KUALA LUMPUR (April 20): Malaysia’s exports decelerated in March, as external demand moderated and global uncertainties weighed on trade momentum, official data on Monday showed.

Exports rose at a slower-than-expected rate of 8.3% to RM148.8 billion in March from the same month a year earlier, the Department of Statistics Malaysia (DOSM) said in a statement. 

That compares to the revised 13.6% year-on-year (y-o-y) surge a month earlier and the forecasted median increase of 14% predicted in a Bloomberg survey of economists.

The softer-than-expected performance came as heightened geopolitical tensions in the Middle East — started by the Israeli and US attack on Iran on Feb 28 — disrupted global trade flows and dampened external demand. 

The moderation in exports also aligns with expectations of slower economic growth, with Malaysia’s economy projected to expand by 5.3% in the first quarter of 2026. 

Gross imports, meanwhile, expanded 10.4% y-o-y to RM124.2 billion in March, compared with a revised 8.7% increase in February. 

Overall, Malaysia’s trade surplus narrowed marginally by 0.9% to RM24.6 billion in March from a year ago, marking the 71st consecutive month of trade surplus since May 2020. 

According to DOSM, shipments of electrical and electronic products — Malaysia’s largest export segment — remained the main contributor, rising by RM9.4 billion in March. 

Other contributors included manufactured goods (RM2.4 billion), petroleum products (RM1.8 billion), optical and scientific equipment (RM1.5 billion), metal manufactures (RM1.2 billion), as well as metalliferous ores and metal scrap (RM1.1 billion).

Domestic exports — which account for about three-quarters of total exports — edged up 0.9% y-o-y to RM110.9 billion. In contrast, re-exports surged 38.3% y-o-y to RM37.9 billion. 

By destination, exports to the US increased by RM4.2 billion, followed by Taiwan (RM3.1 billion) and Hong Kong (RM1.8 billion), to name a few. 

On the other hand, the growth in imports was driven mainly by higher inflows from China (RM6.9 billion), Singapore (RM3.6 billion) and South Korea (RM1.5 billion).

Capital goods imports climbed nearly 25% to RM16.3 billion. However, imports of intermediate goods — such as components used in manufacturing — slipped 1.1% to RM58.3 billion, and consumption goods imports also fell 7.8% to RM9 billion.