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Tengku Zafrul Cautions Against Bad Trade Deals Amid Ongoing US Tariff Talks
By Administrator
Published on 07/17/2025 08:00
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Malaysia's Minister of Investment, Trade and Industry (MITI) Tengku Datuk Seri Zafrul Abdul Aziz stated that the government's trade negotiation strategy prioritizes economic reforms and sustainable growth, warning against "poor deals" that have long-term negative consequences. He emphasized ensuring any agreement supports open, rules-based, and fair multilateral trade with the WTO at its core, while safeguarding market access and recognizing the needs of emerging economies like Malaysia to develop sustainable supply chains.

Tengku Zafrul highlighted that Malaysia's trade with the US grew almost 30% in 2024 to RM324.9 billion (US$71.4 billion), with Malaysia being a key source of products like E&E (semiconductors), machinery, rubber gloves, and palm oil. He stressed that trade negotiations are complex and require consultation with relevant ministries.

Regarding the 25% reciprocal tariff imposed by the US, Tengku Zafrul confirmed that Malaysia has until August 1 to negotiate with the US. This follows US President Donald Trump's recent announcement of a 19% reciprocal tariff on Indonesia, which Malaysia is awaiting official confirmation on from Jakarta. Tengku Zafrul reiterated that Malaysia's negotiations aim for mutual benefit and will not compromise the country's sovereignty or sideline other trading partners.

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