Kuala lumpur: Nearly RM200 billion in exports to the United States, along with over a million jobs and 7,700 small and medium enterprises (SMEs), would have been at risk if market access to the United States were lost due to the Agreement on Reciprocal Trade (ART) not being concluded. Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz highlighted the potential consequences during a briefing with the Parliamentary Special Caucus on the ART.

According to BERNAMA News Agency, Tengku Zafrul also warned of the risk of a supply chain collapse and large-scale investment diversion to other countries if the agreement were not signed. He emphasized that the ART is essential for maintaining Malaysia’s global competitiveness and protecting high-value exports, particularly in the electrical, electronics, and semiconductor sectors. The agreement is seen as a mechanism for economic protection, agreed upon after careful consideration.

Tengku Zafrul noted that Malaysian exports to the US reached nearly RM200 billion in 2024 and exceeded RM200 billion in 2025. He addressed claims suggesting the ART only benefits the US, stating that it also shields Malaysian exports from unilateral tariff actions. As a net exporter, Malaysia gains significant benefits from guaranteed access to the US market through the ART.

He further clarified that the ART does not constrain Malaysia’s policies, as it does not require the country to liberalize tariffs or open markets disproportionately. Sensitive issues such as food, data, defense, or internal security remain untouched by the agreement.

In response to concerns about the ART’s impact on Malaysia-China relations, Tengku Zafrul asserted that it is a trade agreement and not a geopolitical alliance. He confirmed Malaysia’s commitment to strengthening access to other markets through agreements such as the ASEAN-China Free Trade Agreement (ACFTA 3.0), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Regional Comprehensive Economic Partnership (RCEP), and the ASEAN-China platform.