Obama was to deliver an address in Malaysia on October 11 as a part of a four-country swing through Southeast Asia including international summits in Indonesia and Brunei.
Instead of Obama, US Secretary of State John Kerry will be now be attending the summit.
Razak, however confirmed that he had received a phone call from Mr Obama on Wednesday morning to say that he could not come. "Obama expressed his disappointment that he was unable to visit Malaysia as scheduled," he said.
Razak's office confirmed that Kerry would step in for Obama for his planned speech at an entrepreneurs summit in Kuala Lumpur on October 11.
Obama scraps visit, John Kerry to attend
During the gathering, Obama was expected to push for the final agreement on an Asia-Pacific trade agreement while underscoring his administration's renewed economic and security focus on Asia.
Though the officials have not confirmed the reason behind the cancellation but fingers point out to the shutdown that US is currently facing at this time.This was supposed to be Obama's first visit to the country.