Chan Refutes Claims Sabah Is Sidelined in Malaysia–US Trade Agreement

30 October 2025

KOTA KINABALU: Deputy Minister of Plantation and Commodities Datuk Chan Foong Hin has dismissed claims that the recently announced Malaysia–United States Agreement on Reciprocal Trade (ART 2025) sidelines Sabah and Sarawak, stressing that the accord brings benefits to all regions of the country.

Responding to recent remarks by several Sabah leaders alleging that ART 2025 “only favours Peninsular Malaysia” and “leaves Sabah and Sarawak behind”, Chan said such views do not reflect the true intent or scope of the trade deal.

“The agreement is national in nature. It is neither confined to any region nor does it exclude Sabah or Sarawak in any way. There is no basis to suggest that it undermines Sabah’s interests,” he said in a statement today.

Chan explained that the zero-tariff list of 1,711 Malaysian products under ART 2025 covers a wide range of sectors, including palm oil, rubber, timber and cocoa, all of which are major commodities produced in Sabah and Sarawak.

He noted that Sabah remains Malaysia’s largest producer of crude palm oil (CPO), recording 4.27 million tonnes in 2024, or 22.1% of total national output. Under ART 2025, he said, Sabah’s Malaysian Sustainable Palm Oil (MSPO)-certified products and cocoa-based exports will gain improved access to the United States market.

“These are precisely the sectors driven by smallholders and cooperatives in East Malaysia, groups that the MADANI Government continues to support through initiatives such as the Smallholder Oil Palm Replanting Financing Incentive Scheme (TSPKS 2.0), MSPO certification, and the Cocoa Planting Incentive Programme,” he added.

Chan also refuted claims that LNG imports from the United States would “undermine” facilities in Kimanis or Bintulu, calling such assertions baseless.

He cited clarification from the Minister of Investment, Trade and Industry, Datuk Seri Utama Tengku Zafrul Abdul Aziz, that Petronas has long sourced LNG from multiple international suppliers, including the US, well before the latest tariff announcements.

“Import contracts form part of a broader supply-balancing strategy not a replacement of operations in East Malaysia. The LNG facilities in Kimanis and Bintulu remain core national assets, contributing billions of ringgit in revenue to both the Federal and State Governments,” Chan explained.

He emphasised that Sabah has never been a bystander in Malaysia’s trade diplomacy, noting that the state is increasingly represented in international missions and bilateral negotiations on commodities, renewable energy and the digital economy.

“In my capacity as Deputy Minister of Plantation and Commodities, and previously as Deputy Minister of Agriculture and Food Security (2022–2023), I have personally led delegations to China and ASEAN markets to promote Sabah’s products,” he said.

Chan acknowledged that Sabah’s economy remains heavily reliant on agri-commodity exports such as palm oil, rubber, timber and cocoa. However, he urged all parties to adopt a collaborative approach rather than politicising the Malaysia–US trade deal.

“Instead of cultivating hostility or deliberately disparaging the trade agreement, we should focus on the real task working together to advance Sabah’s industrial and export development,” he said.

Looking ahead, Chan said the key question is not whether Sabah is being left out, but how the state can be further empowered to become a leading export hub and value-added production centre under current and future international trade arrangements.

“Rather than viewing the Malaysia–US trade deal as a zero-sum game, leaders should work collectively to ensure Sabah fully capitalises on the export and investment opportunities emerging from this partnership,” he concluded.