Press Statement On The Agreement Between The United States And Malaysia On Reciprocal Trade

14 November 2025

We are issuing this press statement as Members of Parliament. Wong Chen is the current Chairman of the Parliamentary Special Select Committee on International Relations and International Trade, but is issuing this joint statement not in that capacity but as an MP who has taken an oath to bear true faith and allegiance to Malaysia and to defend the Constitution.

We refer to the Agreement Between the United States and Malaysia on Reciprocal Trade ("Agreement") which was signed on 26 October 2025 in Kuala Lumpur.

After much deliberations and study, we are convinced that the Agreement is heavily lopsided in favour of the United States. We further note that Deputy Minister of the Ministry of Investment, Trade and Industry (MITI), YB Liew Chin Tong, in a public forum on 3 November 2025, stated that Malaysia was forced into the negotiations and this was not an equal partnership. Additionally, we are convinced, based on the official responses and lack of clarity of the text, that the signing of the Agreement was done without comprehensive cost-benefit analysis and adequate public consultations.

Regarding the political question as to whether Malaysia had signed away its sovereignty as per the Agreement, we are convinced that certain Articles, in particular but not limited to Articles 5.1, 5.2.and 5.3 therein, if exercised by the United States and complied by Malaysia, will constrain and limit Malaysia’s sovereign rights, forcing Malaysia to align with the national security and economic interests of the United States. This scenario will be a major departure from our long-standing foreign and trade policy of active neutrality and ASEAN centrality.

Nevertheless, we note that Malaysia has two legal options to defend its sovereign interests. First, Malaysia can request to amend the Agreement under Article 7.3 or second, Malaysia can terminate the Agreement under Article 7.4. We agree with Prime Minister Anwar Ibrahim, who on 30 October 2025, asserted in Parliament that Malaysia has an “exit clause” and can terminate the Agreement as a way out of the sovereignty question. Similarly, the Attorney General’s Chambers, on 3 November 2025, also affirmed that Malaysia retains the right to terminate the Agreement by written notice to the United States.

We also note with deep concern that there are direct and indirect negative impacts of the Agreement to Malaysia, including but not limited to the trade balance, fiscal implications and investment outflow. We are also concerned that the Agreement could possibly impact existing Free Trade Agreements (“FTAs”), and existing commercial agreements with third party countries.

Conversely, we acknowledge that there could be some positive impacts of the Agreement, on matters related to digital trade, semiconductors and pharmaceuticals. We also welcome some Articles of the Agreement for better regulatory practices, labour rights and environmental protection.

We wish to now make the following recommendations to the Madani Government.

1. We are fully supportive of the Madani Government commitment to good governance, transparency and accountability. As such, to walk the talk, we urge the Madani Government to advise the Yang Di-Pertuan Agong to form a Royal Commission of Inquiry (“RCI”) to investigate all matters related to the signing of the Agreement, in particular on the matter of being “forced” to negotiate. We also want an answer on why Malaysia opted for an agreement instead of an MOU or a Framework. We believe that the RCI will help to restore and enhance public accountability in this controversial matter. The RCI should also be tasked to recommend a more robust governance structure, prior consultation mechanisms, checks and balances with the view to improve future trade negotiation processes.

2. We urge the Madani Government to engage reputable external international trade lawyers and experts to:

(a) initiate the process of amending the more onerous sovereignty related articles of the Agreement;

(b) clarify and advise on all articles related to definitions, scope, obligations and enforceability of the Agreement; and

(c) conduct a legal matrix study on the potential market access impacts of the Agreement on existing FTAs and multi-lateral agreement including but not limited to the Regional Comprehensive Economic Partnership (“RCEP”), Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (“CPTPP”) and European Free Trade Association (“EFTA”).

3. We urge the Madani Government to create a taskforce of international trade experts including economists to conduct a comprehensive cost-benefit analysis of the Agreement to study and project the impacts on including but not limited to Malaysia’s gross domestic product, market access, trade balance, currency flight concerns, and flow of investments between the United States and Malaysia and to report the same to Parliament;

4. We urge the Madani Government to create a high level advisory foreign policy team on the geopolitical impacts and consequences from this Agreement on Malaysia’s foreign and international trade policies regarding but not limited to BRICS, Association of Southeast Asian Nations (“ASEAN”), Organisation of Islamic Cooperation (“OIC”) and the Global South and to report the same to Parliament; and

5. We urge MITI to set-up a special division to coordinate with other ministries to regularly update, answer and engage investors and industry leaders on matters related but not limited to market access, nuclear reactors, critical minerals, biosafety, medical devices, pharmaceutical, labour, environment and digital trade related to the Agreement.

13 NOVEMBER 2025

Wong Chen

Member of Parliament for Subang

Nik Nazmi bin Nik Ahmad

Member of Parliament for Setiawangsa

Rafizi Ramli

Member of Parliament of Pandan