GEORGE TOWN: There will not be any major changes in the economic relations between the United States (US) and Malaysia under the new leadership, said US Ambassador to Malaysia Edgard D Kagan. Although the exact details of the US new administration’s policies will not be known until January 2025, he is confident that the economic relations, which generate tremendous benefits for people in both countries, will continue.
According to BERNAMA News Agency, Kagan expressed that while the specifics of policies will remain unclear until the new administration assumes office, the desire to boost manufacturing jobs in the US is evident among both presidential candidates. He emphasized this point during his speech on US-Malaysia economic ties at the Penang Institute, noting efforts to find a balanced approach to achieving this goal.
Donald Trump, having previously lost the 2020 presidential election to Joe Biden, is set to make a comeback with a second term as the US president after defeating Democratic vice-president
Kamala Harris in the recent election. His official inauguration is planned for January 20, 2025, at the US Capitol in Washington.
Kagan highlighted the significant growth in US-Malaysia two-way goods trade, which increased by 29.1 percent in 2024. He suggested that if this upward trend continues, Malaysia might soon become the US’s third-largest trading partner in the ASEAN region. He stressed that beyond numbers, the growth signifies strengthening ties, trust, and cooperation between American and Malaysian firms, as well as multinational companies operating within Malaysia.
The ambassador further noted how US investments have generated nearly 312,815 jobs in Malaysia, with the country’s exports to the US growing by 19.1 percent this year. He emphasized the role of US exports to Malaysia in supporting the MADANI Economy by equipping Malaysian businesses with advanced technology and manufacturing capabilities, thus enabling them to produce more sophisticated products and move up the value chain.
Regarding M
alaysia’s imports of capital goods from the US, Kagan pointed out that the highest growth areas in 2024 were aircraft components, aerospace equipment, semiconductor and wafer manufacturing equipment, and electronic integrated circuits. He also underlined the robust economic ties between the two countries, mentioning over RM150 billion worth of foreign direct investments since 2021, with the US being Malaysia’s second-largest export market.