THE Ministry of Investment, Trade and Industry (MITI) has emphasised that Malaysia’s sovereignty, policy autonomy, and national interests remain fully protected under the Malaysia–United States Agreement on Reciprocal Trade (ART).
Deputy Investment, Trade and Industry Minister Liew Chin Tong, in the Dewan Negara today, highlighted that ART is not a free trade agreement in the same manner as the 18 FTAs Malaysia has previously negotiated with other trading partners.
MITI stressed that the ART negotiations were undertaken to safeguard Malaysia’s economic interests and security, protect employment, and preserve export markets from the negative effects of unilateral US tariffs applied to Malaysia and other trading partners.
The ministry further clarified that the government has no obligation to fulfil commercial commitments valued at approximately US$240 billion in purchases or US$70 billion in investments in the US under ART.
“The commitments outlined in ART relate to commercial decisions and procurement plans already made by Malaysian Government-Linked Companies (GLCs) and multinational firms, based on their individual business strategies and considerations,” he said.
Liew explained that all transactions under ART are business-to-business and driven by commercial considerations as well as expected investment returns.
These include purchases such as Boeing aircraft, security equipment, liquefied natural gas (LNG), semiconductor equipment, aerospace components, data centre infrastructure, telecommunications equipment, and coal.
As an example, he cited, the ministry noted that aircraft acquisitions form part of a phased fleet renewal and expansion plan to replace ageing aircraft and ensure operational safety and sustainability, while also supporting the growth of the tourism sector.
LNG procurement, meanwhile, represents a long-term supply commitment by PETRONAS to meet existing contracts, optimise resources, and ensure continuity of delivery to customers.
He added these acquisitions are commercial decisions made by the companies themselves and not government directives under ART.
Liew said: “The commitments under ART are corporate decisions executed through market mechanisms and do not create any binding national obligation.
“ART does not require the Government of Malaysia to purchase goods or invest in the United States at any specified value within a set timeframe, and the government is not obliged to meet any figures stated in commercial documents.
The government remains committed to promoting inclusive and competitive bilateral trade while safeguarding the nation’s fiscal integrity from commercial procurements that do not involve the government,” the deputy minister added. - December 1, 2025
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