Malaysia–United States Agreement: Cheering in Defeat, Losing the Nation

Ahmad Fadhli Shaari (Foto ABDUL AZIZ YUNOS)
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When we criticized the government’s move to welcome that war criminal to Malaysia, some tried to remind me of my congratulatory message when Trump won the election. In truth, that message must be read together with the next paragraph — my hope that Trump would fulfill his campaign promise to bring peace to Gaza. Do not be a one-eyed devil, siding only with the Zionist regime. Unfortunately, Trump turned out no better than his predecessors — in fact, far more arrogant.

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Yesterday’s agreement was not a victory to celebrate; it was a deal that sold off the village while pretending to cheer. It marks a new form of colonialism with America hiding behind the slogan of “economic cooperation.” The official document released by the White House — available on their website — clearly shows that the Agreement on Reciprocal Trade is no balanced partnership. It is, instead, a handover of Malaysia’s policies, resources, and regulatory power to Washington. Is this a modern-day tribute payment from Malaysia to America?

Under this agreement, Malaysia grants privileged market access to U.S. exports — industrial goods, agricultural produce, chemicals, electrical machinery, vehicles, dairy, poultry, beverages, pork, rice, and ethanol. In return, the U.S. merely promises to maintain a 19% reciprocal tariff, as stated in Executive Order 14257 and Annex III of Executive Order 14346, and may consider zero tariffs for certain products. Malaysia opens its doors wide; America merely makes vague promises at its discretion.

Even more concerning, Malaysia agrees to relax non-tariff barriers for American goods. This includes accepting U.S.-made vehicles according to their own safety and emission standards, simplifying import licenses for steel and pipes, and “streamlining halal requirements” for cosmetics, pharmaceuticals, and medical devices. This weakens the integrity of Malaysia’s globally respected halal certification system.

The agreement also means Malaysia must accept certification from U.S. regulators for food and agricultural products — meaning if a product is approved by an American agency, Malaysia must accept it without full local review. This diminishes the authority of NPRA, MDA, and JAKIM — bodies entrusted to ensure consumer safety and Shariah compliance.

Worse still, Malaysia commits not to ban or restrict exports of rare earths and critical minerals to the U.S., while facilitating American participation in their development — including extended operating licenses and guaranteed access to magnetic materials. In other words, our strategic resources are now bound to serve American industry rather than national interests.

In the digital sector, Malaysia pledges not to impose discriminatory digital service taxes on U.S. tech companies, not to compel social media or cloud platforms to contribute to local funds, and to ensure cross-border data transfer through so-called “trusted borders.” Malaysia also supports the WTO’s permanent moratorium on digital customs duties and removes terrestrial broadcast restrictions on U.S. content. This effectively opens our digital and media space to foreign dominance without any clear safeguards.

Meanwhile, the U.S. only promises to “consider the impact of this agreement on national security” when taking trade actions under Section 232 of its Trade Expansion Act of 1962 — giving Washington full interpretive power. Malaysia gives up control, but receives no security guarantee in return.

The list of commercial transactions proves the imbalance: Malaysia buys 30 aircraft with an option for 30 more, invests USD150 billion in semiconductors and aerospace components, purchases up to 5 million tonnes of LNG annually worth USD3.4 billion, and imports coal and telecom products worth over USD204 million — while investing USD70 billion into the U.S. economy. We act as buyers and investors abroad, while America reaps all the profits.

Even more troubling, the agreement commits Malaysia to strengthen “economic and national security cooperation” with the U.S. — diplomatic language that essentially requires Malaysia to align its economic and security policies with Washington’s geopolitical framework. Should America deem any Malaysian action as threatening its economic security, Malaysia could be forced to yield.

Also included are negotiations between the U.S. Treasury and Bank Negara Malaysia on a currency policy understanding — allowing foreign oversight of Malaysia’s financial policies in the name of “fair economic relations.”

All these facts and figures come directly from the official White House statement. There is no longer any room for denial: the so-called Madani government has signed a one-sided deal that jeopardizes Malaysia’s sovereignty. This agreement positions Malaysia as a subordinate executor of American interests — not an equal partner.

Nevertheless, congratulations to our Prime Minister — honored with a ride in The Beast, the U.S. President’s official vehicle — the same courtesy given to Netanyahu on October 13.

AHMAD FADHLI SHAARI
PAS Chief Information
27 October 2025

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