Malaysia’s tech exports surge as trade grows 22% in first half of 2026

1 October 2026

Malaysia’s trade grew strongly in the first half of 2026, led by electronics and advanced manufacturing. For New Zealand exporters, the growth points to opportunities beyond the country’s established food and agricultural trade.

A September report from New Zealand’s Ministry of Foreign Affairs and Trade (MFAT) shows Malaysia’s total trade reached NZ$746 billion between January and June, up 22.4% from the same period in 2025. Exports grew faster than imports, lifting the trade surplus to NZ$61.1 billion.

Electronics lead the rise

Electrical and electronic products were Malaysia’s biggest growth driver. Exports in the sector rose 42.5% to NZ$194.5 billion, accounting for almost half of the country’s total exports.

Other manufacturing sectors grew too:

Manufactured goods made up 88.4% of exports in the six-month period. Agriculture, by comparison, contracted 8.9%, largely because of weaker palm oil exports.

Malaysia’s imports of electronic components, machinery and other industrial inputs also rose. MFAT says the growth on both sides of trade reflects the country’s role in regional production networks: manufacturers bring in materials and components, then process or assemble products for export.

Where the demand is coming from

Exports grew fastest to markets closely connected to global technology supply chains. Malaysia’s exports to Taiwan rose 67%, followed by the United States at 55%, Hong Kong at 49% and the European Union at 29%.

The United States was Malaysia’s largest export destination, taking 17.8% of its exports. China remained its largest overall trading partner and biggest source of imports.

That pattern places Malaysia between strong demand for technology products overseas and the Asian supply chains that help produce them. MFAT links much of the export growth to semiconductors, advanced electronics and infrastructure associated with artificial intelligence.

New Zealand’s trade with Malaysia

Two-way trade between New Zealand and Malaysia reached NZ$4.58 billion in the year to March 2026, matching the record set in 2023. Malaysia was New Zealand’s tenth-largest overall trading partner.

New Zealand remains a significant supplier of food and agricultural products to Malaysia. In 2025, it supplied 75% of Malaysia’s imported day-old chicks and about 73% of its butter imports. It was also Malaysia’s second-largest supplier of sheep meat, with a 15% market share.

Those positions are strong, but competition is increasing. New Zealand’s share of selected Malaysian dairy imports slipped from 47% in 2023 to 43% in 2025.

MFAT says Malaysia’s investment in manufacturing, data centres and technology infrastructure could open further opportunities for New Zealand businesses in engineering, education, agritech, digital services and specialised food ingredients.

For exporters, Malaysia is still an important market for food. The new growth story is in the factories, services and skills supporting its expanding technology sector.

Source: New Zealand Ministry of Foreign Affairs and Trade, “Malaysia’s Trade Remains Resilient as Tech Exports Outpace Commodities”, September 2026.