Kuala lumpur: Prime Minister Datuk Seri Anwar Ibrahim clarified that the United States-Malaysia Agreement on Reciprocal Trade (ART) does not restrict Malaysia’s ability to engage in trade and negotiations with other countries, including China. Anwar, who also serves as the Finance Minister, addressed concerns regarding the ART’s implications on Malaysia’s economic and trade policies during the Dewan Rakyat’s Ministers’ Question Time.

According to BERNAMA News Agency, Anwar dismissed claims that the ART compromises Malaysia’s economic sovereignty, asserting that the nation is free to collaborate with any strategic partner in vital sectors such as rare earths, semiconductors, and financial cooperation using local currency. He acknowledged the heightened pressure from the US but maintained that Malaysia remains steadfast in preserving its independence and dignity.

Responding to queries from Datuk Awang Hashim (PN-Pendang) about the ART’s potential impact on Malaysia’s economic cooperation, Anwar emphasized ongoing negotiations on rare earths with countries like South Korea and China. He mentioned that entities such as Petronas and Khazanah are actively engaging with Chinese companies for mineral processing.

In the semiconductor domain, Anwar clarified that export restrictions on chips to China are specific to American companies due to their origin. He explained that if an American company invests in Malaysia, they are prohibited from exporting chips to China. However, investments from countries like Germany or China to manufacture and export chips to China are permitted.

Anwar further highlighted Malaysia’s continued cooperation with China on significant projects, including the expansion of the Perak River water supply to Penang, indicating that no external objections have been raised. He reiterated Malaysia’s openness to collaborate with China and other countries without any hindrances.