We take note of the recent report by the United States Office of Trade and Manufacturing Policy regarding concerns over global transshipment and tariff-evasion practices.
While Malaysia has been identified in the report as a country with significant trade and manufacturing links to China, it is important to clarify that Port Klang Free Zone (PKFZ) does not facilitate, endorse or condone any form of tariff evasion, false declaration, misrepresentation of origin or circumvention of international trade measures.
As a Free Zone and integrated logistics hub, PKFZ operates within a highly regulated customs and trade compliance framework. All investors, manufacturers, traders and logistics operators seeking to establish operations within PKFZ are subject to stringent screening, due diligence and regulatory requirements. Their operations must comply with applicable Malaysian laws, customs requirements, free-zone regulations and the requirements imposed by the relevant government authorities.
In particular, matters relating to the origin of goods and export certification are governed by the appropriate national authorities and are not determined by PKFZ. For exports to the United States, the Malaysian Government has, since 6 May 2025, designated the Ministry of Investment, Trade and Industry (MITI) as the sole issuer of Non-Preferential Certificates of Origin (NPCO). Chambers of commerce and business associations are no longer authorised to issue such certificates for US-bound exports.
The certification process is comprehensive. MITI requires, among other matters, cost analysis, statutory declarations, company and manufacturing information, raw-material documentation, production flowcharts and supporting commercial documents, with approvals issued on a shipment basis for the relevant US-bound NPCOs. MITI has also enhanced its audit and verification mechanisms and works together with the Royal Malaysian Customs Department to address potential transshipment offences.
Therefore, the presence of Chinese-linked businesses or international cargo within a Malaysian free zone should not, in itself, be interpreted as evidence of tariff evasion or illegal transshipment. Malaysia is a major regional manufacturing and logistics hub, and legitimate international trade naturally involves global supply chains, intermediate processing, consolidation and re-export activities.
At PKFZ, we remain committed to ensuring that our facilities are occupied by legitimate, compliant and commercially sustainable businesses. Where there are regulatory concerns or indications of non-compliance, we will fully cooperate with MITI, Royal Malaysian Customs and other relevant authorities and take appropriate action within our mandate.
PKFZ also welcomes greater scrutiny and stronger enforcement against genuine cases of trade fraud. A transparent, rules-based and properly regulated trading environment ultimately protects legitimate investors and strengthens Malaysia’s position as a trusted regional logistics and manufacturing hub.
We remain confident that Malaysia’s regulatory framework, together with the enhanced oversight by MITI and Customs, provides the necessary safeguards to distinguish legitimate value-added manufacturing and logistics activities from unlawful transshipment or tariff circumvention.