Malaysia’s trade grows 22.4pc in 1h 2026, MOF urges supply chain diversification

KUALA LUMPUR, Oct 9 — Malaysia’s trade remained resilient in the first half of 2026 (1H 2026), with total trade rising 22.4 per cent to RM1.795 trillion, but the country needs to strengthen supply chains and diversify its export markets and import sources to cushion future external shocks, the Ministry of Finance (MoF) said.

MoF said Malaysia should move further up the global value chain and reduce its exposure to disruptions abroad to strengthen its competitiveness and economic resilience.

“It is crucial for Malaysia to strategically strengthen trade security and build national resilience against future global disruptions, including exploring new export markets and import sources,” the ministry said in its Economic Outlook 2027 report released today.

Diversifying import sources would help address immediate supply deficits while also creating a more flexible and resilient supply chain, according to MoF.

Malaysia’s external trade remained resilient during 1H 2026, supported by higher trade with major trading partners, particularly China, which grew 30.6 per cent, followed by the United States at 25.7 per cent, Taiwan (34.7 per cent), Singapore (21.5 per cent) and Hong Kong (45.8 per cent).

Nonetheless, MoF said, it is imperative for Malaysia to build a comprehensive and multi-layered trade resilient strategy to achieve domestic sustainability.

“The government is intensifying efforts to accelerate integration and sophistication with higher value-added supply chains to cushion exposure to external shocks, including through technological advancement and domestic innovation,” it said.

The ministry added that Malaysia is charting the path toward attracting high-growth high-value (HGHV) investments, increasing economic complexity and expanding skilled jobs, as well as strengthening the domestic supply chain.

Anchored by the Madani Economy framework and complemented by the 13th Malaysia Plan, 2026-2030, policies including the National Semiconductor Strategy (NSS), New Industrial Master Plan (NIMP) 2030, New Incentive Framework (NIF), National AI Action Plan (2026 — 2030) and National Energy Transition Roadmap (NETR) were formulated to capture greater global value chain.

“These policies prioritise deepening local manufacturing capabilities, accelerating technological innovation and expanding domestic participation in higher value-added segments, particularly within the advanced electronics and semiconductor ecosystem,” it added. — Bernama