US-Malaysia ART Doesn't Prevent Malaysia From Trading, Negotiating With Other Countries -- PM Anwar

KUALA LUMPUR, Nov 18 (Bernama) -- Prime Minister Datuk Seri Anwar Ibrahim emphasised that the United States-Malaysia Agreement on Reciprocal Trade (ART) does not prevent Malaysia from negotiating or trading with other countries, including China.

Anwar, who is also the Finance Minister, said that claims that the ART limits Malaysia’s ability to make economic, trade and investment policy decisions are unfounded.

He highlighted that Malaysia remains free to cooperate with any strategic partner, including in sensitive sectors such as rare earths, semiconductors and financial cooperation involving the use of local currency.

“I agree that the pressure from the US is relatively greater and not just on us, but on everyone, the whole world. We do not want to be hit with high tariffs. But questions of independence, dignity, and being pawned off — that’s not right.

“Malaysia is continuing negotiations on rare earths with various parties, including South Korea and China, and Petronas and Khazanah are negotiating with a Chinese company regarding the processing of those minerals,” he told the Dewan Rakyat during the Ministers’ Question Time today.

The Prime Minister was responding to a supplementary question from Datuk Awang Hashim (PN-Pendang), who raised concerns about the ART’s impact on Malaysia’s freedom to determine economic cooperation with other countries.

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Regarding the semiconductor sector, Anwar said export restrictions on chips to China only apply to American companies because they are tied to the companies’ country of origin.

“What did we agree on (in the ART)? If the company is American, we cannot export chips to China at all. Fine. If their investment comes to Malaysia, the condition is that they cannot export to China, and we will cooperate. But if there is investment from Germany or from China to manufacture chips and export to China, that is allowed,” he said.

He added that Malaysia is also continuing major cooperation with China, including a project to expand the Perak River water supply to Penang, without any objections from any party.

“What is preventing us from cooperating with China? Nothing,” he said.

-- BERNAMA