Malaysia–US trade deal marks win-win strategy for both nations

SHAH ALAM – The Malaysia–US Reciprocal Trade Agreement not only opens new trade avenues but also demonstrates the government’s economic diplomacy strategy delivering significant returns to the country.

Bank Muamalat Malaysia Berhad chief economic analyst Dr Mohd Afzanizam Abdul Rashid said the success was evident as the Investment, Trade and Industry Ministry announced that 1,711 Malaysian products were now granted tariff exemptions under the agreement.

He emphasised that this move effectively reduced the actual import tariff rate on Malaysian goods far below the official 19 per cent rate maintained by the United States (US).

“This means that, collectively, even though the reciprocal tariff rate remains 19 per cent, the effective rate is much lower because many products have been granted exemptions,” he told Sinar on Monday.

Afzanizam pointed out that the healthy diplomatic and international trade relations between Malaysia and the US should serve as an example, showing that Malaysia, together with Asean countries, continued to pursue international trade in a more harmonious manner with a strong focus on diplomacy.

He said the economic diplomacy approach can create win-win solutions for both countries while opening more opportunities for local firms to penetrate international markets.

“What is important now is to ensure that local firms truly benefit from this agreement.

“The government, together with relevant agencies, must make certain they receive special treatment so business costs can be reduced and competitiveness in the global market enhanced,” he said.

Afzanizam highlighted that the scalability of each business must be given serious attention. This is crucial to ensure that local enterprises fully benefit from the trade agreement.

He added that capacity-building programmes needed to be implemented. These programmes, he said should include training for entrepreneurs and the workforce to prepare them for global competition.

Afzanizam emphasised that the trade deal can act as a catalyst for transforming small and medium enterprises to continue progressing, while strengthening local supply chains and industrial capabilities.