Kuala lumpur: The sanctions imposed by China on several United States defense companies following arms sales to Taiwan at the end of 2025 do not have a direct impact on trade and foreign direct investment (FDI) into Malaysia, particularly in the electrical and electronics (E and E) sector. The Investment, Trade and Industry Ministry (MITI) conveyed this in a written reply to the Dewan Rakyat, which was published on Parliament's portal today.

According to BERNAMA News Agency, assessments conducted by the government and MITI took into account the structure of Malaysia's E and E sector, which is primarily driven by manufacturing activities and commercial applications. The ministry highlighted that Malaysia's E and E sector showcased resilient and dynamic performance throughout 2025, as evidenced by data from the Malaysia External Trade Development Corporation (MATRADE). The country's E and E exports to the United States increased by 21.3 percent to RM145.75 billion, with semiconductors contributing RM63.89 billion. This indicates investor and trading partner confidence in Malaysia and underscores the strength and mutual benefits of trade relations with both the US and China.

The ministry's statement was in response to a query from Datuk Seri Ahmad Samsuri Mokhtar (PN-Kemaman) concerning the potential impact on trade and FDI, particularly in electronic products, following China's sanctions on several US defense companies. MITI also noted that from 2021 to September 2025, the E and E sector in Malaysia saw approved investments totaling RM340.5 billion across 645 projects, with foreign investments accounting for RM328.1 billion. This further signifies continued investor confidence in Malaysia as a destination for high-technology investments.