Tengku Zafrul Confirms Malaysia-GCC FTA Talks To Start Soon
Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Aziz speaks at a press conference after the conclusion of the ASEAN Economic Community Council meeting today. The meeting was held on the sidelines of the 46th ASEAN Summit at the Kuala Lumpur Convention Centre. -- fotoBERNAMA (2025) COPYRIGHT RESERVED
By Karina Imran
KUALA LUMPUR, May 25 (Bernama) -- Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz today confirmed a Bernama report that Malaysia and oil-rich Gulf Cooperation Council (GCC) countries will sign a Free Trade Agreement (FTA) soon.
Tengku Zafrul said today that both parties are working on arrangements for the official launch of the FTA negotiations and that a joint declaration of intent is expected to be announced soon.
Bernama yesterday reported that negotiations for a FTA between Malaysia-GCC countries are expected to start on May 27, 2025.
The minister said that during his visit to the GCC office in Saudi Arabia last week, he had talked to the Secretary General of GCC (Jasem Mohamed AlBudaiwi) 'about trying to make sure that we put this on the fast track and complete this within one year.'
Malaysia has experience dealing with one of the GCC countries in forging an FTA.
'We just completed our Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE), for example, and that was done in a record 10 months.
'So, this is a chance for us to continue with GCC as a whole, so that we can expand our trade and investment between Malaysia and GCC,' he said.
GCC, established by an agreement concluded on May 25, 1981, is a regional political and economic alliance whose member states include Saudi Arabia, UAE, Qatar, Oman, Kuwait and Bahrain.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
18 minutes ago
- The Star
Malaysia retains foreign investors despite US-China tensions
KUALA LUMPUR: Despite geopolitical tensions between the US and China, foreign investors remain in Malaysia. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia has not seen any cancellations of investment commitments so far. "The ones already in Malaysia continue to stay, and those committed have not pulled out, but those yet to commit are reconsidering," he said during a press conference at the Regional Socialisation of the Asean Economic Community Strategic Plan 2026-2030 event on Thursday (June 12). Tengku Zafrul said the ministry is pleased with the country's investment performance for the first quarter, announced on Wednesday. The Malaysian Investment Development Authority (MIDA) reported that Malaysia secured RM89.8bil in approved investments for the first quarter of the financial year 2025 (1Q25), a steady 3.7% year-on-year increase despite a challenging global economic backdrop. These investments, spread across 1,556 projects in manufacturing, services, and primary sectors, are set to generate over 33,300 new employment opportunities for Malaysians. "Usually, the first quarter is softer as decisions are made towards the end. We were quite pleasantly surprised with this number," said Tengku Zafrul. However, he cautioned that making investment forecasts for the future is not easy, as many companies are adopting a wait-and-see approach due to dynamic geopolitical issues. He said Malaysia is currently maintaining its Gross Domestic Product (GDP) forecast for this year. Commenting on trade negotiations between the US and China, he said Malaysia views the development positively. "Things are showing progress in the right direction. We will have a positive spillover if these two countries can do more together," he said. Tengku Zafrul stated that negotiations between Malaysia and the US have been ongoing virtually. He will visit the US on June 18 to meet with US Trade Representative Jamieson Greer. He said the main goal is to reduce the 24% tariff, and for certain sectors important to both countries, Malaysia aims to negotiate further to lower the tariff rate to below the 10% floor tariff. "It is not going to be easy. What is important is to show that Malaysia and the US's relationship in terms of trade and investment is complementary. We are not competing against the US," he said. "A lot of things we do actually strengthen and complement US businesses both in the US and Malaysia. So it is a win-win relationship," he said. He said the ministry is also enhancing enforcement to address trade diversion issues and ensure Malaysian exporters are considered.
New Straits Times
20 minutes ago
- New Straits Times
Asean targets US$2tri digital economy under new strategic plan
KUALA LUMPUR: Malaysia is pushing the Asean Economic Community (AEC) strategic plan aimed at positioning the region as the world's fourth-largest economic bloc by 2030, with a target to double Asean's digital economy to an estimated US$2 trillion (RM8.46 trillion). Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz described the plan as a "blueprint for regional economic transformation" that will drive sustainable growth and deeper integration. "This plan represents a new chapter in Asean's economic journey, structured to respond to evolving business needs and emerging challenges while ensuring policies remain dynamic and relevant," he said at the Regional Socialisation of the AEC Strategic Plan under the Asean Community Vision 2045, held here today. The AEC Strategic Plan, succeeding the AEC Blueprint 2025, is organised into five-year cycles leading up to 2045, serving as a comprehensive roadmap for implementing the economic dimensions of the Asean Community Vision 2045. Tengku Zafrul said the first phase of the plan, spanning 2026-2030, is a critical step in harnessing Asean's vast potential and enhancing its resilience. Central to the plan is the ambition to enhance intra-Asean trade by fostering greater interconnectedness within the single market for goods, services, and investments. "Reducing non-trade barriers is pivotal to unlocking Asean's full trade potential, strengthening competitiveness, and building resilience against external shocks," Tengku Zafrul said. The digital economy stands out as a key focus of the strategic plan, with its doubling to US$2 trillion projected to bring transformative benefits to businesses across the region. Tengku Zafrul highlighted how this initiative will empower small and medium enterprises (SMEs) and accelerate innovation. "This forward-looking framework underscores Asean's readiness to embrace digital transformation and adapt to a rapidly changing global landscape," he said. The plan also reaffirms Asean's dedication to market openness, countering the trend of isolationism seen in some global economies. Tengku Zafrul stressed the importance of diversifying Asean's economic relationships by strengthening ties with both traditional partners and emerging markets. "This approach will reduce over-reliance on select economies and enhance Asean's macroeconomic resilience," he added.
New Straits Times
20 minutes ago
- New Straits Times
Malaysia braces for "tough" tariff talks with US, readies fallback offer
KUALA LUMPUR: The upcoming tariff negotiations between Malaysia and the United States will be "tough" but essential to reinforce both countries' complementary trade ties, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. He said the ministry's Deputy Secretary-General (Trade), Mastura Ahmad Mustafa, who has been appointed chief negotiator, would lead on the technical groundwork ahead of the talks, allowing him to focus on strategic-level discussions. "I'll be going to the US with our chief negotiator, Mastura. Negotiations have been ongoing virtually, but a physical meeting is necessary," he said at a press conference during the Regional Socialisation of the AEC Strategic Plan under the Asean Community Vision 2045. "If Mastura manages to settle most of the technical matters, there will be less on my plate. But it's not going to be easy, and that's the reality. What's important is to demonstrate that the Malaysia-US trade and investment relationship is complementary. We are not undercutting or competing against the US," he added. Tengku Zafrul will travel to Washington on June 18 to resume negotiations over tariffs imposed on Malaysian goods. He is scheduled to meet US Trade Representative Jamieson Greer, as well as other officials from the US administration and investors. Meanwhile, Mastura told Business Times that Malaysia is prepared to present a fallback proposal in its ongoing tariff negotiations with the US should Washington deem its original offer "insufficient". She said Malaysia's upcoming engagement in Washington would be a timely opportunity to re-engage US officials after earlier talks were postponed. "I believe the US is currently more focused on its court cases and negotiations with China. They had earlier postponed our physical meeting," she said on the sidelines of the event held here, today. "We will take the opportunity of the minister's visit to meet with them and get their feedback on our initial offer. If that's not sufficient for them to consider, we're ready with a second layer of proposals to keep the negotiations moving," she added. Mastura did not disclose the details of either the initial or fallback offer. Earlier, on April 24, Tengku Zafrul led a high-level delegation to Washington, where he held talks with US Commerce Secretary Howard Lutnick and Greer. During that meeting, Tengku Zafrul stressed the importance of sustained engagement and reiterated Malaysia's commitment to finding constructive solutions to the concerns raised by the US. Malaysia has expressed its readiness to negotiate in four key areas, namely narrowing the trade deficit, addressing non-tariff barriers, strengthening technology protection and security and exploring the potential for a bilateral trade agreement. On April 2, US President Donald Trump announced tariff measures affecting around 60 countries, including a 24 per cent levy on most Malaysian goods. However, the tariffs have been temporarily suspended for 90 days, with the exemption set to expire on July 8.
