In his keynote speech at an event by the Penang Institute, Kagan said the US remains a global economic powerhouse and a strong partner to Malaysia.

“Don’t write us off,” he said, pointing out that the US has contributed 43% of global economic growth since 2021, while China has contributed only 4%, according to data from the International Monetary Fund (IMF).

The IMF expects the world economy to grow 3.2% in 2024 and 3.3% in 2025, driven by the resilience of the US and large emerging markets, as well as fiscal support from China.

Kagan said the US and Malaysia share a long-standing and growing partnership, especially in trade and investment.

He noted that US companies have committed over RM200 billion in new investments to Malaysia since 2021, including from tech giants such as Microsoft, Google and Amazon Web Services.

“When US companies announce investments, by and large they follow through,” he said, comparing the reliability of American investors to others.

Kagan also said the US became Malaysia’s second-largest export market in 2024, surpassing China.

Bilateral trade increased by 29% this year, fuelled by high-value exports such as semiconductors and advanced electronics, he said.

“US exports to Malaysia enhance the country’s ability to produce sophisticated goods, moving it up the value chain and creating prosperity for both nations,” he said.

Kagan said American companies have also significantly contributed to Malaysia’s workforce, with most jobs in the US manufacturing facilities in Malaysia held by locals.

Many of these employees rise to leadership positions locally and globally, he added.

Regarding concerns over Donald Trump’s upcoming presidency, Kagan reiterated that the exact policies of the incoming administration would not be clear until the inauguration on Jan 20.

However, he assured that the US-Malaysia relationship would remain stable.