Other indices also advanced, with the plantation index gaining 38.52 points to 7,947.81, healthcare rising 22.8 points to 1,693.56, and technology adding 1.11 points to 64.08 at the opening.

Meanwhile, the ringgit opened higher at 4.2145/2350 against the US dollar from 4.2210/2255 at Friday’s close, and finished firmer at 4.2085/2135 versus the greenback.

Setting aside external factors such as the lower-than-expected US consumer price index (CPI) data in September and the US Federal Reserve’s interest rate direction, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid reckoned that the Malaysia-US deals, in particular the 1,711 Malaysian exports that will enjoy lower tariffs to the US, have lifted investor sentiment regarding the local capital market.

“What it means is that Malaysia is well-positioned (to withstand) the tariff shock, as the country has built good rapport with various countries across the globe. 

“This would be positive for the ringgit over the medium- and long-term horizons,” he told Bernama.

According to Mohd Afzanizam, tariff shocks have always been a source of concern for policymakers and investors. 

“Clearly, our government’s diplomatic approach has yielded the intended outcome, where the effective tariff rates are much lower on a blended basis.

“At the same time, it will be the key catalyst for our local firms to scale up, as they need to prepare themselves for greater competition as well as the opportunity to penetrate global markets,” he said.

Responding to the question if the deals signed between Malaysia and the US, especially the Agreement on Reciprocal Trade (ART), would elevate Malaysia’s global standing as an attractive investment destination Mohd Afzanizam said, “Definitely, as it clearly demonstrates that Malaysia’s diplomatic strategy is effective, and the country is serious about doing business with a wide range of nations, including the US.”

However, he pointed out that there are still gaps that need to be addressed, particularly among micro, small, and medium-sized enterprises (MSMEs), to enable their integration into global supply chains.

“This would mean increased spending to create the right ecosystem for foreign investors and to facilitate greater technology transfers,” he added.

Trump arrived in Malaysia around 10 am on Sunday to attend the 47th ASEAN Summit and Related Summits and departed at 10.06 am today, marking the conclusion of his maiden official visit to Malaysia and his first participation in an ASEAN Leaders’ Summit since beginning his second presidency in January 2025.

During his visit, Trump held a bilateral meeting with Anwar, in which both leaders signed the Comprehensive Strategic Partnership (CSP), signifying the recognition of growing strategic and multifaceted cooperation between Putrajaya and Washington.

Both leaders also signed the ART, which enabled up to 1,711 Malaysian products, including palm oil, rubber, and cocoa, as well as some pharmaceutical components and aerospace equipment, to be exported to the US at tariffs lower than 19 per cent.

Under the ART, the US has identified products listed under Annexe III to Executive Order 14346, dated Sept 5, 2025, on Potential Tariff Adjustments for Aligned Partners, to receive a zero per cent reciprocal tariff rate.

“The signing (of ART) marks the conclusion of the negotiations earlier, making the (tariff) deal official,” Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz told a press conference on Sunday (Oct 26).

Anwar and Trump also inked a memorandum of understanding (MoU) on critical minerals between Malaysia and the US.

--BERNAMA