KUALA LUMPUR, July 3 — Malaysia’s stronger ringgit is enhancing rather than undermining the country’s export competitiveness by lowering production costs for manufacturers that rely on imported inputs, the Ministry of Investment, Trade and Industry (MITI) said.

Responding to a parliamentary question from Labuan MP Datuk Indera Dr. Suhaili Abdul Rahman, the ministry said the ringgit’s appreciation has been supported by Malaysia’s resilient economic growth, sustained foreign investment inflows and solid export performance.

MITI said concerns that a stronger currency could weaken Malaysia’s export sector should be viewed in a broader context, noting that many export-oriented industries depend heavily on imported raw materials and intermediate goods.

“A stronger ringgit reduces import costs, which in turn lowers production expenses and enables Malaysian exporters to remain price competitive in international markets,” the ministry said.

The ministry noted that Malaysia’s trade performance remained robust despite global economic uncertainty and disruptions to international shipping routes, including the closure of the Strait of Hormuz since February 2026.

Between January and May 2026, Malaysia’s total trade expanded 18.3% year-on-year to RM1.455 trillion.

Exports rose 24.3% to RM793.84 billion, driven by strong demand for electrical and electronics (E&E) products, petroleum products, optical and scientific equipment, metal ores and scrap, and fabricated metal products. Collectively, these sectors accounted for 64.4% of the country’s total exports.

Malaysia’s trade surplus nearly tripled during the period, rising 182.9% to RM132.77 billion compared with the same period last year, with the country recording trade surpluses with most of its major trading partners.

MITI said the expanding trade surplus reflects the resilience and competitiveness of Malaysia’s export sector, supported by the country’s progressive trade policies and commitment to an open, fair and inclusive international trading system.

Beyond trade policy, the ministry attributed export growth to stronger coordination of export promotion programmes through the National Export Coordination Committee, chaired by the Chief Secretary to the Government. The committee aims to streamline export promotion initiatives across ministries, reduce duplication and maximise programme effectiveness.

The ministry also highlighted the role of the Malaysia External Trade Development Corporation (MATRADE), whose export capability development programmes continue to strengthen the competitiveness of Malaysian exporters.

Looking ahead, MITI said the government will continue implementing pragmatic measures to enhance export competitiveness. These include diversifying export destinations into non-traditional markets such as Central Asia, pursuing new Free Trade Agreements (FTAs), leveraging market intelligence from MATRADE’s overseas offices and refining export promotion strategies to address evolving global market conditions.

The ministry said the government will continue working closely with industry stakeholders to ensure Malaysia’s export sector remains resilient and well-positioned to capture new opportunities amid an increasingly challenging global trading environment.