KUALA LUMPUR: Malaysia has significant investments in the United States including RM34.4bil (US$8.2bil) across several sectors, says Prime Minister Datuk Seri Anwar Ibrahim.
He said these investments span the energy, chemical, food, logistics, and high technology sectors.
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"In addition, investments linked to the Malaysian government in the US bond and capital markets amount to RM182.7bil (US$43.5bil)," he said during the special Dewan Rakyat sitting on Monday (May 5).
"These bilateral investment commitments are mutually beneficial and prove that Malaysia is not merely a trading partner but also an active contributor to US economic growth," he added.
The US accounted for 11% of Malaysia's total trade, with trade between the two countries in 2024 amounting to RM325bil.
Malaysian exports to the country stood at RM199bil, accounting for 13% of total exports.
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Imports from the US were valued at RM126bil, representing 9% of total imports.
Malaysia recorded a trade surplus of RM72bil with the US.
"In terms of investment, the US is the biggest foreign investor in Malaysia. Since 1980 until last year, a total of 974 manufacturing projects involving US investors worth RM166bil have been established, creating over 200,000 jobs for Malaysians," he said.
Anwar then dismissed claims by the US that Malaysia imposes a 47% tariff on US imports, saying that this calculation does not reflect reality or proper economic theory.
He said the 2025 National Trade Estimate Report on Foreign Trade Barriers, published by the President of the United States on March 31, shows the tariff rate is actually 5.6%, not 47% as claimed.
Nevertheless, Anwar acknowledged that the reciprocal tariffs could impact Malaysian exports and affect GDP growth, as the US is a major trading partner.
"The government’s position is that any trade challenges must be handled pragmatically, centred around national interest, while maintaining good relations with trade partners," he said.
He added that negotiations with the US are bound by a Non-Disclosure Agreement (NDA) in line with international standards, especially as it involves strategic and sensitive issues.
"If there are policy proposals requiring approval, they will go through a review process in the Cabinet and, if needed, will be brought to Parliament," he said, adding that the government would review GDP growth projections once there's more clarity on the tariff situation.
Anwar said Malaysia is diversifying markets by strengthening trade ties with new partners, enhancing existing relations, and exploring options with BRICS and the Gulf Cooperation Council (GCC).
He added that some efforts have borne fruit, with exports to ASEAN growing by 4.2% year-on-year and 2.6% with the European Union.
Exports to non-traditional markets such as Egypt, Pakistan, and Cambodia have also grown significantly by 53.6%, 29%, and 30.1% respectively.
On this, Anwar then added that the government’s foreign trips have helped in this regard.
