Malaysia should be cautious about assuming that the current 10% tariff imposed by the United States is a fixed limit, warns industry expert Datuk Seri R. Jeyenderan. He highlighted the possibility of the U.S. introducing further measures if Malaysia’s response to concerns regarding structural excess capacity and transshipment controls is deemed inadequate. This warning comes amid an ongoing investigation by U.S. authorities, prompting Jeyenderan to advise Malaysian exporters to remain vigilant.
In light of the situation, Jeyenderan urged Malaysia’s Investment, Trade and Industry Ministry (MITI) and the Customs Department to take proactive steps. He emphasized the importance of compiling verified industry data, enhancing cargo traceability, and ensuring the effective enforcement of trade and labor regulations to address U.S. concerns. By doing so, Malaysia can better position itself during the investigation process.
Jeyenderan stressed that robust transshipment controls are crucial to prove that goods labeled as Malaysian are genuinely produced within the country, rather than being rerouted through Malaysia from other origins. Such measures would help alleviate U.S. concerns and demonstrate Malaysia’s commitment to fair trade practices.
In addition, he called for clarity on the rules governing petroleum cargo, including storage, blending, declarations, and tax treatment. By reducing uncertainties in these areas, Malaysia can strengthen its position and provide businesses with clearer guidelines amidst the ongoing U.S. scrutiny.
To maintain confidence and transparency, Jeyenderan advised that any weaknesses identified during the investigation should be addressed promptly. He emphasized that Malaysia must not only have trade rules in place but also ensure they are properly implemented, monitored, and enforced to reassure international partners of its commitment to fair and transparent trading practices.