Industry expert Datuk Seri R. Jeyenderan has advised Malaysia to be vigilant as the 10% tariff currently imposed by the United States on Malaysian goods might not be the maximum. The possibility of additional measures looms if the U.S. finds Malaysia’s actions unsatisfactory regarding issues like structural excess capacity and transshipment controls. Jeyenderan emphasized the importance for Malaysian exporters to remain cautious amid the ongoing U.S. investigation.
To address these concerns, Jeyenderan urged the Malaysian Ministry of Investment, Trade and Industry (MITI) alongside the Customs Department to compile verified industry data, enhance cargo traceability, and ensure strict enforcement of trade and labor regulations. These steps are crucial in demonstrating that goods labeled as Malaysian are genuinely produced within the country and not merely rerouted through it.
He highlighted the necessity of robust transshipment controls to support Malaysia’s case, stressing the importance of clarity in the rules governing petroleum cargo. This includes aspects like storage, blending, declarations, and tax treatment, which can help reduce business uncertainties and strengthen Malaysia’s position during the investigation by the U.S.
Jeyenderan also called for a prompt and transparent response to any weaknesses identified during the investigation. He emphasized that Malaysia must not only have trade rules in place but also actively demonstrate their effective implementation, monitoring, and enforcement. These measures are vital to reassure the U.S. of Malaysia’s commitment to addressing its concerns and maintaining stable trade relations.