As a key member of the ASEAN (Association of Southeast Asian Nations), Malaysia actively engages in world trade, in both imports and exports of goods. Over the past few decades, the average annual GDP growth rate of Malaysia has steadily been around 5%, ranking as one of the fastest-growing economies in the region.
The dynamic economy paves the way for substantial trade relationships within the region and with other countries around the globe. The most frequent transactions of Malaysia in terms of importation are with China, Singapore, the United States, Japan, and Thailand.
Malaysia’s Top Imports
Here’s a list of Malaysia’s top imports for 2023:
1. Electrical and Electronic Equipment
Approximately $72.80 billion was worth of electrical and electronic equipment shipped to Malaysia last year, mainly from China, Japan, the United States, Singapore, and South Korea. The items included in this category are smartphones, computers, televisions, semiconductors, and electronic components. This does not come as a surprise since many multinational companies manufacture electronics in Malaysia.
2. Mineral Fuels, Oils, Distillation Products
Imports of crude oil, refined petroleum products, natural gas, and other energy-related commodities to Malaysia totalled $50.77 billion in 2023. The country relies mostly on Saudi Arabia, Indonesia, Qatar, the United Arab Emirates, and Australia for imported energy sources to sustain its domestic energy needs.
3. Machinery, Nuclear Reactors, Boilers
Malaysian imports of machinery, nuclear reactors, and boilers amounted to $25.27 billion from suppliers such as China, Japan, Germany, the United States, and Singapore. The imports help develop the country’s industrial sector and infrastructure projects.
4. Plastics
Importation costs of raw materials such as polymers, plastic resins, and plastic products to Malaysia totalled $8.48 billion in 2023. With contractors from China, Singapore, South Korea, Japan, and Taiwan, the plastic industry in the country supports automotive manufacturing, construction, and consumer goods production.
5. Vehicles other than Railway and tramway
Malaysia imported a significant number of vehicles excluding railway and tramway vehicles in 2023, amounting to $8.25 billion. The main countries that provide automobiles, trucks, buses, motorcycles, and other motor vehicles to Malaysia are Japan, Thailand, South Korea, Germany, and China.
6. Optical, Photo, Technical, Medical Apparatus
Purchasing $6.66 billion worth of optical, photo, technical, and medical apparatus last year, Malaysia is on its way to innovation and gradually advancing its technology in different sectors. Optical instruments, photographic equipment, medical devices, and technical apparatus are among the goods included in this category. The majority of the goods were bought from China, Germany, the United States, Japan, and Singapore.
7. Iron and Steel
The value of imported iron and steel products reached $5.95 billion in 2023. Support for Malaysia’s construction sector and industrial development through. iron ore, steel products, and steel components came from business partners including China, Japan, South Korea, Taiwan, and India.
8. Miscellaneous Chemical Products
Miscellaneous chemical products referring to a wide scope of chemical substances, additives, and speciality chemicals were imported to Malaysia and cost $5.70 billion. China, the United States, Germany, Singapore, and Japan were mainly the sources of these products that are used in manufacturing, agriculture, healthcare, and other industries.
9. Aluminum
Worth $5.15 billion of aluminium is imported to Malaysia in 2023. Purchasing from countries such as the United Arab Emirates, China, Russia, Bahrain, Australia, and Malaysia got ahold of aluminium ingots, sheets, extrusions, and other aluminium products that are essential materials in construction, automotive manufacturing, aerospace, and consumer goods production.
10. Pearls, Precious Stones, Metals, Coins
Demand for luxury goods and investment products hiked in 2023, thus, Malaysian importation of pearls, precious stones, metals, and coins reached to $5.15 billion. Gemstones, precious metals (gold, silver, etc), predominantly came from China, Thailand, India, Singapore, and Hong Kong.
Conclusion
Malaysia’s top imports for 2023 reflect a variety of goods in different industries sourced from its global trade network. The relationships through these transactions support the overall economy of the country. Its strategic location makes it an appealing spot for international trade and its participation in foreign exchanges shapes its economic landscape.
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