Malaysia-US Trade Pact Still Awaiting Activation

The Malaysia-United States Reciprocal Trade Agreement was signed on 26 October 2025 during the 47th ASEAN Summit, marking a milestone in Kuala Lumpur’s push for deeper economic ties with Washington. Prime Minister Anwar Ibrahim, however, confirmed the pact has not yet been brought into force, citing pending ratification steps and the need for both sides to complete legislative procedures before benefits can be realised.

For Malaysian exporters and investors, the delay means no immediate tariff cuts or market access improvements with the US, so businesses must continue planning under existing trade rules while awaiting the agreement’s activation.

Without the pact in force, expected reductions in duties on goods such as electronics and agricultural products remain unrealised, potentially slowing the growth of bilateral trade and limiting opportunities for SMEs seeking US market entry.