Not all aspects of digital, technology trade during US tariff talks are agreeable to Malaysia - Tengku Zafrul

KUALA LUMPUR: Not all requests from the United States (US) involving aspects of digital trade and technology have been agreed to by Malaysia in the two countries' countervailing trade tariff negotiations, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

AI Brief

Malaysia insists public platforms and service providers remain subject to its laws, including criminal liability.
The government reserves rights to access or request source code for critical sectors to protect national interests.
Malaysia secured a reduced 19% US tariff while maintaining protections for intellectual property and strategic sectors.

He said Malaysia stands firm in maintaining the policy that public service providers and social media platforms are still subject to criminal liability under Malaysian law.

Tengku Zafrul said the Malaysian government also has the right to request access to or order companies to transfer the source code of software used in critical infrastructure, government procurement and the financial services sector, licensing and judicial matters.

"Malaysia emphasises the government's transparent and balanced commitment in two aspects. The first aspect is the commitment to protect companies' intellectual property from forced technology transfer, promote innovation and ensure fair competition in the international market.

"The second aspect is to preserve the country's sovereignty, security and economic stability," he said at a ministerial briefing on the reciprocal trade negotiations with the US at the Dewan Rakyat today. On Aug 1, the new tariff rate for Malaysia was announced at 19 per cent, a six per cent decrease from the rate announced on July 7, 2025.

-- BERNAMA