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MALAYSIA is confident of concluding a trade agreement with the United States soon as both governments finalise legal and technical details, said Minister of Investment, Trade and Industry Datuk Seri Tengku Zafrul Aziz.
“We still have 24 hours to go. We are optimistic. Now the lawyers are involved, so there is a lot of legal scrubbing. I think with this agreement, it will give certainty on many of the issues that have been raised by investors and by companies,” Tengku Zafrul said during a fireside session at the ASEAN Business and Investment Summit 2025.
The minister noted that while certain tariff lines may be exempted, negotiations are ongoing and expected to continue after the agreement is signed. Discussions with the US cover reciprocal tariffs under Section 232, with sector-specific talks on semiconductors and pharmaceuticals still in progress.
“Even for pharmaceuticals, there has been an announcement (on tariff), but it is yet to take effect. And we are negotiating certain tariff lines on pharmaceuticals,” he said.
Malaysia has also strengthened enforcement against transshipment activities to ensure transparency and maintain the integrity of its exports. “We have taken away the power of issuing certificates of origin from the chambers (of commerce). It is now issued by the government to make sure enforcement is better and more transparent,” Tengku Zafrul said.
He reaffirmed Malaysia’s and ASEAN’s commitment to multilateralism, noting that the bloc will sign two major trade agreements — the ASEAN Trade in Goods Agreement and the upgraded ASEAN-China Free Trade Agreement — demonstrating continued commitment to open trade and economic engagement.
At the same time, Malaysia is seeking to develop its role in the global rare earth supply chain, having banned exports of critical minerals to encourage midstream and downstream investment. “We are inviting players who want to build their supply chain in Malaysia as much as possible,” Tengku Zafrul said, adding that discussions are ongoing with partners from China, Japan, South Korea, and the US.
Tengku Zafrul also highlighted Malaysia’s strong economic fundamentals, citing advanced estimates of third-quarter GDP growth at 5.2 per cent, exceeding earlier projections of 4.0 to 4.8 per cent. “Globally, many exporters to the US are frontloading, especially in sectors that may be affected,” he said.
Speaking as chair of the ASEAN Economic Ministers’ Meeting during the Joint AEM–ASEAN Ministerial Meeting, Tengku Zafrul called for enhanced coordination between ASEAN’s economic and political-security pillars to safeguard the region’s long-term stability and competitiveness.
“Every economic policy carries political weight, just as every political decision has significant economic consequences. Strengthening the synergy between these two pillars is therefore essential as ASEAN navigates an increasingly complex and uncertain global landscape,” he said.
He warned that decades of progress driven by open trade and regional integration are under threat from rising protectionism, technological decoupling, and unilateral measures.
“Global economic fragmentation has now emerged as one of the defining challenges of our time — and it is expected to deepen further. The ongoing strategic rivalry between major powers is unlikely to subside soon,” Tengku Zafrul said, noting disruptions in logistics, technology, and supply chains.
Outlining ASEAN’s strategy, he stressed two key pillars: economic security and economic resilience.
“Our focus should be on protecting the stability of regional and global supply chains, securing access to critical goods, energy, and technologies, and reducing overdependence on any single market or production source,” he said.
Economic resilience, he added, requires deeper intra-ASEAN trade and investment, diversified markets and supply networks, and stronger cooperation with trusted partners.
“Together, these two pillars will enable ASEAN to safeguard strategic autonomy, preserve regional stability, and maintain its position as a trusted and competitive hub amid global uncertainty,” Tengku Zafrul said.
He called for renewed commitment to multilateralism and urged ASEAN to advocate for high-impact reforms at the WTO, including enhancing subsidy transparency, establishing digital trade governance, and restoring trust in dispute settlement mechanisms.
Highlighting the role of the ASEAN Geoeconomics Task Force, Tengku Zafrul noted that the body has already presented preliminary recommendations and will offer further guidance to help ASEAN anticipate and respond to emerging global risks.
“I look forward to its presentation today, offering clear, practical, and forward-looking recommendations to guide ASEAN’s strategic direction in this new era,” he said. - October 25, 2025
