RM705bil in investments proposed to secure US trade relief

New Straits Times

3 days ago

KUALA LUMPUR: Malaysia has offered US$150 billion (RM705 billion) in commitments from private companies and government-linked companies (GLCs) in its recent tariff negotiations with the United States.
The commitments include planned purchases in the US semiconductor, aerospace, and data centre sectors, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
This includes Malaysia Aviation Group's (MAG) commitment to purchase Boeing aircraft worth US$19 billion in stages until 2035, he added.
"This does not burden the nation's finances. In fact, it contributes to economic strengthening through commercial transactions and private sector investments.
"This approach is not just about reducing tariffs, but also about unlocking greater opportunities for the private sector and GLCs to invest and grow. It is a step that will benefit the national economy in the long term," he told the Dewan Rakyat.
He was responding to a question from Lim Guan Eng (PH–Bagan), who had asked what steps the government had taken to achieve a 19 per cent tariff reduction and what concessions were offered to the US.
Tengku Zafrul said the large-scale investment commitments do not involve government spending and do not impose any additional fiscal burden on the country.
"As part of the negotiations, Malaysia has offered tariff reductions on 98.4 per cent of US products — including both industrial and agricultural goods — of which 60.4 per cent are subject to zero duties," he said.
He added that the government had introduced several non-tariff measures, including streamlining halal regulations, enhancing labour standards, and improving compliance with intellectual property and environmental rights.
He said the ministry had successfully led a strategic negotiation process that resulted in a 19 per cent tariff reduction — aligning Malaysia with the rate imposed by other Asean countries.