Malaysia is upbeat about finalising a new trade agreement with the US soon, as both governments move into the final phase of legal and technical reviews, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.
“The lawyers are doing the final legal scrubbing now. We are optimistic, and this agreement will provide greater clarity and confidence for investors,” Tengku Zafrul said at the ASEAN Business and Investment Summit (ABIS) 2025.
He highlighted that the deal is expected to address key issues surrounding reciprocal tariffs under Section 232 and open new pathways for trade facilitation and market access. Sectoral discussions covering semiconductors and pharmaceuticals are also underway, he said.
Tengku Zafrul noted that while some tariff exemptions are being negotiated, the broader framework will enhance trade certainty and strengthen Malaysia’s position in global supply chains.
He added that Malaysia has tightened oversight on transshipment and export certification to safeguard the integrity of its trade ecosystem.
On regional trade, he said ASEAN’s commitment to open markets remains firm, with member states set to ink two major pacts — the upgraded ASEAN-China Free Trade Agreement and the ASEAN Trade in Goods Agreement — underscoring the bloc’s push for deeper economic integration.
Malaysia is simultaneously accelerating efforts to build its rare earth value chain by banning raw exports and encouraging investment in midstream and downstream processing.
“Global investors, particularly from the US, Japan, South Korea and China, see Malaysia as a trusted and stable partner to develop critical supply chains,” he said.
