KUALA LUMPUR, Feb 10 — The sanctions imposed by China on several United States (US) defence companies following arms sales to Taiwan at the end of 2025 do not have a direct impact on trade and foreign direct investment (FDI) into Malaysia, particularly in the electrical and electronics (E&E) sector.
The Investment, Trade, and Industry Ministry (MITI) said that government and ministry assessments took into account the structure of Malaysia’s E&E sector, which is dominated by manufacturing and commercial applications.
“From a trade perspective, based on data from the Malaysia External Trade Development Corporation (MATRADE), the country’s E&E sector demonstrated resilient and dynamic performance throughout 2025.
“Malaysia’s E&E exports to the United States increased by 21.3 per cent to RM145.75 billion, with major contributions from semiconductors valued at RM63.89 billion,” it said in a written reply to the Dewan Rakyat published on Parliament’s portal today.
MITI noted that this reflects investors' and trading partners' confidence in Malaysia and indicates that trade relations with both major trading partners — the US and China — remain strong and mutually beneficial.
It was responding to Kemaman MP Datuk Seri Ahmad Samsuri Mokhtar's query on the impact on trade and FDI, particularly related to electronic products, following China’s sanctions on several US defence companies.
On the investment front, MITI said that between 2021 and September 2025, the E&E sector saw approved investments totalling RM340.5 billion across 645 projects, with foreign investments amounting to RM328.1 billion.
“This signifies continued investor confidence in Malaysia as a high-technology investment destination,” it said.
