MITI clarifies the Agreement on Reciprocal Trade with the US does not override Malaysian laws, affect sovereignty, or alter Bumiputera policies.
KUALA LUMPUR: The Investment, Trade and Industry Ministry (MITI) has stated that no clause in the Agreement on Reciprocal Trade (ART) allows external parties to override Malaysia’s domestic laws or regulations.
In a written parliamentary reply, MITI stressed that all commitments under the pact must comply with local laws and go through Malaysia’s legislative processes. “The agreement does not undermine economic sovereignty or the protection of domestic industries,” the ministry said.
The government clarified that ART does not bind Malaysia to forced commercial or investment commitments. It instead provides export and investment opportunities through mutually beneficial mechanisms without sacrificing national economic policy autonomy.
MITI was responding to a question from Datuk Awang Hashim (PN–Pendang) regarding assurances on sovereignty and domestic industry protection. The ministry also addressed a separate query from Mohd Syahir Che Sulaiman (PN–Bachok) on safeguarding domestic interests.
It emphasised that no clause in the agreement affects Bumiputera policies or grants special rights to American companies. Regarding government-linked companies (GLCs), MITI stated ART does not limit their role in national economic development.
“The government retains full authority to determine the appropriate support, including initiatives aimed at strengthening the domestic economy and the well-being of the people,” it added. The reply affirmed the pact does not impact digital tax collection or the authority of the country’s strategic regulatory bodies.
