Former UMNO Supreme Council member Isham Jalil has criticised the US-Malaysia trade agreement signed on October 26, labelling it a “stupid and weak” deal.
In a Facebook post, he questioned Malaysia’s 12 commitments under the agreement. He stated that the US only “promised” a 19% tariff arrangement on Malaysia, while the country made 12 additional commitments on top of three joint commitments.
These commitments include the purchase of 30 aircraft with an option to buy 30 more, procuring aerospace and semiconductor products worth $150 billion, and annually buying up to 5 million tonnes of Liquefied Natural Gas (LNG) valued at up to $3.4 billion.
Other listed commitments are the procurement of coal, telecommunications products, and services worth $204.10 million, and investing a capital fund of $70 billion in the United States.
“The total value of these commitments is close to $250 billion, equivalent to more than RM1 trillion, which is about half the size of the Malaysian economy,” Isham Jalil said.
In a sarcastic tone, he commented that Prime Minister Anwar Ibrahim’s “negotiation skill” was indeed “smart.” He also questioned the government on how it would raise the funds, and whether the authorities would continue to increase the national debt.
Subsequently, Isham Jalil shared a video on Facebook mentioning that US President Trump’s visit to Malaysia “less than 24 hours” had resulted in him “taking away RM1 trillion.”
Regarding the 19% tariff proposed by the US, Isham Jalil questioned who the beneficiary would be. He pointed out that Malaysia’s exports to the US are valued at $40 billion, with the majority being chips produced by US companies operating in Malaysia.
“We have to pay a huge price for them (US companies),” he added. He then noted that Malaysia also exports some furniture and glove products to the US.
“The government should have used this RM1 trillion to strengthen these local industries instead of making massive procurement commitments,” he argued, concluding that the arrangement was “not just weak, it is stupid.”
About The Author
