INVESTMENT, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said today Malaysia’s status as a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP) remains unchanged despite facing uncertainties due to US tariff policies.
Speaking at the Dewan Negara today, he said Malaysia's membership is unaffected by these policies as the United States is not a member of either agreement.
This ensures that Malaysia’s active role in these multilateral trade frameworks continues, irrespective of the evolving tariff strategies imposed by US President Donald Trump.
“So far, the economic policies announced by President Trump have not had a direct impact on Malaysia’s economy. However, the Malaysian government remains vigilant and will continue to monitor any new developments in U.S. policies,” he told lawmakers.
He added, the government is prepared to implement strategies to mitigate any potential negative effects on Malaysia’s economy.
“The government is committed to promoting Malaysia as a stable, open economy and a safe investment destination. The country’s strong political stability, pro-business policies, and strategic location in Southeast Asia are key advantages that continue to attract global investors, he said.
Tengku Zafrul explained, as a trading nation, Malaysia will persist in diversifying its export markets for both goods and services.
In line with this objective, Malaysia signed a Free Trade Agreement (FTA) with the United Arab Emirates (UAE) on January 14, 2025.
The country is also working on resuming free trade negotiations with the European Union, while further enhancing trade and investment opportunities within the ASEAN region, particularly through the RCEP framework.
He said this in reply to questions raised by Rita Sarimah Patrick Insol on concerns about the potential impact of U.S. President Trump’s tariff policies on Malaysia’s involvement in multilateral trade agreements such as the CPTPP and RCEP.
The minister told Malaysia’s Upper House that the government employs a strategy of soft diplomacy, engaging in continuous discussions and consultations at the Ministry level with the U.S. Department of Commerce (DOC) and the U.S. Trade Representative (USTR).
“This approach enables the government to directly express concerns regarding the potential impact of tariffs on Malaysia’s economy, allowing policymakers to address issues effectively with U.S. decision-makers,” he said.
Malaysia is committed to strengthening diplomatic and trade relations with all countries, ensuring that these efforts do not compromise the nation's sovereignty or core interests.
The government’s proactive approach aims to maintain a balanced and mutually beneficial trade environment while safeguarding Malaysia’s long-term economic well-being, Tengku Zafrul added.
“As Malaysia navigates these uncertain global trade dynamics, the government remains focused on ensuring the nation’s trade policies remain resilient and adaptive to shifting international challenges,” he said. – March 6, 2025
