Malaysia has enjoyed longstanding diplomatic and trade relations with the U.S. Over the decades, the Malaysian economy has transitioned from mining and agriculture in the 1970s to a manufacturing-based economy in the 1980s, and now to a technology-driven economy. Malaysian companies are already embedded in the global supply chain, contributing to sustained trade growth and economic resilience.

Malaysia’s trade performance in 2024 marks a significant milestone, achieving record-high trade figures. Trade, exports, and imports rebounded in 2024, with total trade reaching US$630.46 billion, a 9.1% year-on-year (y-o-y) increase, surpassing the US$437.02 billion mark for four consecutive years. Exports grew by 5.6% to US$330.26 billion, while imports surged 13.1% y-o-y to US$300.20 billion, resulting in a trade surplus of US$30.06 billion—continuing an unbroken 27-year surplus streak since 1998.

Malaysia’s export expansion in 2024 was primarily driven by strong performances in both manufactured and agricultural products. Leading the charge were electrical & electronics (E&E) products, machinery, equipment and parts, processed food, and optical & scientific equipment, all of which reached their highest-ever recorded values. Additionally, palm oil and palm oil-based products, metal manufactures, and rubber products contributed significantly to export growth.

E&E products remained Malaysia’s top export, holding a 39.9% share, increasing 4.5% to US$131.89 billion—the highest value ever recorded. The surge was driven by rising global demand for electronic integrated circuits, reflecting the acceleration of technological advancements worldwide.

The U.S. has consistently been one of Malaysia’s top trading partners. In 1990, total trade between the two nations was just US$9.9 billion. By 2024, Malaysia-U.S. trade surged by 30.3% to US$71.39 billion compared to the previous year, making up 11.3% of Malaysia’s total trade. The U.S. has maintained its position as Malaysia’s third-largest trading partner since 2015.

Exports to the U.S. in 2024 reached an all-time high, growing 23.5% to US$43.65 billion, fueled by strong exports of E&E products, machinery, equipment and parts, and rubber products. Meanwhile, imports from the U.S. skyrocketed by 42.6% to US$27.74 billion, with key imports including E&E products, machinery, equipment and parts, and chemicals and chemical products.

The World Trade Organization (WTO) projects global merchandise trade volume to grow by 3% in 2025, and Malaysia’s trade is expected to expand in alignment with this outlook. The Ministry of Finance Malaysia’s Economic Outlook 2025 forecasts Malaysia’s trade to grow by 4% in 2025, with exports and imports projected to rise by 3.9% and 4.1%, respectively. Meanwhile, Malaysia’s Gross Domestic Product (GDP) is expected to expand between 4.5% and 5.5%.

With continued strong demand for E&E products, Malaysia is set to benefit from an upward cycle in the semiconductor sector. The World Semiconductor Trade Statistics (WSTS) forecasts global semiconductor sales to grow by 11.2% in 2025, reinforcing Malaysia’s position as a key player in the global tech-driven economy.

Malaysia’s robust trade performance with the U.S. in 2024 reflects its resilience and adaptability in a constantly evolving global economy. As we look ahead, MATRADE remains dedicated to fostering stronger trade ties and enhancing Malaysia’s role in global commerce. With strategic engagements, innovation, and a forward-looking approach, Malaysia is well-positioned to continue its economic growth trajectory in the years to come.