Malaysia Negotiating Terms of US Tariff MoU to Reduce Economic Impact: Foreign Minister

KUALA LUMPUR, Feb. 10: Malaysia is currently negotiating the terms of a memorandum of understanding (MOU) related to United States tariffs to ensure the agreement is harmonized before it is ratified, Foreign Minister Datuk Seri Mohamad Hasan said on Tuesday.

He said the negotiations are being led by the Ministry of Investment, Trade, and Industry (MITI), adding that although the MoU has been signed, specific terms and conditions have yet to be finalized.

“We have signed the MoU, but the specific terms are still under negotiation and have not been ratified. Once the terms are harmonized, only then will we ratify the agreement between the two countries,” he said during the ministers’ question time session in the Dewan Rakyat.

Mohamad was responding to a question from Lim Guan Eng (PH–Bagan) regarding steps taken by Malaysia and India in response to US tariff measures. He said Malaysia would conduct its own negotiations with Washington, as there are specific issues that need to be examined to minimize economic risks.

On critical minerals, Mohamad said he discussed the matter with US officials during his recent visit to Washington, noting that the United States has identified more than 60 types of strategic minerals essential for future technologies.

“The US wants to form a bloc to control critical minerals because it is lagging behind technologically advanced countries. They plan to build stockpiles of these minerals and have proposed this to Malaysia,” he said.

He added that Malaysia would carefully study the proposal internally, as legislation on minerals falls under state jurisdiction. The federal government would need to harmonize regulations before introducing any federal laws, given that states have authority over mineral resources.

Mohamad also reiterated that Malaysia will no longer allow the export of raw minerals, insisting that processing must be carried out domestically to add value.

“Anyone is welcome to invest in Malaysia, subject to state approval, because minerals belong to the states. We want these resources processed locally to achieve higher value,” he said.