Malaysia: sanctions and trade risk

Re-export routeNamed in UK guidance as at risk of re-export to Russia.

As of 7 November 2026, the screened UN, EU, UK, Swiss and US sanctions lists contain 55 companies, organisations, vessels and aircraft linked to Malaysia.Lists last checked 2026-11-07 21:01 UTC.

Logistics profile: ports, airports, customs, documents, holidays, news ↓

Malaysia is named in official guidance as a route for re-exports to Russia. Ordinary goods are usually not restricted, but authorities expect you to verify the real end destination and end user, especially for goods on the EU/UK high-priority lists.

Sources: UK — Countering Russian sanctions evasion: guidance for exporters (at-risk jurisdictions list) (12 Mar 2026) · reviewed 24 Oct 2026

Check a shipment to Malaysia →

By sanctions regime

The indicator above is the strictest of these. Which regimes are relevant to a shipment depends on many connections — dispatch country, company location, incorporation, nationality, ownership, banks, goods origin. The check selects them from your inputs in a simplified way; UN measures take effect through each country's implementing law.

Regime	Indicator	What applies
UN	—	No UN sanctions regime.
EU	—	No measures against the country itself.
Switzerland	—	No measures against the country itself.
UK	Re-export route	Named in the UK list of jurisdictions at risk of re-export to Russia (Mar 2026).
US	—	No measures against the country itself.

On the sanctions lists

55 entries on the official lists name Malaysia — as nationality, address, registration or flag. That links them to the country; it says nothing about other companies there. The same company can appear on several lists and is then counted once per list. Individuals are not included — Sanctioni does not process them.

List	Entries	Companies & organisations	Vessels	Aircraft
US OFAC — Specially Designated Nationals (SDN)	38	38	—	—
Switzerland SECO Consolidated Sanctions List	8	8	—	—
EU Consolidated Financial Sanctions List (FSF)	5	5	—	—
UK Sanctions List (FCDO)	3	3	—	—
UN Security Council Consolidated List	1	1	—	—

Latest changes

United States (OFAC) · TCO: 41 new designations
5 Nov 2026 · New listings

All updates →

Logistics profile

Malaysia: logistics and trade

Southeast Asian sea and transshipment hub on the Strait of Malacca

Malaysia (MY) is an export-driven Southeast Asian economy and the key maritime and transshipment hub on the Strait of Malacca. The country is a member of ASEAN (ATIGA), RCEP and the CPTPP; customs clearance runs electronically through uCustoms of the Royal Malaysian Customs Department (import form K1, export form K2). There is no VAT: imports carry a sales tax of 5 or 10 percent, services a service tax of 6 to 8 percent. The main gateways are Port Klang (around 15.1 million TEU in 2025, the world's tenth-busiest container port), the Port of Tanjung Pelepas (over 14 million TEU), Penang Port and the air-cargo hub Kuala Lumpur International Airport (KUL); in East Malaysia, Bintulu and Kota Kinabalu. On land, the North-South Expressway and the KTM West Coast Line link the Thai border with Singapore (Causeway/Second Link); the East Coast Rail Link is under construction. Key exports are electronics and semiconductors, palm oil and oil and gas products; the main trading partners are China, Singapore and the United States.

Capital: Kuala Lumpur
Population: 34,200,000
Area: 330,803 km²
Currency: Malaysian Ringgit (MYR)
Continent: Asia
Region: Southeast Asia / ASEAN
Economic area: ASEAN (AFTA/ATIGA) / RCEP / CPTPP
Religions: Islam, Buddhism, Christianity
Access to the sea: Yes

Transport modes Road · Rail · Pipeline

Current situation: Port Klang with moderate congestion: yard utilisation 80-85 percent, ship waiting times around 1 to 1,4 days (CW 27/28 2026). Truck driving bans on public holidays most recently for Hari Raya (19.-20. and 28.-29.3.2026). (Status 2026-07-28)
Seasonal conditions: Equatorial monsoon climate: southwest monsoon (May to September) and northeast monsoon (November to March) with heavy rain and flooding, mainly on the east coast of the peninsula and in Borneo.

Main seaports

Port Klang
Port Klang (MY PKG): Malaysia's largest port on the Strait of Malacca, 15.14M TEU in 2025 via Westports and Northport, ~60% transshipment, 10th busiest worldwide.
Tanjung Pelepas
Tanjung Pelepas (MYTPP): 14.03M TEU in 2025, Malaysia's top transshipment port on the Strait of Malacca. MMC/APM Terminals, Gemini hub, 14 deep-water berths.
Johor
Johor/Pasir Gudang (MYJHB): world's largest palm oil terminal plus container (2024 record), bulk and liquid cargo on the Strait of Malacca. Alt: Tanjung Pelepas.
Bintulu Port
Bintulu (MY BTU), Sarawak: Malaysia's sole LNG export port (Petronas, ~30 Mt/yr), plus LPG, palm oil and containers. Alternatives: Kuching, Port Klang.
Kota Kinabalu
Kota Kinabalu (MY BKI): Sabah's main port on Borneo. Sapangar Bay Container Port (DP World), ~500,000 TEU, expanding to 1.25M by 2026.
Pulau Pinang
Penang (MY PEN), gateway for northern Malaysia: NBCT, 7 berths, ~1.42M TEU in 2024, Free Commercial Zone. Alternatives: Port Klang, Tanjung Pelepas.

Main cargo airports

Penang International AirportPEN
Penang International (PEN/WMKP) is Malaysia's No.1 cargo airport by export value, serving the Bayan Lepas semiconductor cluster. PILA expansion from 2026.
Senai International AirportJHB
Senai Airport (JHB): Johor Bahru cargo hub with free zone, 80,000 t capacity, near Singapore — a Changi alternative for Iskandar Malaysia.
Kota Kinabalu International AirportBKI
Kota Kinabalu (BKI): Sabah's main airport and Malaysia's third-busiest for cargo. MASkargo warehouse, Korean Air Cargo; seafood, produce and e-commerce for Borneo.
Kuching International AirportKCH
Kuching International (KCH): Sarawak's main cargo terminal, about 47,836t handled in 2025, MASkargo warehouse expanding by 2026. A real freight station on Borneo.

Road corridors

North-South Expressway (NSE) Bukit Kayu Hitam - Johor Bahru
East-West Highway (peninsula)
Pan-Borneo Highway (Sarawak/Sabah)
Causeway / Second Link to Singapore

Rail corridors

KTM West Coast Line (Padang Besar - Johor Bahru)
East Coast Rail Link (ECRL, under construction)
Connection to the Thai and Singapore rail networks

Main trade lanes

Malaysia - China
Malaysia - Singapore
Malaysia - USA
Malaysia - Japan
Malaysia - ASEAN

Customs and import

Customs authority Royal Malaysian Customs Department (Jabatan Kastam Diraja Malaysia, JKDM)Official website ↗

Import customs system: Electronic clearance via uCustoms (via DagangNet); import declaration with Form K1 for all goods. The responsible authority is the Royal Malaysian Customs Department (JKDM).
Export customs system: Export declaration via uCustoms with Form K2 (transit K8); strategic goods and permits via MITI. Handling is usually carried out by licensed customs agents.
Import VAT: No VAT/GST (abolished in 2018). Import sales tax of 5 or 10 percent on the value of goods; service tax of 6 to 8 percent. Low-value imports under 500 MYR: 10 percent since 1.1.2024.
Proofs of origin and trade agreements: Preferential Certificate of Origin (PCO) via MITI; Form D (ATIGA), RCEP and CPTPP origin declaration. EFTA-Malaysia agreement still under negotiation, no FTA with Switzerland in force.
Restricted and prohibited goods: Approved Permits (AP) for vehicles, agricultural and steel products, among others; prohibitions under the Customs (Prohibition of Imports) Order for drugs, weapons and certain animal and plant products (CITES).

Typical import documents

Commercial invoice
Packing list
Bill of lading / air waybill
K1 import declaration (uCustoms)
Proof of origin for preference
Import licence / Approved Permit for certain goods

Typical export documents

Commercial invoice
Packing list
K2 export declaration (uCustoms)
Preferential Certificate of Origin (MITI)
Export licence / STA permit for strategic goods

Logistics conditions

Customs complexity: Medium
Customs delays: Low to medium
Port congestion: Medium
Dangerous goods relevance: High
Pharma and cold chain relevance: High
E-commerce relevance: High

Trade

Top import partners

China Singapore United States Japan South Korea

Top export partners

China Singapore United States Hong Kong Japan

Top import goods

Electronic products
Machinery
Mineral oils
Chemicals
Vehicles

Top export goods

Electronics
Palm oil
Petroleum products
Chemicals
Rubber

Typical cargo

Electronics and semiconductors
Palm oil and palm oil products
Crude oil and natural gas (LNG)
Chemicals
Machinery
Rubber and rubber products

Upcoming public holidays

DeepavaliSun, 8 Nov 2026 · businesses closed
Christmas DayFri, 25 Dec 2026 · businesses closed
Chinese New YearSat, 6 Feb 2027 · businesses closed
Labour DaySat, 1 May 2027 · businesses closed
Birthday of the Yang di-Pertuan AgongMon, 7 Jun 2027 · businesses closed
National Day (Hari Merdeka)Tue, 31 Aug 2027 · businesses closed
Malaysia DayThu, 16 Sept 2027 · businesses closed
Christmas DaySat, 25 Dec 2027 · businesses closed

Latest logistics news

Asia-Europe: Increased Suez Traffic Intensifies Pressure on Freight Rates8 Oct 2026
More Suez traffic brings capacity back to Asia–Europe. This puts pressure on rates, while port congestion and blank sailings could quickly reverse the picture.
Gemini Sends Four Additional Services Through Suez Canal3 Oct 2026
Four Gemini services return to Suez. Shippers benefit from shorter transit times, but must continue planning for diversions.
China-Laos Railway Exceeds 90 Million Tonnes in Total Freight17 Sept 2026
The China-Laos Railway is developing into a regional trade corridor. A total of 90 million tonnes of freight have been transported, of which 21 million tonnes crossed borders.
China Opens New Waterway: Pinglu Canal Shortens Route to Southeast Asia10 Sept 2026
The new Pinglu Canal connects China's hinterland directly to the Gulf of Beibu. Transports toward Southeast Asia are expected to become shorter and more cost-effective as a result.
Cosco Reopens Red Sea – Maersk and Hapag-Lloyd Expand Suez Services13 Aug 2026
Cosco as well as Maersk and Hapag-Lloyd are expanding their services through the Red Sea and Suez Canal. This could have major implications for transit times and capacity.

Logistics questions

Is there a VAT on imports in Malaysia?

No. Malaysia abolished the GST in 2018 and instead levies the Sales and Service Tax (SST). Imported goods are subject to a sales tax of 5 or 10 percent; services are subject to a service tax of 6 to 8 percent.

How are low-value imports taxed?

Since 1 January 2024, low-value goods imported with a goods value of up to 500 MYR are subject to a sales tax of 10 percent, which is collected on online sales regardless of the foreign platform.

Which customs system does Malaysia use?

The Royal Malaysian Customs Department (JKDM) handles imports and exports electronically via the uCustoms system (via DagangNet). Form K1 is required for imports and form K2 for exports; using a licensed customs agent is common.

Which ports are most important for Malaysia?

Port Klang is the largest port and rose in 2025 to become the tenth-largest container port in the world (around 15 Mio. TEU). The Port of Tanjung Pelepas (PTP) in Johor surpassed 14 Mio. TEU for the first time in 2025. Other ports include Penang, Johor Port and Bintulu.

Does Switzerland benefit from a free trade agreement with Malaysia?

Not currently. The free trade agreement between EFTA (including Switzerland) and Malaysia is still under negotiation and not in force. Swiss exporters therefore cannot claim preferential customs rates.

Which free trade networks is Malaysia part of?

Malaysia is part of ASEAN (ATIGA/AFTA), RCEP (in force since 18. March 2022) and CPTPP (in force since 29. November 2022), as well as numerous bilateral agreements, for example with Japan, Australia, India and Korea. Preferences require a Preferential Certificate of Origin issued via MITI.

What applies to strategic goods and export control?

The Strategic Trade Act 2010 regulates the export of dual-use and military goods; the responsible authority is the Strategic Trade Secretariat of MITI. A catch-all control applies. Since 2025, a control directive also applies to the transit and re-export of high-value AI chips of US origin.

Full logistics profile on Freight Academy ↗