He told the Dewan Rakyat that the Reciprocal Trade Agreement he signed with US president Donald Trump last Sunday was carefully reviewed by senior government officials to ensure the country’s interests were protected.
This came after Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal called for the “unacceptable” deal to be cancelled, describing it as a form of colonialism.
“There’s an exit clause in this trade agreement. All trade agreements have exit clauses,” Anwar said.
“Why did we sign it then? Because we need investment from the US. And I will not be apologetic about that.
“Turning half-truths into absolutes is a problem. Some people simply refuse to acknowledge anything good.”
He added that Putrajaya’s diplomatic finesse had earned it respect from both Washington and Beijing, noting that the government had signed deals with the US and China within days of each other.
Anwar said this demonstrated Malaysia’s ability to preserve its neutrality and act independently in global affairs.
He also took a swipe at opposition critics who accused him of bowing to foreign powers, stressing that Malaysia seeks to maintain friendly ties with all nations while safeguarding its own interests.
“Who do they want me to side with then? Which country? Only Kedah and Kelantan? I’m on good terms with them too,” he quipped, drawing laughter in the Dewan Rakyat.
Under the new trade pact with the US, Malaysia has committed to providing significant preferential market access for US industrial exports, including chemicals, machinery and electrical equipment, metals and passenger vehicles, as well as agricultural exports such as dairy products, poultry and rice.
The US, meanwhile, will maintain a 19% reciprocal tariff on Malaysian goods, with certain products receiving a zero tariff rate under a list of aligned partners.
Malaysia will also refrain from banning or imposing quotas on exports of critical minerals or rare earth elements to the US, and will partner with American firms “to create certainty for businesses to increase production capacity.”
On Monday, Perikatan Nasional secretary-general Azmin Ali criticised the deal as potentially undermining the country’s economic sovereignty, claiming it forces Putrajaya to follow Washington’s trade and investment rules.
The former trade minister said one of the agreement’s most damaging clauses was Article 5.1, which he claimed “requires” Malaysia to replicate any US trade restrictions or sanctions against other countries.
Investment, trade and industry minister Tengku Zafrul Aziz later clarified that Putrajaya is not obligated to follow the US in imposing customs duties, prohibitions or import restrictions on goods and services from other nations.
He also said Malaysia would have faced higher tariffs had it not signed the trade deal with the US. He warned that such a situation would have hurt the nation’s competitiveness, investment climate and job market.