Malaysia’s trade performance continued to demonstrate strong momentum as total trade expanded by 29.8 per cent to RM327.63 billion in May 2026, marking the country’s fastest growth rate in 44 months. The achievement was largely driven by robust export growth, particularly in the electrical and electronics (E&E) sector, which benefited from increasing global demand for artificial intelligence (AI)-related technologies.

According to Universiti Putra Malaysia (UPM) economist Associate Professor Dr. Nik Ahmad Sufian Burhan, the encouraging trade performance reflects the resilience of Malaysia’s economy and its ability to capitalize on the rapid expansion of the global technology industry.

He noted that the E&E sector remains the primary driver of export growth, supported by rising demand for AI-related products and infrastructure, including servers, semiconductors, sensors, data centres, cloud computing facilities and advanced electronic systems. This trend presents significant opportunities for Malaysia, given its established strengths in semiconductor assembly, testing and precision manufacturing.

In addition to E&E products, export growth was further supported by stronger demand for petroleum products, liquefied natural gas (LNG), as well as optical and scientific equipment. Malaysia’s exports to several major trading partners, including the United States, the European Union, China and Taiwan, also recorded notable increases during the period.

Despite the positive outlook, Dr. Nik Ahmad Sufian highlighted that global geopolitical uncertainties, evolving trade policies and commodity price fluctuations remain potential risks to future export performance. Nevertheless, Malaysia’s diversified export markets and growing investments in digital technologies and AI-related infrastructure are expected to strengthen the nation’s competitiveness in the global marketplace.

The strong trade performance also underscores the importance of research, innovation and talent development in supporting a knowledge-based economy. Higher education institutions such as Universiti Putra Malaysia continue to play a vital role in producing skilled researchers, experts and graduates capable of contributing to the growth of high-value and technology-driven industries.

As AI technologies and the digital economy continue to reshape global trade patterns, stronger collaboration among universities, industry players and government agencies will be essential in fostering innovation, enhancing productivity and positioning Malaysia as a leading regional hub for technology, investment and international trade.

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Date of Input: 22/06/2026 | Updated: 22/06/2026 | norasiah