Siobhan Das, executive director of the American Malaysian Chamber of Commerce, discusses the close business ties between the two countries and the future opportunities that exist for further investment growth in Malaysia.  

What are the main activities of the American Malaysian Chamber of Commerce (AMCHAM)?

We're proud to say that all of our members, from a range of different sectors, share one thing in common—they count on us to be their voice and champion in Malaysia. AMCHAM is an independent and non-profit membership organization, and membership organizations are most effective when their members are actively engaged. We, therefore, encourage and empower our members to drive the Chamber’s programs based on the business matters of greatest importance to them. There is a balance between advocacy and experience sharing. On the advocacy side, we focus on industry issues or cross-sectoral policies rather than company-specific requests, helping to propose constructive solutions for the consideration of Malaysia’s government. Outside of advocacy, we provide a forum through which members can share knowledge and best practices so that we can help each other to improve how we manage our day-to-day operations. As the ‘Voice of U.S. Business’, AMCHAM provides a platform for our members to address issues that impact ease of business in the country. The Chamber spans a cross-section of sectors the largest being the E&E (Electrical & Electronic) sector which also includes medical devices. Oil & Gas, Financial Services and Healthcare are also significant sectors in the membership. While AMCHAM celebrates our 40th anniversary this year, many of our members have long and deep ties to the country, some going back over 100 years. We have about 270-member companies in the membership, most are American but also others with strong links with the American business community. AMCHAM also seeks to promote American corporate culture and the values closely associated with some of the world’s leading companies, such as integrity, transparency and commitment to the wider community. We work constantly to build on the already-strong ties between the two countries, to promote bilateral trade, and to support new investments and reinvestments made by American companies. To achieve this, we work towards creating a stable, predictable, and pro-business operating environment. This means partnering with various ministries and their agencies and, because Malaysia also plays in the global supply chain, we also take an active interest in the impact of bilateral and multilateral trade issues. We engage across all levels of government from minister level down to working-level officials tasked with the practical implementation of very specific issues. We roll up our sleeves and try to provide support to decision makers at these lower levels during the early stages of a drafting process, helping them to understand the possible business impact or opportunities within the scope of the plans and ideas that they are formulating. It’s this on-the-ground active engagement and partnership through which AMCHAM can really add value to our members and to the government alike.   How has bilateral trade and investment evolved between the two countries over the years? Trade between the two countries has grown from strength to strength. Currently, the U.S. is Malaysia’s third largest trading partner, and Malaysia ranks in the top 20 of the US’s trading partners. Many U.S. manufacturing companies are here to export and service both the Asian or Rest of the World markets and have found that this is an excellent place to base themselves over the 60 years of formal commercial ties. In 2017 alone, Malaysia’s trade with the USA expanded by 16.3 percent to RM 158 billion (approx. USD 38.25bn), including a 10 percent increase in Malaysia’s exports of manufactured goods to the USA driven predominantly by the E&E industry. Malaysian-made products have a reputation for good quality and are well received in the U.S. market. In terms of investment, U.S. companies rank second in terms of implemented FDI projects into Malaysia. In the manufacturing space alone, American companies have invested more than USD 22 billion over more than 800 projects, creating more than 200,000 jobs. We are still seeing an increase in investments by U.S. companies and there are ongoing talks to upgrade the current TIFA (Trade and Investment Agreement). By welcoming U.S. investments into the country, Malaysia has benefitted from the Build Equip and Train (BET) ethos many American companies use as they develop their businesses overseas. This means a high degree of localization and therefore a growth in skilled labour and higher incomes. The current global trade environment creates challenges for all countries but if, as we anticipate, both governments continue to support and respect a commitment to open and fair trade, the relationship will remain one of growth and resilience. The new government in Malaysia understand that this is an important relationship. The businesses community like predictability and are encouraged by the new government's commitment to transparency and the rule of law.   What has made Malaysia a historically attractive trade and investment partner for the United States? Malaysia has and has had a stable business environment for a number of decades. Its institutions are well-established and have proven to be adequately resilient. Historically, business and the government have enjoyed a very open, friendly and collaborative relationship. Malaysia has also worked to ensure it has talented people to support their economy. After Independence, education was a priority, and Malaysia was able to effectively develop a robust educated middle class to support a young country. This early commitment has proven to be a key competitive advantage within the region, and this focus on education must be maintained if we are to meet the challenges of the 21^st century. American companies have always appreciated the high levels of English among the Malaysian workforce, and today are attracted by a strong and reliable ecosystem of local SMEs that can be integrated into their supply chain strategy. Increasingly, American companies are seeing Malaysia as a good place to place their regional hubs including for non-manufacturing activity e.g. R&D centers, regional Business Processing Operations (BPO) centers. Malaysia’s sturdy relationship with its neighbours within ASEAN is another strong selling point.   How has the relationship of Malaysian business collaboration with the US evolved over time?

Once an American company decides to direct an investment into Malaysia we, at the Chamber, witness the positive contributions that these companies make the wider economy.