KUALA LUMPUR, Jan 21 — New Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani told Parliament this morning that he plans to tighten loose clauses in the Agreement of Reciprocal Trade (ART) with the US, as he pledged to address all concerns around Malaysia’s economic sovereignty.

Several clauses of the pact have been heavily criticised as lopsided to favour US companies, and critics argued the signing of the agreement was rushed while the Opposition was completely left out of the negotiations that should have gone through Parliament first.

Malaysia signed the agreement in October last year when US President Donald Trump attended the Asean Summit. Putrajaya later clarified the ART has not been ratified, leaving space for more negotiations.

“From my understanding, this agreement is not finalised... so for me, when I see the ART, I found that there are many issues that we still need to deliberate over and agree on before we ratify,” Johari said during Question Time.

“We must address all the questions that have given rise to suspicion on questions of sovereignty and national interests, this is something I take note of”.

Among clauses of the agreement that faced scrutiny was Article 5.1.

Critics said the clause gives US economic interests precedence by mandating Malaysia take “complementary actions” in support of US sanctions, potentially forcing Putrajaya to align its domestic regulations with Washington’s foreign policy against specific countries or entities.

Another is Article 6.2. The clause is said to target “non-commercial assistance” or subsidies to Government-Linked Companies (GLCs), which critics argue could undermine preferential procurement and policies benefiting Bumiputera.

Johari suggested parts of the ART lack clarity, and that he would outline clear definitions to accentuate Malaysia’s national and economic interests at the ratification talks. 

The minister also pledged to include the Opposition’s input, although he was unclear about the mechanism to do this.

“I think when it comes to sovereignty, we all — that is on my and that side — won’t allow anyone to buy Malaysia (sovereignty) in return for just a 19 per cent (tariff rate). I promise you my commitment on this,” he said.