Malaysia must not regard the current 10% tariff imposed by the United States on its goods as a permanent measure, according to industry expert Datuk Seri R. Jeyenderan. He highlighted the possibility of Washington implementing further actions if Malaysia’s response to concerns about structural excess capacity and transshipment controls falls short. Jeyenderan advised Malaysian exporters to exercise caution as the US investigation continues.
In response to these challenges, Jeyenderan has urged the country’s Investment, Trade and Industry Ministry (MITI) and Customs Department to compile accurate industry data, enhance cargo traceability, and ensure the effective enforcement of trade and labor regulations. These steps, he believes, are critical in addressing the concerns raised by the United States.
Emphasizing the importance of strong transshipment controls, Jeyenderan noted that it is essential to prove that goods claimed to be of Malaysian origin are genuinely produced within the country and not merely routed through it from other locations. This verification is crucial to maintain credibility in trade practices and to satisfy international standards.
Additionally, Jeyenderan called for clarity in the rules concerning petroleum cargo storage, blending, declarations, and tax treatment. Such clarity would help reduce uncertainty for businesses and potentially bolster Malaysia’s position during the ongoing US investigation. By addressing these issues, Malaysia can better navigate the complexities of international trade relations.
Jeyenderan underscored the importance of promptly and transparently addressing any weaknesses identified by the investigation. He stressed that Malaysia must not only have trade rules in place but also ensure they are properly implemented, monitored, and enforced. This proactive approach is vital to maintaining strong trade relations and avoiding further complications with the United States.
