Malaysia’s exporters should remain vigilant as the United States’ 10% tariff on the country’s goods might not be the cap, warned industry expert Datuk Seri R. Jeyenderan. He highlighted the possibility of Washington implementing further measures if it finds Malaysia’s handling of issues like structural excess capacity and transshipment controls unsatisfactory. Jeyenderan stressed the importance of caution while the US continues its investigation.
Emphasizing the need for action, Jeyenderan urged Malaysia’s Investment, Trade and Industry Ministry (MITI) and the Customs Department to compile accurate industry data and enhance cargo traceability. This includes ensuring that trade and labor regulations are effectively enforced. He pointed out that robust transshipment controls are crucial to prove that goods labeled as Malaysian are genuinely made in the country, rather than being rerouted from elsewhere.
Furthermore, Jeyenderan called for clearer guidelines on managing petroleum cargo storage, blending, declarations, and tax treatment. This clarity is essential to reduce business uncertainties and bolster Malaysia’s stance during the ongoing US inquiry. He underscored the importance of addressing these areas to fortify Malaysia’s trade position.
To reinforce Malaysia’s trade credibility, Jeyenderan advised the country to swiftly and transparently rectify any weaknesses uncovered by the investigation. He emphasized that Malaysia must not only have trade rules in place but must also demonstrate their proper implementation, monitoring, and enforcement. This proactive approach is vital to maintain favorable trade relations with the United States.