Kota Kinabalu: Deputy Plantation and Commodities Minister Datuk Chan Foong Hin dismissed claims that the Malaysia-US Agreement on Reciprocal Trade (ART 2025) favoured Peninsular Malaysia and sidelined Sabah and Sarawak.
“Such perceptions do not accurately reflect the purpose or benefits of the agreement, which are national in scope,” Chan said in a statement Thursday in response to concerns raised by several Sabah leaders.
“There is no justification to suggest that this agreement undermines Sabah’s interests,” he added.
He pointed out that the zero-tariff list covering 1,711 Malaysian products includes major Sabah commodities such as palm oil, rubber, timber and cocoa.
“Sabah remains Malaysia’s largest producer of crude palm oil, recording 4.27 million tonnes in 2024, equivalent to 22.1 per cent of total national output,” he said.
He said Sabah’s certified sustainable palm oil (MSPO) and cocoa-based products would enjoy improved market access to the United States under the agreement.
“These are precisely the sectors driven by smallholders and cooperatives in East Malaysia — groups that the Madani Government actively supports,” he said.
Chan also dismissed claims that LNG imports from the US would undermine facilities in Kimanis or Bintulu.
He quoted Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz, who clarified that Petronas has sourced LNG from multiple international partners, including the US, long before the latest tariff announcements.
“The LNG facilities in Kimanis and Bintulu remain core national assets, contributing billions of ringgit in revenue to both the Federal and State Governments,” he said.
Chan, who is also Kota Kinabalu Member of Parliament, said Sabah has never been sidelined in Malaysia’s trade diplomacy, with the State increasingly represented in international missions and bilateral negotiations.
“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,” he said.
He urged leaders to work collectively to ensure Sabah seizes the full spectrum of export and investment opportunities from the partnership.
“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 international trade deals,” he added.
