Malaysia may need to brace for potential changes in the tariffs imposed by the United States, as the current 10% tariff on Malaysian goods should not be considered a permanent measure, according to industry expert Datuk Seri R. Jeyenderan. He highlighted the possibility of the U.S. implementing additional tariffs if it finds Malaysia’s response to issues like structural excess capacity and transshipment controls unsatisfactory. Jeyenderan emphasized the importance of Malaysian exporters staying vigilant amidst the ongoing U.S. investigation.
To navigate these challenges, Jeyenderan urged the Ministry of Investment, Trade and Industry (MITI) and the Customs Department to take proactive measures. He recommended compiling comprehensive industry data, enhancing the traceability of cargo, and ensuring that trade and labor regulations are enforced effectively. These steps are crucial in proving that goods claimed to be produced in Malaysia are genuinely manufactured domestically, rather than merely passing through the country from other origins.
Strong transshipment controls are a key focus, as they serve as evidence that Malaysian goods are not falsely attributed. Jeyenderan also called for clarification on the regulations surrounding petroleum cargo storage, blending, declarations, and tax treatment. By reducing uncertainties for businesses, Malaysia can strengthen its stance during the U.S. investigation.
Addressing any weaknesses identified during the investigation in a timely and transparent manner is essential, Jeyenderan stressed. Demonstrating that Malaysia’s trade rules are not only established but also properly implemented, monitored, and enforced will be crucial in reassuring the U.S. and maintaining favorable trade relations. These proactive measures are vital in ensuring Malaysia’s continued economic stability and competitiveness in the global market.