In 2024, Malaysia ranked as the 34th most competitive economy worldwide in the IMD World Competitiveness Ranking, down seven places from its position in 2023. While the country is still behind several big players regionally and internationally, it still exported an estimated US$29 billion worth of goods in 2024, according to OEC. This marks a 12.3% increase from the US$26 billion reported for 2023. Indeed, Malaysia boasts a fast-growing economy in the Asia Pacific, with a wide range of goods like palm oil and petroleum products as its main exports. Read on to learn how the country has turned into a thriving hub for small and medium-sized businesses for exporting.
Understanding Malaysia’s main export destinations
Malaysia’s biggest trading partners in 2024 were the United States, Singapore, China, Japan, and Hong Kong. According OEC, it exported approximately US$4.45 billion worth of goods to the United States, US$4.29 billion to Singapore, and US$3.52 billion to China.
As indicated by MATRADE, the surge in exports to the United States, its top trading partner in 2024, was largely attributed to increased demand for electrical and electronic (E&E) products, such as semiconductor devices and integrated circuits.
Additionally, the increasing adoption of the top payment gateways in Malaysia, such as iPay88 and Stripe Payments, have also made transactions smoother and more seamless, facilitating cross-border e-commerce and trade.
What does Malaysia export and import?
Like the country’s traditional partners, Malaysia also has some consistent goods for export and import. Here are some of Malaysia’s top export products, according to OEC:
- Integrated circuits
- Refined petroleum
- Palm oil
- Petroleum gas
- Blank audio media
Some of the fastest growers worth mentioning are integrated circuits (up by 20.7%), blank audio media (106% gain), and palm oil (25.7% increase). From this, we can see that one of Malaysia’s most valued exports are electronics and electrical goods.
The import landscape isn’t very different in terms of partnering countries. The top list of imported goods includes mainly integrated circuits (US$5.78 billion) and refined petroleum (US$1.93 billion), according to OEC. Other top imports include crude petroleum, computers, cocoa beans, and many more.
Which are the top export products helping Malaysia’s economy?
While there are some big gainers throughout the year, some of the most valuable goods cover tight niches in the exporting business. The increase in integrated circuit exports from 2023 to 2024 indicates the country’s solid competitive advantages involving lower prices and faster shipments. These products, which are used in a wide range of devices like computers and smartphones, have made consumer electronics one of the most profitable revenue streams for Malaysian businesses to produce and sell. According to Statista, the revenue for Malaysia’s consumer electronics market amounted to US$4077 million in 2024, highlighting the market’s profitability.
Furthermore, the Malaysian government has sought to diversify manufacturing processes and spur engineering and technology adoption among SMEs. To this end, it urged the local automotive industry to manufacture and export Malaysian-made parts and components, on top of vehicles, in 2024. According to the Malaysian Automotive Association, the total industry volume (TIV) for the market saw a 4% increase from 2023 to 2024.
Similarly, Malaysia is endorsing its native batik industry in the hopes of producing quality products for the international market. According to the Malaysian Standards Department (JSM), the updated Malaysian Standard (MS) 692 specification was updated as part of efforts to strengthen and empower the Malaysian batik industry through comprehensive and practical standards. As a guide to all industry players from batik operators to designers, the standard aims to protect the quality and authenticity of batik and expand its market opportunities.
Many Malaysian international brands, including fashion companies, have successfully employed a global stockist strategy to grow through e-commerce. Likewise, there is great potential for those in the batik industry to do the same.
Start exporting the most profitable products now
The top exports by country analyses show a fair policy in Malaysia’s imports and exports, profiting mainly from the production of consumer electronics, vehicles, various machinery and palm oil products. Undoubtedly, the country’s strategic location makes it easier for 24-hour shipments to arrive from and travel to Mainland China, Hong Kong and Singapore.
Beyond these countries, Malaysia is also open to business with a wide range of destinations, which is specifically beneficial for smaller companies. Moreover, the government has actively supported small and medium enterprises to start their businesses in Malaysia, presenting profitable opportunities for those hoping to export to markets in the region and beyond.
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