Malaysia must not become complacent about the 10% tariff currently levied by the United States on its goods, according to industry expert Datuk Seri R. Jeyenderan. He cautions that this tariff rate should not be seen as a permanent cap, as Washington may consider further actions if Malaysia’s response to issues like structural excess capacity and transshipment controls is deemed inadequate. Jeyenderan advises Malaysian exporters to stay vigilant as the US investigation continues.

He emphasizes the importance of the Investment, Trade and Industry Ministry (MITI) and the Customs Department in compiling reliable industry data, enhancing cargo traceability, and ensuring the robust enforcement of trade and labor regulations. These measures are crucial to address US concerns and demonstrate Malaysia’s commitment to fair trade practices.

Jeyenderan highlights the significance of strong transshipment controls, which are essential to prove that products labeled as Malaysian are genuinely produced within the country and not merely passing through from other origins. He also urges Malaysian authorities to provide clear guidelines on the rules governing petroleum cargo, including aspects such as storage, blending, declarations, and tax treatment. Clarifying these regulations would help alleviate uncertainty for businesses and fortify Malaysia’s stance amid the ongoing US scrutiny.

Addressing any deficiencies identified by the investigation swiftly and with transparency is vital, Jeyenderan asserts. He stresses that Malaysia must show that its trade regulations are not only established but are effectively implemented, monitored, and enforced. This proactive approach is necessary to maintain the integrity of Malaysia’s trade practices and to potentially prevent the imposition of additional US tariffs.