KUALA LUMPUR, Jan 27 — The nation's total trade is expected to grow moderately between 3.0 and 5.0 per cent this year amid global external headwinds, said Investment, Trade, and Industry Deputy Minister Sim Tze Tzin.
The government is optimistic about achieving the target given current economic conditions, though external risks remain. However, he cautioned that unforeseen black swan events, including slowdowns in major economies or economic crises among key trading partners, could affect Malaysia's trade performance.
“Last year, the Malaysia External Trade Development Corporation (MATRADE) set a growth target of between three and five per cent, but the actual performance exceeded expectations,” Sim told the media after the announcement of Malaysia’s 2025 trade performance today. Also present was MATRADE chairman Datuk Seri Reezal Merican Naina Merican.
He added that Malaysia should no longer position itself as a low-cost producer but instead move up the value chain to generate higher-value and higher-quality income.
A significant portion of Malaysia’s trade already involves value-adding activities, with the electrical and electronics (E&E) sector as the country’s largest export. Semi-finished goods are imported, further processed through activities such as packaging, and subsequently re-exported.
Sim said a stronger ringgit would not necessarily have a negative impact, as imported inputs become cheaper while value-added exports continue to perform well. He acknowledged that some locally made products might face challenges, but these could be addressed by helping local traders improve product quality and move into higher-value markets.
MITI, through MATRADE, would continue to aggressively promote exports worldwide while pursuing additional bilateral trade agreements. The nation will also sign the Malaysia-South Korea Free Trade Agreement by mid-2026, while the negotiations for the Malaysia-European Union Free Trade Agreement are still ongoing.
"Whether it will be signed or not, it is subject to negotiations. We want to protect the FTA. We must protect Malaysia's interests as well as find a win-win (situation)," he said.
Meanwhile, MATRADE chief executive officer Abu Bakar Yusof said the agency plans to organise more than 200 trade promotion and development activities this year to achieve the trade growth target of between three and five per cent.
The initiatives are aimed at maintaining the momentum achieved last year amid a more challenging global environment.
“That is why we are embarking on market diversification, leveraging on free trade agreements and working closely with our strategic partners, including trade and industry associations as well as foreign missions,” he said.
Abu Bakar noted that MATRADE is also intensifying industry engagement through onboarding and outreach programmes to help local companies scale up globally.
“This morning alone, about 600 industry players engaged with MATRADE officers and our strategic partners to better understand how to expand their businesses internationally,” he said.
With global headwinds expected to intensify this year, MATRADE will adopt a more aggressive approach with strong support from industry players and the government.
