Malaysia’s Rising Role in US Trade and What It Means for Foreign Investors

January 30, 2026 Posted by ASEAN Briefing Written by Ayman Falak Medina Reading Time: 2 minutes

For foreign investors new to Southeast Asia, trade flows offer a simple way to understand how economies connect to global markets. Malaysia’s commercial relationship with the United States provides a clear example of this dynamic.

Speak with Dezan Shira for guidance on navigating Malaysia’s evolving trade landscape and regional investment opportunities

Through October 2025, the United States exported approximately US$26.4 billion in goods to Malaysia, while importing about US$53.9 billion from Malaysia over the same period. This created a US goods trade deficit of roughly US$27.5 billion, underscoring Malaysia’s role as a major supplier of manufactured goods to the American market.

The current scale of bilateral trade

Monthly data for 2025 shows consistent activity. US exports to Malaysia have typically ranged between US$2.1 billion and US$2.8 billion per month, while imports from Malaysia have generally fallen between US$4.4 billion and US$5.6 billion.

From Malaysia’s perspective, overall external trade in 2025 exceeded RM 3 trillion (US$702 billion), with exports to the United States reaching approximately RM 111.5 billion (US$26.1 billion) by mid year, representing close to 15 percent of Malaysia’s total exports.

Taken together, these figures place the United States among Malaysia’s most important external markets and confirm Malaysia’s position as one of ASEAN’s leading exporters to North America.

What Malaysia sells to the United States

Malaysia’s exports to the US are concentrated in manufactured and technology linked goods. Electronics and electrical equipment form the core of this trade, supported by machinery, precision components, and medical related products.

These exports reflect Malaysia’s long established industrial base. The country participates in technically complex production chains that serve sectors such as semiconductors, telecommunications, and healthcare equipment.

What the United States supplies to Malaysia

US exports to Malaysia consist mainly of machinery, aerospace components, chemicals, agricultural products, and other industrial inputs. Much of this trade supports Malaysian manufacturing directly, with American equipment and materials feeding into domestic production before being exported onward.

This two-way exchange illustrates an integrated relationship built around production rather than simple commodity trade.

Why trade continues to expand

Growth in US–Malaysia trade is being driven by structural shifts in global manufacturing. Companies are diversifying supply chains, reducing concentration risk, and seeking technically capable production locations. Malaysia benefits from this realignment due to its mature industrial ecosystems and established logistics networks.

At the same time, steady US demand for electronics and precision manufacturing has reinforced Malaysia’s role as a key export platform.

Malaysia’s role within the US–ASEAN trade

Within ASEAN, Malaysia sits alongside Vietnam, Thailand, and Indonesia as a major exporter to the United States. What distinguishes Malaysia is its ability to serve higher value segments of global supply chains.

Contact Dezan Shira to discuss how Malaysia’s trade momentum may impact your ASEAN investment strategy

Many products shipped to the US incorporate regional inputs, with Malaysia acting as a central production or assembly point. This positions the country as both a manufacturing base and a connector within wider ASEAN trade networks.

What does this signal to foreign investors?

For investors assessing Southeast Asia at a high level, the US–Malaysia trade provides a practical reference point. Imports exceeding US$50 billion through October 2025 signal sustained demand for Malaysia-based production, while growing US exports into Malaysia reflect ongoing investment in industrial capacity.

These flows point to continued production mandates, expanding supplier ecosystems, and deeper integration into North American facing value chains. While this overview does not address market entry or regulatory considerations, it establishes the economic context in which such decisions increasingly take place.

About Us

ASEAN Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Jakarta, Indonesia; Singapore; Hanoi, Ho Chi Minh City, and Da Nang in Vietnam; and Kuala Lumpur in Malaysia. Dezan Shira & Associates also maintains offices or has alliance partners assisting foreign investors in China, Hong Kong SAR, Mongolia, Dubai (UAE), Japan, South Korea, Nepal, The Philippines, Sri Lanka, Thailand, Italy, Germany, Bangladesh, Australia, United States, and United Kingdom and Ireland.

For a complimentary subscription to ASEAN Briefing’s content products, please click here. For support with establishing a business in ASEAN or for assistance in analyzing and entering markets, please contact the firm at asean@dezshira.com or visit our website at www.dezshira.com.