Move may impact Sabah's RM1 billion exports to United States
Published on: Thu, May 08, 2025 Text Size: Yong said the immediate question is how the Ministry at Putrajaya or branch in Kota Kinabalu would have sufficient and reliable information about Sabah exporters and products concerned in order to issue such Certificates of Origin. Kota Kinabalu: Chambers of Commerce in Sabah, which have been issuing Certificates of Origin for exports to the US, can no longer do so effective May 6. Former Chief Minister Datuk Yong Teck Lee said this sudden change in export regulations is bound to impact the RM1 billion worth of exports of Sabah products directly to the US. He said Federal Minister of Investment, Trade and Industry, Datuk Seri Tengku Zahfrul Abdul Aziz, issued a notice on this matter two days ago. Henceforth, only Federal Ministry of Investment, Trade and Industry is authorised to issue such Certificates of Origin. Yong said the immediate question is how the Ministry at Putrajaya or branch in Kota Kinabalu would have sufficient and reliable information about Sabah exporters and products concerned in order to issue such Certificates of Origin. Sabah's exports to the US is valued at RM1 billion (out of Sabah's total exports of RM100 billion) and consist mainly oil and gas, palm oil, timber products and copper. 'The regulation here is not about tariffs but about the origin of the products,' he said, differentiating the action from that of the tariffs imposed by President Trump on various countries, many of which he has paused for 90 days since. Yong said the relevant business organisations, Chambers of Commerce, trade bodies, and exporters should quickly engage with the relevant authorities in order to ensure the smooth conduct of business and exports, including ports operations. 'At the moment, this new regulation on Certificates of Origin affects only exports to the US because it is aimed at preventing the illegal transhipment of non-Malaysian products (meaning China) via Malaysian ports to the US. 'But, if the ongoing trade war continues, then it is possible that the new regulation (on issuing on Certificates of Origin only by the Federal Ministry) might be extended to other export destinations,' Yong said, in a statement. Earlier, the appointment of the Investment, Trade and Industry Ministry (Miti) as the sole issuer of Non-Preferential Certificates of Origin (NPCO) received broad support from business chambers and trade groups, who said the measure would help protect Malaysia's trade integrity, particularly with the United States. However, industry leaders cautioned that the possibility of poor execution, lack of preparedness and insufficient infrastructure could result in bottlenecks and delays, potentially disrupting shipments and hurting exporters nationwide. The Malaysian International Chamber of Commerce and Industry (MICCI) said the government's decision to centralise the issuance of the certificates will reinforce Malaysia's export credibility and protect legitimate trade flows, particularly to the United States. 'Exporters are advised to stay updated on the revised application procedures and to engage closely with the ministry to ensure full compliance with the new requirements,' MICCI president Christina Tee said. To support compliance and reduce the risk of transhipment-related offences, MICCI is urging exporters to maintain clear, comprehensive and transparent supply chain records. 'Businesses must declare origin of products accurately and avoid any practices that could be perceived as relabelling or misrepresentation,' she added. However, Tee acknowledged that recent tariff measures imposed by the United States could present challenges by increasing operational costs and reducing competitiveness in the US market. Malaysia Consortium of Mid-Tier Companies (MCMTC) honorary president Callum Chen raised concerns over Miti's preparedness to handle the new system. He said the absence of a dedicated facility and trained personnel could result in delays, as exporters now have only one access point instead of several. 'Does Miti have enough space and officers? How long will verification take, and how will exporters outside the Klang Valley be accommodated?' he asked. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
24 minutes ago
- The Star
Cambodian and Thai leaders hold ceasefire talks in Malaysia as border violence enters fifth day
Cambodian migrant workers carry their belongings as they returned from Thailand through the Doung International Gate in Battambang province on July 28, 2025. Thailand and Cambodia's leaders are due to meet for peace talks on July 28, as a festering territorial dispute along their shared frontier dragged into a fifth day of open combat. - AFP SURIN, Thailand: Thai and Cambodian leaders are meeting in Malaysia in an urgent effort to resolve deadly border clashes that entered a fifth day despite mounting international calls for peace. Cambodian Prime Minister Hun Manet and Thai Acting Prime Minister Phumtham Wechayachai are scheduled to hold talks Monday afternoon (July 28) at the official residence of Malaysian Prime Minister Datuk Seri Anwar Ibrahim who is hosting the negotiations as chair of Asean. ALSO READ: US Secretary Rubio briefs Cambodian foreign minister on US support for peaceful resolution The fighting flared last Thursday after a land mine explosion along the border wounded five Thai soldiers. Both sides blamed each other for starting the clashes, that have killed at least 35 people and displaced more than 260,000 people on both sides. Both countries recalled their ambassadors and Thailand shut all border crossings with Cambodia, with an exception for migrant Cambodian workers returning home. Troops from both sides reported ongoing fighting Monday along border areas. Gunfire could be heard as dawn broke in Samrong in Cambodia's Oddar Meanchey province, Associated Press reporters covering the conflict said. Anwar said late Sunday that both sides would present their conditions for peace but "what is important is immediate ceasefire.' "I hope this can work,' Anwar was quoted as saying by Malaysian national news agency Bernama. "Although it's not as bad as many other countries, we have to put a stop (to the violence).' The meeting followed direct pressure from US President Donald Trump, who has warned that the United States may not proceed with trade deals with either country if hostilities continue. Before departing for Kuala Lumpur, Phumtham told reporters in Bangkok that the US and China representatives will also attend as observers. He said the key focus would be on an immediate ceasefire, but noted trust could be an issue as Cambodia has not stopped its strikes. "We have informed that we don't have trust in Cambodia. All they have done reflect that they are not sincere in solving this problem. So they have to show the detail how they will do to prove their sincerity,' he said. The violence marks a rare instance of open military confrontation between Asean member states, a 10-nation regional bloc that has prided itself on non-aggression, peaceful dialogue and economic cooperation. In a statement Monday, Asean foreign ministers reiterated concern over the rising death toll, destruction of public properties and displacement of a large number of people along the disputed border areas. They urged the two countries to resolve their disputes through negotiations and expressed support for efforts to find a middle ground during Monday's talks. The conflict also drew the attention of Pope Leo XIV. At the Vatican on Sunday, the pontiff said he was praying for all those affected by war in the world, including "for those affected by the clashes on the border between Thailand and Cambodia, especially the children and displaced families.' At an evacuation shelter in Cambodia's Siem Reap province far away from the border, Ron Mao, 56, prays for a ceasefire deal during the leaders' meeting Monday. She and her family fled their home a kilometre away from the front line when fighting broke out Thursday. They took refuge in a shelter but moved again to another camp further away after hearing artillery shelling. "I don't want to see this war happen. It's very difficult and I don't want to run around like this,' she said, "When I heard our Prime Minister go to negotiate for peace, I would be very happy if they reached the deal as soon as possible, so that I and my children can return home as soon as possible." The 800-kilometre frontier between Thailand and Cambodia has been disputed for decades, but past confrontations have been limited and brief. The latest tensions erupted in May when a Cambodian soldier was killed in a confrontation that created a diplomatic rift and roiled Thailand's domestic politics. - AP
The Star
24 minutes ago
- The Star
Cambodia says immediate ceasefire purpose of talks; Thailand questions its sincerity
This pool photo taken and released on July 28, 2025 by Agence Kampuchea Presse (AKP) shows Cambodia's Prime Minister Hun Manet gesturing to government officials before he departures to Malaysia for ceasefire talks with Thailand, at Phnom Penh international Airport in Phnom Penh on July 28, 2025. Thailand and Cambodia's leaders are due to meet for peace talks on July 28, as a festering territorial dispute along their shared frontier dragged into a fifth day of open combat. - AFP BANGKOK/PHNOM PENH: An immediate ceasefire in a deadly border dispute is the purpose of talks with Thailand on Monday (July 28), Cambodia's Prime Minister said, but his Thai counterpart said there were doubts about Cambodia's sincerity ahead of the negotiations in Malaysia. Monday's talks to end the deadliest fighting in more than a decade between the South-East Asian neighbours are being hosted by Malaysia, the chair of the regional Asean bloc. Cambodian Prime Minister Hun Manet said the talks were co-organised by the United States, and that China would also take part in them. Both Thailand and Cambodia accuse the other of starting the hostilities last week and then escalating them. On Monday, officials from both countries said clashes along the disputed border were ongoing ahead of the talks later in the day. "We are not confident in Cambodia, their actions so far have reflected insincerity in solving the problem," acting Thai Prime Minister Phumtham Wechayachai told reporters ahead of his departure for Kuala Lumpur. "Cambodia has violated international law, but everybody wants to see peace. Nobody wants to see violence that affects civilians." Cambodia has strongly denied Thai accusations it has fired at civilian targets, and has instead said that Thailand has put innocent lives at risk. It has called for the international community to condemn Thailand's aggression against it. "The purpose of this meeting is to achieve an immediate 'ceasefire', initiated by President Donald Trump and agreed to by the Prime Ministers of Cambodia and Thailand," Hun Manet said in a post on X as he departed for the talks. US Secretary of State Marco Rubio said State Department officials would assist the peace efforts, after President Donald Trump had earlier said that he thought both leaders wanted to settle the conflict. The tensions between Thailand and Cambodia have intensified since the killing in late May of a Cambodian soldier during a brief skirmish. Border troops on both sides were reinforced amid a full-blown diplomatic crisis that brought Thailand's fragile coalition government to the brink of collapse. Malaysian Prime Minister Datuk Seri Anwar Ibrahim had proposed ceasefire talks soon after the border dispute erupted into conflict on Thursday, and China and the United States also offered to assist in negotiations. Anwar said he expected to chair the negotiations after being asked by the two governments to try to find a peace settlement, state media agency Bernama reported on Sunday. "So, I'm discussing the parameters, the conditions, but what is important is (an) immediate ceasefire," Anwar said. Thailand and Cambodia have bickered for decades over undemarcated points along their 817-km (508-mile) land border, with ownership of the ancient Hindu temples Ta Moan Thom and the 11th century Preah Vihear central to the disputes. Preah Vihear was awarded to Cambodia by the International Court of Justice in 1962, but the situation worsened in 2008 after Cambodia attempted to list it as a UNESCO World Heritage site. Skirmishes over several years brought at least a dozen deaths. Cambodia said in June it had asked the court to resolve its disputes with Thailand. Bangkok says it has never recognised the court's jurisdiction and prefers a bilateral approach. - Reuters
The Sun
24 minutes ago
- The Sun
Local authorities issue 14,834 compounds against foreign-owned businesses
KUALA LUMPUR: Local authorities have issued 14,834 compounds against business premises for offences, including illegal licence transfers to foreigners, since 2023, Housing and Local Government Minister Nga Kor Ming said. He added that 2,880 premises were sealed, and 23 business licences revoked. 'The Ministry and PBTs have never allowed foreign nationals to apply for or own hawker licences, grocery stores, eateries, or car workshops,' Nga stressed. Speaking in Parliament, he emphasised that hiring foreigners under hawker licences is prohibited, as the government prioritises Malaysian traders. The enforcement aligns with existing policies like the Hawkers By-Laws, which restrict business licence applications to citizens. Nga confirmed that PBTs conduct regular inspections, especially in areas with high foreigner presence, and confiscate goods from unlicensed foreign traders. Licences are revoked for misuse, with stricter application conditions imposed to curb foreign-owned businesses. Responding to concerns about Malaysians acting as proxies for foreign spouses, Nga urged citizens to uphold the Rukun Negara principles. 'Submit evidence to the ministry for action,' he said. - Bernama
