In a statement, the Malay Economic Action Council (MTEM) cited Clause 6.2 of the agreement, which deals with the commercial considerations of state-owned or -controlled enterprises, or government-linked companies (GLCs).
MTEM quoted a provision in the agreement as follows: “Malaysia shall refrain from providing non-commercial assistance or otherwise subsidising its goods-producing GLCs, except for the achievement of their public service obligations.”
MTEM expressed concern that this meant GLC policies on prioritising Bumiputera vendors, local development quotas and strategic investment based on Bumiputera equity would be affected.
“This directly contradicts the spirit of Article 153 of the Federal Constitution,” it said, referring to the provision which ensures that the Malays and East Malaysian natives have access to “such proportion” of positions in the public service, scholarships, as well as permits and licences for any trade or business.
“State-owned enterprises are not merely commercial entities but national policy instruments. Therefore, curbing the autonomy of these enterprises in supporting Bumiputera policies is a form of intervention in our national economic policies,” MTEM said.
The group added that even the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP) signed last year, which MTEM had protested, now had safeguards and exemptions to protect Bumiputera interests.
It urged the government to scrap the ratification of the US trade deal until a holistic analysis on its impact on the Bumiputera economy was conducted.
It also wanted clauses to protect the interests of Bumiputera businesses to be clearly stated in international trade deals.
MTEM added that legal experts, industry players and Bumiputera groups should be involved in discussions before signing future trade deals.
US president Donald Trump and Prime Minister Anwar Ibrahim signed the Malaysia-US Reciprocal Trade Agreement on Sunday, during a bilateral meeting on the sidelines of the 47th Asean Summit.
Under the deal, the US will maintain a 19% reciprocal tariff on Malaysian goods, with certain products receiving a zero tariff rate under a list of aligned partners.
Malaysia has meanwhile committed to provide significant preferential market access for US industrial goods exports, and to refrain from banning or imposing quotas on exports of critical minerals or rare earths to the US.