Kuala lumpur: Malaysia does not sacrifice national interests to obtain special treatment; instead, bilateral negotiations with the United States recently maintained the country’s unique policies. Minister of Investment, Trade, and Industry Tengku Datuk Seri Zafrul Abdul Aziz stated that preserving these policies includes protections for strategic industries and Bumiputera provisions.
According to BERNAMA News Agency, Tengku Zafrul highlighted Malaysia’s ability to secure equivalent rates from the United States as a testament to the country’s significance as a major trading partner. This achievement underscores Malaysia’s capacity to offer quality trade and investment commitments without fully opening all sectors. He remarked that Malaysia’s stable, competitive, and trusted position within the global supply chain is well-recognized.
Tengku Zafrul emphasized that Malaysia’s journey to achieve the new rate exemplifies how developing countries can engage in international trade without yielding to pressures for complete liberalization. “This model also serves as an example to regional countries that ‘red lines’ can be defended if the country is clear about its values, strategies, and commitments offered,” he explained.
On August 1, 2025, it was announced that the new US tariff rate for Malaysia would be set at 19 percent, reflecting a six percentage point reduction from the rate announced on July 7, 2025. This adjustment marks a significant milestone in the trade relationship between the two nations.
In addition, Tengku Zafrul mentioned that Malaysia and the United States are currently working towards an agreement on a joint statement reflecting the outcomes of their negotiations and mutually agreed-upon commitments. This statement is expected to be issued soon, with ongoing discussions regarding the details of the Reciprocal Trade Agreement to ensure all commitments are adequately implemented.
The United States stands as Malaysia’s largest export destination, with exports valued at RM198.65 billion. It is also a key source of foreign investment for Malaysia in 2024, amounting to RM32.82 billion.