Malaysia–US trade pact seen as strategic move to bolster industry
The association noted that the agreement shields Malaysian exporters from potential fallout arising from Washington’s broader strategy to reshore manufacturing
KUALA LUMPUR, Malaysia (MNTV) — Malaysia’s business community has welcomed the country’s agreement on reciprocal trade (ART) with the US as a sign of the government’s careful negotiation strategy to safeguard national interests while positioning the economy for deeper participation in global supply chains, reports The Vibes.
The Federation of Malaysian Manufacturers (FMM) said the new framework provides much-needed clarity and stability to investors, while encouraging collaboration between Malaysian and American firms in high-value manufacturing and digital industries.
“The agreement gives Malaysia’s manufacturing sector breathing space, continuity of market access and a stronger foundation for investment,” the FMM said.
“The challenge now is to turn these terms into concrete results. Industry and government must work together to accelerate capacity building, move up the value chain and fully leverage the exemption and implementation package to enhance Malaysia’s competitive position.”
The association noted that the agreement shields Malaysian exporters from potential fallout arising from Washington’s broader strategy to reshore manufacturing and impose higher costs on foreign producers. It said this ensures continued access to the US market under stable and predictable conditions.
Malaysia and the United States signed the ART on Sunday, on the sidelines of the 47th ASEAN Summit and Related Summits in Kuala Lumpur. The deal includes a US commitment to maintain a 19 percent tariff on Malaysian-origin goods, with exemptions granted for 1,711 tariff lines.
The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) said the agreement could strengthen trade and economic ties with the US.
Its president, Datuk Ng Yih Pyng, said the exemptions would improve market access and competitiveness for Malaysian products in the US market.
He cautioned, however, that greater liberalization for US goods and services would bring both opportunities and challenges. “While preferential market access for US industrial goods like chemicals, machinery parts, electrical and medical equipment, and software would lower production costs for Malaysian businesses, local small and medium enterprises might face stiffer competition due to lower tariffs,” he said.
Ng added that Malaysian consumers would benefit from lower prices of imported goods such as fruit, food and dairy products.
“While we hope the ART will strengthen bilateral and investment relations between Malaysia and the US, it must be structured to ensure a balanced and mutually beneficial outcome, while preserving our trade sovereignty and regulatory autonomy,” he said.
Ng also called for greater clarity on easing stringent US regulatory requirements and ensuring reciprocal commitments in market liberalization, expressing confidence that the government would continue to review these matters before the agreement comes into effect.
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