Exports from Malaysia unexpectedly shrank by 3.5% yoy to a four-month low of MYR 126.6 billion in June 2025, missing forecasts of a 5.3% increase and following an upwardly revised 1.1% drop in May. This marked the second straight month of decline and the steepest fall in exports since December 2013, driven largely by a 9.3% drop in shipments to China, Malaysia’s top trading partner. By sector, mining exports plunged 28.7%, led by steep declines in LNG (-26.5%) and crude petroleum (-42.7%). Manufacturing exports also fell 3.3%, weighed down by a 28.1% drop in petroleum products. In contrast, agricultural exports surged 17.5%, mainly due to strong demand for palm oil and related products, which jumped 24.7%. By destination, exports declined to Singapore (-16.9%) and Japan (-1.6%), while exports to the US surged 16.9% as factories rushed to ship goods ahead of the August 1 deadline, following tariff warnings. For H1 of 2025, total exports rose 3.8% year-on-year to MYR 760.2 billion.