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Malaysia
This Week in AsiaEconomics

Malaysia’s Anwar slams claims of surrendering sovereignty in US trade deal

The prime minister denies Malaysia will be forced to follow Washington’s lead on sanctions against third countries under the new deal

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US President Donald Trump and Malaysian Prime Minister Anwar Ibrahim sign trade deal documents during a bilateral meeting at the Asean summit in Kuala Lumpur, Malaysia, on Sunday. Photo: Reuters
Joseph Sipalan
Malaysia did not give up its sovereignty in a trade deal with the United States, Prime Minister Anwar Ibrahim has said, amid mounting fears that Washington through the recently brokered agreement can dictate how Kuala Lumpur should behave.
The two countries signed a trade deal on Sunday during US President Donald Trump’s one-day whirlwind visit to Kuala Lumpur, capping months of negotiations that followed the mercurial leader’s “Liberation Day” announcement in April when he declared a tariff war on the world.

But critics and the opposition warned that a specific clause under the agreement would give the US power to compel Malaysia to follow its lead on sanctions against third countries, raising fears that Malaysia could be forced to take sides in Washington’s trade and tech war with Beijing.

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Anwar hit back at his critics, saying that there was nothing in the agreement that prevented Malaysia from cooperating with any other party.

Instead, Malaysia could end the agreement as and when it saw fit to do so, he said.

A man fishes with cranes seen in the background at Port Klang, outside Kuala Lumpur, in September. Prime Minister Anwar Ibrahim’s government hailed the US trade deal as a win for Malaysia. Photo: EPA
A man fishes with cranes seen in the background at Port Klang, outside Kuala Lumpur, in September. Prime Minister Anwar Ibrahim’s government hailed the US trade deal as a win for Malaysia. Photo: EPA

“In this trade deal, we have exit clauses. Why did we sign it? Because we need American investments. I will not apologise for that,” Anwar told parliament during Prime Minister’s Question Time on Thursday.

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