Malaysia seeks more local sourcing and advanced R&D from US companies
Sim Tze Tzin urged Malaysia to use its industrial capabilities to attract quality US investment as competition from other Asian countries intensifies.
Malaysia wants US companies to increase purchases from domestic suppliers, forge closer links with SMEs and undertake advanced design and research and development (R&D) locally, Deputy Minister of Investment, Trade and Industry Sim Tze Tzin said.
At the American Malaysian Chamber of Commerce (Amcham) Penang Dialogue 2026 in George Town on Oct 8, Sim called for a stronger strategic partnership beyond assembly operations and sales. He said Malaysia needed to capitalise on its industrial ecosystem, skilled workers, infrastructure and market access as other Asian countries competed for investment.
Capabilities accumulated over more than five decades helped investors begin operating quickly, Sim said, allowing Malaysia to compete on factors beyond costs and incentives. He also credited American companies with creating tens of thousands of engineering and technical jobs requiring skilled workers.
Sim put Malaysia’s 2025 approved investment figure at RM426.7 billion, with year-on-year growth of 11%. This was the third successive annual record, he said. Approvals for foreign and domestic direct investment amounted to RM1.143 trillion over 2023 to 2025.
Annual direct investment from the US ranged between RM10 billion and RM12 billion over the past three years, according to Sim. He said bilateral trade for the first eight months of 2026 totalled RM328.8 billion, rising 35.7%. Exports to the US exceeded RM233 billion in 2025 after increasing 17.2%, ranking it as Malaysia’s second-largest export destination.
