KUALA LUMPUR – Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz has dismissed former prime minister Tun Dr Mahathir Mohamad’s criticism of Malaysia’s trade agreement with the United States (US).
He called the claims inaccurate, misleading and damaging to public understanding.
He stressed that the decision was not about being “happy” with the deal, but about protecting the nation’s economy and saving Malaysian jobs.
“This issue is not about being ‘happy’ but about the responsibility to save the livelihoods and incomes of Malaysians.
“Negotiations were held to avoid the US’ 25 per cent tariff that threatened more than RM198 billion worth of exports and 100,000 jobs, particularly in the electrical and electronics sector," he said in a Facebook post on Thursday.
He said Malaysia succeeded in securing a 19 per cent rate, the same as other Asean countries, thereby prioritising national interests and economic stability.
Addressing Dr Mahathir’s claim that Malaysia had removed all tariffs on 11,000 US products, Tengku Zafrul clarified that the actual figure was far lower.
“The actual fact is that only 60.4 per cent of tariff lines are now subject to zero duty, not 100 per cent as claimed.
“The difference between 60 per cent and 100 per cent is significant," he said.
He added that this measure was not about “giving away” tax revenue but about defending export value, protecting jobs and preventing negative economic spillover effects.
Tengku Zafrul also refuted suggestions that Malaysia had agreed to supply rare earth elements exclusively to the US or any other country.
“This is another untrue allegation. There is no agreement, whether verbal or written, to supply rare earth elements exclusively to the US or any other country.
“Why would Malaysia be so foolish as to accept only 5 per cent of the actual value when we could obtain many times more," he said.
He added that since Jan 1, 2024, Malaysia has, in fact, imposed a ban on the export of unprocessed rare earth elements in line with a Cabinet decision.
This policy, he said, is strictly monitored and reviewed every six months.
The minister said the ban is part of a strategy to ensure all rare earth elements are processed locally, boosting economic value and generating high-skilled jobs.
Malaysia is building a complete value chain for the rare earth industry, from upstream mining to midstream processing and downstream high-tech manufacturing.
The industry is expected to contribute up to RM9.5 billion to GDP by 2025 and create thousands of skilled jobs.
“It is not wrong to criticise, but when criticism is made based on untrue allegations, it is wrong and can mislead the public,” he said.
He also urged all parties to rely on verified information from official statements before making accusations regarding national trade policies.