Malaysia has not agreed to all requests from the United States (US) regarding digital trade and technology in the ongoing reciprocal trade tariff negotiations, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.
He stressed that the Malaysian government retains the right to request access to or instruct companies to transfer the source code of software used in critical infrastructure, government procurement, and the financial services sector, as well as for licensing and judicial purposes.
“Malaysia emphasises the government’s transparent and balanced commitment in two aspects. The first aspect is the commitment to protect companies’ intellectual property from forced technology transfer, promote innovation and ensure fair competition in the international market.
“The second aspect is to preserve the country’s sovereignty, security and economic stability,” he said during a ministerial briefing on the reciprocal trade negotiations with the US at the Dewan Rakyat today.
Tengku Zafrul also said Malaysia will maintain its policy that cloud service providers and social media platforms remain subject to criminal liability under Malaysian law.
On Aug 1, the new tariff rate for Malaysia was confirmed at 19 per cent, representing a six per cent cut from the previously announced rate on July 7, 2025.
Source: Business Today
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<p>Time: November 2025<br /> By: WTO and International Trade Group, Legal Department – VCCI</p>
