KUALA LUMPUR, Oct 26 — Malaysia has committed to the expedient development of its critical minerals and rare earths sectors in partnership with United States (US) companies, including granting extended operating licences to create certainty for businesses to increase production capacity.
The White House said that Putrajaya has committed to refraining from banning or imposing quotas on exports of critical minerals or rare earth elements to the US.
“Malaysia has committed to ensuring no restrictions are imposed on the sale of rare earth magnets to US companies,” it said in the Joint Statement on the US-Malaysia Agreement on Reciprocal Trade today.
Washington and Putrajaya have committed to strengthening economic and national security cooperation, enhancing supply chain resilience and innovation, addressing duty evasion, and cooperating on investment security and export controls.
The White House added that both countries take note of recent and forthcoming commercial deals between American and Malaysian companies, including the procurement of 30 aircraft, with a purchase option for 30 additional aircraft, and the purchase of semiconductors, aerospace components, and data centre equipment, with an estimated value of US$150 billion (RM633.5 billion).
Others include the purchase of up to five million tonnes per annum of liquified natural gas estimated at up to US$3.4 billion (RM14.35 billion) per year, the purchase of coal and telecommunication products and services for US$204.10 million (RM862 million), as well as capital fund investments in the US at US$70 billion (RM295.6 billion).
Both countries consented to the agreement to strengthen their bilateral economic relationship, providing exporters on both sides with unprecedented access to each other’s markets.
“The agreement will build upon our longstanding economic relationship, including the US-Malaysia Trade Investment Framework Agreement signed in 2004,” it said.
The White House noted that Malaysia has committed to providing significant preferential market access for US industrial goods exports, including chemicals, machinery and electrical equipment, metals, and passenger vehicles, as well as for US agricultural exports, including dairy, horticultural products, poultry, processed products, beverages, pork, rice, and fuel ethanol.
Washington has also committed to maintaining the reciprocal tariffs at 19 per cent, as outlined in Executive Order 14257 of April 2, as amended, on originating goods from Malaysia.
“The US also has identified products from the list set out in Annexe III to Executive Order 14346 of September 5, 2025, Potential Tariff Adjustments for Aligned Partners, to receive a zero per cent reciprocal tariff rate.
“Malaysia has committed to addressing non-tariff barriers that affect bilateral trade in priority industrial areas. Malaysia has also committed to addressing and preventing non-tariff barriers to US food and agricultural products in the Malaysian market,” it said.
The US Department of the Treasury and Bank Negara Malaysia are also in discussions to finalise their mutual understanding of currency policy to support a fair economic relationship between the two countries.
“In the coming weeks, the US and Malaysia will undertake domestic formalities in advance of the agreement entering into force,” the White House said.
