THE United States has agreed to further discussions with Malaysia over the imposition of shocking reciprocal tariffs on imports from the country, Prime Minister Datuk Seri Anwar Ibrahim confirmed during a special session of Parliament today.
While the discussions remain at an early stage, Anwar said there is potential for a reduction in the 24% tariff currently levied on Malaysian goods. However, no agreements have yet been reached.
“It must be reiterated that the process is still in the early stages without any agreement finalised by the two parties. Neither Malaysia nor the US has made any final commitments,” he said.
The talks are being conducted under a non-disclosure agreement in line with international norms, given the sensitivity and strategic nature of the issues involved. “If there are policy recommendations that require approval, it will go through a comprehensive review process including at the Cabinet level and, if required, tabling in Parliament,” Anwar added.
On 24 April, Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz, led a high-level delegation to Washington, DC to meet US Secretary of Commerce Howard Lutnick and US Trade Representative Jamieson Greer. The discussions focused on the tariffs, with Malaysia reiterating its openness to seek constructive solutions.
No Compromise on Strategic National Policies
Anwar made it clear that Malaysia’s core policies would not be sacrificed in any negotiations on tariffs.
“I would like to stress that several key national policies—the Bumiputera policy, the requirement for local vendors, and the protection of strategic sectors—will not be altered in any of these negotiations,” he said.
“While we want to follow the free trade agenda, we cannot ignore the importance of national security and strategic interests.”
He reiterated that discussions with the US are still in progress and stressed again that “no agreement has been finalised by either party.”
The Prime Minister also emphasised the government’s continued focus on structural reforms under the MADANI Economy framework, including the New Industrial Master Plan 2030 (NIMP 2030), the National Energy Transition Roadmap (NETR), and the digital economy agenda.
“These efforts are crucial to driving short-term investment and reinforcing long-term competitiveness amid global uncertainty,” Anwar said.
“I believe and am confident that with the strength of the government’s machinery, the private sector, and our excellent workforce, the country will be able to overcome this temporary crisis.”
RM50 Million Boost to MATRADE
As part of the response to the US tariffs, the government has announced an additional RM50 million allocation for the Malaysia External Trade Development Corporation (MATRADE) to help local businesses expand into new markets.
Anwar said the funding will support small and medium enterprises (SMEs) through participation in global trade expos, exhibitions, and business matching with overseas buyers.
“This initiative is part of the MADANI government’s strategy to ensure economic stability and safeguard national interests in the short to medium term,” he said.
The Prime Minister also noted ongoing efforts to attract international business and talent to Malaysia, especially in high-priority sectors such as artificial intelligence. “We have indeed begun to see expressions of interest from prominent figures in science and professional fields in relocating to Malaysia,” he added. - May 5, 2025
