Malaysia's Total Trade Hits RM3.1 Trillion in 2025: What It Means for Bursa Investors

For the first time in history, Malaysia's total trade reached RM3.1 trillion in 2025. The figures released by the Department of Statistics Malaysia (DOSM) are more than a record to be celebrated in official speeches. For Bursa Malaysia investors, they are a roadmap showing which sectors are driving the economy, which states form the export backbone, and ultimately, which company stocks could ride this momentum.

In this article, we break down the full trade figures for 2025, examine why Penang emerged as the export champion, identify the key contributing sectors, and most importantly for you as an investor - what it all means for export stocks on Bursa Malaysia and the value of the ringgit.

The Full Picture: Malaysia's 2025 Trade Figures

According to DOSM data reported by The Star, national trade rose to RM3.1 trillion in 2025. The breakdown is as follows:

• Total trade: RM3.1 trillion (the highest on record)
• Exports: RM1.6 trillion, up around 6.4% from 2024
• Imports: RM1.5 trillion, up 6.0% from the previous year
• Trade surplus: RM151.8 billion - marking the 28th consecutive year of surplus since 1998
• Trade openness index: 151.0, up from 149.0 in 2024

This sustained trade surplus over nearly three decades matters. It means Malaysia sells more goods abroad than it buys - a sign of healthy underlying economic strength. The openness index crossing 150 shows just how dependent our economy is on international trade, which is precisely why news of tariffs or a global slowdown can rattle Bursa Malaysia quickly.

Penang Leads Exports, Selangor Dominates Imports

One of the most striking findings from the DOSM report is the dominance of the top five states. Penang, Selangor, Johor, Kuala Lumpur and Sarawak collectively accounted for 84.3% of national trade. This shows how concentrated Malaysia's economic activity is within certain industrial corridors.

In terms of exports, the state rankings are:

• Penang: 38.1% of national exports
• Johor: 19.8%
• Selangor: 17.0%
• Sarawak: 6.4%
• Kuala Lumpur: 3.7%

Penang commands nearly 4 out of every 10 ringgit of Malaysia's exports. The secret? A mature electrical and electronics (E&E) ecosystem, particularly in semiconductor manufacturing and assembly. Penang is often dubbed the "Silicon Valley of the East" thanks to the presence of global giants and a dense network of local suppliers.

On the import side, Selangor leads with a 26.3% share, followed by Penang (24.4%), Johor (22.3%), Kuala Lumpur (8.9%) and Kedah (4.9%). Interestingly, Penang also recorded the largest increase in imports, rising RM60.4 billion - reflecting how the E&E industry imports large volumes of components and raw materials to be processed into high-value finished products before being exported.

E&E and Semiconductors Are the Main Engine

If there is one sector you need to understand as a Bursa investor, it is electrical and electronics. Exports of E&E products - particularly electronic integrated circuits - were the main driver of export growth across Penang, Selangor and Johor.

According to DOSM data reported earlier, exports of electronic integrated circuits surged 24.3% to RM389.15 billion in 2025. The jump was supported by exploding global demand for advanced technology chips, driven by the wave of artificial intelligence (AI), automation and digitalisation.

For investors, this is not empty news. Strong chip demand directly supports the performance of Bursa Malaysia-listed E&E companies involved in testing, packaging (OSAT) and manufacturing automation. We have discussed in more detail why Malaysia's technology and semiconductor sector is poised to bite back in a separate article.

Other Export Sectors: Petroleum, Palm Oil and Gloves

While E&E dominates the headlines, Malaysia's export economy is actually more diverse. Several other sectors made significant contributions to that RM1.6 trillion figure:

Refined Petroleum Products

Johor emerged as the main hub for refined petroleum product exports, partly supported by the integrated refining complex in Pengerang. However, this sector is more exposed to global oil price swings, and petroleum exports showed weakness in certain months throughout 2025. We have explained the role of energy in national trade in our article on Petronas and Malaysia's oil exports.

Palm Oil and Agricultural Products

Sabah and Sarawak remain the backbone of agricultural exports, especially palm oil. Agricultural product exports overall rose 5.7% to RM111.77 billion, with palm oil and palm-based products making up around three-quarters of that total. Higher commodity prices provided support to listed plantation companies.

Rubber Gloves

The glove sector, once a star during the pandemic, regained investor attention in 2025 and 2026. Factors such as US tariffs on Chinese producers have reshaped the global competitive landscape. We have discussed these dynamics in our article on the Malaysian glove sector's comeback.

What Does It Mean for Bursa Malaysia Investors?

Macro trade data like this provides important context, but it should not be read as a direct buy signal. Instead, use it to understand the investment themes currently dominating the economy. Here is how to read this data as an investor:

The E&E and Semiconductor Theme

Since electronic integrated circuits are driving export growth, companies listed within the semiconductor supply chain (automation equipment manufacturing, chip testing and packaging, and component suppliers) are in an interesting position to watch. This sector tends to move in tandem with the global technology cycle and AI demand.

The Export and Ringgit Theme

Companies that generate much of their revenue in US dollars (most E&E, palm oil and glove exporters) benefit when the ringgit is weak, because their foreign earnings convert into more ringgit. Conversely, a stronger ringgit can squeeze their margins. This is why currency movements are so important for export stock investors - something we explain in what a falling ringgit means for Bursa Malaysia investors.

The Foreign Direct Investment Theme

Rising imports of components and machinery in Penang and Selangor often serve as an early indicator of incoming foreign direct investment (FDI) and new capacity building. The wave of the data center boom in Malaysia is an example of how large FDI can create opportunities across various supporting sectors.

Important note: The themes listed above are for educational purposes and not investment advice. Always do your own research and assess the financial fundamentals of each company before investing.

Impact on the Ringgit

The RM151.8 billion trade surplus provides fundamental support for the ringgit. When Malaysia exports more than it imports, demand for the ringgit (to pay for our exported goods) tends to stay firm, which helps stabilise the currency over the long term.

However, the ringgit does not move on trade alone. The US Federal Reserve's interest rate policy, foreign fund flows in and out of Bursa, and global risk sentiment all play a role. Investors holding export stocks need to monitor both trade data and ringgit trends simultaneously to understand the full picture.

Risks to Watch

While the 2025 figures look brilliant, there are several risks investors cannot ignore:

• Tariff risk: Global trade tensions and tariff investigations could hurt Malaysia's E&E and steel exports. We have discussed this issue in our article on the US investigating Malaysia over electronics and steel overcapacity.
• Geographic concentration: With 84.3% of trade concentrated in five states, any supply chain disruption in Penang or Selangor could disproportionately affect national exports.
• Commodity cycles: Petroleum and palm oil exports are exposed to global price swings beyond Malaysia's control.
• AI dependence: The surge in chip demand is largely driven by global AI capital spending. If that momentum slows, the E&E sector could take a hit.

Frequently Asked Questions (FAQ)

How much was Malaysia's total trade in 2025?

Malaysia's total trade reached RM3.1 trillion in 2025, comprising exports worth RM1.6 trillion and imports worth RM1.5 trillion, according to the Department of Statistics Malaysia (DOSM). This is the highest on record.

Which state leads Malaysia's exports?

Penang leads Malaysia's exports with a 38.1% share of national exports, followed by Johor (19.8%) and Selangor (17.0%). Penang's dominance is driven by the electrical and electronics (E&E) and semiconductor sector.

What are Malaysia's main export sectors?

The main sector is electrical and electronics (E&E), particularly electronic integrated circuits which surged 24.3% to RM389.15 billion. Other sectors include refined petroleum products, palm oil and agricultural products, and rubber gloves.

Did Malaysia record a trade surplus in 2025?

Yes. Malaysia recorded a trade surplus of RM151.8 billion in 2025, marking the 28th consecutive year of surplus since 1998. This surplus provides fundamental support for the value of the ringgit.

How does this trade data affect Bursa Malaysia stocks?

Trade data reveals the investment themes currently dominating the economy. E&E growth supports companies in the semiconductor supply chain, while the trade surplus and ringgit movements affect export companies' margins. However, macro data is not a direct buy signal - it should be combined with fundamental analysis of each company.

Why did Penang also lead the increase in imports?

Penang recorded the largest increase in imports (up RM60.4 billion) because the E&E industry imports large volumes of components and raw materials to be reprocessed into high-value finished products before being re-exported. This is a typical feature of an export-oriented manufacturing economy.

Conclusion

The RM3.1 trillion trade achievement in 2025 confirms that Malaysia's economy remains firmly export-driven, with Penang and the semiconductor sector as the lead stars. For Bursa investors, this data is a valuable indicator of which themes are driving the economy - from E&E to palm oil, from the ringgit to tariff risk. The key is to use this macro data as context, not as a blind buy signal.

If you want to start participating in the market and invest in the export companies powering Malaysia's economy, the first step is owning the right trading account.

Open your CDS account today to start investing not only on Bursa Malaysia, but also in foreign stocks such as the US and Hong Kong markets - opening access to the global technology sector that also drives Malaysia's chip demand.

To strengthen your foundation first, download our Stock Investing Basics Ebook for free as a starting guide before making any investment decisions.

Further Reading

• 2026 Economic Outlook: Why Malaysia's Technology & Semiconductor Sector Is Poised to Bite Back
• Falling Ringgit - What It Means for Bursa Malaysia Investors
• Malaysia's Glove Sector Rebounds: 120% US Tariff as a Catalyst for Rising Stocks
• RM185 Billion Flows Into Malaysia - Who Wins From the Data Center Boom?
• US Investigates Malaysia Over Electronics & Steel Overcapacity: What Are the New Tariff Risks for Investors?