An industry expert in Malaysia has cautioned that the 10% tariff currently levied by the United States on Malaysian goods should not be seen as a fixed limit. Datuk Seri R. Jeyenderan stressed that the U.S. might impose further tariffs if it is not satisfied with how Malaysia addresses issues such as structural excess capacity and the controls over transshipment. He advised Malaysian exporters to remain vigilant while the U.S. continues its investigation.
Jeyenderan emphasized the importance of the Investment, Trade and Industry Ministry (MITI) and the Customs Department in compiling verified industry data. He highlighted the need to enhance cargo traceability and ensure that trade and labor regulations are effectively enforced. According to him, demonstrating robust transshipment controls is crucial. This would verify that products labeled as Malaysian are genuinely produced within the country and not simply rerouted from other places.
The expert also pointed out that clarifying the rules related to petroleum cargo storage, blending, declarations, and tax treatment is essential. Doing so would alleviate uncertainties for businesses and bolster Malaysia’s stance during the ongoing U.S. investigation. The goal is to reduce ambiguity and strengthen the country’s position as it faces scrutiny from U.S. trade authorities.
Jeyenderan called for Malaysia to promptly and transparently address any weaknesses highlighted by the investigation. He insisted that the country must not only have its trade rules in place but also ensure they are properly implemented, monitored, and enforced. By doing so, Malaysia can demonstrate its commitment to complying with international trade standards and potentially avoid further punitive measures from the U.S.