Tengku Zafrul Wraps Up Cabinet Tenure Addresses China S Jitters Over Art Pact

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Datuk Seri Tengku Zafrul Abdul Aziz speaks during a press conference at Wisma Bernama in Kuala Lumpur, December 2, 2025. — Picture by Firdaus LatifKUALA LUMPUR, Dec 2 — On his final day as a Cabinet minister, Datuk Seri Tengku Zafrul Abdul Aziz signalled that he is prepared to continue serving the government in any role that the prime minister may assign.
He confirmed that discussions on his future role were raised in his last Cabinet meeting.
“As Datuk Fahmi (Communications Minister Datuk Fahmi Fadzil) said, there was a discussion in Cabinet that the prime minister briefed. 
“That was my last Cabinet meeting,” he said.
“The prime minister also mentioned yesterday that there will still be a role for me to support the government. We will wait until December 3.”
Tengku Zafrul stressed that he had earlier conveyed to Prime Minister Datuk Seri Anwar Ibrahim his openness to continue contributing.
“I did talk to the prime minister before. 
“I said that I’m willing to support in any capacity — to support the government and the country. But I don’t know what the prime minister has decided,” he told reporters at a press conference here in Wisma Bernama. 
As questions shifted from his future role to current economic matters, Tengku Zafrul clarified on discussions with China about a proposed memorandum of understanding (MoU) following concerns raised by Beijing about the wording of the US-Malaysia ART (Agreement on Reciprocal Trade).
Yesterday in Parliament, Tengku Zafrul had revealed that China had expressed unease over potential “duplication” of commitments under the ART, fearing it might result in preferential treatment for the US — concerns that China formally raised during Premier Li Qiang’s visit to Kuala Lumpur. 
Tengku Zafrul had in Parliament yesterday told lawmakers that Malaysia had clarified the terminology and legal intent of the agreement to Chinese officials, emphasising that the ART does not undermine Malaysia’s obligations under existing Asean-China arrangements.
He reiterated this explanation today, saying that Beijing was primarily seeking assurance that the agreement would not disadvantage Chinese companies.
“They don’t want to be in a position where we give preferential treatment to the US,” Tengku Zafrul said.
Malaysia provided clarifications both in Kuala Lumpur and will meet again in Beijing.
According to Tengku Zafrul, China responded positively — and used the opportunity to propose a broader MoU to strengthen bilateral trade and investment ties.
“It was not a statement that they don’t want to work with us. 
“In fact, they want to work closer with us and make it more tangible,” he said.
“The details are still preliminary, but the parameters involve improving investment flows between Malaysia and China, focusing on major companies and strategic sectors.”
Tengku Zafrul added that as comprehensive strategic partners, both countries aim to elevate cooperation beyond existing Free Trade Agreement (FTA) frameworks, including RCEP (Regional Comprehensive Economic Partnership) and the Asean-China FTA.
When asked on rare earths, Tengku Zafrul said no foreign or local proposals — other than Lynas — had been submitted for approval.
“We welcome China, the US, and Australia is already here to develop midstream and downstream industries, but we have yet to approve any licences because there have been no formal submissions,” he said.
Reflecting on 2025, Tengku Zafrul said it was a challenging year.
“It’s been a challenging year. To say it’s an exciting year is an understatement. 
“On the ART, our conscience is clear. We did the best we can to protect our market access and the livelihoods of millions of Malaysians,” he said. 
He noted that another major task was ensuring Malaysian companies remain competitive as global supply chains reorganise.
“So this is where the other challenge is to ensure that Malaysian companies remain competitive as companies realign and redesign their supply chain. 
“If we are not competitive enough we will be out of that supply chain, so that I think is the other challenge that people don’t speak about but is equally important as the ART itself,” he said. 
Tengku Zafrul also highlighted the successful upgrade of the Asean-China Free Trade Agreement (FTA 3.0), calling it crucial given the scale of trade flows.
This was among the 18 priority economy deliverables which were completed by January 1. 
“It was important to complete that — because China is Asean’s largest trading partner, and now Asean is also the largest trading partner for China.  
“So we need to ensure that a there is a bit more balance trade for Asean with China, and we want better market access to China,” he said.  - malaymail

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