Exports to CPTPP, RCEP countries rise despite uncertain global trade conditions

Exports to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP) member countries increased from January to September 2025 despite uncertain global trade conditions.

The Ministry of Investment, Trade and Industry (Miti) said exports to CPTPP member countries rose by 3.6% to RM362.51 billion for January to September 2025 compared to the same period last year.

“Exports of palm oil and palm-based products increased by 7.5% to RM7.35 billion, while exports of electrical and electronics (E&E) products rose by 19.3% to RM157.02 billion.

“Although exports of petroleum and petroleum products fell by 25% to RM37.57 billion, this decline was not confined to exports to CPTPP member countries but reflected a general contraction in petroleum and petroleum product exports due to maintenance of oil and gas wells in Malaysia and a reduction in international crude oil prices throughout 2025,” it said in a written reply published on the Parliament website on Tuesday.

Miti was responding to Datuk Seri Dr Ahmad Samsuri Mokhtar (PN–Kemaman) regarding the current effects of free trade agreements (FTAs), particularly the RCEP and CPTPP, on Malaysia’s major exports such as palm oil, electronics and petroleum, as well as the government’s measures to assess the risk of new US tariffs on regional supply chains and Asean’s role as an alternative market.

Meanwhile, the ministry stated that exports to RCEP member countries for January to September 2025 showed a marginal increase of 0.1% to RM612.01 billion, with exports of palm oil and palm-based products up 6.2% to RM15.37 billion and E&E exports up 13.5% to RM227.58 billion.

“Exports of petroleum and petroleum products contracted by 19.7% to RM64.25 billion in line with the overall decline in the country’s petroleum and petroleum product exports,” it said.

According to Miti, the increase in Malaysian exports to CPTPP and RCEP member countries in the current uncertain global trading environment demonstrates the country’s strong export resilience and also the importance of Malaysia securing market access and trade facilities through those FTAs.

“Integrated market access among Asean countries and Asean’s dialogue partners under the RCEP, together with trading networks with CPTPP members such as Canada, Mexico and Peru, has created alternative markets to diversify Malaysia’s export opportunities,” it said.

Bilateral trade between Malaysia and the United States, which is also the country’s largest export market, in 2024 recorded RM325 billion, with Malaysia’s exports valued at RM198.65 billion.

Miti pointed out that the government took steps to strengthen trade relations with the US through the Agreement of Reciprocal Trade (ART) as it recognised the negative impact of high tariffs on the country’s exports.

“If high reciprocal tariffs are imposed, they would have a negative impact on the country’s industrial ecosystem as well as on regional and international supply chains,” it added.