Recent comments by several Sabah leaders suggested that the Malaysia-US Agreement on Reciprocal Trade (ART 2025) “only favours Peninsular Malaysia” and “leaves Sabah and Sarawak behind.” While I acknowledge these concerns, I must respectfully differ. Such perceptions do not accurately reflect the purpose or benefits of the agreement, which are national in scope.
The trade deal is not confined to any region, nor does it exclude Sabah or Sarawak in any manner. There is no justification to suggest that this agreement undermines Sabah’s interests.
First, the zero-tariff list of 1,711 Malaysian products covers a wide spectrum of sectors including palm oil, rubber, timber and cocoa — all of which are major commodities from Sabah and Sarawak.
Sabah remains Malaysia’s largest producer of crude palm oil (CPO), recording 4.27 million tonnes in 2024, equivalent to 22.1% of total national output. Under ART 2025, Sabah’s certified sustainable palm oil (MSPO) and cocoa-based product exports will enjoy improved market access to the United States.
These are precisely the sectors driven by smallholders and cooperatives in East Malaysia —groups that the MADANI Government actively supports through initiatives such as Smallholder Oil Palm Replanting Financing Incentive Scheme (TSPKS 2.0), Malaysian Sustainable Palm Oil (MSPO) certification, and Cocoa Planting Incentive Programme.
Secondly, assertions that LNG imports from the United States “undermine” facilities in Kimanis or Bintulu are equally unfounded.
As clarified by the Minister of Investment, Trade, and Industry, Datuk Seri Utama Tengku Zafrul Abdul Aziz, Petronas has sourced LNG from multiple international partners, including the US, long before the latest tariff announcements.
Import contracts form part of a broader supply-balancing strategy — not a replacement of operations in East Malaysia. The LNG facilities in Kimanis and Bintulu remain core national assets, contributing billions of ringgit in revenue to both the Federal and State Governments.
In fact, Sabah has never been a bystander in Malaysia’s trade diplomacy. The state is increasingly represented in international missions and bilateral negotiations — including those focusing on commodities, renewable energy, and the digital economy. In my capacity as Deputy Minister of Plantation and Commodities, and previously as Deputy Minister of Agriculture and Food Security (2022-2023), I have personally led delegations to China and ASEAN markets to promote Sabah’s products.
Undeniably, Sabah’s exports remain heavily dependent on Agri-commodities such as palm oil, rubber, timber and cocoa. However, instead of cultivating hostility or deliberately disparaging the latest Malaysia-US trade deal, we should focus on doing the real work —joining hands to advance Sabah’s industrial development.
Moving forward, the central question is not whether Sabah is excluded, but how we can further empower Sabah to become a leading export hub and value-added production state under the international trade deals.
Rather than framing the Malaysia-US trade deal as a zero-sum game, leaders should work collectively to ensure that Sabah seizes the full spectrum of export and investment opportunities emerging from this partnership.