MITI says Malaysia not obligated to fulfil US$240 billion in US purchases or US$70 billion investments under ART, calling them corporate decisions
KUALA LUMPUR: Malaysia is not obligated to carry out US$240 billion in commercial purchases or US$70 billion in investments in the United States under the Agreement on Reciprocal Trade (ART).
The Ministry of Investment, Trade and Industry emphasised that the ART does not require the government to buy goods or invest in the US to any specified value.
Deputy Investment, Trade and Industry Minister Liew Chin Tong said the government is not bound to meet any figures listed in those commercial documents.
He stated that commitments under the ART are corporate decisions by companies implemented through market mechanisms.
“These commitments do not constitute any national obligation,” he said during a question-and-answer session in the Dewan Negara.
Liew was responding to Senator Tan Sri Low Kian Chuan regarding whether Malaysia must honour commitments to purchase goods and invest in the US.
The deputy minister said the commitments refer to commercial decisions and existing procurement plans by companies.
These include government-linked companies and Malaysian multinationals based on their individual business considerations and strategies.
All transactions are business-to-business in nature and driven by commercial decisions and expected returns on investment.
Covered sectors include aircraft purchases from Boeing, security equipment, and liquefied natural gas.
Other areas involve semiconductor equipment, aerospace components, and data centre equipment.
Telecommunications equipment and coal procurement are also part of these commercial arrangements.
Aircraft procurement commitments form part of phased fleet renewal and expansion plans.
These implementations replace ageing aircraft and ensure operational safety and sustainability.
They also support growth in the country’s tourism sector.
LNG procurement represents long-term supply commitments by Petronas to meet existing contracts.
This approach optimises resources and ensures continuity of deliveries to customers.
Liew highlighted that these procurements are commercial decisions by Petronas, not government-directed.
The government remains committed to ensuring two-way trade that is inclusive and competitive.
It also safeguards the country’s fiscal integrity from commercial procurements not involving the government. – Bernama
