Malaysia does not sacrifice national interests for special treatment: Tengku Zafrul

The Sun

9 hours ago

KUALA LUMPUR: Malaysia does not sacrifice national interests to obtain special treatment, Investment, Trade and Industry Ministry Tengku Datuk Seri Zafrul Abdul Aziz said, adding that bilateral negotiations with the United States recently maintained the country's unique policies.
He said preserving the country's unique policies includes protections for strategic industries and Bumiputera provisions.
'The United States grants Malaysia equivalent rates because of the recognition of Malaysia's importance as a major trading partner and Malaysia's ability to offer quality trade and investment commitments, even without fully opening all sectors.'
'Malaysia also demonstrates its significant position as a stable, competitive, and trusted country in the global supply chain,' he told the Dewan Rakyat today during a ministerial briefing on reciprocal trade negotiations with the US.
Tengku Zafrul emphasised that achieving the new rate demonstrated that developing countries like Malaysia can access international trade without succumbing to absolute liberalisation pressures.
'This model also serves as an example to regional countries that 'red lines' can be defended if the country is clear about its values, strategies, and commitments offered,' he said.
On Aug 1, the new US tariff rate for Malaysia was announced at 19%, a six percentage point reduction compared to the rate announced on July 7.
Meanwhile, Tengku Zafrul said Malaysia and the US are in the process of reaching an agreement on a joint statement that encompasses the outcomes of the negotiations and the commitments mutually agreed upon. 'This statement will be issued soon. Both sides will also continue discussions on the details of the Reciprocal Trade Agreement that needs to be ratified to ensure all commitments are implemented,' he added.
The US is Malaysia's largest export destination, with an export value of RM198.65 billion, and one of Malaysia's main sources of foreign investment for 2024, amounting to RM32.82 billion.
On a separate matter, Tengku Zafrul said the government only permits the importation of meat and meat products as well as poultry and poultry products that have obtained halal certificates from US halal certification bodies that comply with halal standards set by the Department of Islamic Development Malaysia (Jakim).
He added that the government will not compromise on the matter and continues to uphold halal standards that adhere to syariah law in order to safeguard the interests of Muslim consumers in Malaysia.
'The facilitation being offered here only relates to the monitoring and verification carried out by US halal certification bodies recognised by Jakim,' he said.
Tengku Zafrul stressed that claims Malaysia will just immediately recognise US halal certificates is baseless, misleading and malicious and do not reflect the actual facts agreed on in the negotiations.
He noted that it was agreed during the negotiations to facilitate the process of certification and registration of facilities for the export of dairy, meat and meat products, as well as poultry and poultry products from the US to Malaysia based on domestic regulations that have been established.
Both countries have also agreed to adopt the method of 'regionalisation' for animal disease control for the export of live poultry and poultry products from the US, in addition to facilitating the process of standards recognition and marketing of industrial products from the US such as automotive products, medical devices and pharmaceuticals based on domestic regulations set.
The negotiations also saw both countries agreeing to enhance their commitments and enforcement on issues related to intellectual property rights, labour, the environment, and sustainable fisheries management based on Malaysia's commitments to relevant international organisations.
During the ministerial briefing, Tengku Zafrul also explained that the acquisition of Boeing aircraft by Malaysia Aviation Group (MAG) is part of a long-term, phased plan to renew and expand the fleet's capacity.
The minister emphasised that MAG's purchase of Boeing aircraft was not a decision made abruptly or due to tariff pressures.
He said the decision was based on the need to replace the Boeing 737-800 planes, which have been in operation for an average of 14 years, to ensure the company's operational safety and sustainability.
'In 2016, MAG placed an initial order for 25 Boeing 737-8 MAX aircraft. Since November 2023, 13 planes have been received, with the remainder to be delivered progressively until 2027.
'On March 20, 2025, MAG finalised an additional order for 30 Boeing 737 MAX aircraft, with deliveries expected to take place from 2025 to 2035,' he told the Dewan Rakyat.
Tengku Zafrul also mentioned that there are 30 more aircraft currently in the planning category, with decisions to be made based on MAG's future growth strategies and plans.
'The value of this acquisition covers not only the aircraft price but also includes engine costs, training, maintenance, and long-term support,' he added.
Tengku Zafrul pointed out that Malaysia's aerospace industry would benefit from this decision, with Boeing having long been a key partner in the sector, including through Boeing Composites Malaysia (BCM) in Kedah, which supports Boeing's global supply chain and provides employment opportunities for local communities.
'Malaysian companies such as CTRM, Upeca, SME Aerospace, Plexus, and others are important suppliers of Boeing and Airbus components. Malaysia's aerospace industry contributed RM25.1 billion in 2024 and supports 30,000 jobs nationwide.
'At the same time, the country's tourism sector is showing a strong recovery, surpassing pre-pandemic levels. Boeing itself projects global passenger traffic growth of 4.7% annually over the next 20 years,' he said.
Tengku Zafrul added that this investment in new aircraft enabled Malaysia to capitalise on the growth potential of both the tourism and aerospace industries.
Under Section 6 of the Agreement on Reciprocal Trade – Commercial Considerations, Tengku Zafrul said the US encourages Malaysia to make purchases from and invest in the US, in an effort to reduce the bilateral trade deficit gap.
Among the commitments made between Malaysia and the US are the purchase of Boeing aircraft by MAG worth US$19 billion (RM80.5 billion) and the purchase of goods by multinational companies for the semiconductor, aerospace and data centre sectors worth US$150 billion over a period of five years.
He said the country also made purchases of liquified natural gas by Petronas worth US$3.39 billion per year; purchases of telecommunications products by Telekom Malaysia Bhd worth US$119 million; purchases of coal by Tenaga Nasional Bhd worth US$42.6 million per year; and cross-border investments in the US worth US$70 billion over a period of 10 years. – Bernama