KUALA LUMPUR: Malaysia will appoint a deputy secretary-general from the Investment, Trade and Industry Ministry as the country’s chief negotiator in upcoming discussions with the United States, says its minister Tengku Datuk Seri Zafrul Abdul Aziz.
Speaking at the ministry’s Hari Raya open house, Tengku Zafrul said the government had obtained approval to send its chief negotiator to engage with the United States' appointed counterpart, with negotiations expected to commence soon after the signing of a non-disclosure agreement (NDA).
“We have received agreement (for discussions), and will start negotiations soon after the NDA is signed,” he told reporters here on Tuesday (April 29).
When asked who would serve as Malaysia’s chief negotiator, Tengku Zafrul confirmed it would be one of Miti’s deputy secretary-generals.
The ministry currently has three deputy secretary-generals - Mastura Ahmad Mustafa (Trade), Datuk Hanafi Sakri (Industry) and Datuk Bahria Mohd Tamil (Investment and Management).
Commenting on recent meetings with US officials, Tengku Zafrul said discussions with the administration, including the Secretary of Commerce Howard Lutnick and the US trade representative (USTR), had proceeded smoothly.
“The meeting went well. I met with the US Secretary of Commerce and also with their USTR.
“Both agreed for us to proceed with negotiations,” he said, adding that further details would be presented at the National Geo-Economics Action Centre (NGCC) meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim on Wednesday (April 30).
“For now, what I can share is that the meeting was smooth and we will continue discussions within the Malaysian Government through the NGCC before briefing the Cabinet ahead of formal negotiations with the United States,” he said.
Tengku Zafrul emphasised that both Malaysia and the United States agreed negotiations were the best path forward, rather than resorting to retaliatory tariffs against companies.
He also highlighted that Malaysia’s role in the global supply chain, particularly in sectors such as semiconductors, was recognised as crucial by both countries.
“Many companies involved are complementing each other, not competing directly,” he said.
“Additionally, both countries agreed on the importance of economic security as protecting technology and intellectual property rights is paramount.”
Outlining the broad framework of the negotiations, Tengku Zafrul said discussions would cover four main areas: tariffs, non-tariff barriers, trade imbalance and economic security.
“The objective is to reduce tariffs, though it is impossible to reduce them to zero. We need to find a win-win solution,” he said.
“We also discussed non-tariff barriers, particularly in the agricultural sector, and ways to ease them.
“On the trade imbalance, currently, we have a surplus of about US$25bil (RM108.1bil), down from US$40bil (RM172.82bil) four years ago. They want us to continue reducing it, but not immediately,” he said.
On the economic security front, Tengku Zafrul stressed the need to ensure technologies developed or manufactured in Malaysia were properly safeguarded, proposing mechanisms such as a technology safeguard agreement.
Responding to questions about the status of discussions following the end of a 90-day pause, Tengku Zafrul said: “I don’t know. We will try. We will have to work. We need the time.”
He clarified that Malaysia did not request an extension of the timeline.
Regarding claims that Chinese companies were attempting to circumvent US tariffs by shipping goods through Malaysia, Tengku Zafrul said authorities were investigating.
“We have received reports regarding this. We are conducting investigations, and if there are credible reports, we will take firm action.
“Any violations of the law will be met with appropriate action. We need solid evidence to proceed accordingly,” he said.
