May 2025, Malaysia's trade surplus decreased significantly to MYR 0.8 billion, a sharp fall from MYR 10.0 billion recorded in the same period the previous year and significantly below projected outcomes of MYR 6.4 billion. This marks the smallest trade surplus since April 2020, when the trade balance registered a deficit, primarily due to a decline in exports coupled with an increase in imports. Exports witnessed an unexpected reduction of 1.1% year-on-year, reaching a four-month low of MYR 126.6 billion. This was the first downturn in eight months, contrasting starkly with the 16.4% rise seen in April and missing forecasts of an 8.9% increase. The decline was largely attributable to reduced sales in the mining sector (-23.6%) and manufacturing sector (-0.3%), although agricultural exports saw an 8.3% increase. On the other hand, imports were up by 6.6%, totaling MYR 125.9 billion, which was below the predicted growth rate of 13.8%, driven largely by a 63.7% increase in capital goods. Meanwhile, imports of intermediate goods and consumer goods decreased by 4.4% and 1.1%, respectively. During the first five months of 2025, Malaysia reported a cumulative trade surplus of MYR 46.9 billion, with exports and imports rising by 5.5% and 6.9%, respectively.