Kuala lumpur: The Malaysia-United States (US) trade agreement formalised on October 26, 2025, is largely seen as the formalisation of previously provided information, said OCBC.

According to BERNAMA News Agency, the agreement reiterated that the tariff rate for Malaysia’s exports to the US would remain at 19 percent, with a clearer list of exemptions. On tariff rates, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Aziz added that 1,711 tariff lines are now exempt from tariffs.

“This totals US$5.2 billion (12 percent of exports). This is, in addition to semiconductor exports, which are still exempt from reciprocal tariffs, and accounted for about 26 percent of total exports to the US in the first half of 2025 alongside some other exemptions,” it said.

It noted that the announcement on semiconductor tariffs is still pending and depending on the nature of the tariffs and conditions attached, Malaysia’s exports to the US could be significantly impacted. On non-tariff discussions, it said the agreements around non-tariff measures point to the need for a greater ease of doing business within Malaysia for US firms.

Easier access to import licensing, reduced need for technical regulations, and smoother customs and facilitation were some measures agreed upon, it added. The discussions on greater access for US agriculture products, such as cheese and meats, underscore the US administration’s push for greater market access to ASEAN for agricultural products.

The bank has maintained its 2025 gross domestic product (GDP) growth forecast at 4.6 percent year-on-year and 2026 forecast at 3.8 percent. “The announcement on semiconductor tariffs will be the next trigger for us to review our forecasts. In terms of monetary policy, we still expect Bank Negara Malaysia to keep the policy rate unchanged at 2.75 percent,” it said.