MALAYSIA-US RECIPROCAL TRADE AGREEMENT STRENGTHENS ECONOMIC TIES, BOOSTS MARKET ACCESS

KUALA LUMPUR, Oct 27 (Bernama) -- The signing of the Malaysia-United States Agreement on Reciprocal Trade (ART) reaffirms the strong economic ties between the two nations and highlights Malaysia’s role as a key US partner in Southeast Asia, opening new opportunities for cooperation in trade, investment and innovation, said the American Malaysian Chamber of Commerce (AMCHAM).

AMCHAM chief executive officer Datuk Siobhan Das said American companies have been integral to Malaysia’s growth journey, investing in people, technology and ideas that continue to shape the country’s global competitiveness.

“This new agreement is founded on a redefined approach to trade, centered on building a trusted and secure trading framework that prioritises value enhancement, transparency and integrity throughout the supply and value chains, alongside fostering reciprocal investments.

“It further strengthens the commitment of American multinational corporations and opens fresh opportunities for cooperation, trade and innovation while enhancing resilience across critical supply chains,” she said.

Building on decades of close cooperation, compliance and adherence to global standards, Das said the agreement provides more opportunities for closer engagement with local small and medium enterprises and encourages two-way trade and investments.

It could also offer businesses with a US market focus alternative options for their supply chains.

“Being one of the first countries to reach an actionable agreement reinforces Malaysia’s strategic and leadership position, and demonstrates that there is a clear pathway forward to access the US market.

“Companies will now have a better understanding of how to deploy their supply chains and unlock value that has long sought greater clarity, although there is still work to be done as we unpack this agreement,” she added.

Meanwhile, the Federation of Malaysian Manufacturers (FMM) said the agreement reflects Malaysia’s careful negotiation strategy to safeguard domestic industries while positioning them for deeper integration into global supply chains.

It said the framework also provides clarity and stability for investors, encouraging collaboration between Malaysian and US firms in high-value manufacturing and digital sectors.

“The agreement gives Malaysia’s manufacturing sector breathing space, continuity of market access and a stronger foundation for investment.

“The challenge now is to turn these terms into concrete results. Industry and government must work together to accelerate capacity building, move up the value chain and fully leverage the exemption and implementation package to enhance Malaysia’s competitive position,” it added.

FMM added that these measures reflect a broader US strategy to reshore manufacturing and impose higher costs on producers operating abroad. The agreement protects Malaysian exporters from being caught in these sweeping actions, ensuring continued access to the US market under stable and predictable conditions.

Malaysia and the United States have signed the ART,  officiated by US President Donald Trump and Prime Minister Datuk Seri Anwar Ibrahim on the sidelines of the 47th ASEAN Summit and Related Summits on Sunday.

Key terms of the agreement include the US’ commitment to maintain a 19 per cent tariff rate on Malaysian-origin goods, with important exemptions granted to 1,711 tariff lines of Malaysian exports.

-- BERNAMA