Malaysia’s current 10% tariff on exports to the United States might not be a permanent fixture, according to industry expert Datuk Seri R. Jeyenderan. He highlighted that the U.S. could impose further trade measures if Malaysia does not adequately address concerns about structural excess capacity and transshipment controls. While the U.S. investigation continues, Jeyenderan advised Malaysian exporters to maintain vigilance.
Jeyenderan emphasized the importance of robust transshipment controls to ensure that goods labeled as Malaysian are genuinely produced within the country, rather than being rerouted from other locations. To support this, he urged the Ministry of Investment, Trade and Industry (MITI) and the Customs Department to compile verified industry data, enhance cargo traceability, and enforce trade and labor regulations effectively.
He also pointed out the necessity for Malaysian authorities to clarify regulations surrounding petroleum cargo storage, blending, declarations, and tax treatment. Such clarity would help reduce uncertainty for businesses and fortify Malaysia’s stance during the ongoing U.S. investigation.
Addressing any weaknesses identified by the U.S. probe swiftly and openly is crucial, Jeyenderan noted. He stressed that Malaysia must not only have trade rules in place but also demonstrate that these rules are being properly implemented, monitored, and enforced. This proactive approach could strengthen Malaysia’s trade relations and potentially avert stricter U.S. trade measures.