KUALA LUMPUR: Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz has clarified that Malaysia’s investment commitments in tariff negotiations with the US are commercial deals by private firms and GLCs.
He stressed that these commitments do not involve public funds or increase the country’s fiscal burden.
The phased implementation over five to ten years ensures no sudden financial outflow, he explained in the Dewan Rakyat.
Responding to Lim Guan Eng (Bagan–PH), Tengku Zafrul detailed the measures securing a reduced countervailing tariff rate of 19 per cent from 25 per cent.
The negotiations, backed by Prime Minister Datuk Seri Anwar Ibrahim and MITI, upheld national policies like Bumiputera equity and halal standards.
Malaysia’s strategic approach balanced trade deficits while protecting key sectors like automotive and critical minerals.
Commitments include US$150 billion in semiconductor, aerospace, and data centre investments, plus US$19 billion for Boeing aircraft purchases by Malaysia Aviation Group.
Annual commitments average 8.0 per cent of GDP or 13.5 per cent of private expenditure, aligning with corporate operating costs.
Tariff concessions cover 98.4 per cent of US exports, with 60.4 per cent at zero duty and reductions capped at 15 per cent.
Non-tariff adjustments include halal certification and eased US meat and dairy exports, alongside labour and environmental compliance. – Bernama
