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Maritime industry experts in Malaysia are calling for more rigorous monitoring of commodity exports to prevent under-invoicing, a practice where exporters declare lower values or volumes than what is actually shipped, leading to significant government revenue losses.
Datuk Seri R. Jeyenderan, CEO of Maritime Network Sdn Bhd, stated that Malaysia should look to Indonesia's recent move to establish a centralized agency for overseeing major commodity exports as a model to evaluate its own systems. Indonesia’s Danantara Sumberdaya Indonesia (DSI), managed by the sovereign wealth fund Danantara, is set to monitor exports valued at approximately US$60 billion, covering key commodities including palm oil, coal, and ferroalloys.
The Indonesian agency intends to implement a single-digit US dollar service fee per tonne, with full operations slated for January 2027. This initiative specifically targets under-invoicing practices that allow exporters to evade full taxes and duties.
Jeyenderan noted that while Malaysia has various digital systems and agencies for export permits and declarations, the primary challenge remains the seamless sharing and cross-referencing of data between these entities. He emphasized that discrepancies between documentation and actual cargo shipments damage government revenue, distort market competition, and erode international confidence in Malaysia's commodity trade.
He further suggested that authorities must be able to track commodities like palm oil and petroleum from the moment of declaration through to vessel loading and final destination. Closer coordination between the Royal Malaysian Customs Department, port authorities, and commodity regulators is seen as vital to identifying inconsistencies early.
Adding to the discourse, maritime analyst Nazery Khalid highlighted the need for government agencies to break down institutional silos. He argued that leveraging digital technology for data sharing would improve visibility across the supply chain, enabling informed oversight. Such measures would prevent revenue leakages, including unaccounted foreign exchange outflows, and mitigate risks associated with the misdeclaration of blended palm oil shipments.
Source: Newswav