Investment, trade and industry minister Tengku Zafrul Aziz said Malaysia would have been subjected to higher tariffs if it had not signed a trade agreement with the US on Sunday.
He said the Malaysia-US Reciprocal Trade Agreement had resulted in tariff reductions from 25% to 19%, with 1,711 tariff lines worth RM22 billion being removed.
“If this deal had not been inked immediately, Malaysia risked having its tariffs raised to 24%, 30%, 40%, 50% or even 100%. This would have adversely affected our competitiveness, investments and jobs,” he said in a ministerial statement at the Dewan Rakyat.
“This would have hurt Malaysia’s export competitiveness. Who would’ve borne the cost? Our companies. Who would lose their jobs and income? Malaysians.”
He said such uncertainty would also have caused foreign investors to lose confidence in the country.
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