Thank you to the US-ASEAN Business Council (US-ABC) for initiating this engagement. I understand that the US-ABC 2021 Senior Executive Business Mission to Malaysia was carried out in November last year,and the Council had substantive meetings with a number of Ministers and High-level Government Officials. I hope our Meeting today can represent an expansion of those discussions and make more clear possible collaborations that could further contribute towards the overall economy rejuvenation that is severely needed after 2 years of battling COVID-19.
The nature of our economic activities, the way in which businesses operate, and the manner in which we live and work, have evolved due to the COVID-19 crisis. This new world brings with it, a fresh dimension. In understanding these changes, Malaysia has responded with the right measures and interventions that are relevant in, and responsive to these situations.
We have put in place decisive measures and mechanisms that could ensure the resilience of our economy, while also attempting to limit the pandemic’s long-term economic and social consequences. On the vaccination front, 97.8% of our adult population has been fully vaccinated as at 14 January 2022. We have also administered vaccines to 2.77 million or 88.1%, of our adolescents in the age of 12-17 years old.
As a result of these policy prescriptions, I am pleased to share that Malaysia attracted a total of RM177.8 billion approved investments in the manufacturing, services and primary sectors for the first nine months in 2021, representing a 51.5% jump compared to the same period in 2020.
Moreover, for the first time in history, our total trade breached the RM2 trillion mark for the January-November 2021 period, chalking up an increase of 24.6% year-on-year. This performance gives Malaysia confidence that it remains a preferred investment hub.
Despite these encouraging developments, we are mindful that we are stepping into greater economic complexity, as the global economic outlook remains challenging amid uncertainty and volatility. And we know we cannot be complacent and must continually improve our attractiveness to the global business community.
Against this backdrop, Malaysia will redouble our efforts to provide a conducive economic climate and business ecosystem. On this note, I echo the sentiment that formulation of sound policies and regulations related to trade and investment is crucial for sustainable and resilient growth. Admittedly, consultation with stakeholders like the one today is a crucial factor for success.
The Government has always been open to constructive feedback from private sector in developing workable economic policies. I assure you that this invaluable relation will be further strengthened whereby the government, thru MITI and my own office will intensify consultations with the US-ABC in this sphere. Furthermore, I am optimistic that the regular engagements between the Government of Malaysia and AMCHAM as well as the U.S. Embassy in Kuala Lumpur, can contribute towards positioning the country as an attractive investment destination of choice and a supply chain hub in ASEAN.
As for Malaysia’s long-term strategic plan, the Twelfth Malaysian Plan (12MP) outlines measures to reset the nation’s economy and is poised to accelerate the Industrial Revolution 4.0 for all industries. The government has identified technology and digitalisation adoption as key priorities under the 12MP to transform Malaysia into a prosperous, inclusive and sustainable nation.
Of equal importance are the National Investment Aspirations, and the implementation of the environmental, social and governance agenda or ESG. We want to generate an investment ecosystem that is aimed at attracting high quality, technology-oriented investment and ensuring long- term sustainability and creating high-skilled jobs.
The U.S. has been Malaysia’s 3rd largest trading partner since 2015. Despite global trade registering deficit in 2020, Malaysia recorded a promising growth of 8.2% in total trade with the U.S., reaching USD42.6 billion. For the period of January-November 2021, Malaysia’s total trade with the U.S. grew by 20.7% to reach USD47.35 billion, as compared with the corresponding period in 2020. Furthermore, the U.S. is Malaysia’s 2nd largest foreign investor in terms of implemented manufacturing projects.
I strongly believe that there is still plenty of upside for the foreseeable future, particularly if we factor in the economies of scale that could be derived with extension to the ASEAN region. In fact, my meetings with the U.S. Secretary of Commerce, Her Excellency Gina Raimondo, and the Secretary of State, His Excellency Anthony Blinken, during their respective visits to Malaysia late last year, resulted in renewed commitment to strengthen our bilateral cooperation on digital economy and supply chain resiliency, among others.
In this regard, I am encouraged by the continued interest and participation of US-ABC in supporting ASEAN, and Malaysia to foster our digital transformation agenda. Moving forward, this could lead the pathway to greater collaboration in the digital space, with the U.S. businesses driving the creation of agile and competent digital talents in the country.
The pandemic has made clear the importance of international trade and cooperation as well as the inter-linkages of regional supply chains. In this regard, the Regional Economic Comprehensive Partnership (RCEP) is one of the enablers to help us revitalise domestic and international business activity. In this vein, I am pleased to inform that Malaysia has completed its ratification process and has transmitted our Instrument of Ratification to the ASEAN Secretariat in Jakarta. The Agreement will enter into force in Malaysia on 18 March 2022. I would encourage the U.S. businesses to take advantage of the vast investment opportunities presented by this mega trade agreement.
On this note, I would like to reaffirm that Malaysia continues to be an open economy, with pro-business and pragmatic policies that support the investment climate in the country. Malaysia’s ongoing efforts have successfully kept us on the map for investors.
In all areas that I have mentioned in my opening remarks, US-ABC has a key consultative role. Over the years, US-ABC has helped advance the agenda of regional integration while elevating the relations between the US and ASEAN Member States, including Malaysia. Looking ahead, by capitalising on the synergy between Government and private sector, Iam optimistic that we will be able to pave the path for a resilient and sustainable growth.
