The visit of U.S. President Donald Trump to Malaysia has opened new opportunities for local companies to expand into international markets through the U.S.-Malaysia Reciprocal Trade Agreement signed on Sunday.
Deputy Minister of Investment, Trade, and Industry, Liew Chin Tong, said the historic visit strengthened the existing trade agreements between the two countries, previously announced in Parliament. He highlighted that the agreement provides greater and more secure access for Malaysian products to the U.S. market.
“This is not a new agreement. It has already been officially approved and presented by the Prime Minister and MITI Minister, with the endorsement of the Cabinet and Parliament. What was signed yesterday is an improvement over previous announcements, including 1,711 tariff lines that will no longer be subject to the 19% tariff,” Liew said during a Parliamentary Q&A session on Monday.
He added that the agreement benefits major Malaysian exports, including palm oil, rubber-based products, aircraft spare parts, and pharmaceutical products. Liew was responding to RSN Rayer (PH–Jelutong), who asked how the agreement between Trump and Prime Minister Datuk Seri Anwar Ibrahim would give Malaysian companies a competitive advantage while ensuring trade protection.
Among the key outcomes, Liew noted, is the enhanced and guaranteed access for Malaysian products to the U.S. market. He also mentioned that under the improvements announced by the U.S., Malaysia will receive due consideration in U.S. decisions under Section 232 of the U.S. Trade Expansion Act concerning the semiconductor sector.
“Although semiconductor products are not directly included in this agreement, what was agreed yesterday will be considered by the U.S. in relation to that sector,” he explained.
Trump’s visit on Sunday drew international attention, as discussions with Anwar emphasized the importance of bilateral trade cooperation amid global economic uncertainties. The Minister of Investment, Trade, and Industry, Tengku Datuk Seri Zafrul Abdul Aziz, confirmed that Malaysia successfully secured U.S. tariff exemptions for key exports, including palm oil, rubber, cocoa, aerospace equipment, and pharmaceuticals.
The exempted exports are valued at approximately US$5.2 billion, accounting for around 12% of Malaysia’s total exports to the U.S., providing a significant boost for Malaysian businesses seeking to expand globally.
