Learn from Indonesia, tighten export monitoring to stop under-invoicing, say industry players

Maritime analyst and scholar Nazery Khalid said that while it was understandable for multiple agencies to be involved in the process, they should break down institutional silos and work more closely together. — Bernama file pic

By Malay Mail

First Published: Saturday, 14 Nov 2026 7:01 PM MYT

KUALA LUMPUR, Nov 14 — Stricter monitoring of commodity exports is needed to curb under-invoicing, a practice in which exporters declare lower cargo values or quantities than what they actually ship, potentially causing losses in government revenue, maritime industry players said.

Maritime Network Sdn Bhd chief executive officer Datuk Seri R. Jeyenderan said Indonesia’s move to set up a centralised agency to monitor major commodity exports should remind Malaysia to review how effective its own export monitoring systems are.

It was reported that Indonesia’s Danantara Sumberdaya Indonesia (DSI), operated by sovereign wealth fund Danantara, will initially oversee exports worth about US$60 billion involving coal, palm oil and ferroalloys.

The agency plans to introduce a service fee in the single-digit US dollar range per tonne, with the final rate expected to be announced in December. It is scheduled to begin full operations in January 2027.

The initiative aims to improve monitoring of commodity exports and tackle practices such as under-invoicing, which can allow exporters to avoid paying the full taxes or duties due on their shipments.

Jeyenderan said Malaysia already had various electronic systems and government agencies responsible for monitoring export declarations, permits and supporting documents.

However, he said the bigger challenge was ensuring that information held by different agencies could be properly shared and cross-checked against actual cargo shipments.

“Having digital systems is important, but what matters is whether the information can be cross-checked to ensure that the quantity and value declared in the documents match the actual goods being exported,” he said in a statement. 

He said discrepancies between declared values or quantities and actual cargo shipments could affect government revenue, create unfair competition among businesses and undermine confidence in Malaysia’s commodity trade.

Maritime Network managing director Datuk Seri R. Jeyenderan said Malaysia already had various electronic systems and government agencies responsible for monitoring export declarations, permits and supporting documents.— Bernama pic

Jeyenderan said Malaysia should consider whether its existing systems could be better integrated so authorities can track export information from the time goods are declared and loaded onto vessels until the shipments reach their destinations.

He said this was particularly important for commodities such as palm oil and petroleum, where large volumes of cargo pass through ports and may involve several parties, including exporters, shipping companies, storage operators and buyers.

“Authorities should be able to establish whether the goods declared by an exporter are consistent with the actual cargo loaded onto the vessel and the documents accompanying the shipment,” he said.

He said better coordination between the Royal Malaysian Customs Department, port authorities, commodity regulators and shipping operators could help identify discrepancies earlier and reduce the risk of revenue leakage.

Meanwhile, maritime analyst and scholar Nazery Khalid said that while it was understandable for multiple agencies to be involved in the process, they should break down institutional silos and work more closely together.

He said this was important to ensure documentation, monitoring, inspections, testing and enforcement were carried out effectively and transparently.

Nazery said digital technology should also be used to help the agencies coordinate, so they can share data and improve visibility across supply chains.

“This would allow the agencies to make more informed, data-driven decisions and strengthen oversight of commodity exports.

“This would also strengthen confidence in Malaysia’s export and trading systems, prevent revenue leakages such as unpaid taxes and unaccounted foreign exchange outflows, and mitigate public health risks arising from the misdeclaration of commingled cargo, such as blended palm oil,” Nazery said.