US ban on 5 Malaysian companies won’t hurt exports, says Tengku Zafrul

 

Investment, trade and industry minister Tengku Zafrul Aziz said the companies were involved in trading rather than manufacturing.

KUALA LUMPUR: 

The US’s unilateral ban on five Malaysian companies will not affect the overall value of the country’s exports, says investment, trade and industry minister Tengku Zafrul Aziz.

In a written parliamentary reply, Tengku Zafrul said the implications were individual in nature in terms of the companies’ loss of access to US-based financial, trading and services systems.

“None of the companies are registered with the Malaysian Investment Development Authority (Mida) for any manufacturing licences or incentives.

This means they are traders rather than manufacturers,

 he said.

He was responding to Ronald Kiandee’s (PN-Beluran) request for the investment, trade and industry ministry to list the companies sanctioned by the US and to state the effect of the sanctions on national exports.

Tengku Zafrul said the companies that had been hit with the unilateral ban since December are Skyline Advanced Technologies Sdn Bhd, Nava Hobbies Sdn Bhd, Integrated Scientific Microwave Technology Sdn Bhd, Arta Wave Sdn Bhd and Jatronics Sdn Bhd.

He said the five companies were suspected or accused of conducting trading activities and supplying goods and providing supplies – including facilitating the transfer of strategic materials, components and technologies – for Iran’s weapons programme or to the Russian armed forces.

Meanwhile, answering a question from Lim Lip Eng (PH-Kepong) who wanted to know the status of the probe on Jatronics, Tengku Zafrul said the government had met the company’s directors to get a clearer picture of the situation they are facing.

Jatronics informed us that most of its export activities involve integrated circuit exports, especially to Russia,

 he said.

Tengku Zafrul said the ministry is constantly in touch with the US embassy in Kuala Lumpur to obtain further information on the unilateral ban and holds sharing sessions on procedures to remove the companies from the list with the help of a US law firm.

He said the ministry is also working with Bank Negara Malaysia to get more views about the financial implications for companies that are unilaterally sanctioned. - FMT