Malaysia Opposes Breach Of International Trading System To Circumvent Tariffs -- Tengku Zafrul
KUALA LUMPUR, May 5 (Bernama) -- Malaysia strongly opposes any breach of the international trading system, including the issuance of fake or misleading certificates of origin, in an effort to circumvent tariffs.
Investment, Trade and Industry Minister Tengku Zafrul Aziz said that his ministry (MITI) takes note of media reports that say exporters from China are trying to circumvent United States (US) tariff by “origin washing” products by re-routing through third-party countries such as Malaysia.
“Starting tomorrow (May 6), we will no longer permit chambers of commerce to issue Non-Preferential Certificates of Origin (NPCO) as there are many complaints from the industry that a lot of goods from elsewhere come to our country (for circumventing tariff).
“NPCO for shipments to the US that are often issued by chambers of commerce will not be allowed and applications for NPCO that involve the US will be centralised under MITI,” he added.
Tengku Zafrul was speaking during the winding up session at the special parliamentary meeting at the Dewan Rakyat (Malaysian Parliament) on Monday where Prime Minister Anwar Ibrahim gave an explanation on the government’s preparation to cushion the impact of US reciprocal tariffs on imports from Malaysia.
According to Tengku Zafrul, Malaysia is focusing on the Middle East market and the free trade agreement (FTA) expected to be signed between Malaysia and the Gulf Cooperation Council end of this month.
He said the Malaysia External trade Development Corporation (MATRADE) has started exploring access to new markets, including Egypt, Pakistan and Cambodia.
“We need to heighten our economic diplomacy. We can’t wait. We must expedite what we’ve been doing in these two years. With a higher allocation, we may be able to assist more local small and medium enterprises to access new markets,” he said.
Tengku Zafrul said the government is committed to good governance principles in negotating with the US on the reciprocal tariffs imposed.
He said initial talks still involve the scope and technicalities, and are subject to a non-disclosure agreement.
“If policy recommendations require structural decisions, it will go through three processes -- strict internal review process, Cabinet approval and, if necessary, a tabling in the Dewan Rakyat,” he said.
In another development, Tengku Zafrul said the government will not wait until the Budget 2026 tabling to update the gross domestic product (GDP) forecast for 2025.
He said the Finance Ministry and Bank Negara Malaysia will continue to monitor and assess the tariffs’ impact in totality.
According to him, the 2025 GDP projection will only be reviewed after getting a higher level of certainty on the new US administration’s policies as well as the result of the bilateral negotiations on the reciprocal tariffs.
“The uncertainty about the forecast will not affect the government’s agility in terms of policy response.
“The MADANI government will continue to act in a targeted manner and based on data, including close monitoring of macroeconomic indicators as well as international trade policy developments to ensure economic stability and protection for the affected groups,” he added.
-- BERNAMA
