Seek Opportunities Throughout Malaysia , US Ambassador Kagan Urges American Investors
By K. Naveen Prabu
KUALA LUMPUR, Feb 5 (Bernama) -- American investors should explore and expand their investments throughout Malaysia, including Sabah and Sarawak and not confine themselves to the established hubs such as Kuala Lumpur and Penang.
Outgoing US Ambassador to Malaysia, Edgard D. Kagan, said Malaysia offers immense investment potential nationwide, with significant investments in data centres in Johor and industrial development in Kedah.
“They should not focus only on KL or Penang, but seek opportunities across the country, including Sabah and Sarawak,” he told Bernama in an exclusive interview.
He said this after a recording on Bernama TV’s “The Nation: Diplomatic Dispatch” hosted by Jessy Chahal, to be aired on Feb 12, 2026.
Kagan, who has served as US Ambassador to Malaysia since December, will be joining a Washington think-tank on Asian studies. He will focus on contributing to strengthening US-Malaysia relations as a private citizen.
Kagan said Malaysia’s key strengths include its talent pool, infrastructure and integration into Western supply chains, which continue to attract long-term US investments.
This, he said, explains why Malaysia is among the largest sources of semiconductors for the US, with Malaysian products deeply integrated into American supply chains.
“The clearest proof of this is that last year, despite the global turbulence, Malaysia’s exports to the US grew by 14 per cent,” said Kagan, America’s 22nd ambassador to Malaysia.
According to the Investment, Trade and Industry Ministry (MITI), trade with the US recorded a second consecutive year of growth in 2025, expanding by 13.0 per cent to RM367.47 billion from a year ago, accounting for 12.0 per cent of Malaysia’s total trade.
Exports reached a new high, expanding by 17.2 per cent to RM233.08 billion, supported by robust demand for electrical and electronics products, machinery, equipment and parts, processed food and metal manufactures.
Kagan said the greatest impact went beyond investment and exports. American companies helped nurture and develop Malaysians who later led multinational businesses in Malaysia and abroad as top-level executives.
“It is not insignificant that the chief executive officers of Broadcom Inc and Intel Corporation, two of the world’s largest technology companies, are Malaysians who began their careers working for American companies in Malaysia.
“This represents a significant intangible benefit and has strengthened the overall economic impact of the US-Malaysia relationship,” he said.
Against such a backdrop, he expressed optimism that bilateral ties will continue to grow as Malaysia moves towards fully implementing the Agreement on Reciprocal Trade (ART) signed on Oct 26, 2025, at the ASEAN Summit.
As far as ART was concerned, “the real question is whether Malaysia wants to access those benefits and how soon it wants them — particularly the benefits for rural Malaysians, who stand to gain significantly,” he said, alluding to the increased spillover economic benefits from increased two-way investments such as employment opportunities.
“That is ultimately a decision for Malaysians to make. From our perspective, we look forward to the agreement entering into force as soon as possible, because we believe it brings clear benefits to both countries,” he said.
While Malaysia and the US signed the ART on Oct 26, 2025, on the sidelines of the 47th ASEAN Summit hosted by Malaysia, the pact has yet to enter into force, pending Malaysia’s clarification of key terms before ratification, amid concerns over sovereignty and national interests.
Elaborating, Kagan said Malaysia has its own process, which the US respects, adding that from Washington’s standpoint, it would like to see the agreement enter into force soonest possible.
“We believe that the exchange of letters, which triggers that process, should take place as soon as possible so that both countries can begin to enjoy the benefits,” he said.
-- BERNAMA