Malaysia’s exporters might face more than the current 10% tariff from the United States if further actions are taken, warned industry specialist Datuk Seri R. Jeyenderan. He cautioned that the U.S. could implement additional measures if Malaysia does not adequately address concerns related to structural excess capacity and transshipment controls. As the U.S. investigation continues, Malaysian businesses are advised to tread carefully.
To preempt potential escalations, Jeyenderan has urged the Ministry of Investment, Trade and Industry (MITI) along with the Customs Department to compile thoroughly verified industry data. By enhancing cargo traceability and ensuring strict enforcement of trade and labor regulations, Malaysia can better position itself during the ongoing scrutiny from the U.S.
Key among the suggested strategies is the enforcement of robust transshipment controls to showcase that products labeled as Malaysian are indeed produced within the country, rather than merely passing through. This step is crucial to counter any misconceptions about the origin of goods attributed to Malaysia.
Additionally, Jeyenderan emphasized the need for clear guidelines on petroleum cargo storage, blending, declarations, and tax treatment to minimize business uncertainties. Such clarity would not only assist businesses in planning but also bolster Malaysia’s stance as the investigation unfolds.
He further stressed the importance of addressing any deficiencies identified during the investigation in a prompt and transparent manner. According to Jeyenderan, it’s vital for Malaysia to prove that its trade regulations are not just theoretical but are actively enforced and monitored, ensuring compliance and maintaining positive trade relations with the U.S.
