KUALA LUMPUR - Cambodia and Malaysia recorded total trade of RM4.5 billion (USD1.1 billion) last year, marking a new high and reflecting long-standing cooperation between the two countries, Bernama reported.

Provisional data from Cambodia’s General Department of Customs and Excise showed that from January to December 2025, Cambodia imported RM3.8 billion (USD935.3 million) worth of goods from Malaysia.

During the same period, Cambodia’s exports to Malaysia amounted to RM583.86 million (USD143.6 million).

Overall bilateral trade expanded by 24.7% from RM3.5 billion (USD865.7 million) in 2024, underscoring strong year-on-year growth.

The upward trend highlights the steady development of trade ties since the 1990s, when Malaysian companies entered Cambodia soon after the country emerged from civil war.

Phnom Penh based independent socio-economic researcher, Dr Chey Tech said long-standing diplomatic ties and rising market demand have strengthened trade between Cambodia and Malaysia, especially in recent years.

“For over 20 years, both countries have built strong diplomatic and trade relations and also trust. 

“There is more demand for Malaysian goods from the Cambodian market, especially after the border conflict with Thailand,” Dr Chey told Bernama.

Strong diplomatic and economic ties between Malaysia and Cambodia have also fostered movement of people between the two countries. 

According to Cambodia’s Ministry of Labour and Vocational Training, about 22,000 Cambodian migrant workers were employed in Malaysia as of 2023, mainly in sectors such as construction, manufacturing and domestic work. 

Cambodians are also part of a broader diaspora of more than 1.3 million overseas workers, supporting their families and linking the two economies further.

A key turning point in bilateral relations came with Former Prime Minister Tun Dr Mahathir Mohamad’s visit to Cambodia on April 14, 1994, which helped reshape diplomatic and trade engagement.

What began with exports of basic consumer goods such as mosquito coils, tobacco and beverages has since grown into wider cooperation in telecommunications, banking, healthcare, infrastructure, retail and manufacturing.

Malaysia is currently Cambodia’s seventh-largest source of imports among 20 major trading partners.

Regional trade frameworks such as the Regional Comprehensive Economic Partnership (RCEP) and ASEAN membership continue to support trade growth, with Cambodia’s trade with RCEP members reaching RM162 billion (US$40 billion) last year.

“Relations between Cambodia and Malaysia have improved much recently and thanks to Prime Minister, Datuk Seri Anwar Ibrahim, as the ASEAN chair last year, who significantly contributed to the good relations.

“There are ample opportunities for Malaysian companies to invest in Cambodia, especially in the agriculture, food processing, tourism, electronics and automotive sectors,” said Dr Chey.

Meanwhile, the Asian Development Bank has forecast Cambodia’s economy to grow by about 5% this year, providing a supportive backdrop for further trade expansion.