Ramasamy: What's PMX give-away as Bumi policy stands in the way of Malaysia's US tariff negotiation?
The US imposition of 25% tariffs (from 24% previously) on Malaysian exports seems invariably related to the imposition of 30% Bumiputera equity on foreign firms, the nature of the halal industry – and not least – the prevention of foreign equity in the gas and petroleum industry.
While Anwar talks tough about not diluting the Bumiputera stake in the country – calling it the 'red lines' – the government at the same time wants to engage the US amicably and diplomatically to reduce tariffs.
I was informed by some Malaysian former diplomats that Anwar has the peculiar habit of talking tough and using non-compromising language when addressing the local audience, particularly the Malay segment of the population.
To the Malays, he wants to be seen as a champion of their political and economic interests, especially through the manifestation of pro-Bumiputera policies.
In other words, Anwar – despite his awareness of what is wrong with some of the Bumiputera policies – is not prepared to confront them or to come up with better national policies that will benefit all segments of the population.
It doesn't take rocket science to know that the pro-Bumiputera policies have essentially benefitted the Malay elite as opposed to the man-0n-the-street Malays in the administrative and political sectors.
Limited bargaining power
By focusing on political expediency and survival, Anwar lacks the courage and wisdom to confront the political, social and economic realities in the country.
He is so afraid that any attempt to critically examine the special privileges of the Bumiputera might be construed as a zero-sum game – the loss of the Bumiputera and the gain of the economically vibrant non-Malays in the country.
Whether Anwar is going to tamper with the privileges of the Bumiputera must not be judged by his political rhetoric but rather by what Malaysia is going to give away in exchange for reduced tariffs.
I would certainly think that there is a serious mismatch between what is said by Anwar and what Malaysia is going to concede to the US in the tariff talks.
Anwar should not behave as though he is anti-US – he is far from it. He certainly lacks the courage and determination of twice former Prime Minister Tun Dr Mahathir Mohamad.
Just remember how Dr Mahathir opposed the IMF (International Monetary Fund) policies during the country's financial crisis in the 1990s.
While Anwar was prepared to go along with the dictates of the IMF, Dr Mahathir sought to confront them.
It is the same Anwar who now wants to take a tough stand in protecting the rights of Bumiputera but in the on-going tariff negotiations with the US, he might be much more subdued with the potential to negatively affect the country's economy. – July 21, 2025
Former DAP stalwart and Penang chief minister II Prof Ramasamy Palanisamy is chairman of the United Rights of Malaysian Party (Urimai) interim council.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
Main image credit: Anwar Ibrahim/Facebook
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