Malaysia's Total Trade To Grow 3-5 Pct In 2026 - Deputy Trade Minister
KUALA LUMPUR, Jan 27 (Bernama) -- Malaysia’s total trade is expected to grow moderately between 3.0 and 5.0 per cent this year amid global external headwinds, said Deputy Minister of Investment, Trade and Industry Sim Tze Tzin.
He said the government was optimistic about achieving the target given current economic conditions, though external risks remained. Sim warned that unforeseen black swan events, such as a slowdown in major economies or economic crises among key trading partners, could affect the country’s trade performance.
“Last year, the Malaysia External Trade Development Corporation (MATRADE) set a growth target of between three and five per cent, but the actual performance exceeded expectations,” he told reporters after the announcement of Malaysia’s trade performance last year. Also present was MATRADE chairman Datuk Seri Reezal Merican Naina Merican.
Sim said Malaysia should no longer position itself as a low-cost producer but instead move up the value chain to generate higher-value and higher-quality income. He highlighted that a significant portion of Malaysia’s trade already involves value-adding activities, citing the electrical and electronics (E&E) sector as the country’s largest export, where semi-finished goods are imported, further processed through activities such as packaging, and subsequently re-exported.
The deputy minister said a stronger ringgit would not necessarily have a negative impact, as imported inputs become cheaper while value-added exports continue to perform well. He acknowledged that some locally made products might face challenges, but these could be addressed by helping local traders improve product quality and move into higher-value markets.
Sim said MITI, through MATRADE, would continue to aggressively promote exports worldwide, while also pursuing more bilateral trade agreements. He added that Malaysia would sign the Malaysia-South Korea Free Trade Agreement by mid-2026, while the negotiations for the Malaysia-European Union Free Trade Agreement were still ongoing. "Whether it will be signed or not, it is subject to negotiations. We want to protect the FTA. We must protect Malaysia's interests as well as find a win-win (situation)," he said.
Meanwhile, MATRADE chief executive officer Abu Bakar Yusof said the agency plans to organise more than 200 trade promotion and development activities this year to hit the trade growth target of between three and five per cent.
He said the initiatives were aimed at maintaining the momentum achieved last year amid a more challenging global environment. “That is why we are embarking on market diversification, leveraging on free trade agreements and working closely with our strategic partners, including trade and industry associations as well as foreign missions,” he added.
Abu Bakar highlighted that MATRADE is also intensifying industry engagement through onboarding and outreach programmes to help local companies scale up globally. “This morning alone, about 600 industry players engaged with MATRADE officers and our strategic partners to better understand how to expand their businesses internationally,” he noted.
With global headwinds expected to intensify this year, he said MATRADE would adopt a more aggressive approach with strong support from industry players and the government.
-- BERNAMA