chapter 6 - Malaysia Productivity Corporation ( MPC)

• Values created from upstream and
downstream segments of energy and palm
oil;
• Driving wholesale, retail and tourism sector
to enhance demand for goods and services;
• Development of national and international
distribution hubs in the country; and
• Mass rapid transit and high speed rail
projects to be rolled out under the Greater
KL NKEA.
Under the oil, gas and energy NKEA, EPP 4 aims to
transform Malaysia into a regional oil storage and
trading hub. With port locations on major shipping
routes for crude oil and refined products, close
proximity to Singapore, significant land availability
and deepwater marine accessibility, Malaysia is
well placed to have a significant presence in the
oil storage and trading industry. Several large
corporations and consortiums have committed
to construct and expand on petroleum storage
terminals during 2011. Some of the projects under
construction are the Independent Deepwater
Petroleum Terminal Project at Pengerang, Johor;
Labuan oil storage terminal in Pulau Daat; and
Tanjong Agas Oil and Gas and Logistics Industrial
Park at Tanjung Agas, Pekan, Pahang. They are all at
the initial phase of earthworks to be followed by
construction of storage tanks in 2012.
Strategies and Outlook
The logistics services competitiveness should be
enhanced to improve the position of Malaysia in
the global economy. The existing institutional and
regulatory framework can increase total export
logistics costs and affect service quality. This will
hinder the price competitiveness of Malaysian
exports, especially those destined for ASEAN’s
CHAPTER 6
main export market. Therefore, institutional
and regulatory framework should be improved
and user-friendly policies that reduce transport
logistics costs and increase reliability should be
introduced.
With the growing importance of trade in services
at a regional level, ASEAN started its own services
liberalisation project to achieve greater and
significant integration of logistics services in
ASEAN. The liberalisation of the various logistics
services are forecast to be completed by 2013.
The liberalisation requires Malaysia to strengthen
its logistics services and the capabilities of the
logistics players and the multi-modal transport
infrastructure in order to attract FDI in logistics and
trade to Malaysia in future. Malaysia must continue
to review and undertake progressive liberalisation
of its logistic services. This will enhance the
competitiveness of logistics services providers at
regional and global levels.
The excessive time taken for documentary process
to be completed both for export and import can
affect the competitiveness of Malaysian exporters
and importers in terms of response capability
and costs. Each lost day because of administrative
delay, increases firms inventory holding costs as
well as results in trade reduction. The information
and processes required by related authorities must
be simplified and reduced. The logistics related
formalities, procedures and documents must
be reduced to an absolute minimum. Customs
procedures should be improved and modernised
to assist the flow of trade across borders rather than
hindering such trade. PEMUDAH has been tasked
with improving efficiency of cross-border logistics
and resolve outstanding issues related to handling,
forms processing and inspections at point of entry
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