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SPEECH 9

The U.S.-Malaysia Partnership: BuildingTowards the Future

H.E. Paul W. JonesAmbassador of the United States to Malaysia

Exellencies, Distinguished Participants, Ladies and Gentlemen, I’d liketo thank the Institute of Occidental Studies, Universiti KebangsaanMalaysia, and especially Professor K.S. Nathan (Head of the Centre forAmerican Studies in the institute) for this opportunity to speak with youtoday, as part of its 3D Roundtable Forum on Diplomatic Dispatches andDiscourse.

Today I would like to speak about the United States-Malaysiarelationship, and to share some good news. The United States andMalaysia have been very actively revitalizing our partnership, with manyremarkable results.

The warm welcome my family and I have received since arriving inKuala Lumpur just over a year ago has been incredible. I have had theopportunity to meet leaders in government, business and civil society,whom I now count as friends. I have visited almost all of the states ofMalaysia, some of them several times – officially and also on vacationswith my family. Everywhere I go, I see longstanding ties alongside newgrowth that is laying the foundation for more understanding, prosperity,and collaboration to benefit both our peoples.

In Penang, we opened two new Lincoln Corners in Malaysian libraries,providing visitors with access to print, media and other information toexpand understanding of the United States. I visited the Light StreetConvent School, where American Prisoners of War were held during theSecond World War, and where the Sisters who run that school havecarefully preserved their memory over the decades. In Kelantan, I spokeat our Lincoln Corner in the Kelantan State Library — which wasestablished through a 1938 donation by the Carnegie Foundation, a U.S.

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philanthropic organization – and visited a wonderful Islamic private schoolwith which our Embassy has worked for several years.

At the Sarawak Biodiversity Centre, I saw how collaboration withU.S. research institutions is helping develop a new medication that couldhelp fight cancer, derived from Borneo’s aglia tree. And I heard how aU.S.-funded cultural preservation project had helped protect Sarawak’srich cultural heritage by mapping megaliths, burial grounds and other culturalsites of the Kelabit community. I have visited Sabah three times, once Iwill confess on vacation, where my visiting mother turned 82 years old inthe Danum Valley original rainforest. On an official trip, I saw the impactof U.S. contributions to the Coral Triangle Initiative, through an amazingpartnership among NGOs and State and national government to protectthe fragile biodiversity of Sabah’s coral reefs and rainforests.

We launched an English Access Microscholarship Program in JohorBahru, a two-year program that offers 60 underserved Malaysian highschool students from seven schools in Johor the opportunity to improvetheir English skills. I also announced a US$55,000 grant from the U.S.Fish and Wildlife Service for tiger conservation, part of an ongoingcollaboration on tiger and elephant conservation projects between Johorand the U.S. In Pahang, I visited Malaysia’s largest Orang Asli school,glimpsing their culture and warmth. In Perak, I spoke to almost the wholestudent body of the historic Malay College in Kuala Kangsar, where Iwas challenged to a tennis tournament on my next visit (I don’t playrugby) and was impressed by thoughtful questions asked in superb English.

In Terengganu, Malaysia’s Ambassador to the U.S., Dato’ SeriJamaludin Jarjis, and I visited secondary schools where American collegegraduates are helping teach English alongside Malaysian teachers, sharingeach others’ cultures in a U.S. government program reminiscent of thePeace Corps. On almost all these trips, I also visited American companiesand met political leaders, both government and opposition. I’m confidentto report to you, based on all those experiences, that relations betweenthe U.S. and Malaysia are visibly vibrant – and people are looking formore.

In my view, before President Obama and Prime Minister Najibassumed office, our two countries had for quite some timeunderappreciated each other. In the past two years we have establisheda much more comprehensive partnership, working more closely togetheron a broad range of issues. President Obama, who was born in Hawaiiand spent part of his childhood in Indonesia, has real experience—andseveral family members—here in Southeast Asia. His unique perspective

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on U.S. engagement with this region is complemented by his strategiccommitment to refocus America on Asia.

When U.S. Secretary of State Hillary Clinton visited Malaysia inNovember last year, she pointed out that “much of the history of the 21stcentury will be written in the Asia-Pacific region, because it is the centerof so many of the world’s greatest opportunities”. Her very recent article“America’s Pacific Century” in the Foreign Policy Magazine (11October 2011), elaborates that theme. She spoke during her visit of theUnited States’ commitment to Asia, and our enthusiasm for deepening,broadening, and strengthening our relationship with Malaysia. In Februaryof this year, Secretary Clinton called all U.S. Ambassadors back toWashington to review where we are with regard to President Obama’sand her goal of reengaging the world on the basis of partnership, or, asPresident Obama puts it, “mutual interest and mutual respect”.

I think it is fair to say that we have come a long way in renewingpartnerships, and refocusing on Asia, and in particular Southeast Asia.Malaysia is a key part of that story, and is very much on the minds ofPresident Obama and Secretary Clinton. Of course Malaysia is verymuch on my mind as well. So today I would like to describe a few areasI am focused on, together with our Embassy team of 100 Americans and200 Malaysian staff here in Kuala Lumpur.

I would like to focus my remarks today on our expanded cooperationin three areas: trade and investment, people-to-people connections, andsecurity. There are, of course, many other areas where increased U.S.-Malaysian cooperation has yielded significant results, such asenvironmental protection, health, and law enforcement. I would be happyto respond to comments or questions on those subjects afterwards.

Economic Engagement

To begin I would like to say a few words about our economic engagement,which is of critical interest to both the United States and Malaysia, and tothe prosperity of our peoples. Ambassador Ron Kirk, the United StatesTrade Representative, commented at a recent meeting in Big Sky, Montanathat “the United States wants to do big things with our Asia-Pacificpartners, and that strong engagement with the region is a major componentof the U.S. trade agenda”. This sentiment is demonstrated clearly by theUnited States’ robust trade relationship with Malaysia.

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U.S. business has been a full partner in the great story of Malaysia’sextraordinary economic growth — that helped lift Malaysia to middleincome status in several short decades — and U.S. business will play asimilar role when Malaysia becomes the high-income, knowledge-basedeconomy envisioned by its leadership. The United States remainsMalaysia’s number one foreign investor, both with new investment in2010 and in total stock. New American companies continue to come in,while many longstanding companies expand their operations. A numberof U.S. companies have made Malaysia the hub for their R&D andmanufacturing of certain products.

I am proud that American companies are such great employers. Theyprovide jobs to tens of thousands of Malaysians, with good benefits,opportunities for professional development, and transfer of skills,knowledge, and technology. The challenge now is how we take oureconomic relationship to the next level. For example, how can we makeit easier for our businesses—especially small and medium sizedcompanies— to do business in each others’ markets? How can we reduceand eliminate barriers to trade and investment that limit economicopportunity?

These questions are at the heart of the Trans-Pacific Partnership, a21st century free trade agreement that Malaysia, the United States, andseven other countries are negotiating. Negotiating teams are meeting inPeru next week for a further round of negotiations, with the objective ofreaching the broad outlines of a framework agreement by the time of theAPEC Leaders Meeting in Honolulu in mid-November. We’re excitedthat Malaysia joined the negotiations last year, and has been participatingactively and thoughtfully in the discussions. What is very clear to me,based on my conversations with senior Malaysian officials, is how theysee the TPP process as supportive of Malaysia’s own efforts toward thegoal of becoming an advanced, developed country by 2020.

Indeed, the successful conclusion of a TPP agreement would be awin-win agreement for Malaysia:1. It would serve as a powerful message for attracting investment, a

sort of “gold standard,” helping Malaysia stand out from anincreasingly crowded field of competitors for international investment.TPP membership would show that Malaysia’s business climate isamong the very best in the world. Such a seal of approval would helpMalaysia build the sorts of partnerships with foreign investors thatcould help Malaysia move more quickly up the value chain.

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2. TPP would eliminate duties on a range of Malaysia’s exports to theU.S. that still face duties, some of which are quite high.

3. Malaysia will be in the small group of countries that have locked inpreferential free trade access to 320 million consumers in the UnitedStates. Malaysia would also lock in preferential trade access to thevast U.S. government procurement market.

Of course, it is important to keep in mind that countries are generallygiven time to make policy adjustments consistent with TPP participation.In other words, changes in many areas could be phased in. Successfullyconcluding free trade agreements such as the TPP is a high priority forthe United States – the U.S. Congress just approved Free TradeAgreements with Korea, Colombia and Panama — but we are alsobuilding collaborations to further economic growth and prosperity inentrepreneurship, and science and technology. President Obama andSecretary Clinton have placed special emphasis on the importance ofentrepreneurship to growth and economic development. We’re excitedabout two major entrepreneurship events this week that Malaysia is hosting– the APEC Young Entrepreneurs Summit and Silicon Valley Comes toMalaysia, which has brought some 17 well-known entrepreneurs fromSilicon Valley to Malaysia.

Entrepreneurship is well appreciated but not always well understood.It’s been spotlighted as we’ve celebrated what Steve Jobs created atApple, while we have mourned his death. Harnessing the power ofinnovation is critical to creating a high-income, knowledge-based economy.Malaysia clearly sees innovation as a driver of the country towards the2020 goal, with a strengthened science and technology base providingthe basis for innovation and entrepreneurship. While a number of high-profile U.S. companies have a strong record for innovative product R&D,including in Malaysia, we see scope for expanding science and technologycooperation through greater lab-to-lab collaboration. This was a key themeof the July visit of President Obama’s Science Envoy to Malaysia, Dr.Rita Colwell, who had a fantastic trip here. It is also one of the reasonswe concluded a bilateral Science and Technology memorandum ofunderstanding, which was signed a year ago during Secretary Clinton’svisit. And I see much potential for further progress.

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People-to-people Ties

Of course economic engagement has much more impact when it iscombined with the development of enduring relationships between peopleand cultures that promotes mutual understanding and the free flow ofideas. United States and Malaysia have a long history of people-to-peopleconnections, spanning back virtually to Malaysia’s independence. Nextyear will mark the 50th anniversary of the first Peace Corps volunteersarriving in Malaysia. So many wonderful connections were establishedbetween young Americans who came to Malaysia between 1962 and1983, to work alongside Malaysians in education, medicine, science, andagriculture. I am a great fan of the Peace Corps; my sister was a PeaceCorps Volunteer in the Philippines in the 1970’s.

Many former Peace Corps volunteers consider Malaysia their adoptedcountry, and they stay in touch even today with friends and host familiesin Malaysia. They have helped to promote a better understanding ofMalaysia among their fellow Americans, which is one of the basic goalsof the Peace Corps established by President John F. Kennedy in 1961.To help mark the 50th Anniversary of the Peace Corps program inMalaysia, my team at the Embassy is currently reestablishing connectionsbetween former Peace Corps Volunteers and their host families andfriends, while also gathering stories and photos about Peace CorpsVolunteers here in Malaysia for a public event to be held next year. Theresponse is almost overwhelming. We’ve heard from individuals fromacross Malaysia, from high school administrators to senior governmentofficials and political leaders who look back on the Peace Corps Volunteerswho taught them decades ago with fondness and appreciation for wideningtheir world.

If any of you here knew a Peace Corps Volunteer personally, orknow someone who was taught by a Peace Corps teacher, we’d welcomeyour contributions. Find out more about this by visiting us on Facebook orour website, at http://malaysia.usembassy.gov/. The spirit of Peace Corpscontinues on today. Today, Fulbright English Teaching Assistants areinfusing energy and enthusiasm into English-language education inTerengganu. In January 2012, 50 Americans college graduates will settleinto local communities in Terengganu, Pahang and Johor as a part ofPrime Minister Najib’s request to President Obama to support English-language education in Malaysia. We’ll look to expand those numbersfurther in future years.

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Our educational ties are flourishing. Johns Hopkins University andthe Massachusetts Institute of Technology have partnered to establish inMalaysia world-class graduate degree programs and research in medicineand supply chain logistics.

In culture, we are promoting collaboration. A few weeks ago, theEmbassy sponsored the visit of New York’s renowned Battery DanceCompany of New York. Battery Dance and Malaysia’s renowned SutraDance Theatre collaborated to produce a splendid performance thatblended the influences of the East and the West. Battery Danceperformers went on to hold workshops for Malaysian dance enthusiastsin Penang, Kuala Lumpur, and Kota Kinabalu. We’re buildingunderstanding by bringing leading Americans to Malaysia. This summer,Imam Mohammed Bashar Arafat, a fascinating Syrian-born Americanimam, engaged with a wide range of students, young professionals andjudges in Kuala Lumpur, Penang, Kedah and Malacca. Just recently,Mustapa Davis, an innovative filmmaker and Muslim-American convert,connected with youth throughout Malaysia.

These people-to-people interactions remind us of what connects usbeyond the material forces of politics and economics. We are connectedby thoughts, ideas, debates. We share an openness of mind, a curiosityfor the world and an appreciation of arts and literature.

As one former Peace Corps Volunteer in Malaysia so eloquentlywrote:

In the path,you will meet many,though not all,and you will walk with them,sharing the long night and burning day of human living.And they will know yours.This will be a community.And the sharing will help illuminate the darkness…

We also have a long history of hosting Malaysians in the UnitedStates. Whether you live in KL or KK, in JB or KB, alumni of Americaneducation and exchange programs are prominent members of civil society,government, the private sector, and academia. More than 6,000 Malaysianshave taken part in U.S. government-sponsored exchange programs forprofessional development and study. Thousands more have visited theU.S. on private exchange programs funded by NGO’s, foundations, andcorporations.

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The U.S. is currently the third most popular destination [after Australiaand the United Kingdom] for Malaysian students going abroad, with 6,190students from Malaysia studying in the United States in 2010. I wouldlike it to be the first, not least because of the concentration of topuniversities there and the incredible choices available, at prices oftenlower than the first two destinations. We appreciate the support of theMalaysian government through their sponsorship of students in the U.S.

So many Malaysians in positions of leadership have attended exchangeprograms in the United States or hold degrees from American universities.The Malaysian Harvard Alumni Club, where I spoke a few months ago,is a vibrant and active force in Malaysian society. The alumni of ourexchange programs have formed a series of dynamic networks, includingthe Malaysian-American Alumni Partnership, promoting leadership andsocial entrepreneurship here in Malaysia.

These exchanges generate tremendous social capital for both of ourcountries. We have streamlined procedures for obtaining a U.S. visa tospur them along. During the past twelve months, our Embassy issued almost36,000 visas, an increase of almost 20% over the previous year. I realizestereotypes die hard, but another of my goals is to change the perceptionthat it is difficult for Malaysians to get a visa or that the U.S. is unwelcomingto Malaysians. It is in fact easier here than in any country I have servedthroughout my career. It is a good idea to apply as early as possible, becauseprocessing can sometimes take time, but 95% of Malaysians receive theirvisas, and the majority of them within a couple of days.

The ties between our peoples have also increased at the highestlevel—over the past year or so we’ve had more high level visits betweenour two countries than perhaps ever before. Prime Minister Najib andPresident Obama have now met both in Washington and New York;Secretary Clinton and former Secretary of Defense Robert Gates bothvisited Malaysia for their first time late last year; Deputy Secretary ofTreasury Neal Wolin was here in June; and Malaysian ministers are nowfrequent visitors to the U.S. These engagements create the personalrelationships essential to confident, trusting relations between our countries.

Security

The United States has long been deeply committed to peace and securityin the Asia-Pacific, the foundation to the extraordinary growth in this

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region’s prosperity. We retain that commitment as we engage in theregion’s emerging security architecture. In July 2009 the United Statessigned the Treaty of Amity and Cooperation with ASEAN. This laid thegroundwork for the United States to join the East Asia Summit, whichPresident Obama will attend in less than a month. For the first time ever,a U.S. President will join leaders from ASEAN, China, Japan, Korea,Russia (also a first-time participant), and other regional powers to discussthe vital regional issues that the Summit addresses.

Our bilateral and multilateral military partnership with Malaysia hasgrown steadily, and covers land, sea, and air. We have an active scheduleof bilateral exercises —involving all services of the Malaysian ArmedForces—that increases the capabilities of both of our countries. U.S.Navy ships visit Malaysian ports about 30 times a year, on routinedeployments promoting peace, cooperation, and stability in the region. Asour militaries play greater roles in humanitarian relief and disaster response,promoting maritime safety and fighting piracy, we are all seeing greatervalue in the ability to operate together, including in multi-national operationsand exercises.

The United States Government sponsors a professional developmentprogram that has sent more than 1,000 Malaysian military personnel to theU.S. for education and training over the last decade. This high level oftraining and cooperation benefits not only Malaysia, but the world. Malaysiacontributes significantly to international peacekeeping and strengtheningUN security structures, such as the United Nations Interim Force inLebanon (UNIFIL). Malaysia is an important contributor against piracy inthe Gulf of Aden, as well as anti-piracy efforts in the Straits of Malacca.

Our two countries cooperate closely on other security concerns,including counterterrorism, maritime domain awareness, and regionalstability. And our deepening international law enforcement cooperationhelps combat transnational crime, including drug trafficking, traffickingin persons, and terrorism.

As a trade-dependent country located at a key geographic crossroads,Malaysia faces stiffer challenges than many other nations in preventingillicit trade, whether drugs, endangered wildlife and illegal timber, piratedand counterfeit products, or illicit weapons and prohibited proliferationsof military technology. Malaysia, the U.S. and many countries shareinterests in preventing Malaysian territory from being used for illicitpurposes. For example, Malaysia’s new export control law helps Malaysiaimplement legally binding UN Security Council resolutions to stop thetrade in materials used in weapons of mass destruction (WMD) and

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ballistic missile programs. Stopping such trade has the added benefit ofhelping Malaysia attract reputable trade and investment from companiesat the high end of the technology spectrum.

Conclusion

I hope these few insights have illustrated that U.S.-Malaysian relationshave grown broader and deeper, and continue to grow, benefitting bothour peoples. I fear I have neglected a lot. What excites me about theemerging U.S.-Malaysian relationship is how much it is focused on thefuture: on youth exchanges to build understanding; on innovation andtrade negotiations to build prosperity; and on security mechanisms tomaintain the peace. I am optimistic that the growing ties between ourcountries will serve our peoples well in the next generation.

Thank you so much and I would be happy to hear your comments oraddress your questions.

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