Do not cross the ‘red line', Anwar warns foreign powers including US

The Star

21-07-2025

PUTRAJAYA: No country, including the United States, will be allowed to impose terms that pressure or undermine Malaysia's national policies, Prime Minister Datuk Seri Anwar Ibrahim assures.
He stressed that Malaysia would not bow to any foreign powers that "cross the red line" namely, interference in domestic policies such as the prioritisation of local companies and the bumiputra privileges enshrined in the Federal Constitution.
The Prime Minister made these remarks at a gathering of the Prime Minister's Department staff at Dewan Da' Seri Endon, Puspanitapuri, on Monday (July 21).
Anwar revealed that Malaysia's approved investments at the end of 2024 had reached between RM3.7bil and RM8bil—the highest in the country's history.
These include major contributions from the electrical and electronics sector, as well as a significant USD10bil commitment from Amazon Web Services (AWS).
He said the achievement had garnered international recognition, 'reflecting strong investor confidence in Malaysia.'
Malaysia is currently engaged in complex trade negotiations with the United States, particularly over tariffs introduced during President Trump's administration. The talks, Anwar said, are not only handled by the Investment, Trade and Industry Minister (MITI) but are also being deliberated at Cabinet level due to their significance.
While welcoming foreign investment and trade, Anwar drew a firm line on national policy sovereignty. 'Malaysia maintains clear red lines in international negotiations—our national policies must not be interfered with,' he said. He cited the bumiputra policy as an example, stressing that if it were deemed discriminatory by external parties, 'Malaysia will firmly say no.'
He affirmed that the country would continue to uphold its 'accepted and established national policies' and would not compromise even if major partners such as the United States disagreed with Malaysia's terms. 'We hope they will agree, but we have already set our red lines,' he added.
He added that Malaysia also maintains the right to prioritise local companies in the national procurement system.
'This is a non-negotiable position in our discussions,' said Anwar, adding that Malaysia's negotiations with the US are 'more meticulous and firmer than usual' as a result.
Nonetheless, he reiterated Malaysia's commitment to open and friendly trade.
'Malaysia wants to continue trading amicably with all countries, including the United States,' he said, noting that the US remains the largest investor in Malaysia across several key sectors.
He also highlighted Malaysia's strong ties with China and reaffirmed the country's commitment to regional cooperation through Asean.
He added that his personal relationships with foreign heads of state, such as President Luiz Inácio Lula da Silva of Brazil, have helped facilitate business deals involving Malaysian companies abroad.
'Two years ago, President Lula personally called me and said, 'Anwar, I want to encourage you. Please get Petronas to come here. We've reserved one well for Petronas,'' he shared.
Anwar also urged civil servants to ignore critics who claim the government has underperformed.
Between 2021 and June 2025, a total of 3,494 manufacturing investment projects were approved by Mida.
'Of these, 3,095 projects have been realised and are operational, representing a high implementation rate of 86.4%.
'In 2023, the realisation rate was 90.6%, while in 2024 it was 79.2%. In the first quarter of this year, the rate was 49.8%, mostly consisting of new projects still in early stages of implementation,' he said.
He also noted that Malaysia rose from 34th in 2024 to 23rd in the IMD World Competitiveness Ranking 2025—the only country to climb more than 10 places.
'This jump was driven by strong economic performance and government efficiency,' said Anwar.