Business Pulse Malaysia: Trade Starts 2026 Strong, Data Centres Tighten Rules, and Exporters Watch U.S. Tariffs

B2B Asia News Business Pulse provides a weekly overview of the main business developments, industrial shifts and regulatory updates defining the current economic landscape in key markets driving regional growth.

Looking at the main business stories in Malaysia this week, the country is riding strong export momentum into 2026 while navigating a tighter regulatory environment for digital infrastructure and fresh uncertainty from evolving U.S. trade policy.

Trade & Industry: January Exports Lead the Start of 2026

Malaysia's January 2026 trade performance signalled a confident opening to the year. Total merchandise trade expanded 12.6 per cent year-on-year to RM 272.4 billion (~USD 70.1 billion), with exports up 19.6 per cent to RM 146.9 billion (~USD 37.8 billion) and imports up 5.3 per cent to RM 125.5 billion (~USD 32.2 billion), lifting the trade surplus to RM 21.4 billion (~USD 5.5 billion).

Electrical and electronics (E&E) shipments were the primary export engine, contributing a RM 20 billion lift (~USD 5.1 billion), while the strongest bilateral gains were recorded with the United States (+RM 5.8 billion or ~USD 1.49 billion), Taiwan (+RM 4.4 billion or ~USD 1.13 billion), and Hong Kong (+RM 4.3 billion or ~USD 1.10 billion). For manufacturers and exporters, the results reinforce Malaysia's role in higher-value supply chains, particularly in electronics and re-exports.

Digital Infrastructure: Non-AI Data Centres Face a Higher Bar

Malaysia sharpened its stance on data centre expansion this week. Prime Minister Anwar Ibrahim announced that approvals for new data centres unrelated to artificial intelligence (AI) have been restricted, citing pressure on electricity and water supply. AI-linked projects will continue to be prioritised.

The policy shift points toward a more structured approval environment in which energy efficiency, cooling solutions, and infrastructure readiness are expected to become substantive decision criteria, particularly for large builds in key corridors such as Johor. On the corporate side, Johor's pipeline continues to progress, including new contracts tied to mission-critical infrastructure supporting data centre operations.

Policy Signal: MITI Flags U.S. Tariff Uncertainty

Malaysia's trade policymakers moved quickly following a U.S. Supreme Court decision on February 20, 2026, with the Ministry of Investment, Trade and Industry (MITI) stating that Malaysia is assessing U.S. legal and policy developments and awaiting clarity on implementation of a temporary 10 per cent tariff measure announced by President Trump.

MITI underscored the stakes for Malaysian business. Total bilateral trade between Malaysia and the United States reached approximately RM 367 billion (~USD 94.3 billion) in 2025, with exports accounting for around RM 233 billion (~USD 59.8 billion), making the U.S. one of Malaysia's most significant trade partners and rendering predictability on trade rules critical for exporters and investors.

Markets: Ringgit Supported as Tariff Headlines Weigh on the Dollar

Regional foreign exchange sentiment improved as tariff-related uncertainty softened the U.S. dollar, with the ringgit gaining approximately 0.4 per cent in the cited session alongside broader emerging market Asia currency strength. 

Equities were more mixed locally, with the FBM KLCI recording back-to-back softer sessions amid rotation and global technology cues, even as turnover remained active.

Governance & ESG: Enforcement and Institutional Credibility in Focus

Two parallel governance developments surfaced this week. On anti-graft oversight, a key coalition partner called for a royal commission of inquiry into misconduct allegations involving the Malaysian Anti-Corruption Commission (MACC), adding to public scrutiny around enforcement integrity and institutional credibility. 

On environmental enforcement, authorities intercepted 186,737 kg of illegal e-waste at Port Klang, reportedly valued at over RM 2.15 million, involving misdeclared shipments and prompting follow-up investigations and repatriation plans.