LOGISTICS SECTOR IN MALAYSIA
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1 REGIONAL SEMINAR AND WORKSHOP ON TRADE IN SERVICES 15 JUNE 2015 PROMENADE HOTEL, KOTA KINABALU, SABAH LOGISTICS SECTOR IN MALAYSIA NOOR AISHAH KAMARZAMAN MINISTRY OF TRANSPORT
2 AGENDA Logistics in Malaysia Challenges and Lesson Learned The National Logistics Task Force In ASEAN
3 LOGISTICS IN MALAYSIA Malaysia is a trade dependent economy generates large volume trade to be transported to and from global markets especially within the region Logistics is seen as a strong enabler of trade, supporting key industries such as manufacturing, oil and gas. Logistics industry is highly fragmented and is very competitive Highly dependent on intermodal transportation to move freight between land, sea and air modes
4 LOGISTICS IN THE MINISTRY OF TRANSPORT In 2015, Logistics Division is proposed The Masterplan There is no real policy making in logistics (yet) Logistics Unit in MOT was established in 2009, under the Planning and Research Division. MOT involved as and when issues being raised by the industry players more on infra and regulations In 2013, it was put under the Land and Logistics Division with 2 officers
5 INFRASTRUCTURE SEA ROAD RAIL AIR 5 major ports (Port Klang, Tg. Pelepas, Penang, Kuantan and Bintulu) Major highways connecting North South and East West of Malaysia and Pan Borneo 4 inland ports (Ipoh, Nilai, Segamat, Tebedu) 5 Ports container terminals (Butterworth, Westports, Northport, P. Gudang, Tg. Pelespas) 5 international airports (KLIA, PIA, Senai, KKIA and Kuching)
6 AGENDA Logistics in Malaysia Challenges and Lesson Learned The National Logistics Task Force In ASEAN
7 Transport and Infrastructure Service competence Trade Facilitation CHALLENGES & LESSON LEARNED Lack of intermodal freight transport integration Weak integration between road, rail and sea. Poor last mile connectivity Institutional framework challenges Lack of human capital Lack of technology adoption Limited compliance to standards Clearance coordination challenges Various charges
8 FUTURE DIRECTIONS Government Policy Improve governance Review Act Strengthening Institutional Structure Simplify trading procedures Better initiatives Increase liberalisation Facilitating Trade Improve infrastructure, info structure, transport network Improving Infrastructure and Infostructure Adoption of Euro 4 Voluntary participation towards less CO2 emission Securing Sustainability, Security and Environment Provide expertise as well as skilled labours Adequate participation from public and private sectors Human Resources
9 AGENDA Logistics in Malaysia Challenges and Lesson Learned The National Logistics Task Force In ASEAN
10 LOGISTICS SECTOR THE NATIONAL LOGISTICS TASK FORCE : BACKGROUND MALAYSIA 2014 BUDGET SPEECH 2014 LOGISTICS MASTERPLAN Backbone of the trading and other services 25 th in LPI (over 160 economies) 5 th place in Trading Across Borders The Masterplan was developed to enhance logistics industry Providing the way forward. Strenghten Malaysia as the gate of the Asia
11 PROPOSED GOVERNANCE STRUCTURE
12 NATIONAL LOGISTICS TASK FORCE To provide leadership and overall coordination on strategies, policies, regulations and rules related to the industry. To monitor programme and activities of the relevant Ministries and Agencies, including State Government, involved in the development of the industry Cluster Monthly meetings (up to Clusters) NLTF Quarterly (Chaired by YBM Transport) Special Services Sector chaired by YAB PM To ensure that the development of the industry is in line with the overall strategic action agendas in the Master Plan.
13 5 CLUSTER WORKING GROUPS Institutional Mechanisms and Regulations (MOT) Trade Facilitation Mechanisms (MITI and RMC) Infrastructure and Freight Demand (MOT) ICT-driven Innovation (MDec) Human Capital Development (MOHR)
14 5 STRATEGIC SHIFTS Hub and Spoke Model Global Supply Chain Convergence Value added output Technology and human capital Supply Chain Innovation
15 19 ACTION ITEMS
16 AGENDA Logistics in Malaysia Challenges and Lesson Learned The National Logistics Task Force In ASEAN
17 LOGISTICS SERVICES IN ASEAN ASEAN Coordinating Committee on Services (CCS) agreed to establish the Logistics and Transport Services Working Group (LTSSWG) to implement the measures under the Logistics Roadmap which are related to CCS. In the past decade, ASEAN logistics market expands significantly, alongside various Free Trade Agreements being implemented within ASEAN as well as with ASEAN Dialogue Partners. In 2006, ASEAN Economic Ministers decided Logistics Sector as the twelfth Priority Sector in ASEAN for accelerated economic integration, in addition to the eleven priority sectors identified in 2003.
18 LOGISTICS SERVICES IN ASEAN The Roadmap for the Integration of Logistics Services was adopted in Expand Capability of ASEAN Logistics Service Providers Human Resource Development Enhance Multi-Modal Transport Infrastructure and Investment Achieve substantial liberalisation of logistics service Enhance Competitiveness of ASEAN Logistics Services Providers through Trade and Logistics (Transport) Facilitation
19 MATTERS BEING DISCUSSED AT THE LTSSWG Domestic Rules and Regulations on Logistics and Transport Services ASEAN Member States Contact Points for Information on Investment Regulation and Licensing Registration Criteria ASEAN Business Registration Procedures ASEAN Qualification Professionals and Skilled Logistics ASEAN Definition of Express Delivery Services (EDS) Private Sector Associations in Logistics and Transport Services ASEAN Member States Policies on Transportation of Empty Container
20 The logistics industry will be improved and all the action items underlined in the Masterplan will be implemented with close integration and cooperation and support between the public and private sector. Thank you
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