UNITED STATES President Donald Trump has singled out Malaysia as a leading example in the production and popular use of compact, fuel-efficient vehicles, signalling a shift in US policy to allow American manufacturers to produce similar cars domestically.
Speaking from the Oval Office at the White House, Trump noted that regulatory barriers had previously prevented the production of smaller cars in the United States.
“If you go to Japan, South Korea and Malaysia, they have very small cars, sort of like the Volkswagen Beetle used to be. They’re very small, and they’re really cute,” Trump said. “And I said, how would that do in this country? And everyone seems to think good. But you're not allowed to build them.”
The President announced that he had authorised the US Secretary of Transportation, Sean Patrick Duffy, to remove existing restrictions, allowing companies such as Toyota, Honda, and other automakers to manufacture and sell compact, fuel-efficient vehicles across the United States.
“I’ve authorised the Secretary to immediately approve the production of those cars,” Trump added.
Duffy confirmed the directive, emphasising that US manufacturers now have regulatory clearance to produce affordable, environmentally friendly small cars domestically.
Asian automakers have long demonstrated the commercial viability of such models, with Malaysia, in particular, cited for its widespread acceptance of compact vehicles.
Trump’s remarks came shortly after his visit to the 47th ASEAN Summit in Kuala Lumpur, his first Southeast Asian visit during his current term, followed by trips to Japan and South Korea.
The President later met Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) forum to discuss trade relations, underscoring the strategic importance of his Asia tour. - December 4, 2025
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