Tengku Zafrul: 19% US tariff a win for Malaysia, sovereignty not compromised
KUALA LUMPUR: The United States' decision to cut tariffs on Malaysian exports to 19% from 25% is a significant achievement of Malaysia's thorough and methodical negotiating process, according to the Ministry of Investment, Trade and Industry (MITI).
'This decision by the United States reflects the strong and enduring economic ties between our two nations. It is also a testament to Malaysia's credibility as a reliable trade and investment partner.
'We thank our counterparts in the US, especially the US Trade Representative's Office and the Department of Commerce, for their constructive cooperation and support throughout the negotiation process,' MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz said in a statement.
Most importantly, he noted that Malaysia stood firm on key 'red line' items and secured the 19% tariff rate without compromising its sovereign right to implement policies supporting socio-economic stability and growth.
"This positive outcome follows sustained engagement between both governments through various bilateral platforms and reflects the high degree of Malaysia–US complementarity in trade and investment for over 60 years."
The Malaysia–US tariff negotiations, which began on May 6, officially concluded on July 31, 2025.
In managing the impact of the 19% tariff, MITI will continue to work closely with relevant ministries and agencies to explore ways to mitigate the effects on Malaysia's exports.
It will also encourage exporters to fully utilise Malaysia's 18 Free Trade Agreements (FTAs) to diversify and expand their markets.
At the same time, MITI will continue with its industrial reform initiatives outlined under key national policies such as the New Industrial Master Plan 2030, the Green Investment Strategy, and the National Semiconductor Strategy.
These efforts aim to support Malaysian companies in transforming their operations through greater efficiency, automation, and productivity.
It will also explore ways the government can continue supporting Malaysian businesses, especially small and medium enterprises (SMEs), in adjusting to the new 'baseline' tariff rate.
'MITI will continue to work closely with stakeholders to maximise the opportunities from this development, including the strong momentum in approved investments, driven by ongoing infrastructure projects, a consistent realisation rate of over 85% for approved investments, as well as catalytic national development initiatives.
'We remain committed to defending Malaysia's trade interests while fostering mutually beneficial partnerships with key economies, including the United States. Malaysia will also continue to pursue its industrial reform and strategic trade diversification initiatives to support the nation's growth,' Tengku Zafrul said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
7 minutes ago
- The Sun
Thai military authorized to shoot down drones without warning
BANGKOK: The Thai military and police have been granted a right to intercept and destroy unmanned aerial vehicles (UAV) without warning within the ban on use of drones, reported Sputnik/RIA Novosti quoting aThai PBS report on Saturday, citing the military. The nationwide ban on use of drones came into effect on July 29, and the new measures allowing the military to intercept and destroy drones were introduced in two military districts, including the border areas between Thailand and Cambodia, the broadcaster said. In other regions the decision to destroy a drone will be taken if the military or police leadership consider it appropriate. Thai citizens were urged to stay alert as foreign spies use drones for surveillance and transfer of classified data, the broadcaster said, adding that the civilians were encouraged to report any suspicious cases of drone use. In Thailand espionage, especially with the martial law in effect, is a criminal offense punishable by life sentence or death penalty, the broadcaster added. The escalation of the border conflict between Thailand and Cambodia turned into an armed confrontation on July 24. After clashes in the border area, the sides exchanged artillery fire, with Cambodia using Grad multiple rocket launcher systems, including against civilian targets in Thailand, while Thailand carried out an airstrike on Cambodian military positions. Both sides reported casualties, including civilians. On Monday, Thailand and Cambodia announced agreeing to an immediate ceasefire following a meeting between Acting Thai Prime Minister Phumtham Wechayachai and Cambodian Prime Minister Hun Manet mediated by Malaysian Prime Minister Datuk Seri Anwar Ibrahim in Kuala Lumpur. - Bernama, Sputnik/RIA Novosti
The Sun
7 minutes ago
- The Sun
Thailand approves Malaysia, US, China as observers for GBC meeting
BANGKOK: Thailand has agreed to the inclusion of representatives from Malaysia—this year's ASEAN Chair—alongside the United States and China as observers at the upcoming General Border Committee (GBC) meeting, set to take place in Kuala Lumpur next week. Acting Defence Minister General Natthapon Nakpanich welcomed the consensus on holding the extraordinary GBC meeting in Malaysia from August 4 to 7, expressing appreciation for the collaborative effort. 'It is my pleasure to confirm that Thailand accepts the proposal to include representatives from Malaysia, as the ASEAN Chair, US and China, who have been providing assistance since July 28, as observers to the GBC meeting,' he said in a statement. He added that the participation of observers from Malaysia, the United States, and China is scheduled to take place on August 7. Natthapon also expressed his sincere appreciation to all parties involved in making the preparations possible, particularly to the Malaysian side for its excellent coordination in arranging this important meeting. Last Thursday, Thailand's Defence Ministry proposed that the upcoming GBC meeting be held on neutral ground, suggesting Malaysia as the venue, and recommended that it run from Aug 4 to 7 to allow sufficient time for comprehensive discussions. Conflict at the Thai-Cambodian border began with a brief skirmish on May 28 and escalated into armed clashes on July 24. On Monday, Thailand and Cambodia agreed to an immediate and unconditional ceasefire following a special meeting hosted in Putrajaya by Malaysian Prime Minister Datuk Seri Anwar Ibrahim, the current ASEAN Chair. - Bernama
The Star
an hour ago
- The Star
Johor's water tariff adjustment: Data centres would have to pay more
JOHOR BARU: The water tariff adjustment gazetted by the Cabinet will result in data centres being charged more for the first time, says Ranhill SAJ. The chief executive officer of the water utility company, Anuar Abdul Ghani, said the new rates, which took effect on Friday (Aug 1), apply only to certain users and were meant to strengthen the quality and resilience of the state's water supply system. 'The government set RM5.33 per cubic metre rate specifically for data centres, a fast-growing sector in Johor known for its high water consumption,' he said in a statement on Saturday (Aug 2). On June 11, the Investment, Trade and Industry Ministry reportedly said that Johor was expected to host 60% of Malaysia's total data centre capacity by 2030. It was also reported that there are about 40 to 50 data centre projects in the pipeline in Johor, with 20 of them already approved. Meanwhile, Anuar said that the new tariff would not impact most domestic accounts and low-income consumers. 'The adjustment affects tier three domestic users – those consuming more than 35 cubic metres of water per month – as well as non-domestic categories. 'Tier one and tier two users, who make up most domestic accounts in Johor, will continue to enjoy the existing water tariff rates,' said Anuar. He also assured that places of worship and vulnerable groups registered under the e-Kasih programme are not affected by the new rates. He added that the minimum charge in Johor remains at RM10.50, while consumption exceeding 35 cubic metres per month would incur an additional 35 sen per cubic metre. Bulk meter users in strata housing will see an increase of 20 sen per cubic metre. 'For non-domestic users, the adjustment ranges between RM1 and RM1.75 per cubic metre, with a new minimum monthly charge of RM41.50,' he said, adding that the shipping industry would be charged RM8.03 per cubic metre. Anuar added that the tariff revision is part of efforts to modernise Johor's water supply system and ensure it can meet rising demand from rapid development and population growth. The adjustment will also support key upgrading projects, including the second phase of the Layang 2 package with a capacity of 160 million litres per day (MLD), as well as Semanggar (50 MLD) and Semanggar 3 (120 MLD), he added.
