Industry expert Datuk Seri R. Jeyenderan has cautioned Malaysia against assuming that the current 10% tariff imposed by the United States on its goods is a fixed limit. He highlighted the possibility that Washington might implement further measures if it finds Malaysia’s response to concerns over structural excess capacity and transshipment controls inadequate. Jeyenderan advised Malaysian exporters to maintain vigilance while the US continues its investigation.
Jeyenderan recommended that the Investment, Trade and Industry Ministry (MITI) and the Customs Department take proactive steps to compile accurate industry data, enhance cargo traceability, and ensure rigorous enforcement of trade and labor regulations. He emphasized the importance of robust transshipment controls to prove that products labeled as Malaysian are genuinely produced within the country, rather than simply being rerouted through Malaysia from other origins.
In addition, Jeyenderan urged the authorities to clarify the regulations surrounding petroleum cargo storage, blending, declarations, and tax treatment to mitigate uncertainty for businesses. This, he believes, would strengthen Malaysia’s position during the ongoing US investigation. Clear guidelines and consistent practices in these areas are crucial to reducing ambiguity and enhancing compliance.
He stressed the need for Malaysia to address any weaknesses identified in the investigation both promptly and transparently. According to Jeyenderan, it is imperative for the country to demonstrate that its trade policies are not only established but are also effectively implemented, monitored, and enforced. By doing so, Malaysia can show its commitment to maintaining fair and transparent trade practices, which may influence the outcomes of the US investigation favorably.