KUALA LUMPUR, August 2 – Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz confirmed today that Malaysia’s semiconductor and pharmaceutical exports to the United States will continue to enjoy duty-free access, despite the broader trade deal with new tariff adjustments. Speaking at Menara MITI, he revealed that Malaysia has secured zero-tariff status for 6,911 out of 11,260 tariff lines, reducing the overall tariff rate from 25 per cent to 19 per cent.
Zafrul also addressed concerns over non-tariff barriers and reiterated Malaysia’s commitment to regulatory reform without compromising on national standards or interests. “We are reforming processes for trade efficiency, but excise duties on vehicles, alcohol, tobacco, and import licenses will remain,” he said. He emphasized that Malaysia rejected US calls to liberalize strategic sectors and abolish excise duties.
In response to speculation about halal certification compromises, Zafrul was firm: “There is absolutely no compromise on halal standards.” He clarified that while halal import procedures may be streamlined, the integrity of Malaysia’s religious, legal, and quality frameworks will be maintained. He also debunked claims of exclusive rare earth deals with the US, stating that all rare earth exports must now undergo local processing to boost downstream value.
Zafrul further announced that Malaysia will proceed with its US$19 billion commitment to purchase 26 Boeing aircraft in two phases. This deal, he said, reflects Malaysia’s intention to enhance bilateral trade and support the nation’s aviation and MRO (maintenance, repair, and overhaul) industries. The acquisition will take place in two stages of 13 aircraft each.
Highlighting Malaysia’s strategic balancing act, Zafrul said the trade negotiations reflect a broader policy to safeguard economic sovereignty while remaining open to global investment. “This is a comprehensive effort to strengthen our trade position while ensuring the long-term development of our domestic industries,” he concluded.
