KUALA LUMPUR: The sales tax exemption on imported United States agricultural products represents a negotiated outcome serving mutual interests between both nations.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz confirmed this exemption formed part of broader discussions that secured tariff reductions for Malaysia.
“Therefore, any tax exemption consideration for other countries is subject to negotiations based on requests and counter-offers from the respective countries, provided that it brings benefits and advantages to Malaysia,” he stated during the winding-up session of the 13th Malaysia Plan motion at the Dewan Rakyat sitting.
Tengku Zafrul noted that current global trade conditions present unprecedented challenges affecting all nations equally.
He explained that multilateral trade principles have increasingly sidelined World Trade Organization frameworks as countries prioritise their economic and political interests.
According to him, the measures taken by the US aim to establish a new world trade order based on current geopolitical and geoeconomic agreements, while its compatibility with WTO rules depends on the specific design and implementation.
“MITI will comply with various international trade regulations currently in force, and the ministry will study this issue in more detail and will discuss the matter (discrimination) with the Finance Ministry,” he affirmed.
The government remains committed to upholding principles of fair and equitable trade without discrimination against any trading partner.
This commitment extends particularly to nations with which Malaysia maintains free trade agreements.
Regarding tariffs affecting Malaysia’s rubber glove industry, Tengku Zafrul highlighted existing challenges beyond mere tariff implementation.
He pointed out that the sector already faced higher production costs compared to competitors like China.
“Therefore, we need to look at this matter holistically, because even without tariffs, the competitiveness of the local industry is decreasing compared to neighboring countries that have increased investment in this sector,” he concluded. – Bernama
