KUALA LUMPUR (Nov 27): The Malaysian government has reminded all local firms to ensure they are fully aware of the destinations of their exported goods, as the US has ramped up sanctions on entities and individuals globally with links to Russia.

While emphasising that Malaysia does not recognise unilateral sanctions, Foreign Minister Datuk Seri Mohamad Hasan stated that the country cannot afford to bear the consequences of non-compliance with such measures by the US.

"The US sometimes 'buat gila-gila' (does crazy things). If they impose secondary sanctions on Malaysia, it would be even worse," Mohamad told the Dewan Rakyat on Wednesday during a question-and-answer session.

Secondary sanctions are aimed at foreign companies or individuals that trade with countries under primary sanctions. This means that third parties, even if not based in or citizens of the sanctioned countries, can face penalties for doing business with entities targeted by the primary sanctions.

On Nov 3, six Malaysia-based companies were among nearly 400 entities and individuals sanctioned by the US State Department for operating in or supporting the Russian manufacturing sector.

The six companies were Zeolite Mansford Sdn Bhd, Maxtrum Capital Sdn Bhd, Centrina United Sdn Bhd, Gyntec Carbon Sdn Bhd, Moralability Industrial Sdn Bhd, and Melix Global Sdn Bhd.

Responding to this, Mohamad, who is also known as Tok Mat or Mat Hasan, said three of the companies had explained to the government that they were not involved in export activities, but were merely trading companies.

Nevertheless, Mohamad noted that the three companies could still be subjected to the Customs Act 1967 for making false declarations regarding the goods and their countries of origin. However, he did not confirm whether any action had been taken.

Meanwhile, Mohamad said he had sent a letter to his Russian counterpart to express gratitude to BRICS for officially confirming Malaysia’s acceptance as a partner country.

He explained that the "partner country" platform was established to allow BRICS, as an intergovernmental organisation, to first "digest the inclusion" of its four new members — Egypt, Ethiopia, Iran, and the United Arab Emirates — which were admitted earlier this year.

BRICS also comprises Brazil, Russia, India, China, and South Africa.

"In addition, BRICS is a 'very loose club of countries', and the organisation does not have a standard operating procedure for accepting new members," he noted.

Nevertheless, Mohamad reiterated Malaysia’s desire to attain full membership in the organisation, emphasising that it would add significant value to the country by enhancing its presence on the international stage, as well as creating new business and investment opportunities.

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