Mexico - Malaysia Trade 2023 Q1: Deficit & Tech Dominance

Key Market Takeaways: Mexico - Malaysia Trade

The bilateral trade relationship between Mexico and Malaysia is marked by a heavy reliance on Malaysian imports, with exports playing a marginal role in Q1 2023.

• Trade Deficit Dominates: Mexico ran a $2.95B deficit with Malaysia (imports: $3.01B vs. exports: $63.93M), despite strong YoY export growth (+14-36%).
• Intra-Industry Tech Trade: Mexico - Malaysia trade statistics reveal deep supply chain integration, with electrical machinery (HS 85) dominating both sides (48.87% of exports, 74.19% of imports).
• Asymmetrical Dependency: Malaysia holds a higher value-add position, supplying critical tech (HS 85, 84, 90) while Mexico’s exports remain niche.

This bilateral trade snapshot is based on verified customs data from the yTrade database.

Mexico-Malaysia Trade Trend in Q1 2023

Mexico Export Performance: Shipments to Malaysia

• Total Volume: $63.93M in Q1 2023.
• Growth Trend & Context:
  • Strong YoY growth (+14.44% in Jan, +14.49% in Feb, +36.18% in Mar), signaling sustained demand.
  • No specific trade news to explain the surge.
• Key Volatility: March saw the highest MoM rise (+12.2%) and YoY jump (+36.18%).

Mexico Import Performance: Sourcing from Malaysia

• Total Volume: $3.01B in Q1 2023.
• Growth Trend & Context:
  • Mixed YoY performance: +7.94% in Jan, but contractions in Feb (-17.82%) and Mar (-12.4%).
• Key Volatility: February recorded the sharpest MoM rebound (+6.31%) after a January dip (-6.32%).

Mexico - Malaysia Trade Balance & Market Dynamics

• Net Position: Mexico ran a trade deficit of ~$2.95B (Imports $3.01B > Exports $63.93M).
• Relationship Status: Heavy reliance on Malaysian imports, with exports playing a marginal role.

Mexico Import Trend from Malaysia 2023 Q1 (Source: yTrade)**

Mexico Export Trend to Malaysia 2023 Q1 (Source: yTrade)**

Get Historical Mexico Malaysia Trade Records

Mexico-Malaysia Top Trading Products in Q1 2023

Mexico Export Profile: What Does Mexico Sell to Malaysia

• Top Commodity: Electrical machinery (HS 85) dominates with 48.87% share.
• Demand Driver: Malaysia likely uses these for industrial processing, given the high share of machinery and metals (HS 76, 74).
• Concentration: Trade is highly concentrated, with HS 85 and HS 99 (33.15%) accounting for 82% of exports.

Mexico Import Profile: What Does Mexico Buy from Malaysia

• Top Commodity: Electrical machinery (HS 85) leads at 74.19% share.
• Dependency Nature: Critical technology dependency, as HS 85, 84, and 90 (high-tech categories) comprise 84% of imports.

Mexico - Malaysia Trade Relationship Dynamics

• The Exchange Model: Intra-Industry Trade in electrical machinery (HS 85) dominates both sides, suggesting deep supply chain integration.
• Value Chain Position: Malaysia holds a higher value-add position, given its larger export volume and share in advanced categories (HS 85, 84, 90).

Import Analysis by Product: Malaysia to Mexico (Source: yTrade)

Export Analysis by Product: Mexico to Malaysia (Source: yTrade)

Check Detailed Mexico-Malaysia Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Mexico’s trade with Malaysia is poised for continued growth in 2023, driven by strong demand for electrical machinery (HS 85) on both sides. The double-digit YoY export growth signals Malaysia’s reliance on Mexican industrial inputs, while the persistent trade deficit highlights Mexico’s dependence on Malaysian high-tech imports. However, the volatility in import figures suggests potential supply chain adjustments ahead, particularly in electronics and precision equipment. Traders should expect deeper integration in HS 85 trade but prepare for short-term fluctuations in Malaysia’s import appetite.

Strategic Moves

• Diversify Export Markets: Mexican exporters must reduce reliance on HS 85 and HS 99 by targeting emerging sectors in Malaysia, such as automotive components or medical devices, to balance the trade deficit.
• Secure Long-Term Tech Contracts: Importers should lock in favorable terms for critical Malaysian electronics (HS 85, 84) to mitigate price volatility and ensure stable supply chains.
• Optimize Logistics for JIT Efficiency: Both nations’ firms must streamline cross-border shipping and inventory management to capitalize on intra-industry trade, minimizing delays in high-value machinery exchanges.

Frequently Asked Questions

How did Mexico - Malaysia trade perform in 2023 Q1?

Mexico's exports to Malaysia grew strongly (+14.44% YoY in Jan, +36.18% in Mar), totaling $63.93M, while imports from Malaysia were mixed, reaching $3.01B.

What are the top exports from Mexico to Malaysia?

Electrical machinery (HS 85) dominates Mexico's exports to Malaysia, accounting for 48.87%, followed by HS 99 (33.15%), reflecting high concentration in industrial goods.

What does Mexico import from Malaysia?

Mexico primarily imports electrical machinery (HS 85) from Malaysia, making up 74.19% of total imports, alongside other high-tech categories like HS 84 and 90.

What is the trade balance between Mexico and Malaysia?

Mexico recorded a trade deficit of ~$2.95B with Malaysia in Q1 2023, driven by significantly higher imports ($3.01B) than exports ($63.93M).