ASEAN-US Relations Progressing Well, MITI Optimistic Trade Deal Will Be Inked During Summit

By Zufazlin Baharuddin

KUALA LUMPUR, Oct 22 (Bernama) -- ASEAN and the United States (US) have made significant progress in their bilateral relations, marked by the confirmed attendance of US President Donald Trump at the upcoming 47th ASEAN Summit, where both sides are expected to strengthen economic cooperation through the signing of the Agreement on Reciprocal Trade (ART).

Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said the agreement would bring reciprocal benefits to both ASEAN and the US.

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He said the ART complements each other while further cementing ASEAN’s economic strength with over 600 million people in the bloc.

“We are now in the final stages of finalising the ART. I think the US is in discussions with a few ASEAN countries to finalise this. The hope and the aim are to have this agreement signed by the two leaders during this summit. 

“For ASEAN, we want to show America, especially the Trump administration, that we engage everyone, including the US, and more importantly, ASEAN can be a partner to all countries, including the US,” he told a pool interview themed “How ASEAN’s economic prosperity supports regional political stability” here today.

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Trump is expected to attend the 47th ASEAN Summit and Related Summits from Oct 26-28.

It was reported that Malaysia and the US are set to sign a reciprocal tariff agreement at the 47th ASEAN Summit in Kuala Lumpur, with sectors expected to benefit, including agriculture, industrial and manufacturing, as well as businesses engaged in trade and investment with the US.

For the period of January to September 2025, trade between Malaysia and the US maintained its robust performance, expanding by 15.4 per cent to RM270.88 billion. Exports rose 18.2 per cent to RM166.38 billion, propelled by increased exports of electrical and electronics (E&E) products, machinery, equipment and parts as well as processed food. Meanwhile, imports from the US increased by 11.2 per cent to RM104.50 billion.

The ART, which serves as a binding framework for future bilateral economic cooperation, covers six main areas, namely, tariffs and quotas, non-tariff barriers, digital trade and technology, rules of origin, economic and national security, and commercial considerations.

Besides, Tengku Zafrul said ASEAN aims to complement the US rather than compete, by strengthening and supporting the US supply chain.

“For example, in semiconductors, many ASEAN countries are big players. It is a very important part of their supply chain.

“It is not that we are taking over the supply chain, but that the supply chain has strengthened the US supply chain itself. So we need to show the complementarities, the economies of ASEAN and the US,” he added.

ASEAN’s trade in goods with the US reached US$476.8 billion (US$1 = RM4.22) in 2024.

US goods exports to ASEAN are estimated at US$124.6 billion, while imports from the region totalled US$352.3 billion.

Under Prime Minister Datuk Seri Anwar Ibrahim, Malaysia assumed the chairmanship of ASEAN on Jan 1, 2025. The Philippines will be the next chair of ASEAN, taking over from Malaysia in 2026.

-- BERNAMA