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PRIME MINISTER Datuk Seri Anwar Ibrahim has rebuffed accusations that Malaysia’s Reciprocal Trade Agreement (ART) with the United States compromises the nation’s sovereignty, describing such claims as “purely political”.
Anwar, who also serves as Finance Minister, said that any major negotiation inevitably involves an element of give and take, particularly when substantial investments and bilateral relations are at stake.
“In any negotiation, there will always be compromise. But Malaysia remains steadfast in upholding and protecting its dignity,” he said.
The Prime Minister noted that Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz had already provided a comprehensive explanation of the agreement in Parliament.
“So, even if there are one or two words in the agreement being disputed, and some quarters reject it, I decided there is no need for further clarification since Tengku Zafrul has already done so extensively in Parliament.
“If they choose to continue attacking, that is a political decision,” Anwar told reporters following the first day of the APEC Leaders’ Meeting in Gyeongju, South Korea - on Friday.
Anwar was responding to critics who alleged that the ART amounted to a surrender of Malaysia’s economic autonomy and contained so-called “booby traps” that could harm the country’s future interests.
“This agreement is not unique. Such arrangements exist for all nations. What matters is that we view it in its full context — its implications and the avenues available to us. The important thing is whether we can deny the importance of maintaining good relations with the US. We cannot,” he said.
He added that Malaysia continues to engage carefully with both the US and China on matters such as semiconductors and rare earths.
“To claim that this means we are submitting to America is simply untrue,” Anwar stressed.
He emphasised that the signing of the ART took into account Malaysia’s national interests and legal framework — key principles underpinning the country’s path to success.
“To achieve this, we must exercise patience and wisdom — not anger or prolonged disputes. Did we compromise on our stance on Gaza? No. Did I tell Trump to agree with everything? No. We stated our support for the first phase but sought a comprehensive resolution,” he said.
Addressing Malaysia’s global diplomacy amid rising US-China tensions and engagement with partners such as Brazil and South Africa, Anwar said his decisions are guided solely by the nation’s interests.
“How do you handle uncertainty such as US-China tensions? How do you have the courage to engage Brazil and South Africa in the same forum with President Trump and the US? My response is this: we make decisions based on Malaysia’s national interest,” he said. - November 1, 2025
