Malaysia’s Terms of Trade Jump 2.5% in June Despite Weaker Export and Import Volumes

Malaysia’s Terms of Trade (ToT) climbed 2.5% month-on-month to 121.5 points in June 2025, driven by higher export prices and favorable movements in key product categories, according to the Department of Statistics Malaysia (DOSM).

Key Drivers:

• Export Unit Value Index: +2.1%

  • Misc. manufactured articles: +0.8%

  • Food: +0.3%

  • Machinery & transport equipment: +0.2%

• Import Unit Value Index: -0.4%

  • Mineral fuels: -1.1%

  • Chemicals: -0.5%

  • Machinery & transport equipment: -0.2%

On a year-on-year basis, the ToT rose 4.5%, up from 116.3 points in June 2024.

Trade Volumes Drop

• Export Volume Index: -5.9% MoM (seasonally adjusted: -12.0%)

  • Manufactured goods: -19.3%

  • Chemicals: -10.3%

  • Misc. manufactured articles: -5.4%

• Import Volume Index: -9.8% MoM (seasonally adjusted: -10.8%)

  • Machinery & transport equipment: -16.4%

  • Food: -13.1%

  • Manufactured goods: -8.8%

Despite the month-on-month decline, import volumes were 11.8% higher YoY, while import unit values dropped 4.7%from June 2024.

What It Means

The rise in ToT suggests Malaysia is getting more value per unit of exports, but the steep drop in both export and import volumes highlights slower trade activity amid global uncertainty and shifting demand.

With weaker shipment numbers and falling import prices, June’s data points to a mixed trade outlook, where price gains are offset by declining volumes in key sectors.