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PRIME MINISTER Datuk Seri Anwar Ibrahim announced that Malaysia is on the verge of concluding a pivotal trade agreement with the United States, centred particularly on the semiconductor industry, with final details expected to be ratified at the upcoming Cabinet meeting tomorrow.
“The negotiations are 99.9 per cent complete. The remaining 0.01 per cent will be finalised at the Cabinet meeting on Friday,” Anwar told reporters during a briefing ahead of the 47th ASEAN Summit.
The agreement aims to bolster bilateral trade and investment, targeting key sectors including semiconductors, artificial intelligence, digital economy, and energy transition.
“Semiconductors is one of the fields, while artificial intelligence (AI), digital economy, and energy are also subjects of ongoing negotiations,” he explained.
US President Donald Trump, slated to attend the ASEAN Summit, is expected to hold discussions with Anwar, who also serves as Finance Minister, to explore avenues for expanding economic cooperation between the two nations.
Malaysia plans to deepen partnerships in these strategic sectors while safeguarding national interests and sustainable development.
Anwar acknowledged the complexities of negotiations with the US, stating, “Negotiations with the US will be challenging due to their priorities.
“We have no hesitation in taking necessary steps to enhance bilateral trade and investment with the US. However, such measures should not hinder our cooperation and relations with other countries.”
He added ongoing dialogues on tariffs and trade policies aimed at enhancing economic ties. “I intend to sign several preliminary agreements with the US, and I am pleased with the very positive developments,” he added.
On regional financial collaboration, Anwar clarified Malaysia’s position on de-dollarisation, emphasising that while the US dollar remains dominant, ASEAN countries have made significant strides in using local currencies for cross-border trade.
“De-dollarisation in our context means that over 20 per cent of trade with Thailand is conducted using local currencies, similarly with Indonesia and China,” he said.
This effort is part of the Chiang Mai Initiative, a regional financial cooperation mechanism involving ASEAN+3 countries.
Malaysia is actively exploring ways to expand this cooperation. “We are gradually studying and expanding this to other countries to strengthen currencies like the ringgit, baht, rupiah, and renminbi,” Anwar remarked.
The Prime Minister will chair the 47th ASEAN Summit later this week, where trade, investment, and regional financial cooperation are expected to be key agenda items.
“This meeting has attracted many major international players, and I believe it will greatly benefit Malaysia’s business and investment communities,” he added. - October 23, 2025
