Putrajaya did not wait long. After being accused of being a 'rat route' for Chinese goods to avoid US tariffs, the government continued to seize the authority to certify exports from private bodies.
During the Special Session of Parliament yesterday, the Minister of Investment, Trade and Industry, Tengku Zafrul Aziz stated that starting tomorrow, only the Ministry of Investment, Trade and Industry (Miti) is allowed to issue Non-Preferential Certificates of Origin (NPCO) for all exports to the US.
A Bloomberg report claims that Chinese agents are using Malaysia to change the 'Made in China' label to 'Made in Malaysia'.
If true, this is not only deceptive, but could damage the country's reputation in the eyes of the world.
Tengku Zafrul said that many parties are trying to take advantage by making Malaysia a smuggling route, hence the government has decided to completely close the space to eradicate the phenomenon.
Malaysia is now under the magnifying glass of Washington after announcing a 24% tariff on Malaysian exports (currently suspended under the universal rate of 10%).
If this measure fails to curb fraud, Trump may return with more stinging tariffs.
Analysts warn that Malaysia's trade reputation is now at stake, and any sign of collusion could be disastrous.
