Malaysia

Malaysia - US Reciprocal Trade Agreement still under review, MITI minister says

The ratification process for ART remains ongoing, with the government carefully assessing its economic implications to ensure fairness for existing investors

Updated 8 months ago · Published on 21 Jan 2026 1:09PM

Malaysia - US Reciprocal Trade Agreement still under review, MITI minister says
The aim is also to safeguard national sovereignty, Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani tells Parliament - January 21, 2026

THE ratification of the Malaysia–United States Reciprocal Trade Agreemen (ART), signed on Oct 26, 2025 during the 47th ASEAN Summit, is still underway as the government continues to scrutinise its provisions, Datuk Seri Johari Abdul Ghani said on Tuesday.

The Investment, Trade and Industry Minister told the Dewan Rakyat on Wednesday, that as an open economy dependent on international trade and investment, Malaysia must ensure that any agreement it enters into aligns with national economic needs and long-term interests.

He said several aspects of the agreement, known as the Agreement on Reciprocal Trade, require detailed discussion before the final stage of ratification can proceed, particularly issues related to non-discrimination among foreign investors.

“If there is any discrimination, we have to consider those who came into our country earlier, such as in Penang where there are many investments by US investors,” he said.

“After that, if we bring in another country and give them incentives that are better than those offered to the earlier investors, they may feel disadvantaged.”

Johari explained that such concerns must be addressed to ensure there are no economic disparities that could disadvantage existing US investors if new foreign investors are later offered more favourable incentives.

“These are the matters that we need to clarify so that there is no difference in economic treatment in the context of the United States,” he added.

He was responding to a question from Datuk Seri Hamzah Zainudin (PN–Larut), who sought confirmation of Malaysia’s position on implementing and committing to the Agreement on Reciprocal Trade, particularly in comparison with other Southeast Asian countries that have yet to sign or ratify the agreement.

Johari also assured the House that the government would not compromise on issues of national sovereignty in its deliberations over the trade pact.

In a bid to foster bipartisan engagement, he said the ministry would invite opposition lawmakers to discuss the proposal once the ratification paper is finalised.

“One day, when I have this proposal ready, we will sit down and discuss it. Is that acceptable, Honourable Member? Please do not fail to attend,” he said.

The minister reiterated that careful consultation and transparency would remain central to the government’s approach as Malaysia weighs its commitments under the agreement against broader regional and domestic economic considerations. - January 21, 2026

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