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

KUALA LUMPUR, October 9 — Malaysia's trade expanded impressively in the first half of 2026, experiencing a robust 22.4 percent increase to reach RM1.795 trillion, according to the Ministry of Finance (MoF). However, the government has urged Malaysia to bolster its supply chains and diversify its export markets and import sources to shield against potential external shocks.

The MoF emphasized the importance of elevating Malaysia's position within the global value chain and mitigating reliance on foreign disruptions to enhance competitiveness and economic resilience. In its Economic Outlook 2027 report, the ministry advocated for strategic trade security improvements and the development of a resilient supply chain through the exploration of new export markets and import sources.

The MoF highlighted that 1H 2026 saw Malaysia's external trade thrive, with trade volumes soaring due to increased activity with significant trading partners like China, the United States, Taiwan, Singapore, and Hong Kong. Nevertheless, the ministry stressed the necessity of implementing a comprehensive and multi-faceted strategy to ensure trade resilience and domestic sustainability.

The government is accelerating integration and sophistication within higher value-added supply chains, leveraging technological advancements and domestic innovation to reduce exposure to external shocks. Malaysia's focus is on attracting high-growth high-value (HGHV) investments, enhancing economic complexity, creating skilled employment opportunities, and fortifying the domestic supply chain.

The Madani Economy framework and the 13th Malaysia Plan, 2026-2030, serve as the backbone for policies such as the National Semiconductor Strategy, New Industrial Master Plan (NIMP) 2030, New Incentive Framework, National AI Action Plan (2026-2030), and National Energy Transition Roadmap. These initiatives aim to bolster local manufacturing capabilities, hasten technological innovation, and expand domestic engagement in higher-value-added sectors, particularly within the advanced electronics and semiconductor ecosystems.