Malaysia

Malaysia remains free and sovereign in international relations - PM Anwar

Anwar, who is also Finance Minister, said that although Malaysia signed the ART with the US, it does not prevent cooperation with other countries, including in the rare earth sector.

Updated 11 months ago · Published on 08 Nov 2025 1:15PM

Malaysia remains free and sovereign in international relations - PM Anwar
Malaysia and the US signed the ART on Oct 26 during the 47th ASEAN Summit in Kuala Lumpur. - November 8, 2025

MALAYSIA remains a free and sovereign nation in establishing international relations without yielding to any major power, said Prime Minister Datuk Seri Anwar Ibrahim.

He said this stance enables Malaysia to maintain trade and investment relations with all countries, including the United States (US), China, Brazil and South Africa, for the benefit of the economy and the well-being of its people.

"Yes, we have a good relationship with the United States. For example, on that Sunday (at the 47th ASEAN Summit in Kuala

Lumpur), we signed a trade agreement with the US (Agreement on Reciprocal Trade - ART), had a discussion with President Donald Trump, and were immediately criticised as if we were bowing to the US.

"I also invited South African President Matamela Cyril Ramaphosa, who chairs the G20. Trump announced a ban on all US representatives from attending the G20, but I will attend because Malaysia is an independent, sovereign and free country. If we were to bow to America's instructions, I would not go," he said.

He said this while speaking at the groundbreaking ceremony at the traffic dispersal project between Juru Toll Plaza and Sungai Dua Toll Plaza (PTJSD) at the Seberang Jaya Expo Site in Bukit Mertajam as reported by Bernama.

Also present were Chief Minister Chow Kon Yeow, Works Minister Datuk Seri Alexander Nanta Linggi, Second Finance Minister Datuk Seri Amir Hamzah Azizan, Human Resources Minister Steven Sim and Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar.

Anwar, who is also Finance Minister, said that although Malaysia signed the ART with the US, it does not prevent cooperation with other countries, including in the rare earth sector.

“Some say rare earth investments are only with the United States – that is completely untrue. In Pahang, Lynas’ rare earth operations involve investment from Australia, and another new RM600 million investment has come in through JS Link.

“In Perak, rare earth investments are with China. There is absolutely no restriction, so when we look at the agreement, we also look at the exemptions and opportunities that exist,” he said.

The Prime Minister also said this pragmatic approach is important to ensure Malaysia continues to attract investments in high-impact sectors such as semiconductors and green energy, thereby driving the country’s economic growth.

Malaysia and the US signed the ART on Oct 26 during the 47th ASEAN Summit in Kuala Lumpur.

The agreement is a US proposal to renegotiate tariffs on Malaysia from 25 per cent to 19 per cent, under Executive Order 14257 issued by Trump on April 2, 2025. – November 8, 2025

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