US announced an increase of tariff(tax or duty to be paid) on Malaysian products from originally 2-3% to 25% - and that means the US Consumer if they still want to buy Malaysian goods will have to pay more...
Many said Malaysia and/or PM/Finance Minister Anwar Ibrahim should NOT have PANICKED, and just waited > for there will be 'protest' from the US consumers - and at the end of the day, Trump may be forced to reduce the Tariff. Further, many Malaysian products are products by Supply Chains that the US companies NEED.
But, our Prime Minister/Finance Minister went on, maybe too hastily, to NEGOTIATE to reduce the Tariffs...and in so doing SACRIFICED too much(in my opinion)...
And what did Malaysia offer
(a) A commitment to buy/invest about RM1 Trillion on US products;
(b) To eliminate import taxes of 11,000 US products, and worse
(c) To supply rare earth elements (does this mean that Malaysia now will mine rare earth elements and process it, forgetting BUKIT MERAH and even LYNAS - hence putting Malaysians at greater health risk in the future???)
Malaysia also agreed to eliminate import taxes on the majority of 11,000 US products, and to supply rare earth elements.
And, then the US reduced Malaysian Tariff from 25% to 19% ....no success at all. Different if the US reduced it back to the original 2-3% or just NO TARIFF at all, as Malaysia is doing for the 11,000 US products...
And, guess what, Singapore gets 10%, and Philippines gets 17% - so, despite so much bending over backwards, PM/Finance Minister Anwar only managed to get 19%???? We compromised too MUCH... Should the PM have brought this matter to Parliament and discussed it openly, and come up with a Parliamentary approved solution - rather than deciding on his own?
Anwar/Malaysia also fails ASEAN - should Malaysia not acted with all member ASEAN states to secure a 'good deal' for all in ASEAN - or ASEAN could have come together with a collective action - maybe also raise their TARIFF to match the US imposed TARIFF..
Now, Malaysia lost REVENUE from Import Taxes from US Products > how much did we lose?
How does Malaysia spend RM1 Trillion buying US products - What does US have that Malaysia needs? Can't Malaysia get what it needs from other countries, other than the US...
An EXAMPLE
In Malaysian Airlines, there are many makers of planes - Airbus(Europe), COMAC(China), Boeing(US), ... So, were we forced to buy from the US company Boeing to satisfy Anwar's RM1 Trillion commitment to buy US products - have we, the consumer, just lost our right to pick and choose the best product...having to now buy from US...a 'preferential treatment'...
Anthony
Loke says AirAsia and Air Borneo among airlines showing interest in
aircraft made by Commercial Aircraft Corporation of China - SCMP, 31/7/2025
Malaysia has reaffirmed its commitment to purchase a total of 26 Boeing aircraft in two phases, a deal estimated to be worth close to US$19 billion, said Minister of Investment, Trade and Industry Tengku Datuk Seri Tengku Zafrul Abdul Aziz.The purchase is part of ongoing commercial agreements with the United States and was highlighted during Malaysia’s recent trade negotiations.“We made some commercial commitments, which have already been announced, but we reinforced them. One is the Boeing aircraft purchase,” Zafrul said at a press conference at Miti headquarters today. - Malay Mail, 1/8/2025
ALL in all, Malaysia came out the LOSER in my opinion - and thus we ask whether it is time for Anwar Ibrahim to stop being Finance Minister, maybe even Prime Minister.
Remember, Malaysia already has about RM1.5 Trillion DEBTS - and that DEBT has been increasing annually since Anwar Ibrahim became Prime Minister. What Anwar did was merely REDUCE annual DEBT INCREASE - but should we not be trying to REDUCE DEBTS? I am shocked that Malaysia still spends more than it earns annually - BE REALISTIC and PRACTICAL. With Debts, there is also Debt Servicing annually -
As of 2023, Malaysia’s government debt reached RM1.173 trillion, an increase of RM92.918 billion (8.6%) from the previous year. This debt, representing 65.4% of the GDP,...The steady increase in debt raises concerns, especially as the government nears the statutory debt ceiling of 65%....The National Audit Report 2024 highlighted that over 66% of federal debt is due to mature within the next 10 years, raising concerns about Malaysia’s ability to service this debt.... While Malaysia’s debt levels are significantly lower than those of the USA and Japan...Malaysia, being smaller and more exposed to external economic fluctuations, does not have the same luxury. External risks, such as changes in global demand for its exports, fluctuations in currency value, and economic downturns, could exacerbate the country’s debt burden.- Business Today, 21/12/2024
For instance, the government took new loans of only RM75 billion in 2024, down from RM93 billion in 2023 and RM100 billion in 2022. - FMT, 13/6/2025
PERSONALLY, I believe Malaysia must be DISCIPLINED and not be spending more than it earns - not increasing DEBTs - and, PM Anwar before making MAJOR DEALS like the one with the US should get Parliament's approval first... where our peoples' representatives(MPs) are - as this is a matter that affect all Malaysians..
PM Anwar may soon be NO MORE PRIME MINISTER but we, Malaysians, end up with the BURDENS he leaves....That is why we need to MONITOR Anwar Ibrahim and make sure that he does not put us Malaysians in a WORSE situation... We certainly need MORE Outspoken MPs who will raise these issue - but sadly most MPs are 'SILENT" - and even when they raise issues, it is all about simple issues like FLAG issue, Crimes, etc - WONDER WHETHER MALAYSIAN MPs ARE OF SUFFICIENT QUALITY or BRAVE ENOUGH to raise issues that matter...MPs can always get advice from those professionals/experts on their own...
Even if you are in Cabinet or in Anwar's party - MPs should SPEAK UP, more so when Anwar is doing 'wrong things' - BE BRAVE MPs for all of us in Malaysia ...
The RM1 trillion question hauntting Anwar as outcome of tariff talks comes under fire
The government has been on the defensive amid growing criticism of Malaysia's US$240 billion commitments to Washington.
Prime Minister Anwar Ibrahim's ability to steer the country in the face of global economic challenges following US President Donald Trump's tariff threat is increasingly panned by experts, even as Putrajaya launches a media campaign touting the "success" of its negotiations that resulted in Washington's decision to impose a 19% import tariff on Malaysian goods.
At the heart of the mounting criticism by economists, political leaders and analysts is the disparity between the offers to the US of purchases and investments worth over RM1 trillion and the actual costs incurred as a result of the 19% tariff on Malaysian exports.
Those who spoke to MalaysiaNow said that no clear returns could be assessed from an economic perspective, especially when compared to the amount of investment commitments announced.
These commitments include the mutli-billion dollar purchase of Boeing aircraft as well as the acquisition of technology and cooperation in infrastructure involving major national companies such as Petronas, Tenaga Nasional Bhd, Telekom Malaysia, and several semiconductor industry players.
Malaysia also agreed to eliminate import taxes on the majority of 11,000 US products, and to supply rare earth elements.
"For this, we only get a reduction in US tariff of 6% (from 25% to 19%). That is not a good deal," said former prime minister Dr Mahathir Mohamad.
The 19% rate however has been repeatedly commended by Investment, Trade and Industry Minister Tengku Zafrul Aziz, who acknowledged Malaysia's total commitment of over US$240 billion or RM1 trillion.
However, the fairness of the exchange remains under question.
Economist Carmelo Ferlito said the tariff rate previously imposed on Malaysian goods was only about 2% to 3%.
"Tariffs were not reduced. They were never 25%. They were threatened to go at 25% and this was the starting point of Trump’s negotiations, a good businessman strategy," said Ferlito, who leads think tank Centre for Market Education.
"So tariffs were not reduced, but increased."
He said the government's claims about the success of its negotiations, if factually assessed, would instead highlight concerns about Malaysia's huge commitments.
'No benefit at all'
Noting the total value of foreign trade at US$681 billion (RM2.87 trillion) last year, he said Malaysia's commitment to spending US$240 billion (RM1.14 trillion) in investment and the purchase of US goods would reach 35% of that amount.
He said Malaysia's total exports to the US last year reached RM198.6 billion, while total imports from the US were RM126.2 billion – a trade surplus of RM72.3 billion (US$17.2 billion).
He then compared this to the total value of Malaysia's economic commitment to the US – a whopping US$240 billion.
"This means that Malaysia’s commitment towards the US is around 13 times the amount of Malaysia’s trade surplus vs the US," he told MalaysiaNow, adding that Malaysia's tariff talks with the US had brought the country no benefit at all.
"Trade is never between states, but between firms. Therefore, the deal will have to face later on firms’ commitment to the same deal," he said.
"Trade among firms responds to economic logic rather than geopolitical ones."
He said Malaysia's move to cut or eliminate tariffs on a large number of US goods was not a problem as it would ultimately benefit consumers while increasing competition.
However, he warned that the real benefits would only be enjoyed if local businesses were prepared to compete fairly and efficiently in an open market system.
'Smoke and mirrors'
Economist Geoffrey Williams also questioned the touted success of Malaysia's tariff negotiations with the US.
Speaking to MalaysiaNow, he said the government's narrative was nothing but "smoke and mirrors".
Giving the example of the Boeing purchase, he said that high demand for the aircraft at the global level might cause delays in deliveries.
"The new orders may not appear until long after Trump has ended his presidency. The orders could then be cancelled.
"The number of planes is smaller than other countries and it is not clear if this is a normal replacement of the fleet, the substitution of Boeing in place of Airbus, or actual new net investment," he said.
He, too, said that a 6% reduction in tariff was too low, and would not put Malaysia on better footing compared to other Asean nations.
"Malaysia is in the same position as most other Asean countries and worse than many other countries," he added.
"It is at a disadvantage to Singapore and the EU, Korea and Japan."
He said what was being portrayed as an achievement was merely the status quo, decked out in political rhetoric, adding that Malaysia was paying too high a price for something that did not exist.
"If examined objectively, this is more of a play on perceptions, not an actual economic achievement," he said.
It is a view held by many others, including former minister Zaid Ibrahim who said the Malaysian leadership was easily deceived.
"Trump has less than four years left in office. His protectionist lunacy, like all things Trump, is likely to end in chaos, either at the ballot box or in the courts.
"Why then are we so gullible? Why did our leaders panic at the first sign of pressure from a volatile foreign president?" he said.
He said that over the next four years, Malaysia would only save US$10.4 billion or US$2.6 billion per year, based on its current export value of US$43 billion per year.
"In contrast, we committed to buying US$240 billion worth of American goods, effectively trading RM24 to save RM1. How is that sound economic policy?"
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