By Danial Dzulkifly
KUALA LUMPUR, May 5 — The 24 per cent tariff imposed by the United States on Malaysian goods is not due to the country’s close relations with China, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
Speaking during a special parliamentary sitting today, Tengku Zafrul stressed that preliminary negotiations with US officials did not touch on Malaysia’s diplomatic or economic ties with Asia’s largest economy.
“In my meeting with US counterparts, they did not raise the issue of whether we are close to China. Instead, they acknowledged that Malaysia and other Asian countries must naturally maintain trade relations with China,” he said.
This comes after several opposition lawmakers raised the possibility that tariffs imposed on Malaysia may be linked to Putrajaya’s perceived pivot towards China, especially after President Xi Jinping’s recent visit.
Some voiced concerns over Prime Minister Datuk Seri Anwar Ibrahim’s increasingly close ties with BRICS-aligned nations, suggesting this could have influenced the US’ to impose retaliatory trade measures.
Tengku Zafrul said in his meeting with US officials, Washington focused on three concerns over trade with China.
“The first is on technology security. They want to ensure American companies operating here that import high-end technologies do not leak them to China, unless these technologies are not on the export control list.
“Second, regarding rules of origin, they are concerned about countries like Malaysia, Vietnam, and Singapore being used as transshipment hubs by China to export goods to the US with false certificates of origin.
“Third, they spoke about non-tariff barriers and called for equal treatment, especially in comparison to countries like China, which benefit from certain trade agreements. For example, some tariff exemptions granted to China under a free trade deal might not apply to them.”
Tengku Zafrul said negotiations with the US remain at an early stage, focusing on scoping and technical matters, and are currently governed by a non-disclosure agreement to safeguard Malaysia’s strategic interests and investor confidence.
“We have not entered in-depth talks on the issues mentioned today,” he added.
He also assured lawmakers that any policy changes arising from such negotiations will undergo a stringent three-stage process involving internal reviews, Cabinet approval, and if necessary, tabling in Parliament to ensure transparency.
To strengthen Malaysia’s response to the tariffs, Zafrul said the government is considering forming a parliamentary caucus, similar to the one established during the discussions on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
“Based on the facts, performance, and policies presented, the government’s approach in addressing the US import tariff challenge is cautious yet firm, guided by principles and evidence, not geopolitical pressure or external rhetoric.
“We do not take the easy way out or bow to pressure. Instead, we are negotiating in a principled and strategic manner to protect jobs, investor confidence, and national sovereignty,” he said.
In response to a question on the appointment of a Malaysian ambassador to the US, Tengku Zafrul said the process is ongoing, and the government is awaiting a decision from Washington.
