chapter 6 - Malaysia Productivity Corporation ( MPC)

CHAPTER 6
Figure 6.6: Growth of Labour Cost Competitiveness of the Logistics Services, 2007-2011
Computed from: Department of Statistics, Malaysia
volume is projected to increase by 10.1% to 545.13
million tonnes in 2012, from 495.29 million tonnes
in 2011, with sea freight being the most favoured
mode of transport for cargoes in Malaysia, handling
more than 90% of total freight traffic in 2011. Cargo
volume by air and rail are also projected to grow by
3.9% and 5.1% respectively.
Innovation and Best Practices
Best practices observed in the logistic services
focus on sustainable development. As sustainable
construction and energy efficient buildings form
an integral part of environmental sustainability,
warehouses are designed based on the green
concept incorporating environmentally friendly
features such as optimising the usage of natural
light, advanced air circulation to maintain a
Percent
15.0
10.0
5.0
0
-5.0
-10.0
2007 2008 2009 2010 2011
Productivity 2.51 0.54 -7.59 5.23 3.67
Labour cost per employee 0.05 2.27 -0.01 0.13 3.11
Unit labour cost -4.63 -1.37 11.95 -4.94 -0.47
constant warehouse temperature and a systematic
rain harvest system. Warehouses comply with
international security standards are designed with
internationally recognised security features such
as 24 hours closed circuit televisions (CCTVs). Prime
movers are fitted with vehicle tracking system or
the state-of-art technology satellite tracked Global
Positioning System (GPS) not only to monitor the
movement of the cargo but also to ensure fuel
efficient driving behaviour.
The deployment of state-of-art ICT infrastructure
is necessary for supply chain success. To this end,
some logistic service providers have integrated
e-logistic solutions which include information
management system, accounting system and a
supply chain suite. Among the programmes of
choice are Warehouse Management System (WMS),
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