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Overview on Roadmap for the Development of the
Freight Logistics Services Sector

                                   Prese...
National Development Context


    Third Industrial Master Plan (2006-2020)                                  10th Malaysia...
Targets Under RMK 10



                             6% GDP Growth Per Annum


                        61.1%
             ...
Development Methodology

                                                     METHODOLOGY
     Analysis & Research        ...
What is Freight Logistics

    Freight Logistics defined as
    o economic activities which involve in the
        - sourc...
Pervasive Scope Of Freight Logistics

    Information                                     Resources Input

          Raw M...
Components of Freight Logistics Cost




                                                               Outbound
         ...
Estimated Size Of Freight Logistics
    o Freight Logistics Industry
                                                     ...
Roadmap: Development Of Freight Logistics Strategy

                            To foster world-class, safe, secure, relia...
Why Freight Logistics?

      o Governments have recognised freight logistics sector as a strong enabler of
        trade ...
Impact Of Freight Logistics



                                                                         Induces GDP growth...
Malaysian Freight Logistics Agenda



      SI   1           SI   2            SI   3            SI   4             SI   5...
Action Agenda Template

      SCOPE OF STRATEGIC INITIATIVES
       1    Scope of Agenda
       2        Current Situation...
Best Practices In The Context Of National Economy




             Skill Enhancement
                                     ...
Single Window Development

         National Single Window

       Electronic       Electronic
         Permit        Decl...
Proposed MLC Structure

                                     CHAIRMAN

                                    Executive Counc...
Moving Forward

     1. Roadmap for the Development of Freight Logistics
         i. Adopt a holistic approach
           ...
Moving Forward

     3. Conjure a blueprint for National Info-Structure
          i. Re-engineer the Trade Facilitation Sy...
Moving Forward

     6. Institute Liability Conventions
          i. Integrated Logistics Policy

     7. Develop and Fost...
Seamless Supply Chain Management




                                                                    Time Savings

   ...
Thank you

                 Dr. Mohd. Amin Kassim



              Century Logistics Holdings Berhad (424341-A)
          ...
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Overview on Roadmap for the Development of the Freight Logistics Services Sector

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Transcript of "Overview on Roadmap for the Development of the Freight Logistics Services Sector"

  1. 1. Overview on Roadmap for the Development of the Freight Logistics Services Sector Presented by Dr. Mohamed Amin Kassim Workshop for Malaysian Freight Logistics Shah Alam Convention Centre (SACC) 4th August 2010 MALAYSIA LOGISTICS ROADMAP – THE WAY FORWARD (4TH -5TH August 2010)
  2. 2. National Development Context Third Industrial Master Plan (2006-2020) 10th Malaysia Plan (2011-2015) Creating an efficient and competitive logistics Thrust 1: Moving the economy up the value chain Thrust 1 industry. Enhanced national competitiveness in the global Developing the industry to operate in a KRA 1 Thrust 2 environment competitive international environment Greater contribution from “new Sources” of Expanding and upgrading the capacity of the KRA 2 Thrust 3 growth with high valued added industry Pervasive adoption & diffusion of innovation & Intensifying the application of new ICT in the KRA 3 Thrust 4 technology industry KRA 4 Intense private sector participation Thrust 5 Ensuring an adequate supply of competent KRA 5 Strengthened entrepreneurial culture & capacity Thrust 6 Strengthening the institutional support 2 MALAYSIA LOGISTICS ROADMAP – THE WAY FORWARD (4TH -5TH August 2010)
  3. 3. Targets Under RMK 10 6% GDP Growth Per Annum 61.1% 12.8% Services Private Investment Contribution 37% Highly skilled Growth Per Annum to GDP by 2015 workers by 2015 (RM115 billion (7.2% growth per annum) per annum) Note: 1. Service contribution to GDP 2009 is 57.4% 2. Total investment 2006 to 2009 : Domestic RM185 Billion + FDI RM25.6 Billion = RM210.6 Billion 3 3. Share of total employment by services 2009 = 51% MALAYSIA LOGISTICS ROADMAP – THE WAY FORWARD (4TH -5TH August 2010)
  4. 4. Development Methodology METHODOLOGY Analysis & Research Define Freight Logistics Interviews with Stakeholders Discussions / Workshops Review Freight Logistics & Economy Baseline Freight Logistics Trends & Economic Outlook Need for Action Strategic Initiatives Improve Transport Infrastructure & Services Adopt industry Best Practices & Benchmarking Foster Human Capital Development & Capacity-Building Improve Institutional & Regulatory Framework Pervasive Application of IT and Infostructure Secure Sustainability, Security and Environment 4 Action Agenda for Malaysian Freight Logistics Industry MALAYSIA LOGISTICS ROADMAP – THE WAY FORWARD (4TH -5TH August 2010)
  5. 5. What is Freight Logistics Freight Logistics defined as o economic activities which involve in the - sourcing, purchasing, packaging - storage, handling and - delivery (transporting) of freight (cargo) and - managing the documentary and information process flows between production and consumption points in Malaysia and around the world. Freight Logistics includes o all economic activities which are outsourced to professional Third Party Logistics Service Providers (3PLs) as well as freight logistics carried out in- house by manufacturers and distributors 5 MALAYSIA LOGISTICS ROADMAP – THE WAY FORWARD (4TH -5TH August 2010)
  6. 6. Pervasive Scope Of Freight Logistics Information Resources Input Raw Materials Inbound Logistics Transformation Outbound Marketing After Sales Acquisition Logistics Services •Network Design •Consolidation •Inventory Decisions •Mode Selection •Inventory •Packaging •Purchasing •Carrier Selection Management •Consolidation •Returns Handling •Service Level •Vendor Selection •Materials Handling •Packaging •Mode Selection •Parts Management •Channel Decisions •Vendor Location •Warehousing •Kitting •Carrier Selection •Service Network •Customs Port •Assembly •Warehousing Clearance •Backhaul Management Pollutants (Negative Environmental Impact) Information Reverse Logistics : Reduce, Substitute, Reuse, Recycle 6 MALAYSIA LOGISTICS ROADMAP – THE WAY FORWARD (4TH -5TH August 2010)
  7. 7. Components of Freight Logistics Cost Outbound 35% Internal 26% Inbound 39% Source: Adopted from the World Bank 7 MALAYSIA LOGISTICS ROADMAP – THE WAY FORWARD (4TH -5TH August 2010)
  8. 8. Estimated Size Of Freight Logistics o Freight Logistics Industry Secondary Logistics 16 B 44 B Related Activities 20% Passenger Freight 20% Transport 18% Transport & Secondary Primary Storage Logistics Related Functions 80% Activities 80% 82% Value RM20 billion RM60 billion RM220 billion Sector Transport & Storage Total Freight Logistics Agriculture, Mining, Quarrying, SME Manufacturing, Construction, Wholesale & Retail Trade, Hospitality Outsourcing 25% In-house 75% Freight Logistics: Share of Outsourcing & In-house Logistics 8 Contribution to economy = 11.3% of GDP MALAYSIA LOGISTICS ROADMAP – THE WAY FORWARD (4TH -5TH August 2010)
  9. 9. Roadmap: Development Of Freight Logistics Strategy To foster world-class, safe, secure, reliable, cost-efficient & Vision environment- friendly Freight Logistics system to support the country’s economic growth & development To improve logistics services level throughout the global Mission supply chain by adding value through promoting higher customer service at lower service cost. Ensure changes & improvements Firm Level are customer-centric Strategic Enhance industry competitiveness and Industry Level Objective foster industry linkages To enhance the national competitive edge Economy and support the country’s economic growth and development 9 MALAYSIA LOGISTICS ROADMAP – THE WAY FORWARD (4TH -5TH August 2010)
  10. 10. Why Freight Logistics? o Governments have recognised freight logistics sector as a strong enabler of trade and help the economy move up the value chain  2 % growth in GDP A drop of 0.5 % in logistics cost &  40% increase in the range of products exported from a county. 10 Source: World Bank Report MALAYSIA LOGISTICS ROADMAP – THE WAY FORWARD (4TH -5TH August 2010)
  11. 11. Impact Of Freight Logistics Induces GDP growth by 0.47% Port Inefficiency 11 Source: World Bank Report MALAYSIA LOGISTICS ROADMAP – THE WAY FORWARD (4TH -5TH August 2010)
  12. 12. Malaysian Freight Logistics Agenda SI 1 SI 2 SI 3 SI 4 SI 5 SI 6 Improving Adopting Fostering Improving Pervasive Sustain- Transport Industry Best Human Institutional & Application of ability, Infra- Practices & Capital Regulatory IT and Info- Security and structure Bench- Development Framework structure Environment & Services marking & Capacity Building 6 Strategic Initiatives + 12 30 Action Agenda MALAYSIA LOGISTICS ROADMAP – THE WAY FORWARD (4TH -5TH August 2010)
  13. 13. Action Agenda Template SCOPE OF STRATEGIC INITIATIVES 1 Scope of Agenda 2 Current Situation 3 Description of Measures Proposed 4 Impact 5 Global or Regional Relevance 6 Obstacles 7 Implementing or Competent Agencies 8 Implementing Period 9 Financial implication or Budgetary Relevance 13 MALAYSIA LOGISTICS ROADMAP – THE WAY FORWARD (4TH -5TH August 2010)
  14. 14. Best Practices In The Context Of National Economy Skill Enhancement BEST Modal Shift PRACTICES Performance Management/ Addressing Environmental Lean logistics Concerns Fuel Efficiency / Fostering System Equipment & System Green Logistics Connectivity Source: Study Team 14 MALAYSIA LOGISTICS ROADMAP – THE WAY FORWARD (4TH -5TH August 2010)
  15. 15. Single Window Development National Single Window Electronic Electronic Permit Declaration Messaging Module ASEAN Electronic Single Customs Electronic Window Duty Manifest Single Payment Window Electronic Preferential Certificate of Origin National Single Window ASEAN Single Window APEC Single Window Malaysia Malaysia, Singapore, Thailand, Australia, China, Korea, Indonesia, Brunei, Vietnam, Philippines, United States, Cambodia, Philippines, Laos, Canada, Japan, New Zealand, Myanmar Singapore, Vietnam Source: Ports World 15 MALAYSIA LOGISTICS ROADMAP – THE WAY FORWARD (4TH -5TH August 2010)
  16. 16. Proposed MLC Structure CHAIRMAN Executive Council Executive Director/ Executive Director / Members consist of :- Secretariat Secretariat • 6 from private sector • 6 from public sector (EPU/MOT/MITI/MIDA/ General Council MOF/LAND PUBLIC TRANSPORT Evaluation & Monitoring COMMISSION (Proposed EPU to take the lead) Focus Group Focus Group Focus Group Focus Group Focus Group on Institutional on Human on on Industry IT & Framework & Resource Sustainability, Best Practices Innovations Regulatory Development Safety & Development 16 Environment Initiatives
  17. 17. Moving Forward 1. Roadmap for the Development of Freight Logistics i. Adopt a holistic approach “Supply-chain and integrated logistics perspective as a national agenda” ii. Public Policy to have a clear roadmap for liberalisation a. Identify Intra-Sectoral Linkages b. Administrative Barriers iii. Simplify Execution iv. Strengthen the Malaysia Logistics Council & Services Development Council 2. Advocate Regulatory Reforms i. Pragmatic approach to Best Practices – 1st World Standards ii. Practice Transparency – Rules-based vs Discretionary iii. Review all policies after 5 years 17 MALAYSIA LOGISTICS ROADMAP – THE WAY FORWARD (4TH -5TH August 2010)
  18. 18. Moving Forward 3. Conjure a blueprint for National Info-Structure i. Re-engineer the Trade Facilitation System ii. Intelligent Traffic Systems iii. Uniform standards for bar-codes, etc 4. Improve Multi-Modal Connectivity i. Upgrade rail logistics capacity ii. Streamline logistics corridors and strategic hubs iii. All physical developments comply with safety/security and sustainability 5. Motivate greater Private Sector role for leadership i. Cultivate internationally competitive corporation (Create Champions) ii. Extend incentives for re-investment for growth (2nd round) iii. Incentives for logistics companies promoting RDC / IPC / value-added hubs / export of services iv. Avoid over-protectionism and entry barriers 18 MALAYSIA LOGISTICS ROADMAP – THE WAY FORWARD (4TH -5TH August 2010)
  19. 19. Moving Forward 6. Institute Liability Conventions i. Integrated Logistics Policy 7. Develop and Foster the Development of Trading Communities i. Incentives to enhance effectiveness ii. Promote suppliers within regional supply-chain iii. Support virtual markets iv. Halal Logistics & Accreditation 8. Promote logistics as an attractive platform for career progression i. Create Centres of Excellence ii. Training / accreditation / research 19 MALAYSIA LOGISTICS ROADMAP – THE WAY FORWARD (4TH -5TH August 2010)
  20. 20. Seamless Supply Chain Management Time Savings Process Flow Reduce Logistics Cost + Innovation Competitive Advantage Attract New Growth 20 MALAYSIA LOGISTICS ROADMAP – THE WAY FORWARD (4TH -5TH August 2010)
  21. 21. Thank you Dr. Mohd. Amin Kassim Century Logistics Holdings Berhad (424341-A) P. O. Box 93 42008 Port Klang Selangor Darul Ehsan, Malaysia Tel: (603) 3375 5888 Fax: (603) 3375 5969 info@century.com.my www.century.com.my MALAYSIA LOGISTICS ROADMAP – THE WAY FORWARD (4TH -5TH August 2010)

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