Malaysia: Merchandise trade surplus narrows in October
Latest reading: In October, the trade balance was USD +4.5 billion, following a USD +4.8 billion reading in the prior month. Over the last 12 months, the trade balance summed to USD +36.7 billion.
Exports were up 18.0% in annual terms in October, following 13.8% growth in the prior month. Imports increased 13.4% in annual terms in October, coming on the back of a 8.5% increase in the previous month.
Panelist insight: United Overseas Bank’s Julia Goh and Loke Siew Ting said:
“Barring potential US sector-specific tariffs, Malaysia’s trade outlook remains constructive, supported by the reciprocal tariff agreement and the one-year US–China trade truce. Structural shifts from global tariff realignment, the ongoing AI cycle and deeper regional integration are anticipated to sustain Malaysia’s trade momentum into 2026, albeit at a moderate pace.”