Malaysia does not sacrifice national interests for special treatment - Tengku Zafrul

KUALA LUMPUR: Malaysia does not sacrifice national interests to obtain special treatment; instead, bilateral negotiations with the United States recently maintained the country's unique policies.

AI Brief

Malaysia's new US tariff rate is set at 19%, down from 25%, recognizing its role as a key trading partner.
Malaysia maintains protections for strategic industries and Bumiputera provisions despite trade pressures.
Malaysia and the US are finalising a joint statement and details of a reciprocal trade agreement.

Minister of Investment, Trade, and Industry Tengku Datuk Seri Zafrul Abdul Aziz said that preserving the country's unique policies includes protections for strategic industries and Bumiputera provisions.

"The United States grants Malaysia equivalent rates because of the recognition of Malaysia's importance as a major trading partner and Malaysia's ability to offer quality trade and investment commitments, even without fully opening all sectors."

"Malaysia also demonstrates its significant position as a stable, competitive, and trusted country in the global supply chain," he told the Dewan Rakyat today during a ministerial briefing on reciprocal trade negotiations with the United States.

Tengku Zafrul emphasised that achieving the new rate demonstrated that developing countries like Malaysia can access international trade without succumbing to absolute liberalisation pressures. "This model also serves as an example to regional countries that 'red lines' can be defended if the country is clear about its values, strategies, and commitments offered," he said.

On Aug 1, 2025, the new US tariff rate for Malaysia was announced at 19 per cent, a six percentage point reduction compared to the rate announced on July 7, 2025.

Meanwhile, he said Malaysia and the United States are in the process of reaching an agreement on a joint statement that encompasses the outcomes of the negotiations and the commitments mutually agreed upon. "This statement will be issued soon. Both sides will also continue discussions on the details of the Reciprocal Trade Agreement that needs to be ratified to ensure all commitments are implemented," he added.

The United States is Malaysia's largest export destination, with an export value of RM198.65 billion, and one of Malaysia's main sources of foreign investment for 2024, amounting to RM32.82 billion.

-- BERNAMA