KUALA LUMPUR: Malaysia has not granted any exclusive rights to the United States concerning rare earth elements (REE) and the US has not made such a request, says Tengku Datuk Seri Zafrul Abdul Aziz (pic).
The Investment, Trade and Industry Minister said that the US only requested not to be excluded from any arrangements Malaysia offers to other countries.
“It’s simply not true that we gave the US any exclusive access. What they requested was to be treated on equal footing and not to be excluded from what we offer others,” he said.
Tengku Zafrul said this in response to a query by Datuk Ku Abdul Rahman Ku Ismail (Perikatan–Kubang Pasu) in the Dewan Rakyat on Thursday (August 7).
He also outlined Malaysia’s broader strategy in dealing with its trade relations, which includes expanding access to new markets, strengthening competitiveness in key sectors, and addressing structural challenges across industries.
Trade between Malaysia and the US currently accounts for about 15% of Malaysia’s total global trade, he added.
Meanwhile, Tengku Zafrul noted that the furniture and rubber glove industries face distinct challenges, including tariff concerns and non-tariff issues such as labour and compliance.
In the furniture sector, he said two main issues are being addressed. The first is transhipment, where allegations have emerged that furniture made in China is being assembled in Malaysia and falsely labelled as ‘Made in Malaysia’.
“To address this, the ministry has now taken over the issuance of certificates of origin. New guidelines are in place to ensure compliance, and this move is expected to enhance the competitiveness of our local furniture exporters,” he said.
The second issue relates to tariffs. While Malaysia’s main competitors—Vietnam and China—face similar tariff rates in certain export markets, Malaysian furniture exporters now see more certainty in their trade outlook.
“When we engaged with furniture industry players, they expressed that they are less worried about tariffs now. Their concerns are more about skilled labour, foreign worker policies, and other operational challenges. This is where the government’s support is crucial,” Tengku Zafrul added.
As for the rubber glove sector, he noted that the industry has faced pressure even before tariff measures were implemented.
“This industry has long faced stiff competition from China, Thailand, and Vietnam. So while tariffs do have an impact, the bigger issues are productivity and competitiveness,” he said.
Tengku Zafrul said he has met with industry players to understand their concerns and reiterated the ministry’s commitment to supporting Malaysian exporters through targeted strategies and engagement with international partners.
