Tengku Zafrul’s Legacy Marked By Continued Fervour To Scale Up Malaysia’s Trade Competitiveness

By Karina Imran

KUALA LUMPUR, Dec 1 (Bernama) – Tengku Datuk Seri Zafrul Abdul Aziz not only leaves behind a legacy marked by a continued fervour to scale up Malaysia’s global competitiveness in trade and industry but showed remarkable leadership in being able to lower tariff rates to a more palatable level imposed by the United States.

A former banker, the 52-year-old Minister of Investment, Trade and Industry, who steps down on Dec 2 having fulfilled the maximum six years as a senator, must be commended for the slew of plans, strategies and programmes he unveiled to transform wide-ranging manufacturing industries to be more value-added, including semiconductor, green and digital investments as well as sustainability measures.

He was appointed to the Ministry of Investment, Trade and Industry (MITI) on Dec 3, 2022 by Prime Minister Datuk Seri Anwar Ibrahim.

Before this, Tengku Zafrul served as Finance Minister from March 9, 2020 until his resignation on Nov 9, 2022.

A notable feature of his stint as Finance Minister and thereafter Minister of Trade, Investment and Industry, is that Tengku Zafrul has served under three prime ministers.

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He also served under former prime ministers Tan Sri Muhyiddin Yassin and Datuk Seri Ismail Sabri Yaakob.

For the good work he has done, there is speculation that he would continue to assist in public administration and might be appointed as economic advisor to the Prime Minister with ministerial ranking.

Tengku Zafrul’s trademark was his continued push to incentivise and scale up micro, small and medium industries – regarded as the backbone of the manufacturing sector, the auto industry particularly in increasing the usage of electric cars, services sector as well as reinforcing Malaysia’s position as an export-oriented nation by finding new markets and expanding traditional ones.

This was clearly evident through numerous trade missions either he or the Prime Minister led to explore markets following disruptions to the global trading arena due to America’s crippling tariffs on most of its trading partners including Malaysia.

The trade and investment missions he mounted or accompanied Anwar included to China, Italy, Germany, France, the United States, Kazakhstan, Uzbekistan, India, Ethiopia, South Africa and Kenya, among others.

Tengku Zafrul also played a key role in Malaysia’s position as chair of ASEAN 2025 in mustering a sense of unity among Southeast Asian trade ministers not to retaliate against the tariffs but renewed their commitment to an open, inclusive and rules-based multilateral trading system.

He echoed similar sentiment at various other fora including the Asia-Pacific Economic Cooperation (APEC) forum, ASEAN summits as well as related summits with dialogue partners and the Gulf Cooperation Council (GCC) countries.

Prior to spearheading MITI, Zafrul unveiled a slew of financial assistance programmes and stimulus measures via the Ministry of Finance (MOF) during the downturn caused by COVID-19, designed to help the people, protect livelihoods, stabilise markets and lay the foundation for Malaysia’s economic recovery, some of which are still being dispensed in one form or another.

Being the former chief executive officer of CIMB Group Holdings Bhd, his extensive experience in heading one of Malaysia’s top banks must have come in handy in trade negotiations with the aim of ensuring what’s ultimately best for Malaysia.

Forward-Looking Policy and Industrial Transformation

He will also be commended for steering Malaysia towards reindustrialisation, championing green and digital investments, alongside aligning trade policies with long-term transformation goals.

To this end, the cornerstone of his achievements would undoubtedly include the launch of the New Industrial Master Plan (NIMP) 2030, which is a seven-year industrial policy designed to transform the country's manufacturing and manufacturing-related services sectors.

Given the rising importance of semiconductors to export revenue and economic growth, the National Semiconductor Strategy (NSS) was launched under his stewardship to leverage and make Malaysia more competitive by making high-end semiconductor chips.

Besides this, he unveiled the Chemical Industry Roadmap 2030, as well as the National Industry ESG Framework (i-ESG) to encourage environmental, social and governance practices across industries. 

MITI also initiated a Green Investment Strategy and a Circular Economy Policy Framework for manufacturing and aligning industrial policies with global sustainability trends. 

Strong Trade and Investment Momentum

Under his leadership, Malaysia’s trade in 2024 rose 7.4 per cent to RM2.88 trillion from RM2.64 trillion in 2023 despite the competitive global market. 

Between January and October 2025, Malaysia’s outlook continues to be optimistic with trade totalling RM2.512 trillion.

Malaysia recorded RM378.5 billion in approved investments in 2024, a 14.9 per cent increase from a strong performance of RM329.5 billion of approved investments in 2023.

In 2023, MITI’s trade and investment mission to China - which is among Malaysia’s major trading partners - yielded RM170 billion of potential foreign direct investments (FDIs) and RM2.44 billion in potential exports.

Similarly, Malaysia secured RM23.07 billion in potential investments and RM2.1 billion in potential exports from a mission to Japan in 2023.

An enduring hallmark of his tenure in MITI this year is lowering US tariffs from 24-25 per cent initially to 19 per cent and securing the Agreement on Reciprocal Trade (ART) with the US which has received mixed reaction from numerous quarters.

Tengku Zafrul has maintained that the business sector wants certainty so as to be able to plan and strategise their costing and that this agreement with the US gives businesses certainty.

Besides, thousands of jobs, direct and indirect will probably depend on trade and investments with the US, which is the world’s economic superpower.

One question which detractors to ART have to ask is what would happen had Malaysia not engaged in negotiations with the US, and other countries did.

The Malaysian economy would have been hit by debilitating tariffs of 25 per cent and the greater danger of sectoral tariffs such as on semiconductors which is a mainstay of exports.

Tengku Zafrul and Malaysia did right in engaging Washington which culminated in ART and as the minister pointed out, Malaysia cannot just depend on domestic demand, more so since its economy is an open one.

That is why continuing to cultivate one of its biggest export markets like the US is imperative.

Looking ahead, while questions would be asked as to his next course of action after leaving the government, Tengku Zafrul was magnanimous in saying he was willing to assist his successor in the transition as the new minister at MITI.

Given that he is relatively young, Tengku Zafrul should be called upon to continue to serve the country in one capacity or another as his cool persona and commendable credentials in finance, economy, trade and investment and as an astute and competent policymaker would undeniably augur well for Malaysia’s future.

-- BERNAMA