KUALA LUMPUR (May 20): Malaysia’s trade surplus shrank in April this year, as sharp gain in imports from inbound capital goods outpaced the surge in exports, official data released on Tuesday showed.

Amid a 90-day pause on a set of steep, sweeping tariffs by the US, trade surplus fell to RM5.19 billion in April, a contraction of 33% year-on-year and 79% on a month-on-month basis, the Ministry of Investment, Trade, and Industry (Miti) said in a statement.  

Gross imports rose to RM128.37 billion in April, a 20% increase when compared to the same month in 2024, thanks to strong inbound deliveries of electrical and electronic products, as well as that of machinery, equipment and parts.

Capital goods imports more than doubled due to imports of non-transport capital goods, while intermediate goods — components and processed materials used in final assembly of end products such as cars and computers — declined 1.7% due to lower imports of primary fuel and lubricants.

Imports of consumption goods, meanwhile, slipped 0.7% due to lower demand for processed household food and beverage.  

Total exports expanded 16.4% to RM133.56 billion driven by demand for electronics and machinery as well as deliveries to the US and Taiwan.

Shipments of electrical and electronics, which accounted for more than 45% of total exports, climbed 35.4% year-on-year in April, followed by a 31% increase of machinery, equipment and parts. Exports of petroleum products, however, were down 9.3%.

In terms of markets, exports to Malaysia’s largest trading partner China slid 2.8% year on year, while there was a 39% spike in exports to the US.

Miti and its export promotion agency Malaysia External Trade Development Corporation, or Matrade, are intensifying efforts to increase exports, while also diversifying export markets amid global trade challenges, the ministry reiterated on Tuesday.