Malaysia maintains trade growth target despite US tariff uncertainty - Zafrul - video Dailymotion

The Star

Malaysia remains on track to achieve its 4% to 5% trade growth target for 2025 despite ongoing uncertainty over US tariff negotiations, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.  Speaking at a press conference on Tuesday (July 15), Tengku Zafrul revealed that one of the major challenges in the negotiations involves US requests for Malaysia to liberalise foreign equity restrictions in certain strategic sectors.  WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

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00:00How do you see Malaysia's trade performance for the rest of the year or in the third quarter?

00:16And how likely is there to be more front-loading before the August 1st deadline for U.S. terrors?

00:23Well, we're still on track to reach our target growth.

00:27So, in fact, if we look at our target growth, around 4% to 5%, that will still be achievable.

00:36But the second half of the year, which is already starting now, we are seeing global trade moderating in terms of growth.

00:47Yes, you're right, there's front-loading in the last five months especially.

00:52But at the same time, given the August deadline, we expect this to somewhat continue.

01:01But I think a lot of it has been done.

01:03We are going to issue on Friday the latest trade numbers for June.

01:10So, you will see those numbers.

01:14But what's important, as you mentioned, as I mentioned just now, Malaysia trade performance for this year, still the expectation, as you know,

01:24for 2025, the projection by Benegara in terms of trade is expected to be around 5% and MOF about 3.9%.

01:35So, we continue to focus on achieving that target.

01:40So, we had a good discussion, myself and our team together with USTR, Jameson Greer, and the team from the trade department.

02:01What's happening is that we are now looking at various items on tariff and non-tariff that we can agree on.

02:14I've set a deadline for the team, of course, and of course, Trump has deadline the 1st of August.

02:19We try and conclude even before that if we can.

02:24But, again, there are issues that we still need time because it involves many agencies and ministries.

02:32So, we are doing the calculations as well.

02:34What is the impact to our export if we agree to certain terms?

02:40And what is the impact to our revenue as well, the government revenue, etc.?

02:44So, that's ongoing.

02:47We will continue to have another discussion this week.

02:51And we will continue to accelerate that discussion until end of the month.

02:57As you know, so far, Malaysia and many other countries are having difficulties in terms of meeting that deadline set earlier.

03:08But we try and meet this new deadline, 1st of August, but not at the expense of agreeing to every request.

03:17Because some of the requests we feel mean not be fair to Malaysia.

03:22What are the terms that are still difficult, like unfair, as you said?

03:27Are there any additional terms for the US then?

03:29Well, the terms, negotiations are, you know, there are no new, new terms.

03:34But, of course, there are concerns on non-tariff issues.

03:40We have addressed one of that through the Strategic Trade Act where we have now put one item in the list.

03:47But on issues where we cannot move, which is a red line, again, you know, I've signed the NDA,

03:55but I can share with you some of the issues are related to equity interests in certain sectors.

04:03As you know, Malaysia has equity restrictions for foreign shareholders for certain sectors.

04:13So there is a request for us to relook or liberalise those sectors.

04:19Many countries also have been asked to do the same.

04:21So for us, we need to consult those industries, whether we are ready to liberalise those equity maximum shareholding restrictions,

04:31especially when it comes to foreign equity restrictions that we have for many sectors.

04:38Some sectors are fully liberalised.

04:40I think KSU also knows manufacturing sector, nearly every sector is already liberalised.

04:46But some strategy sectors, they still have equity limits for foreign shareholders.

04:53Which sectors are there?

04:55I think you know.

04:56The one sector?

04:57All.

04:57We want to liberalise all sectors.

04:59All.

04:59Yeah.

05:02So if you are in, you know, a country, a sovereign country, and for strategic interest,

05:07are you willing to do that?

05:08Right?

05:09So we need to study that carefully.

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Malaysia maintains trade growth target despite US tariff uncertainty - Zafrul

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