No AP removal or equity liberalisation in US trade talks

New Straits Times

15 hours ago

KUALA LUMPUR: The government has dismissed claims that it agreed to remove import licensing (AP) requirements or liberalise foreign equity rules in strategic sectors as part of the tariff negotiation with the United States (US).
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz told Parliament that while certain non-tariff barriers were streamlined to facilitate trade, there was no blanket exemption of AP conditions or compromise on domestic equity requirements.
"We did not offer full liberalisation of any strategic sector and the Bumiputera equity policy remains intact where applicable," he said.
He stressed that all negotiating positions were approved by the Cabinet and guided by clear red lines, particularly on policies involving national interest, local industries and sovereignty.
"Let me be clear, there is no compromise on vendor empowerment, small and medium enterprise (SME) participation or critical industry protections," he added.
Tengku Zafrul also reaffirmed Malaysia's position as a neutral and non-aligned trading nation, even as it strengthens economic ties with the US under the new reciprocal tariff arrangement.
"Malaysia maintains neutrality by not siding with any major power. We remain open to trade with all countries," he said.
He assured that no exclusive rights were granted to the US in strategic areas such as critical minerals or rare earth elements.
Malaysia also did not agree to impose maritime transport charges on entities designated by the US as "countries of concern".
"We are not imposing maritime transport charges on international shipping services provided by any entities owned, controlled or subject to 'countries of concern' as defined by the US," he said.
"The government has not compromised in areas that would affect the rights of the people or the continuity of local industries."
Tengku Zafrul reiterated that the government's position throughout the talks was firm and principled, and that Malaysia succeeded in defending its core policy framework while securing a more favourable tariff rate.
"The government remains committed to the principle of not compromising on strategic national policies," he said, citing the protection of critical industries, halal import conditions and continued support for local vendors and Bumiputera companies.
He added that the six-percentage-point reduction in the US retaliatory tariff, from 25 per cent to 19 per cent, brings Malaysia in line with regional peers like Indonesia, Thailand and the Philippines.
"This achievement shows that developing countries like Malaysia can gain access to international trade without having to succumb to absolute liberalisation pressures," he said.