Kuala lumpur: The Agreement on Reciprocal Trade (ART) is a sovereign, rules-based mechanism that reinforces Malaysia’s ability to sustain stable, predictable commercial ties with major economies, especially at a time when unilateral tariff actions are becoming the norm. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz highlighted the significance of the ART inked with the United States, emphasizing its role within a broader context of principled engagement with key trading partners.
According to BERNAMA News Agency, the ART does not override Malaysian law, diminish national sovereignty, or force liberalisation beyond Malaysia’s chosen policy direction. Tengku Zafrul assured that all provisions are grounded in Malaysian laws, with red-lines protected. He stressed the importance of securing a platform for continued engagement to resolve issues of common concern during a talk on ‘Building Regional Strength Through Smarter Fiscal and Trade Policies’.
Tengku Zafrul stated that the ART enhances trade predictability and anchors Malaysia within a global, rules-based framework. It provides certainty for exporters and strengthens the investment ecosystem. He described the ART as a tool of strategic protection, not concession, highlighting the critical nature of protected access and sustained competitiveness, with almost RM200 billion in exports projected for 2024.
Furthermore, the minister emphasized the government’s efforts to keep the investment community informed throughout the ART negotiation process with the US, which has contributed positively to Malaysia’s trade and investment inflows. From January to September 2025, Malaysia attracted RM285.2 billion in approved investments, marking a 13.2 percent year-on-year increase. Foreign investments accounted for 52.9 percent (RM150.8 billion) of these approved investments, while domestic investments contributed 47.1 percent, reflecting strong investor confidence in Malaysia’s policy direction.
Tengku Zafrul noted that Malaysia’s robust trade and investment figures coincided with a 5.2 percent gross domestic product (GDP) growth in the third quarter of 2025, surpassing analysts’ expectations. This was the fastest growth pace in a year, bringing the growth for the first nine months of 2025 to 4.7 percent. Consequently, Malaysia is poised to end the year at the upper end of the central bank’s GDP growth forecast of 4-4.8 percent for 2025, given the strong growth momentum in the third quarter.