Malaysia’s exports in 2025 will be influenced more by the growth of the global economy and international trade than by currency changes, said Trade Minister Tengku Zafrul Aziz on Tuesday. However, he also warned of a possible slowdown in the pace of outbound shipments.
The minister explained that exports surged strongly in the first quarter of 2025 because many companies accelerated their orders. This was done to avoid higher tariffs announced by the U.S. government in early April, under President Donald Trump.
“What will support exports more is actually the growth of the global economy and global trade, more than currency fluctuation,” Tengku Zafrul said during a press conference.
In March 2025, Malaysia’s exports grew 6.8% compared to the same month last year. Exports to the United States hit a record high of 22.66 billion ringgit (about $5.4 billion). This sharp rise was mainly due to U.S. buyers stocking up on electrical and electronic products ahead of possible tariff hikes.
Despite the strong start, Tengku Zafrul cautioned that such high export growth might not continue at the same rate. The ministry now forecasts Malaysia’s export growth to slow to 5.2% in 2025, down from 5.7% in 2024.
Malaysia faces a looming 24% tariff on exports to the U.S. starting in July unless the two countries reach an agreement. The Southeast Asian nation has expressed willingness to negotiate on non-tariff barriers, reduce its trade surplus with the U.S., and explore a bilateral trade deal.
Prime Minister Anwar Ibrahim said on Monday that Malaysia may succeed in reducing the threatened U.S. tariffs, as Washington has agreed to further talks.
Trade Minister Tengku Zafrul emphasized Malaysia’s goal is to eliminate tariffs completely. He also said the U.S. wants Malaysia to address trade imbalances, remove non-tariff barriers, and prevent the smuggling of U.S. technology through illegal transshipment.
To tackle this, Malaysia’s trade ministry will become the only authority to issue certificates of origin for exports to the U.S. This step aims to block illicit shipments passing through Malaysia, although Tengku Zafrul did not name the countries involved in such activities.
The ministry will also increase audits of exporters’ paperwork and strengthen investigations to stop any illegal transshipment offenses destined for the U.S.
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