Malaysia’s Digital Minister Gobind Singh Deo has stressed that the country is not bound to accept decisions made by the United States on digital trade agreements under the US-Malaysia Reciprocal Trade.
Speaking during his ministry’s winding-up session after the debate on the 2026 Supply Bill in the Dewan Rakyat earlier today, Gobind said the phrase “shall consult” in Article 3.3 of the agreement had been widely misunderstood. The article states that Malaysia shall consult with the US before entering into any new digital trade agreement with another country that could jeopardise essential US interests.
“When ‘shall’ is mentioned, people often assume it is mandatory,” Gobind said. “But here it uses the phrase ‘shall consult’. This does not mean we accept. It means that we will consult.”
He added that had the agreement stated “shall accept”, the implication would be entirely different.
“‘Shall consult’ is different. It means we consult – but if we do not agree, we are not obliged to accept,” he said, emphasising that Malaysia retains full regulatory autonomy.
“The most important thing is that this does not affect our sovereignty because we can continue to make independent decisions. We are not bound by US decisions.”
Meanwhile, the National Cyber Security Agency (Nacsa) is drafting a Cyber Crimes Bill to replace the Computer Crimes Act 1997, which will address issues such as deepfakes.
Gobind said a review of the Evidence Act 1950 and the Contracts Act 1950 is also underway to identify amendments aligned with the evolving artificial intelligence landscape, including implications for contract formation, execution and the integrity of evidence.
He said the Digital Ministry is also taking steps to regulate policies and ethical considerations involving AI, including enforcing data processor responsibilities under the Personal Data Protection Act 2010 and developing guidelines on automated decision-making and profiling.
Putrajaya will additionally address harmful online content and protect digital infrastructure through the Cyber Security Act 2024 and the Online Safety Act 2024.
A draft of the AI Governance Bill is also being developed to address risks and establish responsible governance practices for the use of AI across all sectors.
