Industry expert Datuk Seri R. Jeyenderan has advised Malaysia not to view the current 10% tariff imposed by the United States on its goods as a fixed limit. He cautioned that the U.S. might explore further measures if it finds Malaysia’s handling of issues related to structural excess capacity and transshipment controls unsatisfactory. With an ongoing U.S. investigation, Jeyenderan urged Malaysian exporters to maintain vigilance.
He emphasized the need for the Investment, Trade and Industry Ministry (MITI) along with the Customs Department to gather verified industry data. Additionally, Jeyenderan highlighted the importance of enhancing cargo traceability and ensuring the robust enforcement of trade and labor regulations. These steps, he noted, are crucial for reinforcing Malaysia’s trade practices and maintaining credibility with international partners.
Particularly, Jeyenderan stressed the necessity of strong transshipment controls to assure that products labeled as Malaysian are indeed domestically produced rather than merely passing through the country en route from elsewhere. This measure is vital to uphold the integrity of Malaysia’s trade commitments and to mitigate any suspicion of trade circumvention.
Furthermore, Jeyenderan called on authorities to clarify guidelines concerning petroleum cargo storage, blending, declarations, and tax treatment. By doing so, Malaysia can reduce business uncertainties and strengthen its stance during the ongoing U.S. investigation. This clarity is essential for sustaining confidence among international business partners and for ensuring compliance with global trade standards.
Addressing any shortcomings identified in the investigation should be a priority for Malaysia, Jeyenderan advised. He stressed that Malaysia must not only have trade rules in place but also ensure they are effectively implemented, monitored, and enforced. By acting transparently and promptly, Malaysia can demonstrate its commitment to rectifying any issues and maintaining robust trade relations with the United States.
