Kuala lumpur: RHB Investment Bank Bhd remains positive on Malaysia's export prospects for 2026, citing resilient external demand and sustained momentum in the electrical and electronics (E and E) sector, driven by the technology upcycle and artificial intelligence (AI)-related investments.
According to BERNAMA News Agency, the investment bank highlighted in a research note that following the stronger-than-expected export performance in recent months, there is potential for further upside to its current in-house export growth forecast of 15.3 per cent for 2026. This optimism is bolstered by the continued resilience of Malaysia's trade performance, with exports expanding by 24.3 per cent during the first five months of the year despite lingering geopolitical uncertainties.
RHB Investment Bank noted that the external outlook will continue to be influenced by developments in the United States tariff policies and geopolitical conditions, which may impact global demand and trade flows. Nonetheless, Malaysia remains well-positioned to weather external challenges, supported by its diversified economic structure, deep integration into regional and global supply chains, and ongoing efforts to diversify export markets and broaden its product offerings. Collectively, these factors are expected to sustain export growth and enhance the economy's resilience against external headwinds.
The bank also reported that Malaysia's exports in May accelerated by 45.3 per cent year-on-year (y-o-y), significantly surpassing the market consensus estimate of 29.7 per cent y-o-y and their in-house projection of 16.1 per cent y-o-y. Today, the Department of Statistics Malaysia (DOSM) announced that Malaysia's total trade in May 2026 rose by 29.8 per cent y-o-y to RM327.6 billion from RM252.5 billion a year ago, driven by stronger growth in both exports and imports. It was noted that Malaysia's exports grew 45.3 per cent, valued at RM184.0 billion, and imports rose 14.1 per cent, amounting to RM143.6 billion, while the trade surplus surged by 5,214.0 per cent to RM40.4 billion in the month reviewed.