By: Mike Paul
Kuala Lumpur, Oct 26 — Malaysia and the United States have formalised a landmark trade agreement valued at US$150 billion, aimed at boosting cooperation in rare earths, energy, and strategic exports. The pact was signed during the 47th ASEAN Summit in Kuala Lumpur, with Prime Minister Datuk Seri Anwar Ibrahim and US President Donald Trump present.
The agreement includes long-term operating licences for American firms involved in Malaysia’s rare earths sector, ensuring production stability and investment certainty. Malaysia also pledged not to impose export bans or quotas on critical minerals, reinforcing its role as a reliable global supplier.
In addition, over 1,700 Malaysian export items — including palm oil, rubber, cocoa, aircraft components, and pharmaceuticals — will be exempted from the existing 19% US tariff rate. This move is expected to enhance Malaysia’s market access and strengthen its position in global supply chains.
Trade and Industry officials highlighted the pact as a strategic win for Malaysia, aligning with national goals for industrial growth, green energy transition, and high-value manufacturing. The deal also includes joint development initiatives in clean energy and digital infrastructure.
The signing ceremony was held at the Kuala Lumpur Convention Centre, where both leaders reaffirmed their commitment to balanced, forward-looking economic ties. The agreement is expected to be ratified by both governments within the next quarter.
- TNS News