Industry expert Datuk Seri R. Jeyenderan has cautioned Malaysia against assuming that the existing 10% tariff imposed by the United States on its goods will remain unchanged. According to Jeyenderan, the U.S. may consider implementing additional measures if it finds Malaysia’s response to issues like structural excess capacity and transshipment controls unsatisfactory. He advised Malaysian exporters to remain vigilant as the U.S. investigation continues.
Jeyenderan emphasized the importance of the Investment, Trade and Industry Ministry (MITI) and the Customs Department in taking proactive steps. He recommended that these bodies compile accurate industry data, enhance cargo traceability, and ensure that trade and labor regulations are effectively enforced. Such measures, he noted, are crucial for demonstrating that goods labeled as Malaysian are genuinely produced within the country and not merely passing through from elsewhere.
Furthermore, Jeyenderan highlighted the need for clear guidelines regarding the storage, blending, declarations, and tax treatment of petroleum cargo. These clarifications, he argued, are vital for reducing business uncertainty and for bolstering Malaysia’s stance amid the ongoing U.S. investigation.
He urged Malaysia to promptly and transparently address any weaknesses identified during the investigation. Demonstrating that trade rules are not only established but also properly implemented, monitored, and enforced is essential, Jeyenderan stated, to strengthen Malaysia’s trade relations and avoid potential escalations in tariffs.