MALAYSIA will not make a hasty decision on the Agreement on Reciprocal Trade (ART) with the United States, which was signed on 26 October last year, despite the recent move by the US Supreme Court to overturn import tariffs introduced by President Donald Trump.
Prime Minister Datuk Seri Anwar Ibrahim said Putrajaya needs adequate time and space to thoroughly review the development before deciding on the next course of action, stressing that any decision must consider the broader implications for the country’s economy.
He noted that only three days had elapsed since the US Supreme Court delivered its ruling.
Addressing a question from Hasan Karim (PH–Pasir Gudang), who called for the Malaysia–US ART to be scrapped, Anwar maintained that the government must first assess the potential economic consequences.
“That is why I urge that we be given some room and time. Any decision taken today may appear strong and decisive, but we must carefully weigh the risks to the national economy,” he said.
He added that while issues of dignity and sovereignty are important, trade policy decisions must ultimately be guided by Malaysia’s strategic and economic interests.
On a separate note, Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani pointed out that while Malaysia had signed a reciprocal trade agreement with the US last year, it has yet to ratify it.
According to the minister, the US remains one of the world’s largest economies and a key trading partner for Malaysia. Total trade between the two countries reached RM367 bil last year, with exports to the US at RM233 bil. “The US is, therefore, an important and longstanding trading partner for Malaysia,” he said.
“Malaysia’s position is clear and consistent. We will remain committed to an open and rules-based trade, to maintain a stable and predictable business environment, and to safeguard the interests of Malaysian exporters, international investors, businesses operating in Malaysia, and workers across our economy,” said Johari.
At the same time, Malaysia will continue to diversify its trade relationships and strengthen regional and multilateral economic cooperation to ensure resilience in an evolving global trade environment.
Johari stressed that the ministry will act in Malaysia’s best interests while preserving strong bilateral relations with the US. —Feb 24, 2025
Main image: Anwar Ibrahim (Facebook)
