Kuala lumpur: American investors should explore and expand their investments throughout Malaysia, including Sabah and Sarawak, and not confine themselves to the established hubs such as Kuala Lumpur and Penang. Outgoing US Ambassador to Malaysia, Edgard D. Kagan, emphasized this during a recent exclusive interview with Bernama.
According to BERNAMA News Agency, Kagan highlighted the immense investment potential nationwide, with significant opportunities in data centers in Johor and industrial development in Kedah. He urged American investors to broaden their focus and consider other regions within Malaysia for their ventures. 'They should not focus only on KL or Penang, but seek opportunities across the country, including Sabah and Sarawak,' he stated.
Kagan, who has served as US Ambassador to Malaysia since December, is set to join a Washington think-tank specializing in Asian studies. As he transitions to this new role, he aims to continue strengthening US-Malaysia relations, albeit in a private capacity. He noted Malaysia's key strengths, such as its talent pool, infrastructure, and integration into Western supply chains, which continue to attract long-term US investments.
He pointed out Malaysia's position as a major source of semiconductors for the US, with Malaysian products being a crucial component of American supply chains. 'The clearest proof of this is that last year, despite the global turbulence, Malaysia's exports to the US grew by 14 per cent,' Kagan noted.
According to the Investment, Trade and Industry Ministry (MITI), trade with the US recorded a second consecutive year of growth in 2025, expanding by 13.0 per cent to RM367.47 billion from a year ago. This accounted for 12.0 per cent of Malaysia's total trade, with exports reaching a new high of RM233.08 billion, driven by demand for electrical and electronics products, machinery, equipment and parts, processed food, and metal manufactures.
Kagan also emphasized the broader impact of American investments, highlighting how US companies have played a significant role in nurturing local talent. He noted that several Malaysians who began their careers with American firms now lead multinational businesses as top executives. 'It is not insignificant that the chief executive officers of Broadcom Inc and Intel Corporation are Malaysians who started their careers working for American companies in Malaysia,' he remarked.
Looking ahead, Kagan expressed optimism about the future of US-Malaysia bilateral ties, particularly as Malaysia moves towards fully implementing the Agreement on Reciprocal Trade (ART) signed on Oct 26, 2025, at the ASEAN Summit. He stressed the potential benefits for rural Malaysians, citing increased economic opportunities from two-way investments.
While the ART was signed on the sidelines of the 47th ASEAN Summit hosted by Malaysia, it has yet to come into force due to Malaysia needing to clarify key terms before ratification, amidst concerns over sovereignty. Kagan acknowledged Malaysia's process and expressed Washington's desire for the agreement to take effect promptly. 'We believe that the exchange of letters, which triggers that process, should take place as soon as possible so that both countries can begin to enjoy the benefits,' he concluded.