Malaysia: United States and Malaysia signed Agreement on Reciprocal Trade including technology transfer requirements

On 26 October 2025, the United States and Malaysia signed an Agreement on Reciprocal Trade that outlines technology transfer requirements. The Agreement specifies that Malaysia shall not compel US companies to transfer proprietary knowledge or accord preference to a particular technology as a condition for doing business within its jurisdiction. This does not apply in instances of government procurement, and further does not prohibit businesses from negotiating contracts with source code transfer requirements within the terms and conditions. Additionally, it allows for access to software used for critical infrastructure. Moreover, it allows for Parties involved in the creation of international contracts to require the modification of source code to comply with laws and regulations. There is also an exception to the prohibition on conditional technology transfer for investigations. Finally, this provision does not apply to measures adopted for prudential reasons.