Malaysia has not yet ratified its trade agreement with the United States, with the government opting to hold dedicated briefings for members of parliament before making a final decision.
Investment, Trade and Industry Minister Tan Sri Mustapa Mohamed confirmed the pause, signaling that domestic legislative scrutiny will take precedence over immediate execution of the deal.
The delay comes as a US tariff deadline nears, adding pressure on Malaysian exporters and investors who are monitoring the trade relationship closely.
The Agreement on Trade in Services (ART) was intended to deepen economic ties, but the ratification process has stalled amid the need for broader political consensus in Kuala Lumpur.
This development adds to a broader wave of trade policy uncertainty under the current US administration.
President Donald Trump previously set a July 4 deadline for the European Union to ratify its own trade agreement, warning that failure to comply could result in significantly higher tariffs.