This is due to 50 years of shared history, trust of American firms, says diplomat
INVESTING in Malaysia makes financial sense for American businesses, says Deputy Investment, Trade and Industry Minister Sim Tze Tzin.
He said Malaysia offered tax incentives, reliefs, investment facilitation and other support to ensure US investments were protected and generated returns.
Citing the American Malaysian Chamber of Commerce’s (Amcham) Economic Impact Survey, Sim said US companies had created tens of thousands of skilled engineering and technical jobs in Malaysia.
“Most of the senior vice-presidents, plant managers and chief engineers at major tech plants in Penang are homegrown Malaysian talent who started their careers on the factory floor.
“US firms have also helped thousands of Malaysian vendors grow into mature, publicly listed global suppliers,” he said at Amcham’s Penang Dialogue in George Town.
Sim said Malaysia must continue leveraging its industrial ecosystem, skilled workforce, infrastructure and market access to attract quality US investments.
Despite global uncertainties, he said Malaysia had performed well.
He said US direct investment stock in Malaysia over the past three years stood at between US$10bil and US$12bil (RM40.87bil to RM49.05bil).
“Every year, these investments generate billions of dollars in net profits that flow back to parent companies in the United States, supporting American shareholders as well as research and development.
“Malaysia exports hardware and microchips to the US, while also being a major consumer of American digital services and technology.”
He said according to the Statistics Department, Malaysia, had imported more than RM81bil worth of services from the US last year, making it the largest source of imports.
“Last year, Malaysia’s exports to the US surged 17.2% to more than RM233bil, making the American market our second-largest export destination globally,” he said.
Looking ahead, Sim said Malaysia should not be viewed merely as an assembly line or market.
“We want to be a strategic partner that builds local industries and connects them with small and medium-sized suppliers.
“Bring in your advanced design, research and development capabilities, and help us train our young engineers in artificial intelligence and green technology.
“When you help local industries grow, you build a stronger and more reliable supply chain,” he highlighted.
Penang Chief Minister Chow Kon Yeow, who was also present, said more than 100 American companies now called Penang home.
“From 2020 to the first half of 2026, Penang attracted RM18.2bil in approved US manufacturing foreign direct investment, accounting for 38% of the national total.
“On trade, of the RM177.7bil worth of electrical and electronic products Malaysia exported to the US, RM155.4bil, or 87%, came from Penang.
“For every RM10, close to RM9 came from Penang,” he said.
Amcham chief executive officer Datuk Siobhan Das said the US government through its embassy, long-established American businesses in Malaysia and the chamber provided a platform for collaboration.
According to her, American companies pay 2.2 times the wage paid by Malaysian companies and employees benefit from a career path within the ecosystem of American multinational companies.
“It gives them the opportunity to earn more and advance in their careers.
“Although training is provided, the companies still rely on the Malaysian government to produce students who are ready to enter the workforce.
“There needs to be a talent pipeline ready, as there is always a talent gap especially in today’s world where technology is moving so fast,” she said.
While acknowledging this was a global issue, Siobhan said Malaysia needed to find a solution to increase its talent pool.
US Embassy Charge d’Affaires to Malaysia David H. Gamble said in a year marked by tariffs, wars, oil flow disruptions, and supply chain rebalancing, Malaysia had emerged a winner.
He said there had been a growth in profits and increased purchases from local suppliers.
“The relationship between Malaysia and the United States is getting stronger, which is profitable to all parties.
“This is only possible because of our 50 years of shared history and the trust the United States has in transferring our technology to companies and to Malaysians who take good care of it.”
He said that while things were shifting, profits in Malaysia were increasing and 94% of the American companies here had either kept their investments or added to them.
“Penang has been the anchor of the highest technology cooperation between the United States and Malaysia.
“Other states share in this prosperity but Penang is pushing the boundaries of technology and advanced production.
“Here, the medical device industry is growing rapidly.
“Penang is at the heart of it, considering it produces 50% of the pacemakers that go to the United States,” he said.
US ambassador to Tunisia Bill Bazzi said many companies wanted to invest in Malaysia or expand here as their biggest need was trust.
“Their need is to be able to trust that the technology will stay here.
“In Malaysia, you have that 50 years of trust that can be leveraged for future investments.”
Also present at the dialogue was Amcham chairman Datuk Timothy Garland.
