SHAH ALAM - Malaysia remains committed to welcoming foreign investors and businesses despite pressure from a group of United States lawmakers over Putrajaya's reported policy involving Israeli citizens, says Deputy Investment, Trade and Industry Minister Sim Tze Tzin.
Speaking on BFM's Breakfast Grille, Sim stressed that Malaysia's investment policies remain unchanged, describing the issue involving Israeli nationals as an isolated case that should not be viewed as representative of the country's broader approach.
"From what I understand, they came with different passports and as long as they follow the rules of Malaysia, I think Malaysia welcomes everyone. There is no issue about that," he said.
Sim said the controversy surrounding the reported operation to identify Israeli nationals entering Malaysia using foreign passports had been amplified online, but insisted the government was merely enforcing existing laws.
"I think this is a very isolated case. It's a play-out on the internet. I don't think the Malaysian government will change the policy based on this. We are just enforcing the existing law," he said.
He added that statements from American politicians should also be viewed within the context of domestic US politics.
"I think politicians in the US leading up to the elections will come with all kinds of statements," he said.
His remarks came after eight US lawmakers urged Secretary of State Marco Rubio to suspend military training assistance to Malaysia unless Putrajaya reverses its reported policy of tracking down and deporting Israeli citizens.
The lawmakers also called for a review of the broader Malaysia-US security and economic relationship, including suspending Malaysia's participation in the International Military Education and Training (IMET) programme if no changes are made within 15 days.
The proposal followed reports surrounding a government operation to identify Israeli nationals allegedly entering Malaysia using foreign passports, a move Malaysian authorities have maintained is part of enforcing existing immigration laws.
Despite the controversy, Sim said Malaysia continues to attract investments from companies with diverse international ownership.
"There is a lot of investment into Malaysia. Many companies have different links," he said.
Referring to the controversy surrounding BlackRock's investment in Malaysia Airports Holdings Bhd (MAHB), Sim said the government had demonstrated its commitment to remaining open to foreign investment despite public criticism.
"BlackRock was a huge hoo-ha when they invested in Malaysia Airports. The government stood its ground, welcomed it and now they are part of Malaysia Airports' shareholders," he said.
He also cited global technology companies operating in Malaysia as evidence of the country's open investment environment.
"Malaysia is welcoming everyone. Google and Meta have that kind of investor. Everyone in Malaysia uses Meta, Facebook; everyone uses Google.
"I think we are very globalised. Malaysians are very rational people. Business is business, investment is investment and the Malaysian government's stand has always been welcoming," he said.
Political analyst Anis Anwar Suhaimi said the initiative by the US lawmakers should be viewed primarily as political signalling rather than a fundamental shift in Washington's policy towards Malaysia.
"The move by the eight US lawmakers is politically notable, but its immediate impact on Malaysia-US relations should be assessed carefully.
"At this stage, it represents the position of a group of legislators rather than a formal policy shift by the US administration," he said.
Anis said the lawmakers appeared to conflate nationality, religion and diplomatic policy.
"Malaysia's position is based on its foreign policy towards Israel as a state and its decision not to establish diplomatic relations with Israel.
"This position does not constitute a blanket policy against Jewish individuals or citizens of other countries, including Jewish Americans," he said.
He said Malaysia's policy should instead be understood within the context of its longstanding support for Palestine and its diplomatic position on Israel.
He added that while any suspension of military training would have operational implications, the broader Malaysia-US relationship extends well beyond defence cooperation.
"Military training cooperation is valuable, particularly in areas such as interoperability, professional development, humanitarian assistance, disaster response and regional security cooperation.
"Any suspension would create some operational and diplomatic implications," he said.
However, Anis noted that the United States remains one of Malaysia's largest trading and investment partners, particularly in the electrical and electronics, semiconductor, manufacturing and digital economy sectors.
"The issue is therefore not simply about the suspension of military training, but about how such a decision affects America's broader strategic interests in maintaining influence in Southeast Asia," he said.
Meanwhile, lawyer Salim Bashir said Malaysia is acting within its sovereign rights under domestic and international law.
"Malaysia has the power to cancel stay permits of prohibited immigrants and order them to leave or face deportation. The minister in charge of home affairs also has the discretion to order the deportation of an undesirable immigrant where the entry into Malaysia was unlawful," he said.
He added that under the Vienna Convention on Diplomatic Relations, diplomatic relations are based on mutual consent.
"A third-party state cannot compel another state to establish or sever diplomatic ties with countries it does not wish to engage with. Nor can it interfere in another state's internal affairs through coercion or threats," he said.