Malaysia Defends US Trade Deal: Malaysia’s government has moved to defend its new trade agreement with the United States after critics warned it could undermine national sovereignty and favor Washington.
Investment, Trade and Industry Minister Tengku Zafrul Aziz described the deal as “the best possible outcome for Malaysia,” saying it reflects the “geopolitical reality” of engaging with the world’s largest economy and Malaysia’s top trading partner.
Former Prime Minister Mahathir Mohamad, a long-time advocate of trade independence, strongly criticized the pact, saying it amounted to “handing over” Malaysia’s autonomy. “We agree to buy their planes, gas, and machinery, obey their digital rules, give them priority access to our minerals, and open our markets on their terms,” Mahathir said last week, calling the deal a “surrender of independence.”
Malaysia Defends US Trade Deal
Signed during Donald Trump’s visit to Kuala Lumpur, the agreement commits Malaysia to cutting or removing tariffs on several US goods. In return, Washington will maintain a 19% tariff on Malaysian exports, with only a select list of products receiving duty-free treatment.
While the government hailed the deal as a boost for investment and trade, public debate has focused on a clause requiring Malaysia to align with US sanctions or economic restrictions on third countries.
Opposition leader Azmin Ali argued that this could compel Malaysia to follow Washington’s decisions such as banning imports from China or Russia even if it damages Malaysia’s own economy. “It forces us to pick sides and abandon the neutrality that has long been our strength,” he said.
Malaysia Defends US Trade Deal, Analysts and civil society groups echoed these concerns. Elina Noor, a Senior Fellow at the Carnegie Endowment for International Peace, called the deal “deeply one-sided,” warning that Malaysia must be careful “not to sleepwalk into long-term strategic alignment” that undermines its interests. (Source)
The Center to Combat Corruption and Cronyism (C4 Center) also cautioned that the pact could bypass procurement laws and weaken government oversight. “Some clauses require Malaysia to seek permission before taking actions that affect US interests,” said C4’s chief executive Pushpan Murugiah.
In response, the trade ministry launched a public microsite and a 15-page FAQ document to address concerns. Government legal advisers stressed that Malaysia retains the right to withdraw from the agreement unilaterally at any time.
