KUALA LUMPUR: Malaysia has committed to US$242.56 billion (RM1.14 trillion) in purchases and investments in the United States as part of efforts to narrow the trade imbalance between the two countries.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the commercial considerations helped secure a lower 19 per cent US tariff, down from 25 per cent.
“To address the bilateral trade deficit that favours Malaysia, the US encourages Malaysia to undertake procurement from and investment in the US under Section 6 of this agreement,” he told Parliament today.
The deals made between Malaysia and the US include the procurement of Boeing aircraft by Malaysia Aviation Group (MAG) worth US$19 billion as part of a long-term, phased plan to renew and expand its fleet capacity.
Multinational companies are set to procure goods in the semiconductor, aerospace, and data centre sectors worth a total of US$150 billion over five years.
Petronas has committed to the annual procurement of liquefied natural gas valued at US$3.4 billion.
Telekom Malaysia Bhd will procure telecommunications products amounting to US$119 million, while Tenaga Nasional Bhd will buy coal valued at US$42.6 million annually.
Furthermore, Malaysia will undertake cross-border investments in the United States amounting to US$70 billion over 10 years.
© New Straits Times Press (M) Bhd
