Is This All for a Pen?

 

Malaysia’s economy is RM1.93 trillion based on the nominal GDP as at 2024. On 26 October 2025, Trump and Anwar signed off the Agreement on Reciprocal Trade on the pretext of strengthening bilateral relations. The White House portrayed it as "...allowing unprecedented access to each other’s markets." Reciprocal means to benefit both sides. However, the deal benefits America more than Malaysia. 

Malaysia has agreed to purchase American products like aircrafts, semiconductors, aerospace components and data centre equipment. Malaysia has further agreed to buy natural gas, coal plus telecommunication products and services. We also threw in capital fund investments as well. A cursory glance of the Agreement shows that we will spend about RM1 trillion. That is half the size of our economy. Do we have that much to shop around? Where are we getting the money from? Will we take on more debt? 

Source: https://ms.wikipedia.org

 

In return, the Government and Minister in charge of Economy will no doubt amplify about the 19% tariff that America has bestowed on us. The tariff is on goods to the US. 

Another clause states that the US government would reimpose the 25% tariff announced in April should Malaysia enter into any bilateral trade deal with "a country that jeopardises US interests". Further in the agreement, Malaysia is also required to align with any US move to punish other countries with customs duties, quotas, prohibitions, fees, charges, or other import restrictions. It states that once notified of such a move, "Malaysia shall adopt or maintain a measure with equivalent restrictive effect as the measure adopted by the United States or agree to a timeline for implementation". 

The direct effect is that Malaysia loses the right to determine its own trade and diplomatic policies towards other nations. If the US imposes sanctions on any country, Malaysia is automatically expected to follow suit, even if that country is an important trading partner of Malaysia. 

Where is the benefit then for Malaysia? As a natural gas producer why do we buy natural gas from America? We have exemptions for 1,711 key Malaysian exports, including palm oil, rubber, cocoa, aerospace components and pharmaceuticals. This is 12% of total exports to the US. 

It is a reminder that America will bully whomsoever it wants to. Malaysia should have bandied around all countries that are opposed to the tariff and iron out strategies to withstand the impending imposition of "Trump Tariff". 

Has Malaysia taken the bait? Have we been amazed by the aura of Air Force One, the ride in the Beast and the White House pen for signing the trade agreement? Are we paying tribute to His Imperial Highness, King Trump? 

References:

All for a pen, blog by Rafique Rashid, 27 October 2025, 

Beyond dance with Trump, shocking details emerge on deal Anwar signed, MalaysiaNow,

27 October 2025 

What Washington’s “due consideration” means for Malaysia’s RM32.8 billion semiconductor industry, Wan Ahmad Atarmizi, Sinar Daily, 27 October 2025