KUALA LUMPUR (July 17): A total of five Malaysian-based companies have been sanctioned by the US since December 2023, according to Minister of Investment, Trade and Industry (Miti) Tengku Datuk Seri Zafrul Abdul Aziz.

The five companies are Skyline Advanced Technologies Sdn Bhd, Nava Hobbies Sdn Bhd, Integrated Scientific Microwave Technology Sdn Bhd, Arta Wave Sdn Bhd and Jatronics Sdn Bhd.

In a written parliamentary response to Datuk Seri Ronald Kiandee (Perikatan Nasional-Beluran), Zafrul stated that these companies are suspected or have been accused of trading activities and supplying goods that facilitate the transfer of materials, components and strategic technology for Iran's weapons programme or to the Russian armed forces.

However, none of these companies are registered with the Malaysian Investment Development Authority (Mida) for manufacturing licences or incentives, meaning they are traders and not manufacturers, Zafrul noted.

Zafrul stressed that the unilateral ban imposed by the US does not impact the overall value of Malaysia's exports, but affects the individual companies by cutting off their access to financial, trading and service systems based in the US.

The minister stressed that Malaysian trade remained resilient and strong in May 2024, with a 10.3% year-on-year (y-o-y) growth to RM246.31 billion, the highest since October 2022. The value of exports grew for the second consecutive month by 7.3% to RM128.22 billion, while imports grew by 13.8% to RM118.09 billion, resulting in a trade surplus of RM10.14 billion.

Zafrul said export growth was driven by strong exports of electrical and electronic (E&E) products, palm oil, metal manufacturing, optical and scientific equipment, and iron and steel products.

Notably, exports of E&E products maintained positive growth for two consecutive months, with significant increases to Asean, the US, and Free Trade Agreement (FTA) trading partners, including Mexico and Canada. Exports to FTA trading partners increased by 4.5% y-o-y to RM87.64 billion.

Zafrul added that Malaysia remains committed to strengthening trade relations with all partner countries and ensuring continued economic growth despite external challenges.