Malaysia to boost tech, LNG purchases from US as part of trade deal

KUALA LUMPUR, Aug 4 (Reuters): Malaysia will spend up to $150 billion in the next five years to buy equipment from US multinationals for its semiconductor, aerospace and data centre sectors, part of a deal with Washington to cut tariffs, its trade minister said on Monday.

The United States announced last week that it would impose a 19% tariff on Malaysia starting from August 8, lower than a 25% levy threatened last month.

State energy firm Petroliam Nasional Berhad will buy liquefied natural gas worth $3.4 billion a year, while Malaysia will commit to $70 billion in cross-border investments in the United States over the next five years to address the trade imbalance between the two countries, minister Tengku Zafrul Aziz told parliament.

The United States ran a goods trade deficit with Malaysia of $24.8 billion in 2024, government data showed.

Tengku Zafrul said the two countries were finalising a joint statement.

Other concessions by Malaysia include reducing or abolishing duties on 98.4% of US imports, the easing of some non-tariff barriers, and the removal of a requirement for U.S. social media platforms providers to contribute part of their Malaysian revenues to a state fund.