Envoy says beneficial economic ties between US and Malaysia set to continue, even with Trump administration

Malay Mail

GEORGE TOWN, Dec 5 — United States envoy Edgard D. Kagan has today downplayed the impact of the upcoming Donald Trump presidency on the country’s ties with Malaysia, saying it will continue to benefit both sides.

However, the US ambassador to Malaysia conceded that the exact details of the new administration’s policies will not be known until it takes over in January next year.

“I think that it’s very clear, and this has been true from both candidates, that there is a strong desire to increase manufacturing jobs in the United States, and there’s an effort to look for a mix of policies that will do that.

“I think that that is very, very clear that that is going to be an important goal for the incoming administration, based on what they’ve said during the campaign,” he told reporters after delivering a talk on the US-Malaysia economic partnership at the Penang Institute here.

“I feel very confident that you’re not going to see a fundamental destruction or major change in the relationship,” he added, when explaining how the trade ties are set to continue.

As for concerns on tariffs being imposed on Malaysian-made semiconductor items, such as those that contained certain Chinese products, Kagan said the integrity of supply chains is critical when it comes to this.

He said it is very dangerous for any country to become a vehicle or locale for mislabelling of goods.

“There is a perception, and I think it has been largely correct, that Malaysia does offer a great deal of integrity in terms of supply chains,” he said, adding that this was one of the reasons that made Malaysia a very attractive destination for US investments.

He welcomed recent remarks by Deputy Minister of Investment, Trade and Industry, Liew Chin Tong, that Malaysia will not be a vehicle or a locale for mislabelling of goods.

He said the integrity of supply chains also means protecting of intellectual property, and that it is also critical for companies that are operating at the cutting edge of technology.

“You do not want to be operating in a place where your intellectual property can be stolen. And in that regard, Malaysia has a tremendous advantage because of the fact it has a 5G network that has trusted technology and trusted suppliers,” he said.

Kagan said it is also worth to remember that a lot of companies started moving out of China based on concerns about intellectual property rights (IPR) that would have happened regardless of the geopolitical tension.

Earlier, in his speech, Kagan said that since 2021, US companies have announced over RM200 billion in new investments in Malaysia.

He said Malaysia, especially Penang, has one of the world’s major ecosystems in technology.

“So I think that it is worth keeping in mind that Penang’s strength isn’t just the policies towards the manufacturers, towards MNCs,” he said, referring to multinational companies.

He said it is also the talents that have led to the development of a sophisticated and resilient ecosystem, which made Malaysia attractive in a way that went beyond whatever incentives offered by the government.

He said Malaysia is very much the centrepiece of Southeast Asia, and it is a critical region for the United States.

“It is worth keeping in mind that US exports have increased significantly as well as US imports,” he said.

He said US remains the largest investor in Southeast Asia and the largest foreign investor.

According to data released by the US Embassy, Malaysia’s exports to the US increased 19.1 per cent in 2024.

Malaysia’s exports to US totalled RM159.4 billion in 2024. The US-Malaysia two-way goods trade increased 29.1 per cent in 2024.

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