The investment, trade and industry ministry said the RM789.85 billion in trade in Q1 2026 was a 10% increase from trade recorded in the same quarter last year.

In a statement, it said exports rose by 12.7% year-on-year to RM426.53 billion, the second-highest recorded in a quarter, while imports increased by 7.7% to RM363.31 billion.

This means a RM63.22 billion trade surplus.

There was double-digit growth in exports to China, the US, and Taiwan, while exports to Asean nations expanded at a moderate rate.

The ministry also reported an increase in exports to countries with free trade deals with Malaysia, including Mexico, Korea, India and the UK.

“The expansion in exports during the quarter was primarily driven by stronger demand for manufactured goods, particularly electrical and electronic (E&E) products as well as optical and scientific equipment, alongside mining goods, notably metalliferous ores and metal scrap.

“E&E products continued to anchor overall export growth, with exports increasing by more than RM40 billion, underpinned by sustained global demand and ongoing technological adoption across key markets.

“These products each attained their highest quarterly export values to date,” it said.

Despite the onset of the Iran war in February, trade expanded by 9.3% year-on-year in March to RM272.95 billion, with both exports and imports growing and a trade surplus of RM24.55 billion recorded.

This means Malaysia has reached 71 consecutive months of trade surplus since May 2020.

“Heightened geopolitical tensions in West Asia have amplified volatility in global trade, exerting upward pressure on logistics costs and supply chain efficiency. Amid these developments, the external outlook remains mixed.

“While Malaysia remains resilient and deeply integrated into global supply chains, the outlook remains subject to external risks. Continued vigilance is therefore essential, as prolonged geopolitical instability could weigh on global demand and disrupt supply chain dynamics,” the ministry said.