Opinion: The US$7.2 tril shift — What the Global South means for Malaysian business

MALAYSIA, 22 SEPTEMBER 2026 —

Malaysia’s trade with Africa surged to RM6.06 billion in 2025, a 9.9% increase, as the country’s commerce shifts beyond Asia toward a US$7.2 trillion Global South opportunity.

The United Nations’ International Day for South-South Cooperation marks an annual reminder of economic solidarity among developing nations, but Malaysia’s engagement with Africa reveals a more commercial reality.

While Malaysia’s total merchandise trade hit RM3.061 trillion in 2025—ASEAN alone accounted for RM777.61 billion (25.4%) and China RM542.2 billion (17.7%)—the country’s growing exports to Kenya (up 9.9% to RM6.06 billion), Nigeria (13.6% to RM2.85 billion), Tanzania (38.8% to RM2.02 billion), Togo (27.6% to RM1.82 billion) and Angola (18.9% to RM1.06 billion) signal a deliberate expansion beyond traditional markets.

Africa also became Malaysia’s top regional destination for direct investment abroad (DIA) in 2025, attracting RM7 billion—mostly in oil and gas—though this remains a fraction of Malaysia’s total DIA of RM589.3 billion, with RM339 billion still concentrated in Asia. The shift is modest but deliberate, mirroring broader trends where competitors like the UAE, Türkiye and India are aggressively positioning themselves across the continent.

The UAE has invested US$60 billion (RM245 billion) in Africa, with US$4.5 billion allocated to clean energy, while Turkish contractors have executed over 2,000 projects worth US$100 billion. India’s exports to Africa reached US$36.7 billion in 2025, spanning pharmaceuticals, automotive manufacturing and IT. These nations combine trade with long-term investment, infrastructure development and technological transfer—approaches Malaysia could replicate.

PETRONAS demonstrates Malaysia’s existing capabilities. In Brazil, it operates an integrated energy chain from upstream production to fuel retail, supplying 20 Latin American markets. In Africa, PETRONAS has decades of upstream experience in Egypt, Sudan, Mozambique and Gabon, while its marine fuels reach South Africa, Mauritius and Namibia. SD Guthrie International’s South African refinery and Top Glove’s pan-African sales further prove Malaysian firms can build regional distribution networks.

Yet these successes remain fragmented. Malaysia’s 17 free-trade agreements (FTAs) cover Asia, the Pacific and the Middle East, but none extend to Africa. While Prime Minister Datuk Seri Anwar Ibrahim highlighted deeper Africa-Latin America ties at the 2025 ASEAN Summit, no FTA negotiations have been announced. India, however, just signed terms of reference with the Southern African Customs Union (SACU) to negotiate preferential access for automobiles, pharmaceuticals and textiles—sectors where Malaysian companies compete.

The question is no longer whether Malaysia can enter Africa’s markets, but how to scale its presence systematically. The Edge argues Malaysia should shift from asking “What can we export?” to “What can we build together?”—leveraging its strengths in halal food processing, Islamic finance, digitalisation and infrastructure. The US$7.2 trillion Global South opportunity is real, but seizing it requires more than trade; it demands partnerships that create shared value.

Malaysia’s experience in Asia proves it can do this—now it must apply those lessons beyond its borders.

Related: PETRONAS · Department of Statistics Malaysia · Datuk Seri Anwar Ibrahim · Malaysia