KOTA KINABALU: The Malaysia–US Agreement on Reciprocal Trade (ART 2025) does not sideline Sabah and Sarawak and instead opens export opportunities for producers there, says Datuk Chan Foong Hin.
The Deputy Plantations and Commodities Minister said claims that the trade pact “only favours Peninsular Malaysia” do not reflect the actual benefits of the agreement.
“The trade deal is not confined to any region, nor does it exclude Sabah or Sarawak in any manner. There is no justification to suggest that this agreement undermines Sabah’s interests,” he said in a statement Thursday (Oct 30).
He noted that the zero-tariff list covering 1,711 Malaysian products includes key commodities from Sabah and Sarawak such as palm oil, rubber, timber and cocoa.
Sabah, which remains the nation’s largest crude palm oil producer with 4.27 million tonnes in 2024, will benefit from improved market access for certified sustainable palm oil and cocoa-based exports to the United States.
“These are sectors driven by smallholders and cooperatives in Sabah and Sarawak — groups the Madani government actively supports through initiatives such as TSPKS 2.0, MSPO certification and cocoa programmes,” he said.
Chan also dismissed claims that LNG imports from the United States would affect operations in Kimanis or Bintulu, adding that Petronas has long diversified supply sources as part of its balancing strategy.
“The LNG facilities in Kimanis and Bintulu remain core national assets contributing billions in revenue to both Federal and State Governments,” he said.
He said Sabah has been active in trade diplomacy and international missions, including markets in China and Asean, to promote products from the Bornean states.
“Instead of cultivating hostility or deliberately criticising the trade deal, we should focus on doing the real work — joining hands to advance Sabah’s industrial development,” he said.
“The real question is not whether Sabah is excluded, but how we can continue empowering the state to become a leading export hub and value-added production base.”
ART 2025, signed last week (Oct 26), introduces zero-tariff access for 1,711 Malaysian products to the US. Putrajaya says it aims to widen export opportunities and strengthen supply chains without new government spending.
Some Sabah leaders had questioned the deal’s impact on Sabah and Sarawak. Former chief minister Datuk Yong Teck Lee noted Sabah’s direct trade with the US is small and many products were already tariff-exempt, while Warisan information chief Datuk Mohd Azis Jamman argued it only favours Peninsular industries.
