An industry expert has cautioned Malaysia against assuming that the current 10% tariff set by the United States on its goods is a fixed upper limit. Datuk Seri R. Jeyenderan highlighted potential risks, suggesting that the U.S. might implement further actions if Malaysia does not adequately address concerns regarding structural excess capacity and the enforcement of transshipment controls. He advised Malaysian exporters to proceed with vigilance as the U.S. investigation into these matters unfolds.
Jeyenderan emphasized the necessity for the Malaysian Investment, Trade and Industry Ministry (MITI) and the Customs Department to gather and verify industry data meticulously. Strengthening cargo traceability and ensuring stringent enforcement of trade and labor regulations are crucial steps, he recommended, to mitigate potential repercussions from the U.S.
Particular attention should be paid to transshipment controls to prove that products labeled as Malaysian are genuinely manufactured within the country rather than merely passing through from other origins, Jeyenderan argued. This measure is essential to maintain transparency and trust in Malaysia’s trade practices amid the ongoing scrutiny.
Furthermore, Jeyenderan called for clear guidelines concerning the handling of petroleum cargo, including storage, blending, declarations, and tax treatment. These clarifications would help reduce business uncertainties and enhance Malaysia’s defensive stance during the U.S. investigation. By addressing these areas, Malaysia can demonstrate a commitment to adhering to proper trade regulations and enforcement.
Prompt and transparent action to rectify any identified shortcomings from the investigation is necessary, according to Jeyenderan. He stressed that it is vital for Malaysia to show that not only are trade rules established, but they are also actively implemented, monitored, and enforced to strengthen its position and credibility on the international stage.