The US has requested that Malaysia lift foreign equity restrictions in sectors such as banking and energy as part of its tariff negotiations, investment, trade and industry minister Tengku Zafrul Aziz said today.
However, he said that several ministries and agencies would have to be consulted before reaching a deal.
Tengku Zafrul also said that the government would not sacrifice Malaysia’s sovereignty or sideline any of its existing trading partners to close a deal.
“For context, the average duration of negotiations is usually 18 months, with our record being 11 months in our economic partnership agreement with the UAE.
“So, we need to be realistic about a trade deal that can be accomplished within 90 days, and, of course, we have until Aug 1 to conclude this,” he told reporters after attending the International Healthcare Week opening ceremony today.
Tengku Zafrul told the media yesterday that Malaysia would look into a US request to relax the limits on foreign ownership of companies in some sectors.
Malaysia currently imposes foreign equity caps in strategic sectors, including financial services and telecommunications. Other sticking points in the negotiations include non-tariff barriers related to halal certification and government procurement rules.
Earlier this month, the Donald Trump administration set a 25% import tariff on all Malaysian goods, saying the tariff would be imposed if a trade deal is not reached by Aug 1.
