27/10/2025

MONDAY | OCT 27, 2025

FOLLOW

ON INSTAGRAM

2

Malaysian Paper

@thesundaily @t

US agrees to 19% reciprocal tariff on Malaysian goods

‘Unity, cooperation vital to steer destiny of region’ KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim has urged Asean to prove that unity and reason matter in an era of global upheaval, declaring that the region’s destiny “will not be written by circumstance, but by choice”. Opening the 47th Asean Summit in Kuala Lumpur yesterday, he called on member nations to show courage and conviction in defending cooperation amid what he described as “rising contestation and growing uncertainty” worldwide. “Leadership is never a matter of routine, it’s a matter of choice – to define priorities, renew Asean’s sense of purpose and chart a course worthy of our peoples’ hopes,” he said in his keynote address to regional leaders and guests. Anwar said 2025 “asks more of us”, adding that with old orders fading and new ones yet to emerge, Asean’s collective resolve is more vital than ever. A highlight of the summit was the signing of a peace agreement between Cambodia and Thailand, which Anwar hailed as proof that reconciliation “is not a concession but an act of courage, and peace, once chosen, can reshape the future of nations”. He said Malaysia, as Asean chair, has sought to realign the bloc’s priorities to keep it “resilient, relevant and responsive to the times”. Reaffirming the region’s commitment to resolving the Myanmar crisis, Anwar said Asean remains guided by the Five-Point Consensus, adding that lasting peace “cannot be imposed” but must be “Myanmar-owned and Myanmar led”. “The relative peace and prosperity that Asean has enjoyed for nearly six decades are not self-sustaining. They must be renewed through cooperation and strengthened by shared purpose.” Among the summit’s key milestones are the upgraded Asean Trade in Goods Agreement, which aims to create a more seamless regional market, and the new Asean Power Grid Financing Facility to accelerate cleaner and more secure energy access. Anwar also outlined new regional initiatives, including the Asean Blue Economy Framework, Regional Electric Vehicle Ecosystem and the fast tracked Asean Digital Economic Framework Agreement targeted for completion by 2026. He said to ensure responsible innovation, Asean would also launch the Asean AI Safety Network, or AI SAFE, to embed ethics, safety and good governance in artificial intelligence use. “Rising protectionism and shifting supply chains remind us that resilience depends on adaptability. “Asean endures. Our task is to keep faith in cooperation and to prove that in this divided age, understanding and dialogue can still prevail.” – By KIRTINEE RAMESH and HARITH KAMAL Rubio hails nation’s leadership of grouping KUALA LUMPUR: US Secretary of State Marco Rubio hailed Malaysia for doing “a good job” in chairing Asean this year. He reiterated that Asean is the pre-eminent forum through which the US seeks to engage with the region. “I think Malaysia has done a good job of chairing it this year. “We were able to work with that chairmanship to de-escalate and ultimately end the Cambodia-Thailand conflict,” he told reporters travelling on his plane en route to Kuala Lumpur. His statement was shared on the US Department of State website. The Philippines will be the Asean chair next year. – Bernama

o With duties on selected products reduced to zero, agreement grants exporters from both countries unprecedented access to each other’s markets

also pledged to strengthen labour rights enforcement, including measures against forced and child labour in high-risk industries. Malaysia has also agreed to promote fair and open digital trade, guarantee cross-border data flows, refrain from imposing discriminatory digital service taxes and remove restrictions on US programming. Both countries reaffirmed

Ű BY KIRTINEE RAMESH newsdesk@thesundaily.com

The statement said Malaysia would offer preferential market access for US industrial goods such as chemicals, machinery, metals and passenger vehicles as well as agricultural exports including dairy, horticultural produce, poultry, rice and ethanol fuel. Malaysia has also agreed to address non-tariff barriers by streamlining import licensing for steel and alloy products, simplifying halal certification for cosmetics, pharmaceuticals and medical devices, and recognising US vehicle safety and emissions standards. For agricultural imports, Malaysia will adopt US certification for food and livestock, facilitate entry through simplified registration and recognise US regionalisation standards for animal disease control. Environmental and labour protections form another key pillar of the deal. “Malaysia has committed to enhancing environmental enforcement, combating illegal logging, unregulated fishing and wildlife trafficking.” The statement added that the country has

KUALA LUMPUR: The United States (US) has agreed to maintain a 19% reciprocal tariff on Malaysian-origin goods while reducing duties on selected products to zero, under a landmark trade pact set to deepen economic ties between the two nations. The announcement, made in a joint statement by the White House and Putrajaya, marks a major milestone in bilateral cooperation, and is expected to boost trade, investment and market access across key sectors. “This agreement will grant exporters from both countries unprecedented access to each other’s markets and enhance investment opportunities across key sectors.” Formalised under a new Agreement on Reciprocal Trade, the accord builds on the US-Malaysia Trade and Investment Framework Agreement signed in 2004 outlining comprehensive commitments covering industrial goods, agriculture, digital trade, labour and environmental protection. KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim and United States President Donald Trump have pledged to deepen economic, security and diplomatic cooperation between Washington and Southeast Asia, describing the partnership as the dawn of a new “golden age” for the region. Speaking at the Asean-US Summit yesterday, Anwar said the partnership has immense potential to drive shared prosperity and stability across both sides of the Pacific. “Economics in the US and Southeast Asia has the potential to create a golden age for all our nations. “Two-way trade reached a record of US$453 billion (RM1.912 trillion) last year, supporting jobs and businesses across both sides of the Pacific. And today, we will make the promise of making our relationship even greater.” Anwar said Asean and the US had agreed to adopt a Joint Vision Statement to promote a “stronger, safer and more prosperous” future for both sides. He said the document represents a collective commitment to turning cooperation into tangible outcomes that deliver real benefits for the region. Anwar also lauded the signing of the Kuala Lumpur Peace Accord, a historic agreement between Cambodia and Thailand to end decades of hostility. He commended Washington’s role in mediating the accord and praised the governments of Cambodia and Thailand for their “strong political will and leadership”. On the Middle East, Anwar welcomed Trump’s proposal for a comprehensive plan to end the Gaza conflict, calling it “a glimmer of hope that even in the most intractable conflicts, diplomacy and determination can prevail”. Trump thanked Anwar for hosting the Ű BY KIRTINEE RAMESH AND HARITH KAMAL newsdesk@thesundaily.com

commitments to safeguarding intellectual property, improving regulatory transparency and enhancing cooperation in supply chain resilience, investment security and export controls. Malaysia pledged not to impose export bans or quotas on critical minerals or rare earth elements while facilitating US investments in these sectors through long-term operating licences. The agreement coincides with several major commercial deals between US and Malaysian firms, including aircraft procurement, semiconductor and aerospace component purchases worth US$150 billion (RM633 billion) as well as long-term energy and telecommunications contracts valued in the billions.

Additionally, the US Department of the Treasury and Bank Negara Malaysia are finalising a mutual understanding on currency policy to “support a stable and fair economic partnership”. Anwar, Trump pledge to deepen America-Asean ties

Anwar and Trump watch as Thailand’s Prime Minister Anutin Charnvirakul and Cambodia’s Prime Minister Hun Manet hold up a document after the ceremonial signing of the peace agreement. – REUTERSPIC

He also highlighted what he called a “golden age” for the United States, citing record investment levels and ongoing trade negotiations with several Indo-Pacific partners, including Japan, South Korea and Cambodia. “My message to the nations of Southeast Asia is that the US is with you 100%. Together we’ll create incredible prosperity for the nations on both sides of the Pacific Ocean.” Trump reaffirmed America’s commitment to a free, open and thriving Indo-Pacific, adding that the bonds between the US and the region “will endure for generations to come”.

summit, describing him as a “spectacular leader” and hailing the day’s events as a milestone for Malaysia and the wider region. “Today, the prime minister and I signed a major trade deal between the US and Malaysia. We also took part in the signing of a historic peace agreement ending the hostilities between Cambodia and Thailand. We’re calling it the Kuala Lumpur Peace Accord.” Trump said the peace deal was one of eight conflicts resolved under his presidency, and described the Gaza agreement as “an everlasting peace” involving 59 countries.