Nearly RM200 Bln In Exports To US At Risk If ART Not Signed -- Tengku Zafrul

KUALA LUMPUR, Nov 27 (Bernama) -- Nearly RM200 billion in exports to the United States, along with over a million jobs and 7,700 small and medium enterprises (SMEs), would have been at risk if market access to the United States were lost due to the Agreement on Reciprocal Trade (ART) not being concluded.

Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said there is also a risk of a 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 on the ART today.

Tengku Zafrul said exports to the US in 2024 amounted to nearly RM200 billion, while in 2025 they exceeded RM200 billion.

The minister emphasised that the ART is a mechanism for protecting the country’s economy, and it was agreed upon after careful consideration.

Tengku Zafrul said claims that the ART benefits only the US are not true, because the agreement also shields Malaysian exports from unilateral tariff actions and Malaysia, as a net exporter, gains significant benefits from guaranteed access to the US market.

He also pointed out that the assertion that the ART would constrain Malaysia’s policies is incorrect, as 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.

Responding to claims that the ART would harm Malaysia–China relations, the minister said the ART is a trade agreement, not a geopolitical alliance.

“So 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.

-- BERNAMA