Let’s step up a gear, says Malaysia transport minister

There is a need to develop logistics infrastructure in Malaysia to ensure the country’s continuous economic growth, says transport minister Liow Tiong Lai.

 “Our economic fundamentals are strong. Our exports are still high. Klang Port recorded 15-per-cent growth in the number of containers the first six months of this year,” he told a press conference on Sunday. Liow attributed the stable growth to the advancement of digital technology and the sharing economy, which had enabled a free flow of goods and services in the region. 

So to grow faster, we need a more efficient logistics industry. 

“We need to solve the problems holding the industry back and get our logistics infrastructure on par to facilitate e-commerce giants such as Alibaba.com,” he said. Plans were in place such as upgrading Klang Port to increase its capacity, building a third port in Klang and a deep sea port in Malacca to facilitate bigger ships.

Malaysia’s logistics performing index was ranked at No 32 in the world, he said.

One of the ways to have a higher ranking was to improve administrative efficiency by having work done online. 

“For example, our Customs Department is moving its application process online. Now, importers and exporters do not need to wait that long for their cargo to be cleared.”

Minister in the Prime Minister’s Department Wee Ka Siong said Malaysia was China’s largest trading partner but the country risked being surpassed by Vietnam soon.

“Malaysia’s bilateral trade totalled US$97.35 billion (Bt3.4 trillion) in 2015 but Vietnam may be poised to surpass Malaysia soon, recording $95.8 billion in trade last year,” he said.

To maintain a competitive edge, there was an increasing logistical need to bridge exporters and importers in different countries. “If you can facilitate the movement of goods, like a logistics player, you will help build trade and we need this a lot even as the government invests in boosting our logistical facilities,” he said.

Responding to claims that corruption was impeding the logistics industry, Wee urged businesses to come forward to provide the information.

“As a minister, I am duty bound to answer this question. Please provide information about any abuse of power,” he said.

MCA Youth chief Chong Sin Woon said logistics and the rapidly growing e-commerce industry reinforced each other in helping Malaysia expand its economy.

“Many have failed to see the potential of the logistics industry. Some may even equate the logisticians with lorry drivers,” he said.

Chong cited a survey by Pricewater-houseCoopers showing that nearly half of Malaysian consumers made online purchases every month, proving that the local logistics industry had much potential to grow.