Malaysia

In October 2010, at the third round of TPP negotiations in Brunei Darussalam, Malaysia joined the United States and seven other Asia-Pacific nations in negotiations to achieve a high-standard broad-based regional trade agreement known as the Trans-Pacific Partnership (TPP) Agreement.  Malaysia’s announcement followed more than a year of high-level consultations between Malaysia and the original eight TPP nations, including the United States.  In addition to working together on TPP, the United States and Malaysia meet frequently to discuss bilateral trade and investment issues and to coordinate approaches on APEC, ASEAN, and the WTO.

For further information about TPP, click here.

Key Events

Ambassador Kirk notified the House and Senate by letter of Malaysia’s inclusion in the TPP negotiations on October 5, 2010.

U.S.-Malaysia Trade Facts

U.S. goods and services trade with Malaysia totaled $43 billion in 2010 (latest data available). Exports totaled $16 billion; Imports totaled $27 billion. The U.S. goods and services trade deficit with Malaysia was $11 billion in 2010.

Malaysia is currently our 22nd largest goods trading partner with $40.0 billion in total (two ways) goods trade during 2011. Goods exports totaled $14.2 billion; Goods imports totaled $25.8 billion. The U.S. goods trade deficit with Malaysia was $11.6 billion in 2011.

Trade in services with Malaysia (exports and imports) totaled $3.3 billion in 2010 (latest data available). Exports were $2.1 billion; Services imports were $1.2 billion. The U.S. services trade surplus with Malaysia was $853 million in 2010.

Exports

Malaysia was the United States' 23rd largest goods export market in 2011.

U.S. goods exports to Malaysia in 2011 were $14.2 billion, up 1.0% ($138 million) from 2010, and up 29% from 2000. U.S. exports to Malaysia account for 1.0% of overall U.S. exports in 2011.

The top export categories (2-digit HS) in 2011 were: Electrical Machinery ($6.8 billion), Machinery ($1.6 billion), Aircraft ($1.0 billion), Optic and Medical Instruments ($686 million), and Iron and Steel ($571 million).

U.S. exports of agricultural products to Malaysia totaled $1.0 billion in 2011. Leading categories include: wheat ($158 million), soybeans ($150 million), dairy products ($137 million), and processed fruit and vegetable ($74 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to Malaysia were $2.1 billion in 2010 (latest data available), 23.7% ($402 million) more than 2009 and 137% greater than 1994 levels. The other private services (business, professional, and technical services) category accounted for most of U.S. exports in 2010.

Imports

Malaysia was the United States' 18th largest supplier of goods imports in 2011.

U.S. goods imports from Malaysia totaled $25.8 billion in 2011, a 0.5% decrease ($129 million) from 2010, but up 0.8% from 2000. U.S. imports from Malaysia account for 1.2% of overall U.S. imports in 2011.

The five largest import categories in 2011 were: Electrical Machinery ($12.5 billion), Machinery ($4.0 billion), Fats and Oils (palm oil) ($1.7 billion).Optic and Medical Instruments ($1.4 billion), and Rubber ($1.4 billion).

U.S. imports of agricultural products from Malaysia totaled $2.4 billion in 2011, our 10th largest supplier of agriculture imports. Leading categories include: tropical oils ($1.7 billion), cocoa paste and cocoa butter ($274 million), and rubber products ($188 million).

U.S. imports of private commercial services* (i.e., excluding military and government) were $1.2 billion in 2010 (latest data available), up 19.7% ($205 million) from 2009 and up 248% from 1994 levels. The other private services (business, professional and technical services) category accounted for most of U.S. services imports from Malaysia.

Trade Balance

The U.S. goods trade deficit with Malaysia was $11.6 billion in 2011, a 2.3% decrease ($267 million) over 2010.

The United States had a services trade surplus of $853 million with Malaysia in 2010 (latest data available), up 30% from 2009.

Historical Trade Data

U.S. Goods Trade with Malaysia (in billions of dollars)

U.S. Services Trade with Malaysia (in billions of dollars), 1994, 2000, 2004-2010

Investment

U.S. foreign direct investment (FDI) in Malaysia was $16.0 billion in 2010 (latest data available), a 20.8 % increase from 2009.

Reported U.S. FDI in Malaysia is led by the manufacturing, and banking sectors.

Malaysia FDI in the U.S. (stock) was $362 million in 2010 (latest data available), down 21.1% from 2009.

Malaysia FDI in the United States is led by the real estate and wholesale trade sectors.

Sales of services in Malaysia by majority U.S.-owned affiliates were $4.3 billion in 2009 (latest data available), while sales of services in the United States by majority Malaysia-owned firms were not available $294 million in 2009.

NOTE: Refers to private services trade not including U.S. military sales, direct defense expenditures and other miscellaneous U.S. government services.