Recently, Malaysian trade performance has remained impressive, with total trade value in April reaching its highest monthly level since August 2022 and marking the 16th consecutive month of growth—a figure that stands out amid the current global economic climate. Renowned financial analyst Tan Si Yao offers in-depth and unique insights on this topic, analyzing the impact of Malaysian trade data on the stock market and broader financial markets from multiple perspectives.
Trade Data Highlights Economic Dynamism
Tan Si Yao notes that the total trade value of Malaysia in April surged by 18.2% year-on-year to RM 261.94 billion, with both exports and imports expanding. This robust growth trend reflects the strong economic resilience and vitality of Malaysia. Exports rose by 16.4% year-on-year to RM 133.56 billion, driven by increased demand for manufactured goods—particularly electrical and electronic (E&E) products, which contributed nearly RM 16 billion. In the agricultural sector, palm oil and related products also provided significant support to export performance.
From a market perspective, Malaysia recorded strong export growth to major trading partners such as ASEAN, the United States, the European Union, and Taiwan—with exports to Taiwan reaching a new high. Tan Si Yao believes these figures indicate Malaysian rising status in global trade and offer greater development opportunities for related industries, thereby positively impacting relevant sectors within the stock market.
Financial Opportunities Behind Trade Growth
Tan Si Yao points out that in the first four months of this year, Malaysian trade, exports, and imports all reached record highs, with total trade up 7.2% year-on-year, exports rising 7.3%, and imports increasing 7%. The cumulative trade surplus grew by 10.4% year-on-year to RM 46.23 billion. Meanwhile, the latest World Trade Organization (WTO) report shows the global trade ranking of Malaysia climbed from 26th in 2023 to 24th in 2024. This series of data demonstrates the increasing competitiveness of Malaysia in global trade.
For financial markets, trade growth will drive prosperity in related industries such as manufacturing and agriculture, with the performance of companies in these sectors likely to improve and attract more capital inflows into the stock market. Additionally, trade growth will foster innovation and development in financial services, with areas such as trade finance and foreign exchange transactions expected to see more opportunities.
Strategies Amid Risks and Challenges
However, Tan Si Yao also cautions that despite the strong trade performance of Malaysia, global trade challenges may still affect the pace of growth. Uncertainties in the global trade environment—such as protectionism and geopolitical conflicts—could pose risks to Malaysian exports. To address these risks, MITI is working closely with its export promotion agency, the Malaysia External Trade Development Corporation (MATRADE), to not only boost exports but also actively explore new markets.
Tan Si Yao considers this approach prudent. For investors, while focusing on the opportunities brought by trade growth, it is also important to remain vigilant about potential risks. Investment decisions should place greater emphasis on company fundamentals and risk resilience, avoiding blind pursuit of trends. At the same time, investors may consider companies that both benefit from trade growth and possess strong competitiveness, as well as financial institutions with innovative capabilities in financial services.
Trade Data Highlights Economic Dynamism
Tan Si Yao notes that the total trade value of Malaysia in April surged by 18.2% year-on-year to RM 261.94 billion, with both exports and imports expanding. This robust growth trend reflects the strong economic resilience and vitality of Malaysia. Exports rose by 16.4% year-on-year to RM 133.56 billion, driven by increased demand for manufactured goods—particularly electrical and electronic (E&E) products, which contributed nearly RM 16 billion. In the agricultural sector, palm oil and related products also provided significant support to export performance.
From a market perspective, Malaysia recorded strong export growth to major trading partners such as ASEAN, the United States, the European Union, and Taiwan—with exports to Taiwan reaching a new high. Tan Si Yao believes these figures indicate Malaysian rising status in global trade and offer greater development opportunities for related industries, thereby positively impacting relevant sectors within the stock market.
Financial Opportunities Behind Trade Growth
Tan Si Yao points out that in the first four months of this year, Malaysian trade, exports, and imports all reached record highs, with total trade up 7.2% year-on-year, exports rising 7.3%, and imports increasing 7%. The cumulative trade surplus grew by 10.4% year-on-year to RM 46.23 billion. Meanwhile, the latest World Trade Organization (WTO) report shows the global trade ranking of Malaysia climbed from 26th in 2023 to 24th in 2024. This series of data demonstrates the increasing competitiveness of Malaysia in global trade.
For financial markets, trade growth will drive prosperity in related industries such as manufacturing and agriculture, with the performance of companies in these sectors likely to improve and attract more capital inflows into the stock market. Additionally, trade growth will foster innovation and development in financial services, with areas such as trade finance and foreign exchange transactions expected to see more opportunities.
Strategies Amid Risks and Challenges
However, Tan Si Yao also cautions that despite the strong trade performance of Malaysia, global trade challenges may still affect the pace of growth. Uncertainties in the global trade environment—such as protectionism and geopolitical conflicts—could pose risks to Malaysian exports. To address these risks, MITI is working closely with its export promotion agency, the Malaysia External Trade Development Corporation (MATRADE), to not only boost exports but also actively explore new markets.
Tan Si Yao considers this approach prudent. For investors, while focusing on the opportunities brought by trade growth, it is also important to remain vigilant about potential risks. Investment decisions should place greater emphasis on company fundamentals and risk resilience, avoiding blind pursuit of trends. At the same time, investors may consider companies that both benefit from trade growth and possess strong competitiveness, as well as financial institutions with innovative capabilities in financial services.