The global artificial intelligence boom has boosted electronics shipments from Southeast Asian technology hubs, pushing their overall exports to historic highs despite the supply chain shock emanating from the Middle East.
According to data released on May 20 by Malaysia’s Ministry of Investment, Trade and Industry, the country’s exports of electrical and electronic goods in April climbed 46.4% year-on-year to a record MYR 88.16 billion (USD 22.2 billion).
The spike was “primarily supported by strong demand from the artificial intelligence and automotive electronics segments,” the ministry said in its statement.
Malaysia is known for semiconductor packaging processes. With the electrical and electronics segment accounting for 48% of its total exports, overall shipments jumped 36.9% year-on-year, the fastest pace of growth in nearly four years, to MYR 182.74 billion (USD 46.1 billion), a record for any month.
Since the US war with Iran broke out in late February, the effective closure of the Strait of Hormuz has pushed up oil prices, clouding global logistics. But the latest trade data suggests the recent technology upcycle, which has already benefitted leading chipmakers, is outweighing the impact of the Middle East shock.
“Malaysia’s trade maintained its stellar performance” despite higher logistics costs, supply chain disruptions, and commodity price volatility, the ministry said.
By destination, Taiwan, Asia’s leading semiconductor production hub, grew fastest, up 86% from a year earlier, thanks to strong exports of electronics as well as optical and scientific equipment.
Malaysia also expanded its exports to the US and China, each up 39%, and to Vietnam, by 65%.
Southeast Asian manufacturing hubs like Malaysia have increased their presence in recent years, particularly as the trade rivalry between the US and China intensified.
To circumvent US tariffs, Chinese companies in sectors such as batteries, semiconductors, and solar energy have sought alternative production and export channels in Southeast Asia, which may be one factor supporting Malaysia’s increased exports to the US
Apparently reflecting these moves, Malaysia’s trade data showed that re-exports in April doubled from a year earlier, contributing to the overall growth.
In neighboring Singapore, April exports also grew strongly. The city-state’s benchmark nonoil domestic exports surged 24.5%, Enterprise Singapore announced on May 18, marking the fastest pace since February 2012.
Electronic exports rose 66.7%, “supported by robust AI-related demand,” the statutory board said. Shipments of integrated circuits jumped 82.7% year-on-year, disk media products increased 2.5-fold and personal computer exports rose 35.7%.
Electronics shipments to the US increased 224% from a year earlier, those to South Korea gained 214% and to Taiwan 118%.
“Robust global AI demand should continue to underpin electronics exports, particularly in semiconductors,” Mohamed Afham Zulghafir, an economist at CGS International, said of Singapore’s outlook.
Likewise, in Thailand, which is expected to release its April trade data in the next week or so, electronics are expected to lead exports in the coming months.
In Thailand’s first-quarter gross domestic product announcement on May 18, the National Economic and Social Development Council revised up its full-year export growth projection in dollar terms to 9.6% from the previous 2%, citing “increasing demand for advanced technology-related products, which is expected to support continued expansion in exports of electronics and electrical appliances.”
However, economists are cautiously monitoring the impact of the crisis in the Middle East.
CGS International’s Zulghafir pointed out that lingering tensions in the Middle East may lead to more cautious inventory restocking and softer trade-financing flows.
Meanwhile, Julia Goh, a senior economist at United Overseas Bank, said operating conditions in the manufacturing sector are expected to worsen due to logistics disruptions. “Although firms are sourcing alternatives,” she said, “substitutes may be delayed or fail to meet required specifications.”
This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.
Note: MYR figures are converted to USD at rates of MYR 3.96 = USD 1 based on estimates as of May 22, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.