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There is a rubber panel that goes there, but on US spec Toyota probably couldn't install it due to head from the downtube.
I bought a small sheet of rubber flooring from Home Depot and some push-in fasteners from Autozone and installed a new piece. Its comes fairly close to the exhaust, but not close enough to melt. It's held up for over a year.
Remove it, it is NOT suposed to be there.