Malaysia Not Obligated Under ART To Fulfil US$240 Bln In Commercial Commitments Or Invest US$70 Bln In US -- MITI

KUALA LUMPUR, Dec 1 (Bernama) -- Malaysia is not obligated to carry out US$240 billion in commercial purchases or US$70 billion in investments in the United States under the Agreement on Reciprocal Trade (ART), said the Ministry of Investment, Trade and Industry (MITI).

Deputy Investment, Trade and Industry Minister Liew Chin Tong emphasised that the ART does not require the government to buy goods or invest in the US to any specified value, and the government is not bound to meet any figures listed in those commercial documents.

He said the government remains committed to ensuring two‑way trade that is inclusive and competitive, while safeguarding the country’s fiscal integrity and ensuring it is not affected by commercial procurements that do not involve the government.

“Commitments under the ART are corporate decisions by companies, implemented through market mechanisms, and do not constitute any national obligation,” he said during a question‑and‑answer session in the Dewan Negara today.

Liew was responding to Senator Tan Sri Low Kian Chuan regarding whether Malaysia must honour commitments to purchase goods and invest in the US, amounting to approximately US$240 billion under the Malaysia‑US ART.

The deputy minister said the commitments outlined in the ART referred to commercial decisions and existing procurement plans by companies, including government-linked companies (GLCs) and Malaysian multinationals, based on their individual business considerations and strategies.

Lim said all of these transactions are business-to-business in nature and driven by commercial decisions and expected returns on investment, covering aircraft purchases from Boeing, security equipment, liquefied natural gas (LNG), semiconductor equipment, aerospace components, data centre equipment, telecommunications equipment and coal.

“For example, aircraft procurement commitments are part of a phased fleet renewal and expansion plan implemented to replace ageing aircraft and ensure operational safety and sustainability, while supporting growth in the country’s tourism sector.

“LNG procurement, meanwhile, is a long-term supply commitment by Petronas to meet existing contracts, optimise resources, and ensure continuity of deliveries to customers,” he added.

Liew highlighted that these procurements are commercial decisions by Petronas, not government-directed, to fulfil obligations under the ART.

-- BERNAMA