Malaysia reports record trade growth and strengthening Ringgit

Malaysia is experiencing significant economic momentum, characterized by record-breaking trade figures and a strengthening currency. Total trade for the first seven months of 2026 reached RM2.16 trillion, a 24.7% year-on-year increase. This growth was driven by a surge in exports, which rose 29.2% to RM1.165 trillion, resulting in a trade surplus that more than doubled to RM170.5 billion. July specifically saw a monthly record of RM364.74 billion in trade, marking the 75th consecutive month of a trade surplus.

Key drivers of this expansion include the electrical and electronics (E&E) sector, fueled by global demand for semiconductors and AI-related infrastructure. Major trading partners contributing to this growth include the United States, China, and Taiwan. The Malaysian Ringgit has also shown resilience, supported by robust economic performance and stable monetary policy, with analysts noting its ability to outperform several other Asian currencies against the US Dollar.

In the logistics sector, Kuala Lumpur's warehouse market remains resilient. While a large new supply of Grade A space, including the Shah Alam International Logistics Hub, has increased the vacancy rate to 9.9%, demand remains strong for modern, technology-intensive facilities. Meanwhile, Malaysia continues to pursue bilateral economic strengthening, such as efforts with Türkiye to reach a target of USD10 billion in annual bilateral trade.