logistics & transportation malaysia

7/28/2019 Logistics & Transportation Malaysia

1/30

Trade and Transport Facilitation:The Malaysian Experience and

Milestones

Services Development Division

Ministry of International Trade and Industry (MITI)

MALAYSIA


2/30

Overview of Malaysias Services Industry

Overview of Malaysias Transport Industry

Overview of Malaysias Logistics Industry

Status of Malaysias Logistics Industry

Malaysias Economic Corridors Opportunities for

Logistics Services

Liberalization of Logistics in Malaysia

Approach to Logistics Liberalization

Issues

Challenges

Outline


3/30

Overview of Malaysias

Services Industry

The Services Sector, including logistics hasbeen targeted as the engine of growth underMalaysias Third Industrial Master Plan (IMP3);

Total share of services in Malaysias GDP hasexpanded from 48.8 percent in 1987 to 53.4percent in 2007;

IMP3 targets an increase in the GDPcontribution from 50.5 percent in 2005 to 59.7

percent by 2020 to be achieved through: an annual average investment of USD15.3 billion;

and

an annual average growth of 7.5 percent duringthe period.


4/30


Services Industry (contd)

This sector has been increasingly highlighted inthe countrys various development plans (eg. 9thMalaysia Plan, economic developmentcorridors);

Liberalization in the services sector is currentlybeing undertaken in:

ASEAN: through AFAS (full liberalization tobe undertaken by 2015 and logistics 2013);

the WTO: through progressive liberalization;

bilateral and regional FTAs: through bindingof GATS commitments.


5/30



IMP3 targets (2006-2020):

to attain overall growth of 7.5% during the Plan

period; increase contribution of the sector to GDP to

59.7% in 2020;

achieve total investment of USD229.6 billion

during the Plan period, with annual investment ofUSD15.3 billion.


6/30

Services Manufacturing

Indicator 2007 2007

Share of Real GDP (%) 53.6 30.1

Growth (%) 9.7 3.1

Investment Approved (USD billion) 21.8 19.9

Productivity Growth (%) 5.0 8.0

Share of Total Employment (%) 51.4 29.3




7/30



41.851.5Share of Total Employment (%)

18.521.8Investment Approved (USD billion)

7.29.7Growth (%)

44.746.5Non-Government

7.16.9Government

51.853.4Share of real GDP(%)

20062007Indicator


8/30


Transport Industry

Transport sector covers maritime, aviation and landmodes;

In 2007:

56 projects were approved;

investments amounting to USD5.6 billion, of which: USD4.1 billion are domestic investments; and

USD1.5 billion are foreign investment.

Sea and air transport services are the two mainexportable components of the transport sector inMalaysia;

In 2007, Malaysias transport sector registered:

a deficit of USD4.5 billion;

a contraction of 31.1 percent from 2006 (USD6.53billion)

Transport sector remains in deficit due to reliance onforeign freight, particularly in the transport of goods.


9/30


Transport Industry (contd)

Sea Transport:

Exports of sea transport services registered a 19.1percent growth, valued at USD2.8 billion (2007),compared with USD2.4 billion (2006);

Imports of sea transport services increased by 5.4percent to USD10.9 billion (2007), compared with 10.3billion (2006).

Air Transport:

Exports of air services registered a strong growth of86.9 percent to USD5.3 billion (2007), compared with

USD2.8 billion (2006); Increased in export of air services was due to:

introduction of low cost carriers;

expansion into short routes and destinations; and

large volume of air travelers due to cheaper air

travel.


10/30


Transport Industry (contd)

2007

USD bil.

2006

USD bil.

Change

(%)Sub-Sector

Total Trade 64.1 55.3 15.9

Total Export of Non-Government Services

Transport

32.3

8.1

26.5

5.2

21.5

56.1

Total Import of Non-Government Services

Transport

31.8

12.6

28.7

11.7

10.8

7.3

Trade Balance 0.5 (2.2) n.a*

*n.a not applicable


11/30


Logistics Industry

Logistics has assumed a very prominent role as itprovides the backbone to facilitate internationaltrade;

Logistics value chain involves integration of

various service providers transport, distribution,freight and ancillary services to deliver a totalsupply chain solution;

To give more focus on this sub-sector, theGovernment has set up the Malaysia Logistics

Council (MLC) in February 2007 to be the focalpoint for the overall coordination on strategies,policies, regulations and rules for the logisticssector.


12/30

Status of Malaysias

Logistics Industry


13/30

Status of Malaysias

Logistics Industry (contd)


14/30

Status of Malaysias



15/30

Status of Malaysias



16/30

Malaysias Economic Corridors

Opportunities For Logistics Services


17/30


Opportunities For Logistics Services (contd)


18/30




19/30



Peninsula Malaysia

The Northern Corridor Economic Region(NCER) development program is a Government

initiative to accelerate economic growth and

elevate income levels in the north of Peninsular

Malaysia encompassing the states of Perlis,

Kedah, Pulau Pinang and the north of Perak.

The NCER initiative will span from 2007 to 2025.


20/30



Peninsula Malaysia

The East Coast Economic Region (ECER) covers thestates of Kelantan, Terengganu and Pahang, as well as

the district of Mersing in Johor.

The ECER s distinctive natural resources, culture &

heritage will form the basis for transforming the

economy into one that is dynamic and competitive inlight of greater regional and global competition and

economic liberalisation.


21/30



Peninsula Malaysia

Located in Johor, the southern gateway to

Peninsula Malaysia, is within reach of a globalmarket of some 800 million people.

Iskandar Malaysia aims to be a sustainable

region of international standard. As the beacon

of new growth, Iskandar Malaysia will spur

economic developments that actuate Malaysia's

global potential. Recognizing the need for

sustainable development, social and

environmental issues features heavily on its

agenda.


22/30



Sabah

The Sabah Development Corridor programme

is a Government initiative to accelerate

economic growth and elevate income levels inthe state of Sabah. The initiative will span from

2007 to 2025.

The program is part of the Governments

commitment to helping the Region maximizes

its economic potential and closing the

development and income gap between the

different regions in Malaysia and to move

towards higher value-add and knowledge

based economic activities to drive further

increases in per capita income.


23/30



Sarawak

The Sarawak Corridor of Renewable Energy or

simply known as SCORE, is one of the five

regional development corridors beingdeveloped throughout the country.

SCORE is a major initiative undertaken to

develop the Central Region and transform

Sarawak into a developed State by the year

2020.

It aims to achieve the goals of accelerating the

State's economic growth and development, as

well as improving the quality of life for the

people of Sarawak.


24/30

Liberalization of the Services Sector

Preparations required:

strengthen domestic regulations;

for non-regulated sectors, self-regulation is advised orif required, to advise the Government on regulatory

requirements; regulating provides protection to local services

providers;

foreign suppliers could be required to obtainaccreditation or recognition for gratification tosupply the services;

look at regulations that impedes services exports;

identify issues that currently impedes the growth anddevelopment of particular services sub-sectors;


25/30

Liberalization of the Services Sector

(contd)

address policy/regulation issues in the MLC for long-termcompetitiveness or Trade Facilitation issues to PEMUDAH;

identify incentives that could assist the industry tobecome more competitive. This can be addressed inMalaysias Annual Budget;

undertake mergers and acquisitions to strengthen theindustry;

use incentives currently available through MATRADE,MIDA and SMIDEC;

pursue MRAs with trading countries, in particular withinASEAN and FTA partner countries;

build local capacity, niche where we have the strength;

look for opportunities abroad through partnership.


26/30

Target of minimum number of new sub-

sectors to be scheduled in each round: 2008 at least 10 new sub-sectors

2010 15 new sub-sectors

2012 20 new sub-sectors 2014 20 new sub-sectors

2015 7 new sub-sectors


ASEAN


27/30

On Services, Malaysia will continue to review andundertake progressive liberalisation of its servicessectors taking into account domestic capability as wellas to enhance competitiveness at the global andregional levels.

While we acknowledge that the developed countries

want a relatively ambitious level in servicesliberalisation, Malaysia is of the view that adequateflexibility and policy space is needed in liberalisationof the services sectors.


WTO


28/30

Issues

Liberalization: most services sectors are still not fully aware of the impact

of services liberalization, especially Malaysias commitmentsin AFAS, WTO and FTAs.

Domestic Regulations: many of the Acts and Regulations governing business andprofessional services require review to face competition dueto liberalization in the services sector.

Unregulated Sectors: steps to be undertaken in enabling the sectors to self-

regulate to face competition due to liberalization.

Coordination of Development in Services Sector: services under purview of many Ministries and Agencies;

need for greater coordination in the development of thissector, especially in enhancing capacity to export and take

advantage of opportunities overseas.


29/30

Challenges

Industry practices such as just-in-time and point-to-point deliveries that demand accurate and timelydeliveries;

Integration of the various transport modes and serviceproviders so as to provide a seamless connection;

Using of latest technologies to achieve quick turnaroundby automated tracking of consignments and deliveries;

Incorporating standards and best practices into theindustry;

Enhancing professionalism and image of logisticsproviders;

Developing e-logistics and infostructure; and

Leveraging on on-going liberalization initiatives in

bilateral, regional and multilateral for a to build upMalaysias national and global logistics network.


30/30

THANK YOU

For more information, please contact:

Mr. Mohd Hafizzuddin Md Damiri

Senior Assistant Director (Logistics)

Services Development Division

Ministry of International Trade and Industry

email: [email protected]

tel: (603) 6203 3344
mailto:[email protected]:[email protected]

logistics & transportation malaysia

Documents