10/07/2025

THURSDAY | JULY 10, 2025

3 Putrajaya to press on with US tariff negotiations

Sabah absorbs more carbon than it emits

PETALING JAYA: A recent letter purportedly from US President Donald Trump on the trade tariff on Malaysian goods has raised eyebrows, not only due to its potential economic ramifications but also because of its tone and presentation. Universiti Teknologi Mara (UiTM) faculty of communication and media studies professor Datuk Prof Dr Azizul Halim Yahya said the language and structure of the letter appeared unconventional for official diplomatic communication. “When I first read it, I wasn’t sure it was genuine. For a document allegedly issued by the White House – the seat of the world’s most powerful KOTA KINABALU: Sabah, the Land Below the Wind, contributes 36% of the entire carbon absorption in Malaysia and absorbs more carbon than its emissions, the Sabah state legislative assembly was told yesterday. Assistant Minister to Sabah Chief Minister Datuk Abidin Madingkir said this was seen from the first ever greenhouse gas (GHG) inventory conducted by Sabah last year which found that the state was an area with a net GHG absorption. “Sabah absorbs more carbon than it emits, which is a huge strategic advantage in the global economy that requires carbon reduction.” “The state is in a small group in the world with this status,” he said when tabling the Sabah Climate Change and Carbon Governance Enactment 2025 on Tuesday. He said Sabah had exceeded the global target set in the Paris Accord and has done its responsibility in supporting Malaysia’s target of achieving zero emissions by 2050. Being a state with a net GHG absorption rate was no small thing, he said, as it was a hard to achieve status and of very high value. “Our goal is to ensure the benefit from this unique status is felt directly by Sabahans, while contributing meaningfully to global efforts in tackling climate change,” he said, adding that the new enactment was vital to allow the state to manage climate change and carbon governance issues. The bill, which was passed by majority voice after being debated by five assemblymen, determined that all carbon-related rights belonged to the state government, making Sabah Climate Action Council the state-level climate change policy advisory a one stop agency for carbon-related matters in the state. The state legislative assembly also passed the State Sale Tax (Amendment) Bill 2025, which according to Sabah Finance Minister Datuk Seri Masidi Manjun was an important and strategic step to strengthen the Sabah’s tax system. “The amendment isn’t just technical, but is a holistic approach to ensure that the sales tax laws in the state continue to be responsive, just and efficient in a complex and dynamic economic environment.” Sabah Speaker Datuk Seri Kadzim M Yahya adjourned the sitting to a date to be determined later. – Bernama Ű BY KIRTINEE RAMESH newsdesk@thesundaily.com

Ű BY HARITH KAMAL newsdesk@thesundaily . com

o High-level dialogue with American officials ongoing to safeguard Malaysian trade and economic interests ahead of 25% levy coming into effect on Aug 1, says Tengku Zafrul

whether it would be worth opening certain markets if it meant preserving critical national policies.” He said Malaysia’s offers had addressed nearly all of US requests on market access for both industrial and agricultural products. They include sectors such as machinery and equipment, chemicals, medical devices, electronics and electrical (E&E), aluminium, plastics, automotive, fruits, grains, dairy, meat and alcohol. The talks also involved cross-ministerial coordination, including Health, Agriculture and Communications, to align positions on food safety, labour standards, digital trade and environmental protection. On digital trade, Tengku Zafrul said Malaysia remains committed to enabling secure cross-border data flows while safeguarding its regulatory sovereignty. “Our approach is based on non-discrimination, while defending our sovereign right to regulate in the interest of the public and for national security,” he said, adding that this aligns with World Trade Organisation principles and Malaysia’s existing free trade agreements. Tengku Zafrul also confirmed that Malaysia Airlines’ pledge to purchase 30 Boeing aircraft, with the option of 30 more, as well as semiconductor and technology investments, form part of a broader trade-balancing strategy with the US. “We will continue negotiating, but we must also be ready to say no when something crosses the line,” he said adding that Malaysia’s priorities have remain unchanged. “Our goal is to secure our export market access, modernise our economy and protect Malaysian livelihoods in the long term.” On Monday, US President Donald Trump announced the 25% tariff in a letter to Prime Minister Datuk Seri Anwar Ibrahim, posted on his Truth Social platform. economic stability and national security to education, while maintaining a commitment to diplomacy and constructive dialogue.” UiTM head of Communication and Knowledge Advancement at InQKA (Institute of Quality and Knowledge Advancement) Associate Prof Dr Wan Hartini Wan Zainodin shared similar views. “In diplomacy, tone matters, and this came off as cold and one-sided.” “It feels like Malaysia is being talked down to, rather than treated as an equal partner. That kind of tone erodes trust and makes collaboration difficult.” She emphasised the need for mutual respect in diplomatic exchanges as it is essential in navigating today’s global challenges.

KUALA Malaysia remains hopeful of reaching a fair resolution with the United States before the planned 25% import tariff takes effect on Aug 1, with several engagements held over the past 90 days to address the issue. Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said discussions with US officials are ongoing, with Malaysia continuing high-level dialogue to safeguard its trade and economic interests. “We remain optimistic and will continue engaging the US to ensure our concerns are heard and addressed. “It’s important to note that the tariff has not yet taken effect, and we are using this window to find a balanced resolution,” he told a press conference yesterday. Since the US first announced the tariff, Malaysia has conducted over 25 engagements with its American counterparts over the past LUMPUR:

interest and sovereignty. There were specific red lines that we would not compromise on.” The “red lines” include Malaysia’s right to impose a digital tax, its procurement policies and national standards involving public health, agriculture and halal certification. “Negotiations are not just about economic give-and-take. “Some issues touch on sovereignty and public interest. We cannot compromise on those.” Malaysia’s approach, Tengku Zafrul said, was guided by pragmatism and long-term national priorities. “Negotiating is about balance. For every commitment, we asked

three months. The latest rate, revised from 24% in April to 25%, is set to be imposed on all Malaysian imports starting next month. Tengku Zafrul reaffirmed Malaysia’s commitment to constructive dialogue, but stressed that national interests would not take a back seat. “Malaysia takes note of the unilateral decision and will continue our constructive dialogue on bilateral trade with the US. “Over the 90-day pause, MITI and I engaged with US counterparts multiple times. “We negotiated in good faith with a give-and-take approach but stood firm on matters of national

Tengku Zafrul said Malaysia’s approach to the tariff issue is guided by pragmatism and long-term national priorities. – AMIRUL SYAFIQ/THESUN

Analysts say letter from Trump breaches diplomatic norms

He underscored the importance of careful communication in international relations. “Every word in diplomatic correspondence carries weight. Communication at this level should build relationships, not strain them. “When diplomacy feels more like pressure than partnership, it can trigger nationalist sentiments, especially among those who value national pride and sovereignty.” Azizul said the episode is a timely reminder for Malaysia to focus on strengthening economic fundamentals. “It is an opportunity to further diversify our economy, invest in innovation and reduce overreliance on any single market. “We must continue building resilience across key sectors, from

administration’s intent to reduce its trade deficit, Azizul said the approach – through unilateral tariff decisions – may risk straining rather than strengthening trade ties. “Tariffs imposed without consultation create pressure instead of fostering partnership.” He also pointed to the “national security” term used in the letter, noting it could be misinterpreted. “Framing trade matters as a national security issue risks portraying Malaysia as a threat, which is inaccurate and damaging to bilateral relations.” Azizul said the letter may reflect a broader shift in the US tone toward Asean countries with trade surpluses. “It appears to suggest a more unilateral, pressure-based strategy.”

government – the tone felt unusually forceful and unpolished.” While the letter opens with standard diplomatic courtesies, Azizul noted it quickly shifts to a more assertive, almost commanding tone. “It reads more like a directive.” He raised concerns over the suggestion that Malaysia set up manufacturing operations in the US in exchange for potential tariff relief – a proposal he described as neither practical nor easy to implement. “For a developing nation such as Malaysia, foreign direct investment is a key pillar of growth. Relocating production to a higher-cost economy especially when the goods are intended for American consumers, simply isn’t viable.” While recognising the US