KUALA LUMPUR – The Malaysian government has reiterated that it will not allow the nation’s sovereignty to be compromised, asserting that the Reciprocal Trade Agreement (ART) signed with the United States includes clauses safeguarding the country’s independence.
Investment, Trade, and Industry Ministry, Tengku Datuk Seri Zafrul Abdul Aziz, emphasised that Malaysia will not negotiate on key matters, especially concerning the rights of Bumiputera, government procurement policies, and demands for the opening of equity in strategic sectors.
He further clarified that Article 5.1.1 of the ART should not be interpreted as subject to any restrictions that the US may impose on other nations.
“Malaysia must address issues with the United States on equal terms, not as a subordinate nation. We uphold the principle of neutrality and ensure that the nation’s interests and sovereignty are safeguarded,” Tengku Zafrul said.
He reassured the public that the government will not bow to any foreign power, negotiating confidently to ensure the protection of Malaysia's sovereignty and national rights.
Tengku Zafrul warned that if the ART agreement were not finalised soon, Malaysia could face the risk of the US government reinstating original tariffs, which could rise to 24% or even higher.
He added that despite the pressures from unilateral tariffs, Malaysia must continue negotiations with the US in the best interest of the nation’s economy.
On the issue of mineral resources, including rare earth elements (REE), Tengku Zafrul stressed that the development of Malaysia’s strategic resources, such as REE, must comply with Malaysian laws and not be dictated by foreign investors.
“This means there must be added value in Malaysia, high-skilled jobs must be created locally, and processing technologies must be brought to Malaysia. Our policy is not to export cheap raw materials without processing them here first,” he said.
Earlier, the Kelantan state government requested the federal government to present the full contents of the Malaysia-US trade agreement in Parliament and the National Land Council, especially regarding the mineral sector, including REE.
Deputy Menteri Besar of Kelantan, Datuk Mohamed Fadzli Hassan, stated that the agreement's contents raised significant questions and implications for REE-rich states like Kelantan, Terengganu, and Kedah.
Kelantan, which holds the second-largest REE deposits in Malaysia after Terengganu, is home to reserves worth billions of ringgit, located on land fully under state jurisdiction. - October 29, 2025
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