Kuala lumpur: The government’s negotiating position aims to ensure that any agreement reached supports the country’s economic reforms and sustainable growth strategies. Minister of Investment, Trade and Industry (MITI) Tengku Datuk Seri Zafrul Abdul Aziz emphasized that negative long-term outcomes are not what the public wants, nor what current and future taxpayers need.
According to BERNAMA News Agency, Tengku Zafrul stated that while catchy, feel-good headlines may last a few days, poor deals will have long-term consequences for the people, industries, and economy. He underscored that the objective is clear: any agreement must support an open, rules-based, and fair multilateral trade system, with the World Trade Organisation at its core. This was highlighted in his keynote address at the International Healthcare Week (IHW) 2025.
The minister also stressed that any agreement should safeguard market access, acknowledging the importance for emerging countries like Malaysia to develop sustainable supply chains and economies. He noted the strong economic ties with the United States, citing that in 2024, total Malaysia-US trade rose nearly 30 percent to RM324.9 billion (US$71.4 billion), with Malaysia being a vital source for key products such as electrical and electronics, machinery and equipment, rubber gloves, wood-based products, and palm oil.
Tengku Zafrul pointed out that trade negotiations are complex processes involving multiple stakeholders. It is crucial for relevant ministries and agencies to be consulted to minimize conflict and ensure smooth implementation post-negotiation. He shared that the average duration for a trade negotiation is 18 months, with the fastest on record for MITI being 11 months.
Highlighting the government’s stance, Tengku Zafrul mentioned several red lines that the MADANI government will not cross, such as sacrificing the country’s sovereignty or sidelining other trading partners to close a trade deal. He also addressed Malaysia’s ongoing negotiations with the US regarding a 25 percent reciprocal tariff imposed so far, with a deadline of August 1.
In response to Donald Trump’s recent announcement of a 19 percent reciprocal tariff on Indonesia, Tengku Zafrul commented that Malaysia is still in negotiations and emphasized the importance of ensuring mutual benefit for both countries. He noted that they are awaiting any official statement from the Indonesian side.