KUALA LUMPUR, November 1 — Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz has strongly defended Malaysia’s new trade agreement with the United States, dismissing allegations that it compromises national sovereignty.
Speaking in Parliament, he described the Malaysia-US Reciprocal Tariffs Agreement as the “best case scenario” achieved under tough circumstances, securing reduced tariffs of 19 per cent — the lowest among ASEAN nations — and exemptions for over 1,700 product categories, including pharmaceuticals, cocoa, and aircraft components worth RM22 billion.
He warned that without the deal, Malaysian exporters could have faced tariffs as high as 40 to 100 per cent, risking jobs and livelihoods. Tengku Zafrul also clarified that Article 5.1 of the agreement does not force Malaysia to follow US trade actions against other nations, calling it a “guardrail” rather than a surrender of autonomy.
He reaffirmed that Malaysia’s halal standards remain fully under Jakim’s authority, and denied claims that the agreement allows raw rare earth exports, stressing that the national export ban remains intact.
The minister emphasised that Malaysia’s trade strategy prioritises sovereignty, energy security.
And job creation, while diversifying partnerships with countries such as South Korea, the UAE, and other Asia-Pacific economies.
