Lakhdhir said US investments in Malaysia will remain solid, especially with the electronics industry, led by microchip manufacturer Intel, likely to stay here for the long haul.

She said this was because American firms in Malaysia are part of a larger global supply chain and any change would impact global trade and exports.

“It is hard to speculate on the US and China situation. But there are long-standing reasons for being in Malaysia. It has a lot to do with trade, infrastructure and the talent pool here.

“Many are committed to staying in Malaysia. In terms of expansion, they are mostly looking for new policies from the new government.

“Overall, I feel the answer to that question of companies leaving, is ‘no’.

“Sometimes it is hard to pack up. It is not like you could pack up Intel in a suitcase and go,” she said after visiting USNS Brunswick, a Navy support ship docked at the Swettenham Pier here today.

The US will place US$34 billion (RM137 billion) tariffs on Chinese imports from noon tomorrow (Malaysian time), escalating a trade war with China.

China has indicated it would retaliate but has yet to make clear its plans to do so.

Reports say the tariffs will affect financial markets, including stocks, currencies and global trade of commodities, from soybeans to coal.