Defend Malaysia’s ports, but identify firms abusing transshipment, says maritime expert

KUALA LUMPUR, Aug 16 — Malaysia must safeguard its status as a dependable trading and shipping hub while investigating firms potentially exploiting its ports to circumvent U.S. tariffs, according to maritime expert Datuk Seri Jeyenderan Ramasamy. He emphasized the need to neither ignore U.S. concerns nor tarnish Malaysia's entire maritime and logistics sector with broad allegations.

Authorities should demand evidence and conduct investigations into specific companies and cargoes, he stated. Jeyenderan stressed that Malaysia has diligently worked to earn its reputation as a trusted regional hub, highlighting that any doubts about the reliability of Malaysian certificates of origin or cargo controls could adversely affect honest businesses.

He clarified that transshipment, when done legitimately, is not illegal, but Malaysia must differentiate between legitimate cargo movement through its ports and attempts to obscure goods' true origin. Authorities should concentrate on discrepancies between shipping documents, customs declarations, certificates of origin, commercial invoices, and actual cargo handling.

He urged particular scrutiny of shipments involving Chinese-origin goods allegedly repacked, relabeled, or minimally processed in Malaysia before being exported as Malaysian-origin products, asserting that merely changing labels or packaging doesn't alter a product's origin. Investigations should extend beyond containers to identify the companies and intermediaries involved in suspicious shipments, including importers, exporters, manufacturers, freight forwarders, customs agents, warehouse operators, and commodity traders.

Jeyenderan recommended that the Royal Malaysian Customs Department enhance risk-based screening by examining companies' compliance histories, shipment volumes, declared values, countries of origin, changes in consignees, and unusual routing patterns. Instead of inspecting every container, he suggested using data analytics to pinpoint high-risk companies and shipments for targeted document and physical examinations.

He also advocated for strengthened information-sharing among Customs, port operators, shipping lines, enforcement agencies, and relevant ministries to establish a digital audit trail from the origin to the final destination of high-risk cargo. Jeyenderan emphasized the importance of post-clearance audits, as scrutiny should continue even after a container leaves the port, especially when goods are subsequently exported to markets with varying tariff treatments.

However, he cautioned against overzealous enforcement that could hinder legitimate Malaysian manufacturers, exporters, and logistics companies whose supply chains involve China or the U.S. "Malaysia must defend its reputation, not shy away from investigation," he warned. "Identify those abusing our ports or free zones, and take action.

If the trade is legitimate, Malaysia should have the confidence to stand by it." Jeyenderan advocated for greater transparency, company-level accountability, and evidence-based enforcement to address the U.S. concerns. "Defend Malaysia's ports. Protect legitimate businesses. Expose those who misuse the system. That is how we protect Malaysia's reputation as a trusted trading nation."