KUALA LUMPUR (May 5): Paya Besar MP Datuk Mohd Shahar Abdullah has called on the government to take over issuing certificates of origin (COs) to stop "origin washing", which he says could harm Malaysia’s trade reputation.
Currently COs are issued by chambers of commerce and trade associations authorised by Ministry of International Trade & Industry.
Origin washing refers to the practice where companies reroute or relabel goods through third countries to hide their true origin and avoid tariffs, especially those imposed by the US on Chinese products. This practice allows goods to circumvent import duties, creating unfair competition in the market.
However, Shahar highlighted that there are multiple reports and data suggesting that origin washing is occurring in Malaysia.
He stressed that the government should assume control over issuing COs, with the authority to manage this responsibility directly, to ensure transparency and prevent the misuse of the certification process.
"Given the numerous reports pointing to the rerouting of goods in Malaysia, I strongly urge the government to take over the authority to issue the COs," Shahar said. "This responsibility should be handled by government agencies to protect Malaysia’s trade reputation and prevent fraudulent practices."
In late April, the Ministry of Plantation and Commodities announced that all licensed glove exporters under the Malaysian Rubber Board can only export gloves fully made in Malaysia.
Minister Datuk Seri Johari Abdul Ghani said the entire manufacturing process must take place locally to qualify for the CO, in line with Malaysia’s trade commitments, especially with the US.
Meanwhile, Shahar also urged the government to quickly revise and announce the gross domestic product (GDP) growth forecast for this year. He said this would help businesses and stakeholders adjust to current uncertainties.
He also warned that delays could impact the planning of the 13th Malaysia Plan, set to be revealed later this year.
Earlier, Prime Minister Datuk Seri Anwar Ibrahim said the government may revise this year’s GDP growth forecast of between 4.5% and 5.5%, as it's unlikely Malaysia will meet that target due to the impact of US tariffs.
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