“If we can strike a deal that benefits Malaysia, its companies and the economy, then we will say yes.
“But if the deal doesn’t benefit us, we must be firm. Negotiations should not begin with the intention of conceding everything. That’s not how negotiations work,” he said at a press conference today.
Tengku Zafrul was asked about negotiations with the US to reduce the 25% tariff on Malaysian goods effective Aug 1.
He said any tariff reduction must be matched with a careful analysis of what Malaysia would be giving in return, and that “trade-offs” must be factored in.
He said the US would not reduce tariffs without reciprocal concessions.
“So we need to evaluate the impact on Malaysia if we give in to a request. If the balance is positive, we may proceed. But if the impact is negative, we must say no.”
He also said Malaysia was taking a long-term view, with negotiations focussed on issues vital to the country’s future competitiveness.
“Whatever we offer the US must be consistent with what we offer others,” he said, referring to Malaysia’s other trade partners.
“We must be fair and balanced – it’s not as simple as just reducing tariffs.”
Tengku Zafrul also said Malaysia had remained firm on its red lines during the 90-day negotiation window with US officials.
“The key takeaway is that we stood firm on what we needed to stand firm on. For every single commitment negotiated, we asked ourselves on balance, would it be better to have a lower tariff for certain sectors but open up our market unconditionally on certain products?”
At the core of Malaysia’s position was its sovereignty and the government’s duty to protect its regulatory space, he said.
Tengku Zafrul said there were areas in which the country could not compromise as they involved the matter of sovereignty.
He said non-negotiable matters included Malaysia’s right to impose digital taxes, maintain its current procurement policies, and uphold laws passed by Parliament – especially those related to e-commerce and criminal law.
Prime Minister Anwar Ibrahim has said he will meet US secretary of state Marco Rubio tomorrow to discuss the issue.