KUALA LUMPUR, Aug 21 — Malaysia should conduct an independent review into allegations by the United States (US) concerning transshipment activities to ensure any violations are identified while protecting the country’s reputation, according to Datuk Seri R. Jeyenderan.
The maritime expert said the review must trace the complete movement of the cargo, including the manifest, bill of lading, Customs documentation, certificate 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 in a statement commenting on remarks by Tan Sri Dr Rebecca Fatima Sta Maria, former secretary-general of the then Ministry of International Trade and Industry (MITI), who said Malaysia was being unfairly labelled by the US over the issue.
The chief executive officer of Maritime Network Sdn Bhd also said Malaysia’s silence on the matter could be interpreted as either an inability or unwillingness to address the issue, while exports could face heavier inspections, longer clearance times, higher compliance costs and greater scrutiny over certificates of origin.
“Our exporters could lose orders and our ports could suffer reputational damage. This is bigger than one US report. It concerns 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 stressed.
Jeyenderan also said Malaysia should ask the US to provide the actual evidence behind the allegations so that they could be properly investigated.
“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.
“The government should investigate any credible allegation properly. If companies have broken the rules, take action against them. If the allegations are unsupported, then Malaysia must challenge them openly with evidence. Blind denial will not protect our reputation. Transparency will.”
On possibility of businesses hiding behind legitimate transshipment activities to avoid paying tariffs, Jeyenderan said it would be naive to say that it could not happen, but it would also be 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.
