Below is a list showcasing 15 of Malaysia’s top trading partners, countries that imported the most Malaysian shipments by dollar value during 2020. Also shown is each purchasing country’s percentage of total Malaysian exports.

1. China: US$37.8 billion (16.1% of Malaysia’s total exports)
2. Singapore: $33.9 billion (14.5%)
3. United States: $26 billion (11.1%)
4. Hong Kong: $16.2 billion (6.9%)
5. Japan: $14.7 billion (6.3%)
6. Thailand: $10.8 billion (4.6%)
7. South Korea: $8.2 billion (3.5%)
8. Taiwan: $8.1 billion (3.4%)
9. Vietnam: $7.4 billion (3.1%)
10. India: $7.3 billion (3.1%)
11. Indonesia: $7 billion (3%)
12. Germany: $5.9 billion (2.5%)
13. Australia: $5.8 billion (2.5%)
14. Netherlands: $5.6 billion (2.4%)
15. Philippines: $4.2 billion (1.8%)

Over four-fifths (81.2%) of Malaysian exports in 2020 were delivered to the above 15 trade partners.

Gains for top Malaysian export customers from 2019 to 2020 were limited to 5 countries: United States (up 12.4%), Singapore (up 2.6%), South Korea (up 1.1%) and Hong Kong (also up 1.1%).

Leading declines in consumption of Malaysia’s exported goods year over year were Australia (down -15.5%), India (down -19.6%) and Thailand (down -19.9%).

As defined by Investopedia, a country whose total value of all imported goods is higher than its value of all exports is said to have a negative trade balance or deficit.

It would be unrealistic for any exporting nation to expect across-the-board positive trade balances with all its importing partners. Similarly, that export country doesn’t necessarily post a negative trade balance with each individual partner with which it exchanges exports and imports.

Malaysia incurred the highest trade deficits with the following countries.

1. Taiwan: -US$5.7 billion (country-specific trade deficit in 2020)
2. China: -$3 billion
3. Saudi Arabia: -$2.9 billion
4. South Korea: -$2.5 billion
5. Indonesia: -$1.7 billion
6. Brazil: -$1.4 billion
7. Argentina: -$1.1 billion
8. United Arab Emirates: -$855.5 million
9. Switzerland: -$820 million
10. Ivory Coast: -$680.1 million

Among Malaysia’s trading partners that cause the greatest negative trade balances, Malaysian deficits with South Korea (up 101.4%), Brazil (up 43.2%) and Taiwan (up 17%) grew at the fastest pace from 2019 to 2020.

These cashflow deficiencies clearly indicate Malaysia’s competitive disadvantages with the above countries, but also represent key opportunities for Malaysia to develop country-specific strategies to strengthen its overall position in international trade.

Overall Malaysia posted a $44.2 billion surplus on goods traded during 2020, up 33.3% from $33.2 billion in black ink one year earlier.

Based on Investopedia’s definition of net importer, a country whose total value of all imported goods is lower than its value of all exports is said to have a positive trade balance or surplus.

Malaysia incurred the highest trade surpluses with the following countries.

1. Singapore: US$16.3 billion (country-specific trade surplus in 2020)
2. Hong Kong: $12.9 billion
3. United States: $9.5 billion
4. Netherlands: $4.5 billion
5. Vietnam: $3.1 billion
6. Thailand: $2.6 billion
7. Philippines: $2.1 billion
8. Mexico: $1.6 billion
9. India: $1.4 billion
10. Turkey: $1.3 billion

Among Malaysia’s trading partners that generate the greatest positive trade balances, Malaysian surpluses with United States (up 44.3%), Singapore (up 43.0%) and Turkey (up 7.1%) grew at the fastest pace from 2019 to 2020.

These positive cashflow streams clearly indicate Malaysia’s competitive advantages with the above countries, but also represent key opportunities for Malaysia to develop country-specific strategies to optimize its overall position in international trade.

Companies Servicing Malaysian Trading Partners

Seventeen Malaysian corporations rank among Forbes Global 2000. Below is a sample of the major Malaysian companies that Forbes included.

• Axiata (communications equipment)
• IOI Group (food processing)
• MISC (shipping company)
• Petronas Chemicals (specialized chemicals)
• Petronas Dagangan (oil, gas)
• Sime Darby (rubber, industrial/energy products)

Wikipedia lists some other large international trade players for Malaysia.

• Hup Chong Furniture SDN BHD (bedroom furniture, beddings, miscellaneous wooden furniture)
• Ly Furniture SDN BHD (furniture, furniture parts)
• POS Malaysia Berhad (paper bags, envelopes)
• R1 International Malaysia SDN BHD (latex, transmission belts, natural rubber in smoked sheets)