Kuala lumpur: Malaysia is not obligated to undertake US$240 billion in commercial purchases or invest US$70 billion in the United States under the Agreement on Reciprocal Trade (ART), stated the Ministry of Investment, Trade and Industry (MITI). Deputy Investment, Trade and Industry Minister Liew Chin Tong clarified that the ART does not bind the government to purchase goods or invest in the United States to any predetermined value.
According to BERNAMA News Agency, the deputy minister emphasized during a session in the Dewan Negara that Malaysia’s commitment under the ART is not national but rather rests on corporate decisions by companies, executed through market mechanisms. These commitments, therefore, do not impose a national obligation on the government.
Liew was responding to an inquiry from Senator Tan Sri Low Kian Chuan regarding whether Malaysia must honor commitments to purchase goods and invest in the US, a figure amounting to approximately US$240 billion under the Malaysia-US ART. He explained that the commitments specified in the ART are based on commercial decisions and existing procurement plans by companies, including government-linked companies (GLCs) and Malaysian multinationals, grounded on their individual business strategies.
The deputy minister further elaborated that these transactions are business-to-business in nature, driven by commercial decisions and anticipated returns on investment. These cover a range of sectors including aircraft procurement from Boeing, security equipment, liquefied natural gas (LNG), semiconductor equipment, aerospace components, data center equipment, telecommunications equipment, and coal.
Liew provided examples such as aircraft procurement commitments, which are part of a phased fleet renewal and expansion plan aimed at replacing aging aircraft, ensuring operational safety, and supporting growth in Malaysia’s tourism sector. Similarly, LNG procurement represents a long-term supply commitment by Petronas to meet existing contracts and optimize resources, ensuring continuity of deliveries to customers.
He reiterated that these decisions, particularly by Petronas, are commercially driven and are not government-directed to fulfill obligations under the ART.