US Not Forcing Malaysia to Choose Sides, Says Tengku Zafrul
PETALING JAYA: The Trump administration has not forced Malaysia to choose between the US and China in the escalating trade war between the two superpowers, said investment, trade and industry minister Tengku Zafrul Aziz.
No Request to Choose Sides
“At the moment, I don’t believe the US is making it difficult for Malaysia to stay neutral. During our conversations, there has never been a request to choose sides,” he said in an interview with US broadcaster CNBC today.
“If there’s a request, it’s more about technology security, and about ensuring that trade imbalances are addressed. As you know, Malaysia has a trade surplus with the US.”
Bilateral and Multilateral Approach
Tengku Zafrul was asked if Washington was “making it difficult for Malaysia to stay neutral” in the spat between the rivals.
On April 2, US president Donald Trump announced stiff reciprocal tariffs on scores of countries, including Malaysia.
Exploring and Negotiating
“It’s still early days. What we welcome is the reprieve (pause) as it gives us the opportunity to explore and negotiate with the US,” said Tengku Zafrul.
Asean’s Role
Earlier, he refuted the claim that Malaysia had imposed a high tariff rate on US imports.
“We have been very clear we are not imposing such high tariffs on the US. In fact, our applied tariff rate on the US is just 5.6%,” he said.
Multilateral Trading System
Both Malaysia and Asean have said we are going to engage the US, and we do not believe in (taking) any retaliatory tariff action.
“We also agreed that the rule-based multilateral trading system is the way to go,” he said, adding that Malaysian officials in Washington DC have reached out to their counterparts in the US administration.
Trade Figures
In 2024, total US-Malaysia trade amounted to US$80.2 billion (RM354.7 billion). Of this, US exports to Malaysia totalled US$27.7 billion while Malaysia’s exports to the US reached US$52.5 billion.
This resulted in a trade deficit of US$24.8 billion for the US in 2024, although the deficit narrowed by 7.6% compared to the previous year.
Conclusion
Tengku Zafrul’s statement suggests that Malaysia is taking a cautious approach in dealing with the US-China trade war, prioritizing a bilateral and multilateral approach to address trade issues and maintain good relations with both countries.
FAQs
Q: Has the US forced Malaysia to choose between the US and China in the trade war?
A: No, according to Tengku Zafrul, the US has not made any request for Malaysia to choose sides.
Q: What is Malaysia’s approach to dealing with the US-China trade war?
A: Malaysia is taking a bilateral and multilateral approach, engaging with the US and Asean to address trade issues and maintain good relations with both countries.
Q: What is the current trade deficit between the US and Malaysia?
A: According to 2024 figures, the US has a trade deficit of US$24.8 billion with Malaysia, although the deficit narrowed by 7.6% compared to the previous year.