Malaysia’s trade surplus narrowed sharply to MYR 8.6 billion in June 2025, down from MYR 14.3 billion in the same month last year and well below market expectations of MYR 10.4 billion, as exports declined while imports rose. Exports unexpectedly fell by 3.5% year-on-year to a four-month low of MYR 121.7 billion—the second consecutive monthly decline, following an upwardly revised 1.2% drop in May and missing forecasts of a 5.6% increase. This decrease was driven by lower sales in the mining (-28.7%) and manufacturing sectors (-3.3%). In contrast, agriculture shipments surged 17.5%. Meanwhile, imports rose by 1.2% to MYR 113.1 billion, significantly below expectations for a 9.7% rise, boosted by capital goods (21.8%) and consumption goods (1.6%). In contrast, intermediate goods fell 1.2%. For the first half of 2025, the country recorded a surplus of MYR 55.5 billion, with exports and imports advancing by 3.8% and 5.9%, respectively.