Industry expert Datuk Seri R. Jeyenderan has cautioned Malaysia against assuming that the current 10% tariff levied by the United States on its exports is a fixed upper limit. He suggested that the U.S. might consider implementing further measures if Malaysia does not adequately address its concerns regarding structural overcapacity and the control of transshipment. During the ongoing U.S. investigation, Jeyenderan urged Malaysian exporters to remain vigilant.
Jeyenderan called upon the Ministry of Investment, Trade and Industry (MITI) and the Customs Department to gather and verify industry data, bolster cargo traceability, and ensure robust enforcement of trade and labor laws. According to him, reinforcing transshipment controls is crucial to prove that products labeled as Malaysian are genuinely produced within the country, rather than being rerouted through Malaysia from other origins.
Additionally, Jeyenderan emphasized the need for authorities to provide clear guidelines on the storage, blending, declarations, and tax treatment of petroleum cargo. This clarity would aim to decrease business uncertainty and fortify Malaysia’s standing in the ongoing U.S. investigation.
He urged Malaysia to swiftly and transparently address any weaknesses identified by the investigation. Jeyenderan stressed the importance of demonstrating that the country’s trade regulations are not only established but are also effectively implemented, monitored, and enforced.