Malaysia agrees to boost tech, LNG purchases from US as part of trade deal
The US announced last week that it would impose a 19 per cent tariff on Malaysia starting from Aug 8, lower than a 25 per cent levy threatened last month.
State energy firm Petroliam Nasional Berhad will buy liquefied natural gas worth US$3.4 billion a year, while Malaysia will commit to US$70 billion in cross-border investments in the US over the next five years to address the trade imbalance between the two countries, minister Tengku Zafrul Aziz told parliament.
The US ran a goods trade deficit with Malaysia of US$24.8 billion in 2024, government data showed.
Tengku Zafrul said the two countries were finalising a joint statement covering the commitments made, following weeks of negotiations over the tariffs imposed by US President Donald Trump's administration.
'Despite expecting lower tariff rates, the ministry believes that these negotiations have succeeded in achieving a result that is reasonable with the offers made by Malaysia,' Tengku Zafrul said.
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Other concessions by Malaysia include reducing or abolishing duties on 98.4 per cent of US imports, the easing of some non-tariff barriers, and the removal of a requirement for US social media platforms and cloud service providers to contribute part of their Malaysian revenues to a state fund.
Last week, Tengku Zafrul said Malaysia had secured tariff exemptions on its pharmaceutical products and semiconductors exported to the US, and was seeking further cut-outs for commodities such as cocoa, rubber and palm oil.
On Monday, however, he warned that semiconductor chips may still be subject to additional tariffs under US laws based on national security reasons.
'Therefore, we need to continue to be prepared for any possible additional tariffs imposed on the semiconductor industry,' he said. REUTERS
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