SHAH ALAM: Former economy minister Datuk Seri Rafizi Ramli has raised concerns over the recently signed US-Malaysia reciprocal trade agreement, saying the inclusion of an exit clause offers little real protection to Malaysia.
He said while Prime Minister Datuk Seri Anwar Ibrahim had noted that the agreement included an exit clause, “every agreement has one,” and that terminating such a deal would effectively amount to a breakdown in commercial and diplomatic relations.
“Of course you can terminate it, but that means the relationship has already broken down.
“For all intents and purposes, no country will do that.
“So it’s almost like a blank cheque for the US. Once signed, they can press for whatever terms they wish,” he told reporters when met here on Saturday (Nov 1).
Rafizi described Malaysia’s commitments under the deal as “very onerous” both financially and in terms of compliance.
He said he initially trusted the negotiation process but became concerned after reviewing the details.
“When I read and compared the clauses, I realised how strong our commitments are and how little flexibility we have.
“That’s why many of the comments and criticisms now are valid,” he said.
The Pandan MP also compared Malaysia’s deal to Cambodia’s, saying the latter contained stronger safeguards.
“Cambodia made it very clear on complementary action, that nothing in the agreement can compel them to act against their national sovereignty. We don’t have that,” he said.
He warned that Malaysia could face pressure to align with US policies, which could require it to act against other nations targeted by Washington.
“If the US takes action against a country, Malaysia might be compelled to do the same. That’s dangerous,” he said.
Rafizi added that one clause allegedly obliges Malaysia to establish a mechanism with the US to screen foreign investments, ensuring they do not contradict US economic or security interests.
“Does that mean when a company like Huawei wants to invest, and the US says no, we also have to say no? That’s what worries me.”
He criticised the government’s response to questions raised in Parliament, saying the explanations provided by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz were overly simplistic.
“The answers so far have been dismissive – saying ‘don’t blame civil servants’ or that we were pressed for time.
“That’s not good enough when our commitments are far heavier than others for the same rate of return,” he said.
Rafizi said only Malaysia and Cambodia had signed the reciprocal tariff deal so far, while Thailand, Vietnam, Indonesia and Singapore were still at the framework stage.
“Some will argue it’s better to be first, but if being first means agreeing to questionable terms, then we’ve tried too hard to please,” he said.
He urged the government to reflect on the agreement’s long-term implications and the validity of the concerns being raised.
“It may be water under the bridge now, but the government needs to reflect because these are not political attacks – they are real, structural issues that could affect Malaysia’s sovereignty in the future,” Rafizi said.
