Independent review needed on US transshipment claims, says shipping CEO

KUALA LUMPUR, 21 AUGUST 2026 —

Malaysian Shipping CEO Urges Independent Review on US Transshipment Allegations

Maritime Network Sdn Bhd CEO R Jeyenderan said a fact-based investigation could clarify concerns about the movement and origin of goods passing through Malaysia. “Malaysia must defend its reputation, but that defence must begin with facts. Blanket denials will not protect our reputation,” he stated.

The call follows a recent report by the White House Office of Trade and Manufacturing Policy, which listed Malaysia among over 40 countries flagged for potentially facilitating tariff evasion through China-linked transshipment networks.

The U.S. report, titled The Great Transshipment Scam: Rise, Scope and Costs, alleged that Malaysia had become a “microhub” for production and a maritime gateway for goods destined for the U.S. However, it also noted that shifts in U.S. import sources away from China do not necessarily indicate illegal diversion of all affected trade.

Former International Trade and Industry Ministry secretary-general Rebecca Fatima Sta Maria was quoted by The Edge as saying Malaysia had been unfairly labelled in the U.S. report. Jeyenderan emphasized that any review must examine cargo documentation at every stage—including manifests, bills of lading, customs records, certificates of origin, storage logs, processing activities, and final export declarations.

“When questions arise over cargo movements, documentation, storage, mixing or final classification, the answer cannot simply be ‘there is no case’ without explaining what was examined and how the conclusion was reached,” he said. Jeyenderan added that the methodology and findings of such a review should be made public, while safeguarding legitimate commercial information, to restore confidence in Malaysia’s trade practices.

The U.S. allegations come amid broader scrutiny of transshipment practices in Southeast Asia, where goods are often rerouted through third countries to obscure their origin and avoid tariffs. Malaysia, a key logistics hub in the region, has faced growing pressure to ensure compliance with international trade rules. The government has not yet responded publicly to the U.S. report or Jeyenderan’s proposal.

Malaysia Market Impact The shipping and logistics sector in Malaysia could face reputational and operational risks if the allegations are not addressed transparently. Port operators, freight forwarders, and exporters may encounter increased scrutiny from U.S. customs and trading partners, potentially leading to delays or additional compliance checks. Analysts suggest that proactive measures, such as an independent audit, could mitigate long-term damage to Malaysia’s trade reputation.

Sector and Company Specifics Maritime Network Sdn Bhd, a mid-sized Malaysian shipping firm, has taken a leading stance in advocating for transparency. The company’s focus on cargo documentation and traceability aligns with industry best practices, though its influence in shaping national policy remains limited. The broader logistics sector, which includes major players like MISC Berhad and Westports Holdings, may also be indirectly affected by any regulatory fallout.

Outlook The U.S. is expected to maintain pressure on countries suspected of facilitating transshipment to evade tariffs, particularly as trade tensions with China persist. Malaysia’s response—whether through an independent review or other measures—will be closely watched by trading partners and investors. Without clear evidence of compliance, Malaysian exporters could face higher trade barriers, while ports may see reduced throughput if shippers reroute cargo to alternative hubs.

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