Malaysia intensifies talks with US on tariffs, non-tariff barriers
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the ministry had a productive engagement with the US Trade Representative last week and is now working to identify areas where both parties can reach an agreement.
"I have set a deadline for the team and the US has set a deadline on Aug 1. We will try and go through even before that if we can. But again, there are issues that we still need time because it involves many agencies and ministries.
"We are doing the calculations as well. What is the impact to our export if we agree to certain terms? What is the impact on our revenue? That is ongoing.
"We will continue to have another discussion this week," he said at a press conference held in conjunction with the ministry's second quarter 2025 Performance Report Card announcement.
Tengku Zafrul acknowledged that Malaysia, like many other countries, is finding it challenging to meet the earlier deadline that was set.
Nevertheless, he said the ministry will work towards meeting the new Aug 1 deadline, but not at the cost of agreeing to all demands, particularly those that may be unfavourable to Malaysia.
While there are no new terms proposed by the US, the minister noted ongoing concerns over non-tariff issues.
He said Malaysia has addressed one such concern by updating the Strategic Trade Act to include a new item on the controlled list.
"On the issues where we cannot move, which is the red line, again, I have signed a non-disclosure agreement, but I can share with you. Some of the issues are related to equity interests.
"In certain sectors, Malaysia has equity restrictions for foreign shareholders for certain sectors, there is a request for us to relook or liberalise those sectors.
"For us, we need to consult those industries, whether we are ready to liberalise those equity maximum shareholding restrictions," he added.
He said that while certain sectors have been fully liberalised, others still maintain foreign equity limits and any decision to review these restrictions must be carefully studied to assess the potential impact.
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