Delivering a ministerial statement at the Dewan Rakyat concerning the US-Malaysia trade deal, Tengku Zafrul said that the purchase of US LNG was not “an order from Washington”, but rather a commercial decision.
Tengku Zafrul also said the move ensures a stable LNG supply for Petronas, allowing the national oil company to meet its obligations to both local and international clients.
“A sovereign nation must have multiple energy sources and options — that is what we call energy security, not dependency.
“Petronas has been purchasing LNG from various countries, including the US. Even before the tariff announcement, Petronas was already buying LNG from the US.
“This step was taken because Petronas’s long-term supply obligations exceed its current production capacity.
“But some people, not knowing how Petronas operates, have overreacted — when in fact, this is nothing new.”
Under the agreement signed on Sunday by Prime Minister Anwar Ibrahim and US president Donald Trump, Petronas will purchase three million tonnes per year (MTPA) of US LNG valued at US$2.04 billion per year.
The agreement also states that Petronas will potentially purchase an additional two MTPA of US LNG, valued at US$1.36 billion.
Malaysia has also agreed to refrain from banning or limiting exports of critical minerals or rare earth elements (REE) to the US, and to work with American firms to boost production capacity.
Addressing claims that the trade deal would allow unrestricted exports of critical minerals, Tengku Zafrul said exports of raw REE remain banned — with only processed rare earths permitted to leave the country.
“What this means is that value must be created in Malaysia — skilled jobs must be generated here and processing technology must be brought here.
“We no longer want to be a country that merely digs and exports cheap raw materials,” he said.
Tengku Zafrul said the government is encouraging local and foreign players to collaborate in developing the REE sector to strengthen the domestic industry.
He also said Putrajaya welcomed strategic cooperation with the US and other countries in developing the local REE industry, particularly through potential tripartite partnerships involving Malaysia, the US, and Australia.
“Any development of the country’s strategic resources will take place under Malaysian law, on Malaysian soil and under Malaysian sovereign control — not according to the whims of foreign investors,” he said.