TONY Pua, the former aide of Lim Guan Eng when the latter was finance minister, wants Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz to convey to the US that “it runs a services surplus of >US$9 bil (2023)” despite incurring a trade deficit of ~US$25 bil with Malaysia.
“In our ‘negotiations’ with the terrorists, I hope we can plead that the US runs a services surplus of >USD9 bil (2023),” the ex-political secretary to Guan Eng penned in a Facebook (FB) post. “So, the net balance of payment surplus is really only around US$15 bil.”
Elaborating further, the former DAP Damansara MP opined that one should also take note that impact of Malaysia’s services deficit with the US is larger than the actual number.
“This is because a very sizeable chunk of these services – think cloud server, Netflix or FB advertisements – the profits these American companies make from Malaysians are not income taxed in Malaysia!” Pua pointed out.
“Payment is made online direct to foreign entities (hence, the recently imposed digital services tax at 8%).”
For context, Tengku Zafrul had revealed yesterday (May 5) that Washington has four demands for Malaysia to fulfil for reductions on the US reciprocal tariffs of 24%.
In a media briefing at the Parliament lobby, he said the demands span four areas: (i) the US’ trade deficit with Malaysia; (ii) non-tariff barriers; (iii) technology safeguards; and (iv) investments.
Elsewhere, Pua who was the former DAP National publicity secretary also urged Tengku Zafrul to impress upon the US that there is a wide disparity in the per capita income of both Malaysians and Americans.
“Please also beg for sympathy from the extortionists because our per capita income is only ~US$11,400,” he cheekily proposed.
“The same is ~US$37,700 for the US. Simply put, Americans are 3.5x richer than Malaysians.”
Added Pua: “Worse, there are only 35 million Malaysians vs 340 million Americans. How the hell are we going to buy as many goods from the US as they were to buy from us?
“I hope our MITI Minister will deliver our message to US very politely and with a big, big smile that the President Must Be Crazy [sic].” – May 6, 2025
