Kuala lumpur: Malaysia's total trade is anticipated to grow between 3.0 and 5.0 percent this year, despite facing global external challenges, as stated by Deputy Minister of Investment, Trade and Industry Sim Tze Tzin. The government remains optimistic about achieving this growth target given current economic conditions, though potential risks, such as a slowdown in major economies or crises among key trading partners, could impact trade performance.
According to BERNAMA News Agency, last year, the Malaysia External Trade Development Corporation (MATRADE) set a growth target of 3 to 5 percent, but actual performance surpassed expectations. Sim emphasized the need for Malaysia to move up the value chain and generate higher-value income, rather than positioning itself as a low-cost producer. He noted that the electrical and electronics sector, the largest export, already involves significant value-adding activities, such as importing semi-finished goods, further processing, and re-exporting.
Sim also mentioned that a stronger ringgit could be beneficial as it would make imported inputs cheaper while maintaining the performance of value-added exports. He acknowledged challenges for locally made products but suggested enhancing product quality and targeting higher-value markets as solutions. MITI, through MATRADE, plans to continue promoting exports aggressively and pursue more bilateral trade agreements. Malaysia aims to sign the Malaysia-South Korea Free Trade Agreement by mid-2026, while negotiations for the Malaysia-European Union Free Trade Agreement are ongoing.
MATRADE CEO Abu Bakar Yusof stated that the agency will organize over 200 trade promotion and development activities this year to achieve the trade growth target. The initiatives are intended to maintain the momentum from last year in a challenging global environment. The focus will be on market diversification, leveraging free trade agreements, and collaborating with strategic partners, including trade and industry associations and foreign missions.
Abu Bakar also highlighted MATRADE's efforts to engage the industry through onboarding and outreach programs to help local companies expand globally. He noted that as of this morning, around 600 industry players have engaged with MATRADE officers and strategic partners to explore international business expansion opportunities.