KUALA LUMPUR – As Malaysia continues negotiations with the United States over reciprocal import tariffs, economists say it is crucial for Datuk Seri Tengku Zafrul Abdul Aziz to remain as investment, trade and industry minister to ensure policy continuity and a steady hand in trade talks.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said retaining Tengku Zafrul would help Putrajaya stay focused on securing the best possible outcome from ongoing discussions with Washington.
“Perhaps it is best to maintain the present minister in order for Malaysia to get the best deal with the US,” he told Scoop when contacted.
Professor Emeritus Barjoyai Bardai of the Malaysia University of Science and Technology (Must) described the tariff talks with the Trump administration as one of the most difficult issues Putrajaya is currently facing. He warned that either retaining the current 24% import duty or reducing it to 10% would still be harmful to Malaysia’s economy.
He cautioned against internal political upheaval that could distract the government from managing the sensitive negotiations.
“I guess, on the one hand, we say we can afford not having Tengku Zafrul to continue as international trade minister or on the other hand, it would be better off if everything stayed as it is until we have more certainty on what is happening on the tariff issue,” he said.
Still, Barjoyai noted that Miti has developed a robust internal structure capable of operating efficiently regardless of who is in charge – a culture he credited to former minister Tan Sri Rafidah Aziz.
“The people from Miti are different – and they are doing a good job. Therefore, they can function well even without a minister.
“I mean, Tengku Zafrul has also done some good work in bringing investors and promoting Malaysia. But perhaps he is not indispensable,” he added.
The economists’ remarks come amid ongoing support for Tengku Zafrul’s ministerial role, with Pandan Umno Youth chief Rizwan Shah Azlan rejecting calls for his resignation. Rizwan, who previously worked under Tengku Zafrul, said the minister’s expertise in finance and public administration has yielded substantial benefits for Malaysia’s trade and investment sectors.
On May 30, Tengku Zafrul announced his resignation from Umno and revealed his intention to join PKR, the party led by Prime Minister Datuk Seri Anwar Ibrahim. He also relinquished his posts in the Umno supreme council and as Kota Raja division chief.
Following the announcement, Anwar ruled out a cabinet reshuffle and reaffirmed his support for Tengku Zafrul, saying the minister had played a pivotal role in securing hundreds of billions of ringgit in foreign investment.
Despite the prime minister’s endorsement, pressure continues to mount from within Umno. Several party leaders, including president Datuk Seri Ahmad Zahid Hamidi, have called for Tengku Zafrul’s replacement to preserve the party’s ministerial quota in government, which has now dropped from seven to six.
‘If Zafrul is replaced’
Barjoyai said any potential successor from Umno must ensure the current momentum in US-Malaysia tariff talks is maintained. He said positive signs have emerged from the discussions, which should not be disrupted.
However, he cautioned that unforeseen setbacks remain possible and suggested that future ministers should explore diversified strategies to mitigate risks, including focusing on food security.
“(Additionally), we also need to explore the potential new market, exploring the new market in South America, in Russia, the Baltic, and also Asia itself,” he said. – June 5, 2025