Malaysia Named in US Tier 2 Transshipment-Risk Report — What Exporters Should Do

A new White House report, "The Great Transshipment Scam" (13 August 2026), has placed Malaysia in its Tier 2 group of economies it identifies as facing significant risk from China-linked transshipment into the United States.

What the report says

The report names Malaysia alongside Indonesia, Thailand, Vietnam, Brazil and Turkey, citing integration with China-linked supply chains, manufacturing and logistics networks. It discusses Malaysia as a maritime gateway and references Pelabuhan Klang (Port Klang) Free Zone in its discussion of potential rerouting channels.

The report does not announce a new Malaysia-specific tariff or port restriction. It is a risk assessment, not proof that any specific Malaysian company, port or exporter is transshipping goods illegally.

What exporters and forwarders should do

For Malaysian exporters, manufacturers and freight forwarders handling US-bound cargo, this is mainly a compliance signal. Keep certificates of origin, supplier records, manufacturing evidence, invoices and shipment documentation that accurately reflect where goods were genuinely manufactured or substantially transformed. A simple transit, repacking or relabelling operation is not sufficient proof of Malaysian origin.

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Official source

Source: The White House, "The Great Transshipment Scam" (13 August 2026). https://www.whitehouse.gov/releases/2026/08/the-great-transshipment-scam/