In a scathing critique of Malaysia's recent trade deal with the United States, former de facto law minister Datuk Zaid Ibrahim has called for the resignation of Prime Minister Datuk Seri Anwar Ibrahim and Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. Zaid believes the leadership bowed unnecessarily to pressure from US President Donald Trump, describing the move as an act of economic surrender rather than strategic negotiation.
At the heart of the controversy lies a deal that sees Malaysia agreeing to purchase and invest over US$240 billion in American goods and sectors, in exchange for a modest reduction in US tariffs—from 25% down to 19%. According to Zaid, the math simply doesn’t add up. He pointed out that Malaysia would save around US$2.6 billion (roughly RM10.4 billion) annually over the next four years, based on its current US$43 billion in exports to the US. In contrast, the country is committing to spend more than RM1 trillion, leading him to question how a RM24 expenditure to save RM1 could be considered sound economic policy.
The details of the deal, as shared by Tengku Zafrul in Parliament on August 4, include key purchases and investments such as US$150 billion by multinationals in Malaysia’s semiconductor, aerospace, and data centre sectors over five years, US$70 billion in Malaysian investments in the US over ten years, and a US$19 billion Boeing order by Malaysia Aviation Group. Additionally, PETRONAS is set to purchase US$3.4 billion worth of LNG per year, Tenaga Nasional Bhd will spend US$42.6 million annually on coal, and Telekom Malaysia Bhd will acquire US$119 million in telecom products.
Zaid questioned the logic of appeasing a leader like Trump, who, in his view, has less than four years left in office and is known for erratic policies that often end in legal or political turmoil. He accused the current administration of reacting with panic to external pressure and warned that this type of diplomacy could undermine Malaysia’s sovereignty and economic future.
He further criticized the ‘Madani economics’ approach, suggesting that if this deal reflects its foundation, the country might be heading toward deeper economic distress.
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