Kota Kinabalu: Chambers of Commerce in Sabah, which have been issuing Certificates of Origin for exports to the US, can no longer do so effective May 6.
Former Chief Minister Datuk Yong Teck Lee said this sudden change in export regulations is bound to impact the RM1 billion worth of exports of Sabah products directly to the US.
He said Federal Minister of Investment, Trade and Industry, Datuk Seri Tengku Zahfrul Abdul Aziz, issued a notice on this matter two days ago.
window.googletag = window.googletag || {cmd: []};googletag.cmd.push(function() {googletag.defineSlot('/22826383987/dailyexpress_inline', [1, 1], 'gpt-passback').addService(googletag.pubads());googletag.enableServices();googletag.display('gpt-passback');});Henceforth, only Federal Ministry of Investment, Trade and Industry is authorised to issue such Certificates of Origin.
Yong said the immediate question is how the Ministry at Putrajaya or branch in Kota Kinabalu would have sufficient and reliable information about Sabah exporters and products concerned in order to issue such Certificates of Origin.
Sabah’s exports to the US is valued at RM1 billion (out of Sabah’s total exports of RM100 billion) and consist mainly oil and gas, palm oil, timber products and copper.
“The regulation here is not about tariffs but about the origin of the products,” he said, differentiating the action from that of the tariffs imposed by President Trump on various countries, many of which he has paused for 90 days since.
Yong said the relevant business organisations, Chambers of Commerce, trade bodies, and exporters should quickly engage with the relevant authorities in order to ensure the smooth conduct of business and exports, including ports operations.
“At the moment, this new regulation on Certificates of Origin affects only exports to the US because it is aimed at preventing the illegal transhipment of non-Malaysian products (meaning China) via Malaysian ports to the US.
“But, if the ongoing trade war continues, then it is possible that the new regulation (on issuing on Certificates of Origin only by the Federal Ministry) might be extended to other export destinations,” Yong said, in a statement.
Earlier, the appointment of the Investment, Trade and Industry Ministry (Miti) as the sole issuer of Non-Preferential Certificates of Origin (NPCO) received broad support from business chambers and trade groups, who said the measure would help protect Malaysia’s trade integrity, particularly with the United States.
However, industry leaders cautioned that the possibility of poor execution, lack of preparedness and insufficient infrastructure could result in bottlenecks and delays, potentially disrupting shipments and hurting exporters nationwide.
The Malaysian International Chamber of Commerce and Industry (MICCI) said the government’s decision to centralise the issuance of the certificates will reinforce Malaysia’s export credibility and protect legitimate trade flows, particularly to the United States.
“Exporters are advised to stay updated on the revised application procedures and to engage closely with the ministry to ensure full compliance with the new requirements,” MICCI president Christina Tee said.
To support compliance and reduce the risk of transhipment-related offences, MICCI is urging exporters to maintain clear, comprehensive and transparent supply chain records.
“Businesses must declare origin of products accurately and avoid any practices that could be perceived as relabelling or misrepresentation,” she added.
However, Tee acknowledged that recent tariff measures imposed by the United States could present challenges by increasing operational costs and reducing competitiveness in the US market.
Malaysia Consortium of Mid-Tier Companies (MCMTC) honorary president Callum Chen raised concerns over Miti’s preparedness to handle the new system.
He said the absence of a dedicated facility and trained personnel could result in delays, as exporters now have only one access point instead of several.
“Does Miti have enough space and officers? How long will verification take, and how will exporters outside the Klang Valley be accommodated?” he asked.
