US Trade Deal Boosts Malaysia's Export Certainty, Regional Standing - Analyst 

By Siti Radziah Hamzah

KUALA LUMPUR, Oct 28 (Bernama) -- Malaysia’s new reciprocal trade deal with the United States (US) represents a positive step toward greater export certainty, investment confidence and regional influence, said SPI Asset Management managing partner Stephen Innes.

He said the agreement provided Malaysia with a stronger and more predictable trade footing while reinforcing its position in global supply chains.

“The deal locks in tariff certainty with real access wins in industrial and agri exports, while putting a lid on US tariff ceilings that had been a moving target for years,” he told Bernama in an interview. 

On Oct 26, 2025, Kuala Lumpur and Washington signed a Reciprocal Trade Agreement and a critical minerals pact to boost trade and supply chain cooperation during the 47th ASEAN Summit and Related Summits in Kuala Lumpur.

Innes pointed out that the framework created a more transparent and coordinated trade environment, aligning Malaysia’s standards with global practices to enhance competitiveness.

“What Malaysia gives up is a bit of manoeuvring space in areas where trade crosses into security, export controls, investment screening, and enforcement on duty evasion.  This aligns Malaysia closer to US standards, but it is more coordination than capitulation,” he said.

Innes added that the agreement fits seamlessly into Malaysia’s broader ASEAN and Regional Comprehensive Economic Partnership (RCEP) agenda, expanding export corridors and opening new opportunities for industrial and high-tech sectors.

“From a regional perspective, it fits neatly within Malaysia’s broader ASEAN and RCEP strategy.  The government’s trying to widen export corridors without stepping outside the Asian frameworks, and this deal signals it can do that — work with Washington while staying plugged into Asia’s supply-chain architecture,” he explained.

Innes said the deal demonstrated Malaysia’s ability to engage major economies while maintaining balance within the regional trade ecosystem. 

He pointed out that it also underscored the country’s pragmatic approach to strengthening economic resilience, deepening industrial linkages, and enhancing investor confidence.

Innes said that by securing tariff stability and ensuring continued access to key markets, Malaysia positioned itself as a trusted and forward-looking trading partner amid global uncertainty.

-- BERNAMA