Minister says ART protects RM200 billion US exports, 1 million jobs and 7,700 SMEs from supply chain collapse and investment diversion risks.
KUALA LUMPUR: Nearly RM200 billion in exports to the United States would have been at risk without the Agreement on Reciprocal Trade (ART).
Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz warned that market access loss could have endangered over one million jobs and 7,700 small and medium enterprises.
He also highlighted risks of supply chain collapse and large-scale investment diversion to other countries.
“With the ART, the government’s view is that Malaysia can maintain its competitiveness, especially globally, protect high-value exports — particularly in the electrical and electronics and semiconductor sectors — and provide confidence to investors,” he said after briefing the Parliamentary Special Caucus.
Tengku Zafrul emphasised that the ART is a mechanism for protecting the country’s economy, agreed upon after careful consideration.
Exports to the US reached nearly RM200 billion in 2024 and exceeded RM200 billion in 2025.
The minister dismissed claims that the ART benefits only the US as untrue.
He explained the agreement shields Malaysian exports from unilateral tariff actions and provides significant benefits as Malaysia is a net exporter.
Tengku Zafrul also countered assertions that the ART would constrain Malaysia’s policies.
“The agreement does not require Malaysia to liberalise tariffs or open markets disproportionately, nor does it touch on sensitive issues such as food, data, defence, or internal security,” he said.
Responding to concerns about Malaysia-China relations, he clarified that the ART is a trade agreement, not a geopolitical alliance.
“We continue to strengthen our access to other markets such as the ASEAN-China Free Trade Agreement (ACFTA 3.0), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Regional Comprehensive Economic Partnership (RCEP), and the ASEAN-China platform,” he added.
