FX.co ★ Malaysia Imports Unexpectedly Grow

In July 2025, Malaysia experienced a 0.6% increase in imports year-on-year, reaching MYR 125.25 billion. This rise defied market expectations, which had forecasted a 4.3% decrease, and marked the fourth consecutive month of growth. However, this growth was slower than the marginally revised 1.3% increase seen in June, indicating the most modest rise since March, largely affected by the expansive U.S. trade duties. Imports saw a significant increase in capital goods at 20.6%, whereas there were declines in consumption goods (-5.0%), intermediate goods (-17.8%), and dual-use goods (-24.6%). By sector, manufacturing imports increased by 1.5%, driven mainly by the rise in electrical and electronic products (12.4%). Conversely, agricultural imports dropped by 11.6%, with natural rubber and other vegetable oils falling by 9.6% and 4.3%, respectively. In the mining sector, imports decreased by 4.1%, heavily influenced by a significant reduction in LNG imports (-47.7%). Import activity grew from China (6.3%), Taiwan (51.6%), and South Korea (37.8%), but decreased from the U.S. (-22.2%), the EU (-10.6%), ASEAN countries (-6.8%), and Japan (-6.2%). Cumulatively, for the first seven months of the year, total imports saw a 5.1% increase, amounting to MYR 830.2 billion.