An industry expert, Datuk Seri R. Jeyenderan, has emphasized that Malaysia should not become complacent about the current 10% tariff imposed by the United States on its goods, cautioning that it may not be a permanent cap. Jeyenderan pointed out that if Malaysia’s response to issues like structural excess capacity and transshipment controls does not satisfy U.S. concerns, additional measures could be considered by Washington. He advised Malaysian exporters to remain vigilant as the U.S. investigation continues.
Jeyenderan highlighted the need for the Ministry of Investment, Trade and Industry (MITI) and the Customs Department to take proactive steps by compiling verified industry data, enhancing cargo traceability, and ensuring the enforcement of trade and labor regulations. These actions are crucial for maintaining transparency and compliance, which could influence the outcome of the U.S. investigation.
He stressed the importance of strong transshipment controls to verify that products attributed to Malaysia are indeed manufactured domestically, rather than being rerouted through the country from other origins. This is an essential measure to uphold Malaysia’s trade integrity and build confidence in its export practices.
Furthermore, Jeyenderan urged authorities to provide clarity regarding the rules on petroleum cargo storage, blending, declarations, and tax treatment. By reducing uncertainty, businesses can operate with more confidence, which will also help bolster Malaysia’s standing during the U.S. trade scrutiny. He emphasized that Malaysia must not only have stringent trade regulations in place but must also ensure they are effectively implemented, monitored, and enforced.
In light of the ongoing investigation, Jeyenderan advised Malaysia to address any identified weaknesses promptly and transparently. This approach will demonstrate the country’s commitment to maintaining robust trade practices and could potentially mitigate the risk of further tariffs or sanctions from the United States.