Malaysia is being cautioned against assuming that the current 10% tariff imposed by the United States on its goods will remain unchanged. Industry expert Datuk Seri R. Jeyenderan has highlighted the potential for Washington to implement additional measures if it finds Malaysia’s response to concerns about structural excess capacity and transshipment controls lacking. As the US continues its investigation, Jeyenderan advises Malaysian exporters to exercise caution.
In response to these concerns, Jeyenderan has called for the Ministry of Investment, Trade and Industry (MITI) and the Customs Department to take proactive steps. He suggests compiling verified industry data, enhancing cargo traceability, and ensuring rigorous enforcement of trade and labor regulations. These measures, he argues, are crucial in addressing the issues at hand.
One significant area of focus, according to Jeyenderan, is the implementation of robust transshipment controls. These controls are essential to prove that goods labeled as Malaysian are genuinely produced within the country, rather than being rerouted from other locations. This step would help mitigate concerns and reinforce Malaysia’s trade integrity.
Furthermore, Jeyenderan emphasizes the need for clarity in the rules governing petroleum cargo storage, blending, declarations, and tax treatment. By addressing these areas, Malaysia can reduce business uncertainties and bolster its position during the ongoing US investigation. He stresses the importance of addressing any weaknesses identified by the investigation in a prompt and transparent manner.
Ultimately, Jeyenderan underscores the necessity for Malaysia to demonstrate that its trade rules are not only established but also effectively implemented, monitored, and enforced. This approach would ensure the country’s compliance with international standards and potentially prevent further trade penalties from the US.