chapter 6 - Malaysia Productivity Corporation ( MPC)
chapter 6 - Malaysia Productivity Corporation ( MPC)
chapter 6 - Malaysia Productivity Corporation ( MPC)
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PRODUCTIVITY PERFORMANCE OF THE SERVICES SECTOR<br />
and exit including reviewing the processes and<br />
procedures, laws and policies.<br />
The transportation infrastructure should be further<br />
improved so that there is an integration of the<br />
various transport modes by the different services<br />
providers in order to provide seamless supply chain<br />
operations. Good quality roads, railways, ports and<br />
airports are essential for the smooth running of<br />
many key economic sectors including agriculture,<br />
manufacturing, mining and tourism. There is no<br />
doubt that improved transport infrastructure will<br />
also help <strong>Malaysia</strong> to integrate into the global<br />
economy.<br />
Operational efficiency and service responsiveness<br />
are also factors for achieving competitive<br />
advantage. In <strong>Malaysia</strong>, the lack of skilled logistic<br />
professionals has been one of the constraints<br />
in achieving operational efficiency and service<br />
responsiveness. The logistics services should<br />
foster human capital development and capacity<br />
building. Gaps in human resources related to<br />
logistics knowledge should be identified and the<br />
Government should support programmes to fill<br />
the gaps including the facilitation of regional<br />
centres of excellence for training.<br />
The services providers must also leverage on<br />
on-going liberalisation initiatives in the various<br />
regional and multilateral initiatives such as the<br />
ASEAN Cooperation on Transport Facilitation and<br />
Logistics, and integrate into regional and global<br />
logistics network.<br />
The local logistics services providers should be<br />
incentivised to provide integrated logistics services<br />
by consolidating or integrating their activities<br />
to Form Third or Fourth Party Logistics Services<br />
108<br />
Providers (3PL, 4PL). In this way, third/fourth<br />
party logistics providers can provide service to its<br />
customers all their supply chain needs offering endto-end<br />
distribution services from inbound material<br />
flow to finished goods warehousing, inventory<br />
management, inspection, returns handling and<br />
nationwide delivery.<br />
Logistics services providers need to work towards<br />
more value-added services while strengthening<br />
the intermediate services. Value-added services<br />
are those which complement and enhance<br />
warehousing, transportation, and logistics offerings<br />
such as packing and labelling, reverse logistics,<br />
quality assurance and information management.<br />
Green logistics practices are likely to help<br />
<strong>Malaysia</strong> transform itself into a regional logistics<br />
hub in the future. Logistics services providers<br />
should continue investing in building green<br />
warehouses, and co-ordinating sustainable<br />
logistics practice in a way that meets customer<br />
requirements at minimum cost.<br />
Logistics service providers in <strong>Malaysia</strong> should<br />
focus on specialised logistics solutions for specific<br />
industries such as health-care and pharmaceutical<br />
segment in the future compared to the current<br />
generic logistics services.<br />
The Government should implement a national<br />
freight logistics strategy that will ensure smooth<br />
trade flows to competitive global markets. The<br />
Government should also integrate transportation<br />
hubs namely, seaports, airports, terminals and<br />
distribution centers with the transport network and<br />
develop state-of-the art logistics infrastructure for<br />
efficient distribution. Furthermore, the Government<br />
should encourage local logistics companies to