AGREEMENT ON RECIPROCAL TRADE DOES NOT OVERRIDE MALAYSIAN LAWS - MITI

KUALA LUMPUR, Jan 21 (Bernama) — The Investment, Trade and Industry Ministry (MITI) has emphasised that there is no clause in the Agreement on Reciprocal Trade (ART) that allows external parties to override Malaysia’s laws or domestic regulations.

MITI said the implementation of the agreement’s commitments must always comply with local laws and regulations and go through the country’s legislative and administrative processes.

“The agreement does not undermine economic sovereignty or the protection of domestic industries,” MITI said in a written reply to the Dewan Rakyat released on the Parliament portal today.

The ministry was responding to a question from Datuk Awang Hashim (PN–Pendang) regarding the government’s assurance that the ART agreement does not affect economic sovereignty or the protection of domestic industries.

The government also explained that the agreement does not bind Malaysia to any forced commercial or investment commitments; instead, it provides opportunities for exports and investment through mutually beneficial mechanisms and policies without sacrificing the autonomy of the country’s economic policy.

Meanwhile, MITI said the government also emphasised that no clause in the agreement affects bumiputera policies or grants special rights to American companies.

“In the context of the role of government-linked companies (GLCs), ART does not limit GLCs’ role in national economic development. In fact, the government retains full authority to determine the appropriate support, including initiatives aimed at strengthening the domestic economy and the well-being of the people,” it said.

MITI was responding to a question from Mohd Syahir Che Sulaiman (PN–Bachok) on how the government ensures that the agreement does not discriminate against domestic interests, including the ability to support GLCs, bumiputera policies, digital tax collection, protection of local agriculture and fisheries industries, and the authority of the country’s strategic regulatory bodies.

— BERNAMA