Poor deals have long-term impact on Malaysia, says Tengku Zafrul
Tengku Zafrul said Putrajaya's stance is that deals with the US must support Malaysia's economic reforms and sustainable growth policies.
"Our negotiating stance is always to ensure that whatever deal we land on will support the country's economic reforms and sustainable growth policies,' he said.
"Catchy, feel-good headlines last a few days, a week at the most. Poor deals will have long-term consequences on our people, industries and economy - I am certain negative long-term outcomes are not what the public wants, nor what current and future taxpayers need," said Tengku Zafrul in his opening remarks at the International Healthcare Week 2025 in KL on Wednesday (July 16).
Tengku Zafrul said Putrajaya will never sacrifice the country's sovereignty or sideline other trading partners to close a deal with the US.
ALSO READ: Malaysia still working on tariff negotiations with US, says Tengku Zafrul
"Our people's rights, our country's sovereignty and trust with our valued partners are not bargaining chips," added Tengku Zafrul.
Malaysia currently faces a 25% tariff rate for all exports to the US, and Putrajaya has until August 1 to negotiate.
According to Tengku Zafrul, trade negotiations are a complex process involving multiple stakeholders and relevant ministries and agencies must be consulted for smooth implementation.
"For context, the average duration for a regular trade negotiation is 18 months. For MITI, the fastest on record thus far is 11 months," said Tengku Zafrul.
He was referring to the recently signed comprehensive partnership agreement between Malaysia and the United Arab Emirates (UAE).
"So, we need to be realistic about trade deals that can be completed within 90 days," added Tengku Zafrul.
Tengku Zafrul said Putrajaya wants to ensure any agreement with the US supports an open, rules-based and fair multilateral trade system, with the World Trade Organisation (WTO) at its core.
"The agreement must also safeguard market access while recognising the needs of emerging countries like Malaysia to develop sustainable supply chains and economies," said Tengku Zafrul.
He noted that last year, Malaysia-US trade rose nearly 30% to RM324.9bil, with Malaysia being an important source for products such as E&E, machinery, rubber gloves and palm oil.
He said Malaysia has been a significant production base for US investments for at least five decades.
"From 1980 to 2024, there have been 169 American investment projects in Malaysia (RM77.5bil), in sectors such as E&E, machinery and scientific equipment."
Tengku Zafrul said for the past 50 years, these companies have received various incentives like investment tax allowances and high-impact grants valued at RM4.1bil cumulatively.
Annual incentives in recent years have ranged from RM800,000 to RM1.2bil.
"We will continue to uphold the principles of positive reciprocity and fair competition while working alongside industry to innovate, diversify and maintain our resilience in the global market.
"These developments are strong reminders of why we must always be ready, agile and adaptable to external shocks," said Tengku Zafrul.
Meanwhile, Tengku Zafrul said the global medical devices market is projected to grow 63% from RM2.53tril in 2024 to RM4.13tril by 2032.
"The global healthcare sector has proven to be not only resilient but also transformative, offering immense opportunities in medical devices, pharmaceuticals, biotechnology and digital health solutions.
"Thanks to our strong industrial reform agenda, robust industrial ecosystem, progressive policies, investor-friendly environment and a skilled, industry-ready workforce, Malaysia's healthcare industry is well-positioned to capture this growth," he said.
Last year, the medical devices and pharmaceutical industries garnered RM2.13bil in investments, creating over 2,700 high-value jobs in manufacturing, R&D and regulatory services.
"Today, eight of the world's top 30 medical device companies have operations in Malaysia," he said, adding that Malaysia is home to over 300 healthcare companies.
Pharmaceutical exports from January to May this year increased by 7.8%.
"This is due to our industrial reform initiatives. Reform builds industrial resilience, which in turn boosts our exports' resilience," added Tengku Zafrul.
Commenting on the IHW, Tengku Zafrul said it's more than just a healthcare event, as it brings together global leaders, innovators, policymakers and investors to shape Southeast Asia's healthcare future.
"I feel that the IHW 2025 represents more than an exhibition - it is a call to action for us to strengthen collaboration, accelerate innovation and ensure our healthcare systems remain inclusive, sustainable and future-ready," added Tengku Zafrul.
The IHW 2025 takes place from July 16 to 18.
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