ART Signals Strong US Investor Confidence In Malaysia - Ambassador
GEORGE TOWN, Feb 6 (Bernama) -- The Agreement on Reciprocal Trade (ART) between Malaysia and the United States sends a strong signal of long-term economic confidence and is expected to further encourage American investments, particularly in Penang’s semiconductor and manufacturing sectors.
Outgoing US Ambassador to Malaysia, Edgard D. Kagan said while US companies have invested heavily in Malaysia even without a formal trade agreement, ART reinforces political and economic commitment between both countries.
“American investors are very excited about ART. Most trade agreements are important not only for their details, but for the signalling. It signals that the two countries see benefit to bring the economies closer together.
“If you look closely, the US is basically opening up over US$6 billion worth of exports to Malaysian firms and to Malaysians, primarily benefitting rural Malaysians,” he said in a media engagement at the Penang Institute here today.
Kagan said ART also opens opportunities for Malaysian exporters, particularly benefitting rural communities, while providing US firms with greater market access.
Malaysia and the US signed the ART on Oct 26, 2025 during the 47th ASEAN Summit in Kuala Lumpur.
He said American companies have been operating in Malaysia for over 130 years, contributing significantly to the country’s economic development from early investments in rubber, tin, oil and gas to advanced manufacturing and high technology.
He pointed out that about 312,000 Malaysians work directly for US companies across the country, with hundreds of thousands more employed through supply chains, adding that one of the most enduring contributions has been the investment in local talent.
Kagan highlighted that many Malaysian semiconductor firms are led by former employees of US companies, describing Penang as a key talent incubator for the global technology industry.
Beyond semiconductors, he said sectors such as medical device manufacturing in Penang also hold strong growth potential amid rising global healthcare demand.
On trade performance, Kagan said bilateral trade between Malaysia and the US grew 13 per cent last year, with Malaysia’s exports to the US increasing by more than 14 per cent, despite global economic uncertainties.
As his tenure ends this month, Kagan said he hopes his successor will continue strengthening economic ties, expanding security cooperation and reinforcing people-to-people exchanges, including educational links.
Reflecting on his farewell visit, he described Malaysia especially Penang as a special place for him and his family, praising its cultural diversity, heritage and warmth.
"I can say it is truly extraordinary and it's extraordinary not just because of the beauty, not just because of the vibrancy of the culture, but also the incredible warmth of Malaysians," he added.
Kagan, who has served as US Ambassador to Malaysia since December 2023, will be joining a Washington think-tank on Asian studies.
Earlier, Kagan visited the Penang Institute for a roundtable discussion on the US-Malaysia Economic Bilateral Relationship and during the visit, he presented a gift to Penang Institute executive director Datuk Dr Ooi Kee Beng, followed by a courtesy call on the institute’s leadership and researchers.
-- BERNAMA