Independent review needed on US transshipment claims, says shipping CEO

Malaysia's shipping industry needs an independent review to address US allegations of illegal transshipment, claims the CEO of Maritime Network Sdn Bhd. The White House Office of Trade and Manufacturing Policy recently identified Malaysia as one of over 40 countries at risk of aiding tariff evasion through China-linked transshipment networks.

R Jeyenderan, CEO of Maritime Network Sdn Bhd, stresses that a fact-based investigation is essential to defend Malaysia's reputation. He argues that blanket denials won't protect the country's image. The White House report, titled "The Great Transshipment Scam: Rise, Scope and Costs," mentioned Malaysia as a "microhub" for production and a maritime gateway.

However, the report also noted that a change in the source of US imports from China cannot be considered as proof that all Chinese trade was illegally diverted. Rebecca Fatima Sta Maria, a former secretary-general of the Ministry of International Trade and Industry, claims Malaysia has been unfairly labeled by the US. Jeyenderan emphasizes that the review must examine the entire cargo movement, including manifests, bills of lading, customs documents, certificates of origin, storage records, any processing activities, and the final declaration before export.

He stresses that the methodology and findings should be made public while protecting commercial information, which would help restore confidence.