Defend Malaysia’s ports, but identify firms abusing transshipment- Maritime Expert

Malaysia must steadfastly protect its status as a trusted trading and shipping hub while diligently investigating companies suspected of exploiting its ports to bypass US tariffs, according to maritime industry observer Datuk Seri Jeyenderan Ramasamy. The country should not dismiss the US report's concerns or allow sweeping allegations to tarnish the integrity of its entire maritime and logistics sector.

Instead, authorities should demand evidence and meticulously investigate specific companies and cargoes involved in suspicious transshipment activities. "We should not become defensive about the US report. Ask for the evidence. Investigate it properly. Identify the companies and cargo involved. Then take action based on facts and the law," said Jeyenderan.

Malaysia has worked diligently to establish itself as a reliable regional hub for shipping and trade; any doubts over the validity of Malaysian certificates of origin or cargo controls could have severe repercussions for honest businesses. Transshipment is not illegal, but Malaysia must clearly separate legitimate transshipment from attempts to conceal the true origin of goods.

Authorities should focus on inconsistencies between shipping documents, customs declarations, certificates of origin, and commercial invoices, as well as scrutinize shipments involving Chinese-origin goods that may have been repackaged or labeled in Malaysia before being exported. Investigations should extend beyond the physical container to identify the companies and intermediaries involved, including importers, exporters, manufacturers, freight forwarders, customs agents, warehouse operators, and commodity traders.

If a company is using Malaysia to hide the true origin of goods, Jeyenderan stressed that that company should be identified. Malaysia's Royal Malaysian Customs Department should enhance risk-based screening by reviewing companies' compliance histories, shipment volumes, declared values, countries of origin, changes in consignee, and unusual routing patterns.

Data analytics could be employed to target high-risk companies and shipments for targeted inspections. Jeyenderan advocated for stronger information-sharing between various stakeholders, including Customs, port operators, shipping lines, law enforcement agencies, and relevant ministries, to create a digital audit trail for high-risk cargo from its origin to its final destination.

Post-clearance audits should also be strengthened, as scrutiny should not cease once a container leaves the port, especially when goods are later exported to markets with varying tariff treatments. However, Jeyenderan cautioned against excessive enforcement that could unduly burden legitimate Malaysian manufacturers, exporters, and logistics companies with supply chains involving China or the US.

Malaysia must balance defensive measures against investigation, ensuring it has nothing to fear from thorough scrutiny if its systems operate effectively. The best response to the US concerns is to increase transparency, hold companies accountable, and enforce decisions based on evidence. "Defend Malaysia's ports. Protect legitimate businesses.

But expose those who misuse the system. That is how we protect Malaysia’s reputation as a trusted trading nation," concluded Jeyenderan.