The outgoing investment, trade and industry minister said Bumiputera rights are protected under Malaysia’s right to pursue “public service obligations”, and Putrajaya is also allowed to aid state-owned enterprises in doing so.

“This means policies prioritising Bumiputeras can still be practised. Let me repeat myself: Bumiputera rights remain a red line defended in these negotiations,” he said in a video posted on X today, after Mahathir claimed that a clause in the agreement on commercial considerations would negate Bumiputera rights.

Mahathir had earlier said the clause in question would require Malaysia to ensure its state-owned enterprises act in accordance with commercial considerations and refrain from discriminating against US goods or services.

“This means that Bumiputera rights will no longer exist,” he claimed.

However Tengku Zafrul said in response: “(This) is not correct, there is another clause that provides an exemption for the purpose of fulfilling public responsibilities, namely that Malaysia will refrain from providing non-commercial assistance or otherwise subsidising state-owned or controlled enterprises that produce goods, except to fulfill public responsibilities.”