Trump’s Malaysia Visit Heralds Stronger US-Malaysia Ties

By Rosemarie Khoo Mohd Sani

KUALA LUMPUR, Nov 1 (Bernama) -- The recent visit by United States President Donald Trump to Malaysia has re-energised the long-standing relationship between the two countries, laying a stronger foundation for cooperation in trade, investment and technology.

US Ambassador to Malaysia Edgard D. Kagan described the visit as “overwhelmingly positive”, saying it has restored strategic depth and renewed popular support for bilateral ties, marking a turning point in both symbolism and substance.

“One of the key outcomes in this is that we've seen this resurgence of popular support in Malaysia for the relationship, a resurgence that I think has caught many people by surprise.

“The substance of the relationship has been better than the symbolism for some time.

“We cooperate and work together and are essential to each other in so many different areas, ranging from trade and investment to security and people-to-people ties. The relationship is very broad. It’s very deep,” Kagan said on Bernama TV’s The Nation programme titled “After the ASEAN Summit: What Trump’s Visit Means” aired today.

Kagan said the Malaysia-US Agreement on Reciprocal Trade (ART), signed by both Trump and Prime Minister Datuk Seri Anwar Ibrahim, was the highlight of the visit, signalling a major step forward in creating a more balanced and equitable economic partnership.

He noted the negotiations were intense, tough and professional, and that the US delegation was impressed by the skill of Malaysia’s negotiators.

“From our perspective, what we see is that Malaysia fought very hard for some key things. So did the US.

“We believe that this is good for the US, but it’s good for both countries because we recognise a lopsided agreement isn’t viable,” he said.

The ambassador said the new trade pact allows over 1,700 categories of Malaysian goods to enter the US duty-free, with a key focus on rural development, agriculture and the electrical and electronics (E&E) sector - areas that are vital to Malaysia’s economic growth.

“What we want to do is rebalance the relationship, make it more equitable, but we want to make it successful for both countries.

“What’s fundamental in this is that the basic premise of the relationship for a long time essentially accepted a structural imbalance where the US had a trade deficit with Malaysia that was quite significant and continued to grow over the years.

“This administration (US) has made it very clear they want to change that,” Kagan said.

Meanwhile, he dismissed criticism that Malaysia had made excessive concessions in the trade negotiations, stressing that the agreement was mutually beneficial and forward-looking.

“It’s not about dependency, it’s about partnership. It is in Malaysia’s interest to remain closely integrated in US and western supply chains,” he added.

Kagan also reaffirmed Malaysia’s strategic role in global semiconductor and technology supply chains, noting that the US views Malaysia as a critical partner in maintaining supply chain resilience and advancing the green transition.

“Malaysia plays an absolutely critical role in global and US supply chains when it comes to technology, and particularly semiconductors.

“Regardless of what happens, I don’t think that’s going to change,” he said.

At the same time, the ambassador said US companies remain the largest investors in Malaysia, with American firms expected to ramp up investments in manufacturing, artificial intelligence, data centres and digital infrastructure following the signing of the trade pact.

“Now that there is certainty in the form of the agreement on reciprocal trade, you can expect to see announcements of further investments,” he said, adding that the visit has boosted investor confidence and reinforced Malaysia’s reputation as a reliable economic partner.

On the regional front, Kagan said Trump’s visit reflects the US recognition that the Indo-Pacific is critical to its strategic and economic interests, and that it is in Washington’s interest to engage successfully with Southeast Asia given the region’s strong historical and economic ties.

“Most people would agree that it is extremely important to the global economy and will only become more important in the next 30 years. So the President (Trump) understands that.

“I think he came to Malaysia both because of that, but also because of his focus on the Cambodia-Thailand conflict and his recognition of the incredibly important role that Malaysia has played, and under the Prime Minister’s (Anwar) leadership, in coming to an agreement that hopefully will end the conflict if it’s implemented fairly,” Kagan added.

-- BERNAMA