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Govt Interpretation Of ART Aligns With Good Governance, International Obligations

Kuala lumpur: The government interprets Article 6.2 of the Agreement on Reciprocal Trade (ART) in a manner consistent with good governance practices, the principles of fair competition in commercial activities, and Malaysia's international obligations. The Investment, Trade and Industry Ministry (MITI) said all commitments under ART are interpreted in alignment with the Federal Constitution, domestic legislation and national socio-economic policies.

According to BERNAMA News Agency, MITI clarified that the clause does not impose an absolute prohibition on all forms of government support. Government assistance specifically provided to fulfill public service obligations is permitted. This includes national development requirements, security needs, and social considerations, which are allowed as they are not regarded as non-commercial assistance that unfairly distorts competition.

MITI's statement was in response to a question from Mohd Syahir Che Sulaiman (PN-Bachok) regarding the government's interpretation and implementation of Article 6.2 of the Malaysia-US Agreement on Reciprocal Trade.

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