MALAYSIA’S recent signing of a Reciprocal Trade Agreement (ART) with the United States has drawn scrutiny in the Dewan Rakyat, with Prime Minister Datuk Seri Anwar Ibrahim defending the pact and urging lawmakers to examine it carefully.
"All trade agreements have exit clauses. Why did we sign it? Because we need investment from the US," Anwar told MPs during the Prime Minister’s Questions session.
"That I do not want to apologise for. But surrendering to the US is out of the question.
“Likewise with China. In the past, when we were close to China, we were still criticised. Now, it seems that even being close to the US is not acceptable.
“So, who should we be close to? Kelantan and Kedah only? Even there, we have to maintain good relations with everyone."
The Prime Minister was responding to concerns raised by Wan Ahmad Fayhsal Wan Ahmad Kamal (PN-Machang) that the ART might not benefit Malaysia and should be debated in Parliament.
He urged all parties to study the agreement before forming judgments.
"Agree or disagree, it does not matter. China, for example, examines every line of the agreement. Decisions regarding semiconductors or rare earths do not preclude cooperation," he said.
Anwar also called on MPs from both sides of the House to prioritise national interest and avoid politicising the agreement.
"I am not young anymore. I work hard to secure the attention of key countries for the benefit and future of our nation," he said.
He warned the opposition against being "more Hamas than Hamas" or "more China than China," referring to misinterpretations that could jeopardise Malaysia’s diplomatic relations.
"If certain provisions are misread, it could jeopardise our relations with China. There is no monopoly over rare earths by the US; that is not happening.
Politics should not cultivate baseless hatred. I will examine the laws and provisions carefully," he added.
Clarifying the financial commitments involved, Anwar said that Malaysia’s purchase of over RM1 trillion in US goods would be carried out by government-linked companies (GLCs), not the federal government.
"Malaysia Airlines, for instance, is purchasing 30 planes from Airbus and 30 from Boeing. These plans existed long before. It is not a government order. Likewise, purchases from Google, Microsoft, or LNG imports by PETRONAS are independent transactions," he said.
Separately, King of Malaysia Sultan Ibrahim received the Prime Minister at Istana Bukit Tunku, where he was briefed on the outcomes of the 47th ASEAN Summit and related meetings held in Kuala Lumpur last week.
The Prime Minister’s Office confirmed that 80 documents were approved during the summit, including joint statements with the US, Japan, India, New Zealand, and Australia, and milestones such as the KL Peace Agreement between Thailand and Cambodia.
Malaysia formally handed over the ASEAN chairmanship to the Philippines, marking the symbolic transition as the country enters the final phase of its 2025 tenure as ASEAN chair. - October 30, 2025
