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BUSINESS • 19/08/2025 06:26 PM

Exports To Key Markets To Sustain Growth Supported By E&E Demand -- MBSB IB

KUALA LUMPUR, Aug 19 (Bernama) -- MBSB Investment Bank Bhd (MBSB IB) expects exports to key markets to record sustained growth going forward, supported by steady demand for electrical and electronics (E&E) products despite tariff challenges. 

In a research note today, the investment bank said that ongoing efforts to expand bilateral trade ties and diversify export markets are expected to help mitigate some of the adverse effects of tariff measures.

“Efforts to diversify markets and deepen bilateral ties should cushion the impact of United States (US) tariffs, while resilient domestic consumption will remain a key driver of Malaysia’s economic growth amid external uncertainties,” it said.

MBSB IB said the recently imposed 19 per cent tariff on Malaysia, albeit lower than its expectations, still poses a risk to the country’s exports, especially to the US.

“The 19 per cent US tariffs on Malaysia’s exports is expected to lead to slower trade in the latter part of the year, with softer demand from key trading partners adding to the downside risks.

“Weaknesses in mining exports will weigh on overall export performance, offset only partly by the resilience of the E&E exports,” it added. 

Therefore, MBSB IB continues to forecast export growth to moderate to two per cent in 2025, while import growth is expected to ease to 4.5 per cent, reflecting a more cautious outlook amid ongoing trade uncertainties.

“Meanwhile, China’s subdued domestic demand continues to cloud the trade outlook,” it said. 

Today, the Ministry of Investment, Trade and Industry (MITI) announced that Malaysia’s trade performance returned to positive growth in July 2025, rebounding by 3.8 per cent year-on-year (y-o-y) to RM265.92 billion, the highest monthly trade value ever recorded.

MITI said exports rose 6.8 per cent to RM140.45 billion, the highest monthly value since September 2022, while imports inched up by 0.6 per cent to RM125.47 billion.

Trade surplus continued for the 63rd consecutive month, standing at RM14.98 billion for July 2025, it said.

The ministry noted that exports of E&E products increased significantly by nearly RM12 billion to RM63.31 billion, a 22.5 per cent rise y-o-y, compared to July 2024.

“It remained the key driver of Malaysia’s export growth, alongside optical and scientific equipment as well as processed foods,” MITI added. 

-- BERNAMA

 

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