Putrajaya has denied US President Donald Trump's accusation that Malaysia is a “trade cheat” responsible for the former's trade deficit.

"The accusation made by Trump against Malaysia that it is among the 'trade cheats' is not true," International Trade and Industry Minister Mustapa Mohamed said.

"Until today, the US administration has yet to release the outcome of the official report on the trade deficit of the US and its partners (the Omnibus Report on Significant Trade Deficit).

"The report prepared by the Commerce Department and the United States Trade Representative Office has been sent to the White House for Trump’s consideration," Mustapa (photo) told William Leong (PKR-Selayang) in a written reply in Parliament.

Leong had asked the minister to state the steps taken to defend Malaysia against Trump’s claim that Malaysia was among the "trade cheats" allegedly responsible for the nearly US$50 billion trade deficit of the US.

Mustapa said he and Prime Minister Najib Abdul Razak had, during their visit to the US in September, discussed the trade deficit issue with Trump and his cabinet.

"Our statistics showed (only) a US$5 billion trade deficit while the United States' record showed a trade deficit of US$25 billion.

"On this matter, both the prime minister and I explained the discrepancy in the amounts was because the US took into account imports via a third country,” he explained.

"For example, electrical and electronic products exported to the US via Singapore would be recorded as an import from Malaysia, instead of from Singapore.

He added that five out of the 10 electrical and electronics exporters in Malaysia were US companies.

Mustapa said during bilateral meetings, both countries agreed to resolve the issue through the Trade and Investment Framework Agreement.

"In conclusion, Malaysia is not a 'trade cheat' as claimed by the US," he said.

Mustapa stressed that Malaysia, as a major trading country, conducted its trading activities in a fair manner.

"Furthermore, Malaysia also does not manipulate our currency provide any assistance that is in violation of the rules set out by the World Trade Organisation," he said.