KUALA LUMPUR, Malaysia, August 7, 2025 — Malaysia’s trade minister, Tengku Zafrul Aziz, has clarified that the country’s commitment to purchase $150 billion worth of U.S. equipment over the next five years is not a new financial obligation but rather a compilation of existing investment plans by Malaysian companies, including major multinational corporations (MNCs). This statement aims to address misconceptions and concerns raised by opposition figures regarding the implications of this commitment.
In a detailed explanation shared via social media, Tengku Zafrul emphasized that the $150 billion figure represents planned purchases and investments in sectors such as semiconductors, aerospace, and data centers by companies like Intel, Texas Instruments, Google, Amazon Web Services, and Microsoft. These plans, he noted, were already in place before the recent trade negotiations with the United States and are part of broader efforts to balance trade relations and potentially secure tariff reductions.
The clarification comes in response to criticisms, notably from opposition figure Isham Jalil, who suggested that Malaysia was being forced into these purchases as a desperate measure to lower U.S. tariffs. Tengku Zafrul refuted this claim, stating, “This is not new purchases but a list of planning and purchases that have been adjusted by companies before the tariff was imposed.” He further explained that the strategy involves demonstrating to U.S. companies Malaysia’s significant buying power to negotiate better trade terms.
This development occurs against the backdrop of heightened U.S. trade tensions under President Donald Trump’s administration, which imposed tariffs on various imports, including those from Malaysia. The U.S. ran a goods trade deficit with Malaysia of $24.8 billion in 2024, prompting negotiations to address this imbalance. As part of the deal, Malaysia agreed to boost tech and liquefied natural gas (LNG) purchases from the U.S., with state energy firm Petroliam Nasional Berhad committing to buy LNG worth $3.4 billion annually and the government pledging $70 billion in cross-border investments over five years.
Malaysia’s total trade with the U.S. reached $86.5 billion in 2024, with goods exports accounting for a significant portion, underscoring the importance of maintaining favorable trade relations. The commitment to increased purchases is seen as a strategic move to mitigate the impact of U.S. tariffs, which were reduced from a proposed 25% to 19% following negotiations.
Globally, the trend of MNCs expanding data center investments in Southeast Asia continues, with Johor emerging as a key hub. Companies are drawn to the region for its growth potential and robust technological infrastructure, further supporting Malaysia’s position in this sector.
Tengku Zafrul’s clarification aims to reassure the public and stakeholders that the $150 billion commitment is a calculated step to enhance Malaysia’s trade position and foster economic growth, rather than an impulsive response to external pressures.
Photo Credit : Tengku Zafrul Aziz’s X Page