Industry expert Datuk Seri R. Jeyenderan has cautioned that Malaysia should not view the current 10% tariff imposed by the United States on its goods as a definitive limit. He indicated that the U.S. might contemplate additional actions if Malaysia does not adequately address American concerns regarding structural excess capacity and transshipment controls. Jeyenderan advised Malaysian exporters to remain vigilant while the U.S. investigation into these issues continues.
To mitigate potential risks, Jeyenderan suggested that the Ministry of Investment, Trade and Industry (MITI) and the Customs Department should focus on gathering verified data from the industry. He emphasized the importance of enhancing cargo traceability and ensuring the robust enforcement of trade and labor regulations. This, he believes, will be crucial in proving that goods marked as Malaysian are genuinely produced within the country, rather than being rerouted from other regions.
In particular, Jeyenderan stressed the need for strong transshipment controls to reassure the U.S. that Malaysia’s exports are not merely passing through the country. He also highlighted the necessity for clear guidelines concerning the storage and blending of petroleum cargo, as well as declarations and tax treatments, to alleviate business uncertainties and bolster Malaysia’s standing during the ongoing U.S. investigation.
Jeyenderan urged Malaysian authorities to promptly and transparently address any shortcomings identified by the investigation. Ensuring that trade regulations are not only established but also effectively implemented, monitored, and enforced is vital, he noted. By taking these steps, Malaysia can better position itself and potentially avoid further scrutiny from the U.S. regarding its trade practices.