MALAYSIA EYES TRADE DEAL WITH THE US - TENGKU ZAFRUL

By Siti Radziah Hamzah

KUALA LUMPUR, Oct 25 (Bernama) -- Malaysia is optimistic about concluding a trade agreement with the United States (US) soon, as discussions between both governments continue on reciprocal tariffs and trade facilitation, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Aziz today.

He said the agreement is currently undergoing legal scrubbing by both sides, as lawyers finalise the technical details before signing. 

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“We still have 24 hours to go. We are optimistic. Now the lawyers are involved, so there is a lot of legal scrubbing. I think with this agreement, it will give certainty on many of the issues that have been raised by the investors and by companies,” he added during a fireside session at the ASEAN Business and Investment Summit 2025 (ABIS) here today.

He noted that while some tariff lines may be exempted under the new deal, negotiations are ongoing and expected to continue beyond the signing.

Tengku Zafrul said discussions with the US cover reciprocal tariffs under Section 232, while sector-specific negotiations including for semiconductors and pharmaceuticals remain in progress.

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Under Section 232, the head of any department or agency, or any interested party may request that the US Secretary of Commerce investigate the effects of a specific import on US national security.

“Even for pharmaceuticals, there has been an announcement (on tariff), but it is yet to take effect. And we are negotiating certain tariff lines on pharmaceuticals,” he said.

Malaysia has also tightened enforcement on transshipment activities to enhance transparency and ensure the integrity of Malaysian exports.

“We have taken away the power of issuing certificates of origin from the chambers (of commerce). It is now (issued) by the government to make sure enforcement is better and more transparent,” he said.

Tengku Zafrul reaffirmed Malaysia’s and ASEAN’s continued support for multilateralism despite rising protectionist measures. 

He said ASEAN will be signing two major trade pacts — the ASEAN Trade in Goods Agreement and the upgraded ASEAN-China Free Trade Agreement — demonstrating the region’s commitment to open trade and economic engagement.

At the same time, Malaysia is pursuing new avenues of cooperation in the global rare earth supply chain, having banned the export of critical minerals to encourage midstream and downstream investment. 

“We are inviting players who want to build their supply chain in Malaysia as much as possible,” he said, adding that the government is in talks with partners from China, Japan, South Korea and the US.

On another note, Tengku Zafrul said Malaysia’s economic fundamentals remain strong, with advanced estimates showing third-quarter GDP growth of 5.2 per cent compared to an earlier projection of between 4.0 and 4.8 per cent for the year.

“Globally, many exporters to the US are frontloading, especially in sectors that may be affected,” Tengku Zafrul said.

-- BERNAMA