Industry expert Datuk Seri R. Jeyenderan has cautioned that Malaysia should not regard the existing 10% tariff imposed by the United States on its goods as a permanent limit. He emphasized that if the U.S. finds Malaysia’s actions unsatisfactory in addressing concerns about structural excess capacity and transshipment controls, it could potentially implement more stringent measures. As the U.S. investigation proceeds, Jeyenderan advised Malaysian exporters to stay vigilant.
Jeyenderan urged the Malaysian Investment, Trade and Industry Ministry (MITI) and the Customs Department to gather verified data from the industry, bolster cargo traceability, and ensure robust enforcement of trade and labor regulations. Highlighting the significance of transshipment controls, he stressed the need to prove that products labeled as Malaysian are genuinely manufactured in the country, not merely passing through from other locations.
He also called on authorities to provide clarity on the rules surrounding petroleum cargo, including aspects like storage, blending, declarations, and tax treatment. Such clarity, he suggested, would reduce uncertainty for businesses and reinforce Malaysia’s stance during the U.S. inquiry. Addressing these areas efficiently, he noted, would help strengthen Malaysia’s position in the ongoing investigation.
Jeyenderan emphasized that Malaysia must promptly and transparently rectify any deficiencies identified by the investigation. He pointed out that the country needs to demonstrate not only the existence of trade regulations but also their proper implementation, monitoring, and enforcement. By doing so, Malaysia would affirm its commitment to maintaining strong and compliant trade practices.