Malaysia Reviewing Reciprocal Trade Agreement With US Through Six-Month Cost-Benefit Analysis

KUALA LUMPUR, Jan 27: The Malaysian government is conducting a comprehensive cost-benefit analysis on its proposed Agreement on Reciprocal Trade (ART) with the United States to ensure national economic interests are fully protected, Investment, Trade, and Industry Minister Datuk Seri Johari Abdul Ghani said.

Johari told Parliament that the assessment, which is expected to take at least six months, aims to evaluate all potential economic impacts before any decision is made on ratification.

“The review will focus in particular on Malaysia’s exports to the United States, currently valued at RM233.1 billion, as well as the country’s trade surplus of RM98.7 billion,” he said during Ministry Question Time in the Dewan Rakyat on Tuesday.

The analysis is being jointly undertaken by the Ministry of Investment, Trade and Industry (MITI), the Malaysia External Trade Development Corporation (Matrade), and the Malaysian Investment Development Authority (MIDA).

Johari said the government is carefully examining the substance of the ART to minimize potential risks and ensure that the agreement does not adversely affect Malaysia’s trade position or broader economic stability.

“We are reviewing the agreement in detail to safeguard national economic interests and reduce exposure to trade-related risks,” he added.

He also clarified that Malaysia has not yet received any official notification from the United States regarding a timeline for the ratification of the agreement.

Johari was responding to a question from Datuk Dr. Radzi Jidin (PN–Putrajaya), who sought clarification on whether a cost-benefit analysis had been conducted prior to ratification and which agencies were involved in the evaluation process.