Miti: Malaysia’s exports to US surge 69pc despite tariffs, powered by AI boom

In the first nine months of 2026, Malaysia's exports to the United States experienced a remarkable 69.1 percent increase, reaching RM282.07 billion. Overall trade between the two nations expanded by 39.6 percent to RM378.70 billion, according to data from the Ministry of Investment, Trade and Industry (Miti). Despite the US imposing tariffs on Malaysian exports following investigations under various legal instruments, Malaysia's trade performance with the US continues to grow.

This surge in exports can largely be attributed to a skyrocketing demand for electrical and electronic products, particularly semiconductors, fueled by rapid advancements in artificial intelligence (AI) technology and data centers.

A crucial factor behind this growth is Malaysia's strategic exemption from additional tariffs imposed on most semiconductor and electronic and electrical (E&E) products by the US. Miti spokesperson clarified this point during a response published on Parliament's website. The Ministry's inquiry came in response to a question posed by Datuk Seri Amirudin Shari (PH-Gombak) regarding the impact of US tariff impositions on Malaysia's industry in 2026 and the identification of new alternative markets to support micro, small, and medium enterprises (MSMEs) in exporting their goods.

The E&E sector accounted for approximately 64.2 percent of Malaysia's total exports to the US, with 44 percent of E&E exports consisting of semiconductor products. However, certain sectors experienced declines. Rubber glove exports to the US decreased by 1.6 percent to RM5.0 billion, furniture exports fell by 19.2 percent to RM3.77 billion, and medical device exports dropped by 12.0 percent to RM8.74 billion.

Various Malaysian industries are grappling with absorbing US tariff costs or offering discounts to buyers to maintain product competitiveness and sustain exports to the US market. Miti believes that diversifying markets and minimizing dependence on a single market are essential to mitigate external shocks and enhance the country's trade resilience.

The Ministry is actively working to improve market access and explore new markets through existing free trade agreements (FTAs) and non-traditional markets in West Asia, Africa, Latin America, and South Asia.