Industry practitioner Datuk Seri R. Jeyenderan cautions that the 10% US tariff on Malaysian goods is not guaranteed and urges stronger supply chain traceability.
PETALING JAYA: Malaysia should not regard the 10% tariff currently imposed by the United States on Malaysian goods as a guaranteed ceiling, as the rate could be reviewed if Washington is dissatisfied with Malaysia’s efforts to address its concerns, said industry practitioner Datuk Seri R. Jeyenderan.
He said while the 10% rate provided some relief to Malaysian businesses compared with potentially higher tariffs, exporters should remain cautious as the US could take further action depending on the outcome of its investigations.
“Businesses should understand that 10% is not a guaranteed ceiling. If the US is not satisfied with Malaysia’s response or believes that the commitments made are not being properly implemented, there is a possibility that further measures could be considered,” he said in a statement today.
With more than 30 years of maritime experience, Jeyenderan said the issue was particularly important in view of the ongoing US investigation into structural excess capacity, which involves Malaysia among several economies.
Recently, Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said the US was expected to announce its findings from the investigation into excess capacity involving Malaysia within three to four weeks.
Johari explained that the current 10% tariff formed part of a broader US action involving 60 economies under Section 301 of the Trade Act 1974, with Malaysia among 17 economies subjected to the lower tariff rate.
The remaining economies were subject to a 12.5% tariff, he said.
Jeyenderan, who is also chief executive officer of Maritime Network Sdn Bhd, said Malaysia should use the period before the US announces its findings to strengthen its evidence and demonstrate that its commitments were being effectively implemented.
He said US concerns over goods moving through third countries also made strong transshipment controls important to Malaysia’s position in the investigation.
“Yes, in my view. Weak records would make it harder to distinguish genuine Malaysian production from goods merely passing through. That would undermine credibility, although it would not itself prove excess capacity,” he said.
Jeyenderan said Malaysia’s ability to trace goods throughout the supply chain was therefore critical in demonstrating that exports attributed to the country genuinely originated from Malaysian production.
“Our K8 concerns raise a related issue: can authorities reconcile the cargo that arrived, what happened during storage or any blending, and what ultimately left?
“Those are practical questions about traceability that deserve documented answers,” he said.
He said the most urgent step was for the Investment, Trade and Industry Ministry (MITI) and Customs to compile verified industry data, audit cargo movements where risks were highest, and demonstrate effective enforcement of forced-labour import restrictions.
“For K8 petroleum cargo, the authorities should issue a clear written determination on permitted storage and blending, the correct declarations, and the resulting classification and tax treatment.
“Maritime Network has already sought clarification on these matters. Resolving them would give businesses certainty and strengthen Malaysia’s ability to defend its controls internationally,” he said.
Jeyenderan said a clear and documented position from the relevant authorities would also help reduce uncertainty among businesses involved in petroleum and maritime trade.
He said Malaysia should ensure that any weaknesses identified through the US investigation were addressed promptly and transparently, rather than waiting for further tariff measures to be imposed.
“Malaysia needs to demonstrate not only that the rules exist, but that they are being properly implemented, monitored and enforced,” he said.
