KUALA LUMPUR, Nov 18 — The Agreement on Reciprocal Trade (ART) is a sovereign, rules-based mechanism that reinforces Malaysia’s ability to sustain stable, predictable commercial ties with major economies, especially at a time when unilateral tariff actions are becoming the norm.
Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the ART inked with the United States (US) must therefore be viewed within this broader context of principled engagement with key trading partners.
“Nothing in the ART overrides Malaysian law, diminishes national sovereignty, or forces liberalisation beyond our chosen policy direction.
“All provisions are grounded in Malaysian laws, with red lines protected. The key is to secure a platform for continued engagement, for resolving issues of common concern,” he said during a talk on ‘Building Regional Strength Through Smarter Fiscal and Trade Policies’ today.
Tengku Zafrul added that critically, the ART enhances trade predictability and anchors Malaysia within a global, rules-based framework. It also provides exporters with certainty and strengthens the investment ecosystem.
“In today’s landscape, where economic security increasingly shapes market access, the ART is a tool of strategic protection, not concession.
“With almost RM200 billion in exports in 2024, protected access and sustained competitiveness are non-negotiable,” he said.
The minister also emphasised that the government is striving to keep the investment community informed throughout the ART negotiation process with the US.
“Thankfully, this has contributed to the positive growth momentum of our trade and investment inflows,” Tengku Zafrul said.
From January to September 2025 (9M 2025), Malaysia attracted RM285.2 billion in approved investments, marking a 13.2 per cent year-on-year increase.
He noted that foreign investments accounted for 52.9 per cent (RM150.8 billion) of approved investments, while domestic investments accounted for 47.1 per cent; a solid reflection of both foreign and domestic investors’ confidence in Malaysia’s policy direction.
“Our stellar trade and investment numbers also came against the backdrop of 5.2 per cent gross domestic product (GDP) growth in the third quarter of 2025 (3Q 2025), beating analysts' expectations.
“This was the fastest growth pace in a year, bringing the 9M2025’s growth to 4.7 per cent,” Tengku Zafrul said.
Hence, Malaysia is poised to end the year at the upper end of the central bank’s 2025 GDP growth forecast of four to 4.8 per cent, given the strong growth momentum in 3Q 2025.
