It is a known fact that Malaysia is famous for its ports and
strategic location which undeniably attracts investors through
import and export activities. It was reported back in 2021 that
Port Klang operated efficiently by dealing with an average of 131
ships weekly and taking just 1.7 days to service each vessel which
was considered a quick handling rate during the
pandemic.1
It would in turn not be a surprise why Malaysia has been an
ideal location for transshipping activities which has been a
growingly interesting concern entangled in trade wars, tariff and
legal issues.
Under the Customs Act 1967, transshipment is defined as (a)
transferring of goods from one vessel or aircraft to another vessel
or aircraft; or (b) unloading of goods from a vessel or aircraft
and depositing such goods in a customs or licensed warehouse or in
a warehouse or other place approved by the Director General, for
the purpose of shipment out of Malaysia on that other vessel
