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Malaysia's Fastener Trade Deficit Widens, with China Being Top Import Source

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2026-02-05
     From January to September 2025, Malaysia's fastener trade showed persistent losses, with imports nearing USD 490 million against USD 260 million in exports—the former 1.9 times the latter, resulting in a clear deficit. Third-quarter 2025 imports surged while exports held steady, underscoring local capacity struggles to meet booming manufacturing needs.
 
     Exports remained resilient, averaging USD 26-35 million monthly, peaking at USD 31.57 million in August 2025, affirming international competitiveness. Imports accelerated sharply, hitting a nine-month high of USD 59.08 million in September 2025 (about 59,080 tons; Q2 2025 hovered around USD 55 million, on an upward trend.
 
     The widening gap stemmed from manufacturing recovery and infrastructure projects boosting demand for high-strength fasteners, Malaysia's Southeast Asian hub status fueling re-export trade, and global supply chain shifts driving industrial imports. China led as the primary source, bolstering Malaysian local chains. This signals a Southeast Asian manufacturing boom, urging Malaysia to accelerate localization and narrow the shortfall.
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