An industry expert has cautioned that Malaysia should not presume the current 10% tariff levied by the United States on its exports is the highest rate it will face. Datuk Seri R. Jeyenderan emphasized the possibility of Washington implementing further actions should they find Malaysia’s response to issues such as structural excess capacity and transshipment controls lacking. He advised Malaysian exporters to remain vigilant as the US continues its investigation.
Jeyenderan urged the Ministry of Investment, Trade and Industry (MITI) and the Customs Department to take proactive steps by compiling verified industry data, enhancing the traceability of cargo, and ensuring the robust enforcement of trade and labor laws. He underscored the importance of stringent transshipment controls to validate that products claimed to be Malaysian are indeed produced within the country, rather than merely passing through from other origins.
Additionally, Jeyenderan called for clarity on rules related to petroleum cargo, including storage, blending, declarations, and tax treatment, to alleviate uncertainties faced by businesses. This, he noted, would bolster Malaysia’s position amid the ongoing US investigation.
Prompt and transparent action is necessary for Malaysia to address any deficiencies highlighted by the investigation, Jeyenderan suggested. He stressed that the nation must not only have trade regulations in place but also ensure their proper implementation, monitoring, and enforcement to effectively respond to any US concerns.
