Malaysia on Monday strongly condemned the U.S. decision to merge its consulate in Jerusalem with its embassy.
"This calls into question not only US' credibility as the mediator in the Palestine-Israel conflict but also its ultimate objective in the Middle East," the foreign affairs ministry said in a statement that termed the move as the latest "unfortunate" step taken against Palestine and its people.
The U.S. announced Sunday it was shuttering its consulate in Jerusalem and merging it with its embassy, effectively demoting the status of its main diplomatic mission to the Palestinians.
The move will take effect Monday, ending the consulate's 175-year history and handing responsibilities for the U.S.'s relations with the Palestinians to Washington's Israel Ambassador David Friedman.
Malaysia said the decision was a "smokescreen" to disguise Washington's efforts to open an embassy in Jerusalem.
The move would "sound the death knell" for the two-state solution which is supported by the vast majority of the international community, the ministry said.
It reiterated support for the two-state solution based on the pre-1967 borders and said it would continue to oppose any action detrimental to peace efforts.
U.S. President Donald Trump sparked an international outcry in 2017 by announcing plans to move its embassy in Israel to Jerusalem and recognize the city as Israel's capital.
Since the move last May, Palestinian leadership in Ramallah has rejected any mediating role by the U.S. in the moribund Middle East peace process.
International law continues to view East Jerusalem, along with the entire West Bank, as "occupied territory" and considers all Jewish settlement construction there to be illegal.
