KUALA LUMPUR, July 17 — Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz has stressed that Malaysia will not rush into trade agreements that could have long-term negative consequences. Speaking at the International Healthcare Week 2025, Tengku Zafrul said the government’s negotiating stance with the US is rooted in ensuring economic reform, sustainable growth, and the preservation of market access.
He warned against being swayed by short-term political wins, stating, “Catchy, feel-good headlines last a few days… poor deals will have long-term consequences for our people, industries, and economy. Tengku Zafrul outlined that the MADANI government will not sacrifice national sovereignty or alienate existing trade partners in pursuit of a deal.
He noted that Malaysia’s trade with the US surged by nearly 30 per cent to RM324.9 billion in 2024, underscoring the strategic value of the relationship. However, the minister emphasised that any deal must also support multilateral, rules-based trade and sustainable supply chain development for emerging economies like Malaysia.
Malaysia has until August 1 to conclude negotiations with the US regarding a proposed 25 per cent reciprocal tariff, Tengku Zafrul confirmed. The comments followed recent remarks by Donald Trump announcing a 19 per cent reciprocal tariff on Indonesia, which has yet to issue a formal response. “We are still in negotiations, what is important is that any agreement must ensure mutual benefit for both countries,” he said.
