KUALA LUMPUR: Malaysia and the United States (US) today signed a wide-ranging reciprocal trade deal.
The deal is aimed at strengthening bilateral economic ties, expanding market access and bolstering supply chain resilience.
In a joint statement published on the White House website, they said the agreement builds on the existing US–Malaysia Trade and Investment Framework Agreement signed in 2004 and represents a major step forward in bilateral relations.
Under the deal, Malaysia will grant significant preferential market access for American exports, covering industrial goods such as chemicals, machinery, electrical equipment, metals and passenger vehicles, as well as agricultural products including dairy, poultry, beverages, rice and fuel ethanol.
In return, the US will maintain a 19 per cent tariff on Malaysian goods, as set under Executive Order 14257 and will apply zero tariffs to selected Malaysian products listed under a separate category for aligned partners.
Malaysia also committed to addressing non-tariff barriers that have affected US exports in several industries.
This includes accepting American-made vehicles that meet US safety and emissions standards, easing import licences for steel and alloy products, and simplifying halal requirements for items such as cosmetics, pharmaceuticals and medical devices.
The White House said Malaysia will also streamline approvals for American food and agricultural products by recognising certificates issued by US regulators and adopting global best practices for animal disease control.
Malaysia is also committed to enforcing its environmental laws, addressing illegal logging and wildlife trade, and strengthening efforts to combat forced and child labour in high-risk sectors.
The agreement also extends to digital trade and technology. Malaysia agreed not to impose digital services taxes that discriminate against US companies, to allow the secure transfer of data across borders, and to support a global moratorium on customs duties for electronic transmissions.
In addition, both governments finalised commitments to strengthen intellectual property protection, improve customs and trade procedures, and promote fair competition among state-owned enterprises.
To improve supply chain resilience, Malaysia has agreed not to ban or restrict exports of critical minerals or rare earth elements to the US.
It will also work with US firms to develop these industries and ensure that no restrictions are imposed on the sale of rare earth magnets to American companies.
The statement also highlighted major commercial deals between Malaysian and US companies.
These include the procurement of 30 aircraft with an option for 30 more, the purchase of semiconductors, aerospace components and data centre equipment worth about US$150 billion, as well as the supply of up to five million tonnes of liquefied natural gas per year valued at US$3.4 billion.
Additional trade covers coal, telecommunications products and services valued at US$204 million, along with capital fund investments in the US totalling US$70 billion.
To ensure a fair and stable financial relationship, the US Department of the Treasury and Bank Negara Malaysia are finalising a mutual understanding on currency policy.
"In the coming weeks, the United States and Malaysia will undertake domestic formalities in advance of the Agreement entering into force," the statement said.
Source: https://www.nst.com.my/business/economy/2025/10/1302367/us-malaysia-seal-unprecedented-17-point-trade-pact-%E2%80%93-white-house