Published: Tuesday January 12, 2010 MYT 2:50:00 PM
Logistics sector needs to be beefed up says Minister
KUALA LUMPUR: The logistics industry is among the services sector that needs to be beefed up as trade remains an important lifeline for Malaysia, International Trade and Industry Minister, Datuk Seri Mustapa Mohamed said.
"The government is committed to lowering the costs of logistics in order to maintain Malaysia's competitiveness as a trading nation," he said in his speech at the Malaysian International Chamber of Commerce and Industry Services Summit here on Tuesday.
Among others, he said the government would cooperate with the private sector in issues relating to regulations, procedures and infrastructure needed for the sector to perform well.
"Efforts are being made to further consolidate and integrate the logistics sector to not only provide better and competitive services to domestic manufacturers but also to provide logistics services to neighbouring countries", he added.
Asked later if the government would initiate a regulated consolidation for the sector, Mustapa said : "Not at this point of time."
Malaysia was establishing new capacities and facilities in ports and airports and was improving its infrastructure to position the country as a regional hub for logistics. - Bernama
____________________________________________________________________
The above story quoted from STAR Online. The Malaysian logistics sector have been suffering in silence for many years. Our government did not see it as one of the backbone of Malaysia economics. Long have the logistics sectors being bullied with regulations that seems illogical and also most of the time, changes as fast as the wind. 
There is many reputable or reliable logisticians and logistic companies that is available around the whole country. From small setups to public listed companies. But for all, its the same.
As an example, our Royal Customs of Malaysia have no uniformity. Each Customs stations within the country has different interpretation of the regulatory laws and tariff codes. Each has their own procedures of clearing a shipment. We are bogged down with so much differential ways from different Customs officers that sometimes a simple job of assessment of a Customs Form is so taxing in terms psychological.
If my memories serves me right, a few years ago, the Transport Ministry said we can clear our shipments 1 week in advance even before the vessel arrives at Port. It was all talk. Agents were bogged down with problems from EDI system and from the authorities. And effectively from 1st January 2010, the free storage period is reduce from 5 days Free to 3 days Free Storage at Port.
This cannot be done! Nor is it possible especially with different government agencies involved. Especially if shipments that involves Customs, Health, Agriculture and other departments. Plus, these OGA's (Other Government Agencies) do not operate on weekends. There is also many Shipping Agents (SA) that do not operate anymore on Saturdays and top it off with BANKS that also do not operate on Saturdays and closes all transaction of duty payment by EFT at 6pm everyday.
Top all that above with the lousy services provided by our Port Operators, insufficient and inefficient haulage companies, non-uniformity of procedures by Customs & OGA's and etc etc, we will never be ready for reduced free storage period.
We need a solution to this first. Many discussions have to be made between all that is involved in the total logistics chain. This is not about one company but the nation as a whole. Logistics are a service based business. Our meager profit margin comes with huge responsibilities to our clients.
The Government of Malaysia has to understand this. If what they say are true in the article above, they should not waste anymore time. Its time to call for a National Logistics meeting with all the associations involved. To study and discuss about the shortcomings of our national logistics policies as well as the ethical codes of logistics companies practicing their businesses. Price War is not the solution. Each and every local logistics companies in Malaysia must be mentally coach to accept the fact they are providing services and to be one of the global challengers in the international logistics scene WITHOUT the need to resort to price war tactics.
Also, my personal call to our Government to reconsider the bumiputra privilege of forcing 51% ownership before any government license can be granted. Trust your people, we thank the government for the education provided and its time for you to loosen these unnecessary 'strings' so that the whole nation can move ahead without feeling sideline or unfairness from the results of bumiputra status-quo.
