Malaysia

The United States and Malaysia initiated negotiations on a Free Trade Agreement (FTA) in June 2006 with a common objective of concluding a comprehensive, high-quality FTA. Solid progress has been made in the negotiations, which were launched in March 2006, although some significant challenges remain.

The United States and Malaysia are currently planning for technical discussions on a variety of topics, including intellectual property rights, services, and investment.

U.S.-Malaysia Trade Facts

U.S. goods and services trade with Malaysia totaled $48 billion in 2007 (latest data available). Exports totaled $14 billion; Imports totaled $34 billion. The U.S. goods and services trade deficit with Malaysia was $20 billion in 2007 (latest data available).

Malaysia is currently our 17th largest goods trading partner with $43.7 billion in total (two ways) goods trade during 2008. Goods exports totaled $12.9 billion; Goods imports totaled $30.7 billion. The U.S. goods trade deficit with Malaysia was $17.8 billion in 2008.

Trade in services with Malaysia (exports and imports) totaled $2.9 billion in 2007 (latest data available). Services exports were $1.9 billion; Services imports were $1.0 billion. The U.S. services trade surplus with Malaysia was $870 million in 2007 (latest data available).

Exports

Malaysia was the United States' 21st largest goods export market in 2008.

U.S. goods exports to Malaysia in 2008 were $12.9 billion, up 10.9% ($1.3 billion) from 2007, and up 86% from 1994 (the year prior to Uruguay Round). U.S. exports to Malaysia account for 1.0% of overall U.S. exports in 2008, down from 1.4% in 1994.

The top export categories (2-digit HS) in 2008 were: Electrical Machinery ($7.3 billion), Machinery ($1.5 billion), Optic and Medical Instruments ($634 million), Iron and Steel ($571 million), and Aircraft ($448 million).

U.S. exports of agricultural products to Malaysia totaled $607 million in 2008. Leading categories include: dairy products ($117 million), soybeans ($72 million), processed fruit and vegetable ($49 million), and feeds and fodders ($46 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to Malaysia were $1.9 billion in 2007 (latest data available), 16.5% ($267 million) greater than 2006 and 113% ($1.0 billion) greater than 1994 levels. The other private services (business, professional, and technical services) category accounted for most of U.S. exports in 2007.

Imports

Malaysia was the United States' 15th largest supplier of goods imports in 2008.

U.S. goods imports from Malaysia totaled $30.7 billion in 2008, a 5.8% decrease ($1.9 billion) from 2007, but up 120% over the last 14 years. U.S. imports from Malaysia account for 1.5% of overall U.S. imports in 2008, down from 2.1% in 1994.

The five largest import categories in 2008 were: Machinery ($12.1 billion), Electrical Machinery ($10.6 billion), Fats and Oils (palm oil) ($1.2 million), Optic and Medical Instruments ($1.1 billion), and Rubber ($1.0 billion).

U.S. imports of agricultural products from Malaysia totaled $1.9 billion in 2008, our 13th largest supplier of agriculture imports. Leading categories include: tropical oils ($1.2 billion), and cocoa paste and cocoa butter ($255 million).

U.S. imports of private commercial services* (i.e., excluding military and government) were $1.0 billion in 2007 (latest data available), 21.4% ($180 million) more than 2006 and up 186% ($663 million) 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 $17.8 billion in 2008, a 15.1% decrease ($3.2 billion) over 2007. The U.S. goods trade deficit with Malaysia accounted for 2.2% of the overall U.S. goods trade deficit in 2008.

The United States has a services trade surplus of $870 million with Malaysia in 2007.

Investment

U.S. foreign direct investment (FDI) in Malaysia was $13.3 billion in 2008, a 1.9% increase from 2007.

Reported U.S. FDI in Malaysia is mostly in the manufacturing and mining sectors.

Malaysia FDI in the U.S. (stock) was $395 million in 2008, down 19.4% from 2007.

Malaysia FDI in the United States is led by the wholesale trade sector.

Sales of services in Malaysia by majority U.S.-owned affiliates were $2.2 billion in 2006 (latest data available), while sales of services in the United States by majority Malaysia-owned firms were not available ($292 million in 1998).

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