KL Boosts Tech, LNG Purchases From U.S. As Part Of Trade Deal

Malaysia will spend up to $150 billion over the next five years to buy equipment from U.S. multinationals for its semiconductor, aerospace, and data center sectors, as part of a deal with Washington to cut tariffs, its trade minister said, August 4, 2025, Rozanna Latiff reported for Reuters.

State energy firm Petroliam Nasional Berhad (Petronas) will buy LNG worth $3.4 billion annually. I Photo: PETRONAS LinkedIn

The U.S. announced last week that it would impose a 19% tariff on Malaysia starting August 8—lower than the 25% levy threatened last month.

State energy firm Petroliam Nasional Berhad (Petronas) will buy liquefied natural gas (LNG) worth $3.4 billion annually, while Malaysia will commit to $70 billion in cross-border investments in the U.S. over the next five years to address the trade imbalance between the two countries, Minister Tengku Zafrul Aziz told Parliament.

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

Tengku Zafrul said the two countries were finalizing a joint statement covering the commitments made, following weeks of negotiations over tariffs imposed by U.S. President Donald Trump's administration.

"Despite expecting lower tariff rates, the ministry believes that these negotiations have succeeded in achieving a result that is reasonable, given the offers made by Malaysia," Tengku Zafrul said.

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