December trade data surprise on the upside as E&E shipments surge
Exports expanded sharply to 10.4% (Nov: 7.0%), a two-month high, and far above expectations (KIBB: 1.1%; consensus: 2.5%). This lifted full-year 2025 export growth to 6.5% (2024: 5.8%), beating our 6.0% forecast.
- MoM (13.4%; Nov: -9.0%): Growth rebounded strongly to a five-month high.
Surging exports to the US and strong E&E shipments bolstered December performance
- By destination: Growth was driven by a sharp rebound in shipments to the US (48.8%; Nov: -0.8%), and strong expansion to the EU (34.8%; Nov: 13.2%). However, momentum was capped by continued weakness in exports to Japan (-16.9%; Nov: -4.9%), and China (-3.5%; Nov: 9.8%). Shipments to East Asia slowed, with declines to Singapore (-12.8%; Nov: 4.1%) and South Korea (-0.7%; Nov: -8.9%), while Hong Kong (12.0%; Nov: 16.9%) and Taiwan (34.4%; Nov: 53.0%) moderated.
- Sector: Manufacturing exports accelerated sharply to 13.6% (Nov: 7.9%), offsetting contractions in agriculture (-7.4%; Nov: -6.1%), and mining (-15.2%; Nov: 9.4%).
- By major product: Growth was mainly driven by Electrical & Electronic (E&E) exports, which surged to 25.3% (Nov: 15.0%), with a record value of RM73.6b or 48.1% of total exports. Commodity-related exports remained weak, particularly palm oil & palm-based products (-8.4%; Nov: -9.3%) and liquified natural gas (LNG) (-24.9%; Nov: -12.5%). Chemical & chemical products (-6.5%; Nov: -14.8%) continued to contract for the 12th straightmonth.
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