Malaysia is treading carefully in trade talks with the U.S., seeking better terms while protecting regional ties. Karisma Putera Abd Rahman from Bait Al Amanah explains how Malaysia is balancing these interests and how civil society and industry can help shape the outcome.
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00:00Now, Malaysia is walking a fine line in its trade talks with the U.S.,
00:05trying to secure better terms while keeping regional ties strong and its economy diverse,
00:11even as U.S. Trade Representative Jameson Greer resists calls for product-specific tariff exemptions.
00:17To give you more on this insight on how Malaysia is managing this tricky trade balancing act,
00:23we speak to Karisma Putra Abdul Rahman from Baitul Amanas.
00:30Jameson Greer has emphasized a firm stance of, quote, no exclusions and no exemptions.
00:37However, we also know that the Trump administration as a whole has been compromising on certain areas.
00:42For example, certain pharmaceuticals have been exempt from pharmaceutical tariffs,
00:46and so from this we can infer that there is some flexibility to their position.
00:50And furthermore, we must not forget that earlier this month,
00:53Mr. Greer himself has framed the tariffs as a strategic tool to bring countries to the negotiating table
00:58rather than as purely punitive measures.
01:01He described the tariffs as part of an America-first trade policy aimed at creating leverage to secure fair trade deals.
01:07Knowing this gives us some insight into their potential playbook.
01:11So for the Malaysian delegations and things, they can choose to view it from an alternative angle here,
01:16one that is more in line with a blank slate where everything is up for negotiation or discussion
01:20rather than Malaysia having to sing for its supper.
01:24Therefore, Malaysia can take this opportunity to engage with the Trump administration
01:27to update our deal with the U.S.
01:29as the last time, if I'm correct, a formal round of discussions around trade were held in 2008.
01:35So I trust that PMX and our Minister of Investment, Trade and Industry
01:40are individuals with internationalist mindsets and economic expertise.
01:45Hence, I am fairly confident that our delegation has a solid opportunity to negotiate more favorable terms.
01:50Karisma also highlights the active role civil society and industry players can take
01:57in shaping negotiation outcomes and protecting national interests.
02:02He outlines steps on how they can be more involved in the process
02:06and ensure their voices are heard and priorities addressed.
02:12So as it stands, Malaysia already invites business groups and sometimes NGOs into trade talks.
02:19But the process tends to be quite ad hoc, opaque, and KL-centric.
02:24As I understand it, industry representation is fairly strong,
02:27but civil society input is still relatively sporadic.
02:30For example, in the CPTPP process, groups such as the Third World Network
02:34and a few others complain of inadequate consultation and limited tax access.
02:39Furthermore, being an Eastern listener myself,
02:41Sabahan and Sarkian CSOs note a KL bias,
02:44with few state-level dialogues accompanying discussions around deals such as RCEP.
02:50So when combined with the fact that draft chapters are shared only on a need-to-know basis
02:54with hand-picked stakeholders by METI,
02:56it becomes difficult for civil society to have an input.
02:59And so for this to improve, we can take a page out of Canada
03:01and the European Free Trade Association, or EFTA.
03:04So for example, Canada publishes their negotiating objectives fairly early.
03:08They invite written submissions and they post a what-we-heard report after each consultation.
03:13So this allows the government to have the space to perform mid-course corrections
03:18and for trust-building to also occur.
03:20And for the latter, so for EFTA,
03:22so during their EFTA-Malaysia Economic Partnership negotiations,
03:27the EFTA secretariat published a plain language fact sheet after it,
03:31allowing for those with broader expertise and members of the general public
03:36to understand the matters being negotiated.
03:38So this allows for more people and representative organizations in civil society
03:42to advocate to relevant policymakers on what is important to people on the ground.
03:46So these are some of the changes that the government could potentially consider
03:49to make trade negotiations a more holistic process
03:52and in the process of doing so, safeguard national interest.