The Malaysian Ministry of Investment, Trade and Industry announced on Friday that it has reached an agreement with the United States to reduce tariff rates on Malaysian exports to 19 percent, as part of Kuala Lumpur's efforts to expand trade partnerships and improve export conditions.

Minister's Statement:
Malaysian Minister of Investment, Trade and Industry Tengku Zafrul Abdul Aziz stated in an official release: "This agreement to reduce tariffs on Malaysian exports from 25 percent to 19 percent represents a significant achievement resulting from Malaysia's comprehensive and systematic negotiation process with the United States."

Negotiation Details:
The minister added: "During negotiations that began on May 6th and concluded yesterday, we defended several red lines and successfully maintained our sovereign right to implement social and economic policies, achieving this tariff reduction without compromising these fundamental rights."

Historical Context:
Abdul Aziz explained this success stems from 60 years of continuous bilateral engagement between the Malaysian and U.S. governments, reflecting deep trade and investment integration. He noted: "The new 19 percent tariff rate aligns closely with duties imposed on several Southeast Asian nations."

Economic Impact Assessment:
The Ministry worked closely with Bank Negara Malaysia (Central Bank) to evaluate the new tariffs' impact on GDP. The Ministry will continue coordinating with relevant agencies to mitigate the tariffs' effect on exports.

Industrial Reform Programs:
The Ministry will continue implementing industrial reforms aligned with national policies including:

• New Industrial Master Plan 2030

• Green Investment Strategy

• National Semiconductor Strategy
  These programs aim to enhance Malaysian companies' productivity through automation and operational efficiency.

Global Economic Challenges:
The minister highlighted increasing uncertainty since March due to:

• Trade policy volatility

• Tariff ambiguities

• Escalating geopolitical tensions
  He emphasized Malaysia's open, trade-dependent economy remains vulnerable to these external factors.

Geopolitical Context:
This agreement comes amid dynamic shifts in U.S.-Asia trade relations, as Washington seeks to strengthen cooperation with Southeast Asian allies against the backdrop of economic tensions with China.