Industry expert Datuk Seri R. Jeyenderan has cautioned Malaysia against viewing the existing 10% tariff imposed by the United States on Malaysian goods as a permanent cap. According to Jeyenderan, if the U.S. finds Malaysia’s response to issues like structural excess capacity and transshipment controls unsatisfactory, additional measures could be considered. As the investigation by the U.S. continues, he advised Malaysian exporters to remain vigilant.
Jeyenderan emphasized the importance of strong transshipment controls, highlighting that Malaysia must prove goods attributed to the country are indeed produced domestically and not merely passing through from other nations. He urged the Ministry of Investment, Trade and Industry (MITI) along with the Customs Department to gather verified industry data, enhance cargo traceability, and ensure the effective enforcement of trade and labor regulations.
The expert also pointed out the necessity for authorities to clarify existing regulations concerning petroleum cargo storage, blending, declarations, and tax treatment. This step, he said, would help reduce uncertainties faced by businesses and reinforce Malaysia’s stance amid the ongoing U.S. investigation. Jeyenderan stressed that addressing these areas would be crucial for the nation to present a robust response during the probe.
Prompt and transparent action on any weaknesses identified by the investigation is vital, Jeyenderan noted. He insisted that Malaysia must showcase not only the presence of trade rules but also their proper implementation, monitoring, and enforcement. Through these efforts, Malaysia can strengthen its trade position and mitigate the risks of further tariffs being imposed by the United States.