GEORGE TOWN: The United States' investment numbers to Malaysia continue to paint a very positive picture, a clear sign that Malaysia remains an attractive investment destination, says US Embassy chargé d'affaires Manu Bhalla.
Speaking to selected media at a press round table event at the E&O Hotel here today, Manu said the record numbers announced recently, both by US investors as well as the Malaysian government, showed that there was a high degree of confidence in Malaysia as an investment destination.
That, he said, was borne out of the well-developed ICT infrastructure, high degree of English proficiency in the workforce, very trained and well-developed workforce, good location as well as a great ecosystem of manufacturers and suppliers to support business objectives.
"Right now, I would say Malaysia is very much still on the radar of American investors.
"Having said that, the reality is that the landscape for investments is getting competitive. There are many other Southeast Asian countries which are also developing some of those same advantages that Malaysia has enjoyed to attract those foreign investments.
"And businesses, at the end of the day, will make decisions that are best for them and their shareholders. I think, Malaysia will have to, of course, keep working towards making sure it remains an attractive investment destination," he said.
Manu said that it was not the quantity of investments which mattered but the quality, with US being the largest investors in Malaysia.
He said that in 2020, the Malaysian Department of Statistics released numbers on the financial foreign direct investments (FDI) inflows into Malaysia and the US's inflow was almost RM38 billion, larger than the six next largest FDI countries with inflows combined.
"There is clearly no doubt. These are not future MOUs or ideas. These are real cash coming from the US into Malaysia impacting the Malaysian economy for the better, creating jobs and having tangible results on the ground.
"While I'm very heartened and proud that the US leads in terms of the quantity of international investment into Malaysia, I'm equally proud, if not more so, about the quality of those investments. These are high productivity investments generating long-term and durable returns for Malaysia and for the Malaysian people and for our bonds between our countries.
"These are investments that have generated thousands of jobs over the years, including 10,000 jobs in just 2022, high paying jobs, generated high value add jobs. Our businesses here have engaged with local communities. They've helped marginalised communities. They're helping improve and help Malaysia achieve its path.
"So the quality of the US investments, to me, is just as important as the quantity," he added.
At the end of his official visit to the US last month, Prime Minister Datuk Seri Anwar Ibrahim announced that Malaysia had secured more than RM60 billion in investment from the United States, mainly from technology giants.
During his visit, Anwar, who is also the Finance Minister, had also voiced Malaysia's strong view on the Palestinian issue.
Asked on the trade relations impact of Malaysia's support for Palestine, Manu said it must first be recognised that the last two months had been a difficult time for everyone, for those directly impacted in the Middle East as well as others.
He said Malaysians who watched the horrific imagery, the heart wrenching pictures and videos that came out of the region were clearly impacted by it.
"We (the US) also share many of the same concerns. Even though there might seem to be a difference of policy position in one or two specific issues, we (the US and Malaysia) actually share many common commonalities."
"We have a deep and abiding respect for the rights of the Palestinian civilians.
We also share the view that a long-term solution requires a two-state solution, where Israelis and Palestinians can live side by side with equal measures of peace, dignity, and freedom.
"We have made clear that while Israel has a right to defend itself, how it does so matters, too many Palestinians have been killed. And we have made clear that there needs to be adherence to international law, humanitarian law. They have to be safe zones designated for civilians so they can stay out of line of fire in Southern Gaza and Central Gaza. And that critical infrastructure, including hospitals, water infrastructure, medical facilities, are not targeted.
"Having said that, we understand that the public sentiment in Malaysia is heightened because of Malaysia's longstanding support for the Palestinian people. We all recognise that, and despite the fact that we have a policy difference where the United States has clearly condemned Hamas for what we believe is barbaric acts of terrorism and atrocities, that position is perhaps not shared that widely.
"Nevertheless, we have many areas of commonality in our goals for the region as well. We also, I think, have to understand that in any relationship such as the vibrant bilateral relationship we have, there will be differences in certain areas sometimes. We have to work through those and not lose sight of the longer term strategic goals, which is so important to maintaining the strong US-Malaysia relationship," he said.
Elaborating, Manu said American businesses are savvy in their decision making and they looked at all factors before they made decisions.
He said they had not seen any evidence of any of the current dynamics having an impact on decisions that had been announced recently, or anything that had been delayed because of any of the dynamics.
"I'm not aware of anything that would point to that at this moment. And as I noted earlier, every bilateral relationship always has some areas where you agree on many things but also have different perspective in others.
"And you learn to work with that. I think, Malaysia and the US have a longstanding respectful relationship, and we will work through this as well," he stressed.
Earlier, Manu, who has been in Malaysia for four months and Penang twice, said he was delightet to be back to re-engage with government officials, the business, community and civil society.
He had joined the Penang Dialogue where he had a renewed discussion with Chief Minister Chow Kon Yeow.
"These are very important and helpful discussions to show that the US cares deeply about our relationships in Penang.
"Of course, the US, the private sector has a longstanding presence in Penang, starting from 51 years ago with the first investments. The investments have only ballooned and grown stronger and stronger over the last few decades. It's sign of the enduring commitment of the US to Penang and to Malaysia. It is very helpful for us to come and understand how the community is doing, what concerns they have and what plans they have for the future.
"And then, of course, people to people ties are always important to us and a key element of our relationship between the US and Malaysia.
"Next year is an important year for us. It's the 10th anniversary of our comprehensive partnership, and we are looking for opportunities to strengthen our partnership in all facets, whether it's the business ties, the security relationship or people to people ties," he said.
Manu said there were many ideas on the table which they needed to work with the Malaysian counterparts on refining and bringing to the fore.