Malaysia's trade hits record high, but momentum may ease

Malaysia's exports reached a record monthly high in July, driven by a surge in demand for electrical and electronics (E&E), semiconductors, and technology-related products. The trade sector experienced a remarkable 37.3% year-on-year increase, with exports growing by 38% to a record RM193.60 billion and imports rising by 36.4% to RM171.14 billion, resulting in a trade surplus of RM22.46 billion.

While economists believe the strong momentum may moderate towards year-end as frontloading effects fade and global trade uncertainties persist, the technology cycle is expected to continue supporting export growth. However, the sector's reliance on lower-end chips and labor-intensive processes, along with potential tariffs and China's economic transition, could pose challenges for Malaysia's E&E sector in the long term.

Brief written by urgent.news from New Straits Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.