The Diplomatic Relationship between United States and Malaysia, 2012 Scott Abel Dec.

2012 The Center for Strategic and International Studies summarized the overall relationship between the two nations as, Relations between the United States and Malaysia are at an all-time high.1 By 2012, the greater US focus on the Asia-Pacific and Malaysias objectives of cultural exchange, greater security, and economic growth brought the two countries closer together. Malaysia and the United States both expressed their diplomatic relationship as cordial with economic, education, and cultural exchanges throughout 2012 as signs of a strengthening partnership. The governments of Malaysia and the United States recognized the significant economic links between the two nations through trade and investment. According to Malaysian Prime Minister Najib Razak in a June 2012 blog, US-Malaysian trade stood at RM 127 billion or roughly US $41 billion, while six hundred American companies operated in Malaysia.2 The United States and Malaysia hoped to close the Trans-Pacific Partnership agreement for multilateral trade by the end of 2013.3 The agreement, if passed, would act as a large free trade and security agreement between various countries throughout the Pacific Rim. Malaysia entered negotiations for the agreement back in 2010.4 Despite improvements in US-Malaysia relations, in regard to the trade between
1

From Strength to Empowerment: The Next Generation of US-Malaysia Relations, (Washington: CSIS, 2012), vii. 2 Najib Razak, Malaysia Mutually Beneficial Relationship With the United States, 1Malaysia, http://1malaysia.com.my/blog/malaysias-mutually-beneficial-relationship-with-the-united-states/. 3 Malaysia, US Hopes for TTP Conclusion, New Straits Times, 9 September 2012, http://www.nst.com.my/latest/malaysia-us-hopes-for-tpp-conclusion-1.141261##ixzz260yhOWCm. 4 US-Malaysia Relations, The House of Representatives, http://www.house.gov/list/press/as00_faleomavaega/usmalaysiarelations.html.

the two nations, the United States fell significantly as Malaysias trading partner relative to other nations. In 2006, the United States was Malaysias largest trading partner, but that fell to fourth place by 2010. For the United States in 2000, Malaysia was its 17th largest export destination and 11th largest importer. However, by 2010 Malaysia was the United States 19th largest export market and the 10th largest source of imports. As for economic services to United States firms and citizens, Malaysia offered a significant proportion of transportation tourism and services.5 The most surprising number was that Malaysia became the 10th biggest exporter to the United States despite the size of its population and geography. Although global economic changes reduced the relative economic significance of the trading relationship between the United States and Malaysia, it still remained significant especially considering the relatively small size of Malaysia and the distance between the two nations. The revitalization of the importance of the Malaysia economy to the United States perhaps contributed to a greater US focus on that nation. The United States and Malaysia focused on improving interoperability and cooperation on the political and national security front. Although the United States had a significant national security relationship with Malaysia for decades, after September 11, 2001 the United States increased its security commitments to Malaysia with the training of more people there for security purposes. The focus of the training was usually for anti-terrorism and anti-proliferation in Malaysian law enforcement and military. However, the two nations also participated in conventional warfare drills, too. In June 2011, the United State Navy and the Royal Malaysian Navy participated in a joint

From Strength to Empowerment, 3-8.

military exercise in preparation for humanitarian assistance and potential security issues. Despite Malaysias objections to the war in Afghanistan, it eventually sent a small military medical team for assistance in and around Kabul in 2010. The close personal relationship between President Barack Obama and Prime Minister Najib Razak, greater than any of their predecessors, contributed to an overall closer relationship politically. Both expressed a need for a code of conduct regarding maritime border disputes in the South China Sea.6 With the entrance into office by the two national leaders, the United States and Malaysia began greater cooperation on the national security front. The most prominent issue in Southeast Asia in 2012 remained the dispute between China and Southeast Asian countries over the maritime border in the South China Sea. Malaysias foreign minister Anifah Aman discussed with Yang Jiechi, the foreign minister from China with the implication that his nation wanted a united front against Chinas rather large territorial demands at sea with the Association of Southeast Asian Nations in large part because China claimed some Malaysian territory. 7 The United States State Department also took rather direct measures on the issue of the South China Sea, when it criticized China for the establishment of a military garrison on one of the Paracels called Woody Island in the South China Sea. In response, China summoned a senior American diplomat for clarification or an explanation on the issue of Woody Island.8 Both the United States and Malaysia have a strategic interest in preventing China from gaining too much sway in the South China Sea.

6 7

From Strength to Empowerment, 16-21. Malaysia Urges ASEAN to Unite Over South China Sea, Aug. 12, 2012, www.channelnewsasia.com/stories/afp_asiapacific/view/1219690/1/.html, Nov. 2012. 8 South China Sea Dispute: China Summons US Diplomat, 5 August 2012, www.bbc.co.uk/new/worldasia-19125427, November 2012.

The United States and Malaysia have an immensely successful education exchange system as a means of improving diplomatic relations and the socio-economic statuses of their respective students. The United States shared the data from its Strive program with Malaysia as a means for increasing student successes and allowed them to graduate from a university. Malaysia wanted an emulation of the results by adapting the program to its own populace as to modernize its workforce.9 Prime Minister Najib Razak requested the United States employ its Fulbright Foreign Language Teaching Assistant (FLTAs) Program in Malaysia for the teaching of English to Malaysians so that they may become better integrated in the global economy. Over the years, in excess of 100,000 Malaysian studied in the United States for an education.10 In 2012, the fifteen FLTAs proved insufficient for the teaching of English in Malaysia, but insufficient funding with budgetary and economic shortfalls suggest an unlikely chance of an uptick in FLTAs. However, nations other than the United States contributed more to the program so there remains hope for expansion.11 The demand for educational exchanges showed an increased attempt by Malaysia for the improvement of diplomatic relations with the United States as it sees an economic interest in more of its students learning English. The United States and Malaysia improved their relations in 2012 in comparison to the previous administrations with increased dialogue on economic treaties, cooperation with security, and educational exchanges. A combination of personal affinity and convergent national interests propelled the two countries closer to together with the United States needing more partners in the Asia-Pacific for the maintenance of its

US Shares Winning Education Reform with Malaysia, Inquirer, May 16, 2012, http://newsinfo.inquirer.net/194403/us-shares-winning-educational-reform-with-malaysia . 10 US Malaysia Relations. 11 From Strength to Empowerment, 24-28.

presence there and Malaysia needing US assistance for the preservation of peace and economic growth. The partnership appears to be improving despite some recent downturns and changes within the economic situation and new budgetary constraints.