KUALA LUMPUR: Malaysia will continue to support and attract foreign direct investments (FDI) from any country, including the United States and China, despite concerns about US tariffs imposed on certain countries.
International Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the US remains an important trading partner for Malaysia, serving as the top export destination, followed by China.
“Over the past nine months, US companies have been the largest source of foreign investments in Malaysia. We continue to actively engage with key US stakeholders, institutions and agencies through various platforms.
“While there are always areas for improvement, our trade and investment relations remain stable and unchanged. Additionally, we have undertaken preparatory measures to address any potential policy changes, though none have been initiated at this time,” Tengku Zafrul told reporters at the South China Morning Post China Conference Southeast Asia 2025 today.
He said that while many believe it is inevitable, Malaysia remains committed to ongoing engagement with the US.
“We aim to understand their concerns and explore ways to mitigate issues such as trade deficits, technology challenges, and areas for closer collaboration. This remains the position of our ministry. In fact, I am planning a visit to the US to further engage with American investors and strengthen trade relations between our two countries, Tengku Zafrul said.
Touching on Asean, he said despite the decline in global FDI, Asean has remained a net recipient of FDI from both China and the US, with investment flows into the region continuing on a positive trajectory.
This trend, he added, is driven by companies realigning their supply chains, often reflecting the evolving geopolitical landscape in today’s diverse world.
“Malaysia firmly believes in multilateralism and the existing platforms that support it. Asean’s continued neutrality is crucial, and we are committed to maintaining this balanced approach as a region. Regarding concerns such as US restrictions on technology, Malaysia and other Asean countries have the legal frameworks to address these challenges,” Tengku Zafrul said.
He also said Malaysia’s strong trade relationships with Hong Kong, Asean and China present numerous opportunities for collaboration.
“Hong Kong remains a key trading partner for both Asean and Malaysia, and we are committed to maintaining and strengthening this engagement. With existing FTAs between Asean and China and between Asean and Hong Kong, we aim to enhance these ties further.
“As industries continue to evolve and shift, Hong Kong is well-positioned to play a crucial role in supporting and mitigating these changes. It remains a significant trading partner for the region and Malaysia alike,” Tengku Zafrul said.
The conference took place in Malaysia as the country takes centre stage this year as the Chair of Asean. It examined the China-Asean relationship amid an uncertain global environment and discussed the strategic importance of stronger ties between China, the world’s second-largest economy, and Asean, the world’s most dynamic economic bloc.
