Malaysian exporters should not take the current 10% tariff imposed by the United States as a lasting limit, warned industry expert Datuk Seri R. Jeyenderan. He highlighted the potential for Washington to explore further actions if it finds Malaysia’s response to concerns about structural excess capacity and transshipment controls inadequate. Jeyenderan advised exporters to stay vigilant while the US investigation continues.
Jeyenderan emphasized the need for Malaysia’s Investment, Trade and Industry Ministry (MITI) and the Customs Department to gather and verify industry data meticulously. Strengthening cargo traceability and enforcing trade and labor regulations effectively are crucial steps he recommended. He pointed out the importance of robust transshipment controls to ensure that products labeled as Malaysian are genuinely manufactured within the country, rather than being routed through Malaysia from other origins.
He further suggested that authorities should clarify the regulations surrounding petroleum cargo storage, blending, declarations, and tax treatments. This clarity would help reduce business uncertainties and bolster Malaysia’s stance during the US investigation. Jeyenderan’s comments underline the importance of clear and transparent rules to navigate potential challenges arising from the scrutiny.
Addressing any shortcomings identified by the investigation swiftly and transparently is vital, Jeyenderan noted. He stressed that Malaysia needs to prove not only the existence of its trade regulations but also their proper implementation, monitoring, and enforcement. Such measures would demonstrate the country’s commitment to maintaining fair trade practices and could potentially mitigate any further actions from the US regarding tariffs.