KUALA LUMPUR, Aug 1 — Minister of Investment, Trade and Industry (MITI) Datuk Seri Tengku Zafrul Abdul Aziz has denied claims that Malaysia has compromised its halal certification standards as part of ongoing trade talks with the United States.
Addressing allegations that Malaysia would lower its halal standards as a concession to the US, he also dismissed claims of exclusive deals with the Americans for rare earth minerals.
“There is absolutely no compromise on halal standards.
“What we have agreed to is the facilitation of the import process for halal-certified products into Malaysia, not a lowering of our halal standards,” he told reporters today during a briefing on US tariff rates.
Malaysia’s halal import restrictions and its requirements for Bumiputera equity in foreign-owned companies were flagged by the US as key trade barriers. These were among the reasons cited for the 24 per cent reciprocal tariff on Malaysian exports.
Tengku Zafrul said that while bureaucratic processes related to halal imports may be streamlined to support trade efficiency, the religious, legal and quality requirements for certification will remain unchanged.
Meanwhile, he said Malaysia will no longer allow the export of raw rare earth minerals, in a move to promote local downstream development.
“We are taking a firm stance on this, and the Americans never requested exclusivity. All rare earth elements must be processed in Malaysia. The value should stay here, not be extracted and shipped out.
“This is part of our broader strategy to strengthen critical sectors and ensure long-term national interest is protected. The decision also ties in with environmental and sustainability considerations. We must manage extraction responsibly,” he added.
Tengku Zafrul said Malaysia remains open to foreign investment, but it must involve local processing, job creation, and technology transfer.
He said the decision aligns with the government’s broader industrial policy to build domestic supply chains and technological capabilities.
Tariffs imposed by US president Donald Trump on Malaysian exports will take effect from August 8, at a rate of 19 per cent. Fewer than 7,000 industries are expected to be affected.
