Malaysia

Anwar defends US trade pact, exit clause being pertinent

Prime Minister stresses need for US investment while warning against politicising the Reciprocal Trade Agreement

Updated 9 months ago · Published on 30 Oct 2025 1:19PM

Anwar defends US trade pact, exit clause being pertinent
Politics should not cultivate baseless hatred. I will examine the laws and provisions carefully," he added, Anwar tells Parliament - October 30, 2025

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

Spotlight

Malaysia

Sarawak schools told to halt outdoor activities as haze pushes air quality into unhealthy range

World

Indonesia haze forces schools to close as wildfires intensify amid severe dry season

Malaysia

PN walkout over Tabung Haji debate a political misstep, says analyst

By Alfian Z.M. Tahir

Malaysia

51 witnesses to testify at inquest into death of 10-year-old boy found unconscious in school toilet

Malaysia

Female student arrested for allegedly hurting classmate with kerambit at school

World

Colombia quake death toll hits 111 as rescue teams race to find survivors

World

Trump secretly switched to third aircraft in Türkiye over Iran assassination threat

Malaysia

Anwar questions PN’s priorities after Tabung Haji RCI walkout

Malaysia

MACC, police probing TH after RCI findings as govt warns no one will be spared

By Alfian Z.M. Tahir

You may be interested

Malaysia

78-year-old woman killed in crocodile attack while collecting snails in Sarawak

Malaysia

Thai officer involved in mid-air disturbance on Malaysia-Bangkok flight (video)

Malaysia

US$620 million returned, not to Najib's account - Angela

Malaysia

Sarawak schools told to halt outdoor activities as haze pushes air quality into unhealthy range

Malaysia

RM85 billion energy savings in sight as Malaysia rolls out 10-year efficiency plan

Malaysia

RoS probes Bersatu complaint over position in Perikatan Nasional

Malaysia

TH faced risk of RM74.5 billion liability exposure before bailout, Dewan told

By Alfian Z.M. Tahir

Malaysia

Step-grandmother to be charged with murder of 16-month-old baby in Kota Tinggi