A maritime expert was commenting on remarks by former International Trade and Industry Ministry secretary-general Tan Sri Dr Rebecca Fatima Sta Maria, who said Malaysia was being unfairly labelled by the US over the issue.
PETALING JAYA: Malaysia should conduct an independent review of allegations raised by the United States concerning transshipment activities to determine whether any rules were breached while protecting the country’s reputation, said maritime industry expert Datuk Seri R. Jeyenderan.
Jeyenderan said the review should trace the complete movement of the cargo, including manifests, bills of lading, Customs documentation, certificates of origin, storage records, any blending or processing carried out, and the final declaration before export.
“This is the same principle we have raised through the K8 matter. When questions exist over cargo movement, documentation, storage, blending or final classification, the answer cannot simply be ‘no case’ without explaining what was checked and how that conclusion was reached.
“The methodology and findings should be made public while protecting legitimate commercial information. That is how confidence is restored,” he said.
The chief executive officer of Maritime Network Sdn Bhd was commenting on remarks by former International Trade and Industry Ministry secretary-general Tan Sri Dr Rebecca Fatima Sta Maria, who said Malaysia was being unfairly labelled by the US over the issue.
Jeyenderan warned that failing to address the allegations could have wider implications for Malaysian trade and the maritime sector.
“Malaysia’s silence in this matter could be interpreted as either an inability or an unwillingness to address the issue.
“Our exporters could face heavier inspections, longer clearance times, higher compliance costs and greater scrutiny over certificates of origin. They could lose orders, while our ports could suffer reputational damage,” he said.
He said the issue went beyond a single US report, as it concerned the credibility of Malaysia’s ports, Customs controls and trade documentation.
“Malaysia must respond quickly with evidence, independent verification and a clear enforcement position. Defending the country does not mean protecting anyone who may have broken the rules.
“It means protecting legitimate Malaysian businesses by identifying the truth and acting on it,” he said.
Jeyenderan also urged the government to ask the US to provide the evidence underpinning its allegations so they could be properly examined.
“We must defend our country’s reputation, but that defence must begin with facts. Lawful transshipment is part of international trade.
“What is not lawful is falsifying the origin of goods or carrying out minor processing just to avoid tariffs,” he said.
He said credible allegations should be investigated thoroughly, while unsupported claims should be challenged publicly with evidence.
“Blind denial will not protect our reputation. Transparency will,” he said.
Asked whether some businesses could be using legitimate transshipment activities to avoid tariffs, Jeyenderan said it would be naive to dismiss the possibility but irresponsible to accuse the entire industry without evidence.
“The difference is traceability. If goods merely pass through Malaysia or undergo repacking, relabelling, re-invoicing or insignificant processing before being declared Malaysian, that must be investigated.
“But where genuine manufacturing and substantial transformation take place in Malaysia, that is legitimate Malaysian trade. Authorities must distinguish between the two through proper documentation and physical verification, not assumptions,” he said.