KUALA LUMPUR: The agreement on reciprocal trade (ART) with the United States is a pivotal step in securing Malaysia’s position in the global marketplace, according to Malaysia External Trade Development Corp (Matrade).
The national trade promotional agency said by establishing fair and stable access to the US market, the ART provides Malaysian exporters with a predictable trading environment.
It also protects key industries and reinforces the country’s competitiveness on the world stage.
“Matrade’s US offices located in Los Angeles, Miami and New York are well-positioned to strengthen Malaysia’s engagement in the market.
“The agency is looking at intensifying export promotions through strategic partnerships with industry ssociations and big corporations such as Amazon and Deloitte as well as through trade and investment missions to the country,” it added.
Matrade said the agreement shields Malaysian exports from steep US tariffs, which could have reached 24 per cent to 50 per cent on critical products including semiconductors and pharmaceuticals valued at RM56.2 billion in 2024.
Under the agreement, 1,711 Malaysian export lines – including palm oil, rubber, cocoa, aircraft components, and pharmaceuticals – are exempted from the 19 per cent reciprocal tariff.
This supports US$5.2 billion in exports and maintaining Malaysia’s strong foothold in one of its largest export markets.
The ART also balances tariff reductions on US goods, covering 98.4 per cent of imports, while ensuring that local industries and SMEs remain competitive.
Reductions are phased in over up to nine years, with moderate duties retained on products that previously faced high tariffs, and US goods generally remaining more expensive due to higher production and shipping costs.
For Malaysia, Matrade said the agreement strengthens regulatory certainty, supply-chain resilience and trade facilitation, encouraging industries to improve efficiency, innovation and product quality.
By providing a stable and transparent framework, it safeguards millions of jobs, supports thousands of SMEs and protects key industrial sectors such as electronics, aerospace, rubber, cocoa and pharmaceuticals.
The agency said the agreement reinforces the country’s reputation as a reliable production and sourcing hub for US companies, giving Malaysian firms a distinct competitive edge within Asean.
It also acts as a catalyst for export upgrading and market diversification, encouraging local industries to elevate standards, invest in value-added processes and expand branded and service-oriented exports.
“Collectively, these developments support Malaysia’s long-term vision to move up the global value chain and enhance its role as a trusted trading partner to the US,” Matrade added.
© New Straits Times Press (M) Bhd
