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Old April 11th, 2017, 09:30 PM   #1
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Malaysia's Logistics Sector





LOGISTICS AND TRADE FACILITATION
MASTERPLAN (2015-2020)

http://www.mot.gov.my/en/Penerbitan%...Masterplan.pdf
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Old April 11th, 2017, 09:33 PM   #2
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Saturday, 8 April 2017
Liow: Projects vital in reducing business costs



Quote:
PETALING JAYA: Several large-scale infrastructure and logistics projects will be implemented as part of the Government’s logistics masterplan to promote trade and growth, said Transport Minister Datuk Seri Liow Tiong Lai (pic).

The projects, listed under the second phase of the masterplan, include the Pulau Carey port-industrial city project, East Coast Rail Link, Digital Free Trade Zone and 24-hour Customs facilitation at the borders.

“This is critical because logistics support all sectors of the economy, facilitate trade, reduce costs of doing business and contribute to enhancing productivity and economic growth,” Liow said after chairing the task force meeting yesterday.

Other plans include setting up a regional e-commerce and logistics hub at KLIA Aeropolis, as well as developing Sabah as the regional logistics hub for Asean.

The Logistics and Trade Facilitation Masterplan, launched in 2015, is aimed at turning Malaysia into the preferred logistics gateway to Asia by 2020.

Liow said two Cabinet ministers had joined the National Logistics Task Force (NLTF), an inter-ministry task force responsible for the implementation of the masterplan.

They are Minister in the Prime Minister’s Department Datuk Seri Abdul Rahman Dahlan and Second Finance Minister Datuk Seri Johari Abdul Ghani.


“I am confident that with the involvement of the two ministers representing key central agencies – namely the Economic Planning Unit and the Finance Ministry – the NLTF will be further strengthened and become more robust in implementing the masterplan to improve the efficiency of the logistics industry,” said Liow.

He added that other members in the task force included representatives from the International Trade and Industry Ministry, Human Resources Ministry, Works Ministry, and other government agencies and departments, as well as logistics industry players.

Some 146,000 jobs, mostly in the highly skilled category, would be created with the successful implementation of the masterplan, Liow said.

He said Malaysia’s cargo volume was also expected to grow 8% annually to 880 million tonnes by 2020.

The contribution of the transport and storage sub-sector to the country’s GDP was projected to increase from 3.6% in 2013 to 4.3% in 2020.


The task force would also implement three projects which were scheduled under phase one but were not completed last year due to resource constraints, Liow said.

These included last-mile connectivity to Port Klang, addressing bottlenecks at the Padang Besar terminal in Perlis and developing u-Customs to provide a single window for goods clearance.

Read more at http://www.thestar.com.my/news/natio...kp7HxwppVg6.99
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Old April 11th, 2017, 09:35 PM   #3
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TPPA failure will not affect Sepanggar Bay from becoming transhipment hub
Posted on 11 April 2017 - 05:56pm
Last updated on 11 April 2017 - 06:22pm


Quote:
KOTA KINABALU: The cancellation of the Trans-Pacific Partnership Agreement (TPPA) will not have any negative impact on the development of the Sepanggar Bay Container Port (SBCP) into the region's transhipment hub.

Assistant Industrial Development Minister Datuk Bolkiah Ismail said SBCP's strategic location allowed it to provide transshipment port services to major economic powerhouses such as Japan, South Korea, Taiwan and China.

This also included other countries such as Australia, New Zealand, Papua New Guinea and Brunei Darussalam-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA) member nations.

"TPPA's failure will attract China's attention as the nation strived to be more aggressive in leading trade and economic growth in the region.

"China is expected to continue with its 'One Belt, One Road' (Obor) initiative to encourage trade in the Far East.

"Therefore, Sabah must be more proactive and take necessary strategic steps to take part in China's Obor and thus benefit from it while increase trade among Asean countries," he said in response to Datuk Charles O Pang Su Pin (BN-Karamunting), in the Sabah State Assembly Sitting, who asked if TPPA's failure would affect SBCP's development.

Bolkiah said Malaysia was currently involved in the Regional Comprehensive Economic Partnership (RCEP) discussions, together with 15 other nations, including seven TPPA member nations.

He said the RCEP covered more than 3.3 billion people, which is more than half the global population and 30 per cent of the world's total trade.

Meanwhile, Sabah Deputy Chief Minister cum State Industrial Development Minister Datuk Raymond Tan Shu Kiah said the cabotage policy was irrelevant to SBCP's development as a transshipment hub.

He was replying to a supplementary question from Datuk Wilfred Bumburing (PCS-Tamparuli) who asked if the cabotage policy would impact SBCP's development.

Tan said the creation of the transshipment hub in Sabah would help liberalise the state's cabotage policy.

He hoped the state government would use the economic opportunity to develop SBCP into a successful transshipment hub. — Bernama
http://www.thesundaily.my/news/2017/...anshipment-hub
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Old April 12th, 2017, 06:13 AM   #4
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Malaysian New Logistic Developments 2017:
- Regional e-commerce and logistics hub at KLIA Aeropolis
- Pulau Carey port-industrial city
- East Coast Rail Link
- Digital Free Trade Zone
- 24-hour Customs facilitation at the borders (Thailand, Singapore, Indonesia, Brunei)
- Developing Sabah as the regional logistics hub for Asean
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Old April 12th, 2017, 07:15 AM   #5
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Wednesday, 12 April 2017
Huge potential in southern Thailand-Malaysia cross-border trade
BY DAVID TAN


Latest offering: Othman (second left) flagging off the 200th intermodal chartered train services at Trili Maju facility site in Butterworth. With him is Trili Maju chairman Mohamed Ali Abdul Samad (left) and Nawawi (third left).

Quote:
SEBERANG PRAI: The cross-border trade between southern Thailand and Malaysia has the potential to grow about 400,000 20-ft equivalent unit (TEUs) of cargo per annum.

Deputy Finance Minister Datuk Othman Aziz said the current trade volume was 120,000 TEUs per year.

“Rail operators should take advantage of the double-tracking system in the country, as it is only 20% utilised,” he said.

He said this at a briefing after launching the 200th intermodal chartered train services by Trili Maju Sdn Bhd.

Othman said since the double-tracking system was under-utilised, Keretapi Tanah Melayu Bhd (KTMB) should review its business plans.

“This will include exploring potential joint-ventures to maximise usage. KTMB should submit to us its business plans,” he added.

On opening the Bukit Kayu Hitam border checkpoint for 24 hours, Othman said the issue was not just about facilitating the movement of cargo.

“Although I personally support the 24 hours operation, there are issues related to security that needs to be addressed before any decision is made.

“The backlog of cargo at the border could be due to the ongoing construction of the new immigration, customs, and quarantine (ICQ) complex,” he added.

Meanwhile, KTMB chairman Datuk Nawawi Ahmad said the company had submitted applications to expand its cargo storage area in Padang Besar.

“It is now occupying a 3.2 ha site, which we plan to extend to 7.2 ha.


“KTMB has placed orders for 30 locomotives. There is a need for 2,000 more wagons,” he added.
Read more at http://www.thestar.com.my/business/b...ERmWkr50FWo.99
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Old April 17th, 2017, 08:13 PM   #6
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Friday, 14 April 2017
Plan to drive Port Klang as logistics hub


Smooth sailing: Liow (left) with Xu, chairman of China Cosco Shipping Corp Ltd, during their meeting in Shanghai

Quote:
PETALING JAYA: An important milestone in Malaysia-China maritime industry relations has been reached in a cordial meeting between Transport Minister Datuk Seri Liow Tiong Lai and China Cosco Shipping Corp Ltd chairman Xu Lirong.

The meeting in Shanghai, said Liow, provided an opportunity for China Cosco Shipping Lines to play an important role in enhancing Port Klang as a logistics hub in Asean.

China Cosco Shipping Lines currently has 44 services calling at Westport in Port Klang.

“The ministry has been tasked with laying the foundation for Malaysia to be the premier destination as a logistics hub and the participation of Alibaba in the Digital Free Trade Zone has provided an important footprint.

“With the participation of China Cosco Shipping Lines in the maritime sector, Malaysia’s position in Asean will be greatly enhanced,” he said.

Liow met Xu during his working visit to Shanghai yesterday.

China Cosco Shipping Corp Ltd, which was formed as a result of the merger between Cosco Container Lines and China Shipping Container Lines, has emerged as China’s biggest container line and the fourth largest in the world.

Together with other shipping companies CMA-CGM, OOCL and Evergreen Asia, China Cosco Shipping is also part of the Ocean Alliance that has the combined volume to be the largest container line in the world.

On April 7, Liow said several large-scale infrastructure and logistics projects would be implemented as part of the Government’s logistics masterplan to promote trade and growth.

The Logistics and Trade Facilitation Masterplan, launched in 2015, is aimed at turning Malaysia into the preferred logistics gateway to Asia by 2020.

Read more at http://www.thestar.com.my/news/natio...mBSYJg6AQgc.99
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Old April 18th, 2017, 02:27 PM   #7
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Malaysia to host global logistics congress in October
BY THO XIN YI Tuesday, 18 April 2017 | MYT 12:57 PM


Quote:
KUALA LUMPUR: The Federation of Malaysian Freight Forwarders (FMFF) will host for the first time a global congress on logistics this October.

The International Federation of Freight Forwarders Associations (FIATA) World Congress 2017 with the theme “Logistics Bridging Global Trade” will take place at the Kuala Lumpur Convention Centre from Oct 4 to 8.

Transport Minister Datuk Seri Liow Tiong Lai (pix) said the theme fits with Malaysia’s aspiration to be connected to the world supply chain.

"It is time for the Malaysian logistics industry to go beyond the regional market.

"Our logistics services providers must be ready to be ‘glocal’ companies – local companies with global outreach,” he said at the soft launch of the event on Tuesday.

The annual congress provides a platform for key industry players to share information and networking against the backdrop of fast-changing global trends and practices.

Liow said the event would be the perfect avenue to showcase Malaysia as the preferred logistics gateway to Asia and the Government’s efforts in enhancing the capacity of the logistics industry.

"The logistics industry is the backbone to the supply chain and plays a major role to stimulate trade and spur economic growth.

"With the Malaysian economy expected to grow by as much as 4.4% this year, an improvement from last year’s 4.2%, the ongoing implementation of large-scale infrastructure and logistics projects will definitely give a significant impact to the nation’s competitiveness,” he said.

The Transport Ministry is a co-host of the congress.

Federation president Alvin Chua Seng Wah said the event is expected to attract 1,000 delegates from all over the world.

"We are confident that the delegates will be pleasantly surprised at what the logistics industry in Malaysia can offer, ” he said.

For details of the event, visit http://www.fiata2017.org/.

Read more at http://www.thestar.com.my/news/natio...speix1ryzIG.99
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Old April 22nd, 2017, 09:48 AM   #8
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Home / Sabah Local News
Labuan Port congestion surcharge withdrawn
Published on: Friday, April 21, 2017


Quote:
Labuan: The Labuan Chamber of Malay Entrepreneurs has hailed the shipping liners' decision to withdraw the RM500 Labuan Port congestion surcharge per container that has upset port users.

The chamber said the withdrawal, effective April 15, greatly helps the port users ease their financial burden in cargo handling.

Its President Datuk Seri Mohd Alias Abd Rahman said the congestion fee imposed in November last year by the shipping liners had affected the flow of cargoes into the island due to the additional charges.

As the surcharge increased handling cost, he said sugar could not be sold to consumers on the island at the gazetted controlled price.

Alias said the Labuan port operator, Labuan Liberty Port Management (LLPM), has expanded its container yard operation to outside of the port, thus easing congestion at its yard.

"We feel that the port operator has done its part to ensure the smooth flow of container handling, and negative remarks on the congestion issue did not help resolved the matter.

"One could imagine the additional handling costs being borne by the port users, especially forwarding agents, due to the congestion surcharge of RM500 per container," he said in a statement, Thursday.

He said the Ministry of Domestic Trade, Cooperative and Consumerism convened a meeting on April 12 with the shipping liners, port users and LLPM to find solution to the issue.

"As the shipping liners have witnessed the smooth flow in the port terminal and as assured by the port operator, the surcharged was eventually withdrawn, and it is certainly great for the island's economy," he said.

Alias said in the interest of the island's economy, the Labuan Chamber of Malay Entrepreneurs had invited the Labuan Chinese Chamber of Commerce for a dialogue to resolve the Labuan Port's congestion dispute and related issues but to no avail, as there was no respond from the chamber.

"As corporate bodies and players on the island, we are obliged to help revive the island's economy after being badly hit by the slowdown in the oil and gas sector, the engine of the island's economy, and not criticising the Government's efforts or the port operation," he said.

Alias also called on the port users, shipping liners and chambers of commerce to work together in the interest of the island's economy.
http://www.dailyexpress.com.my/news.cfm?NewsID=117318
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Old April 26th, 2017, 05:34 PM   #9
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Wednesday, 26 April 2017 | MYT 4:20 PM
Review cabotage policy to boost Sepangar Port, says Sabah minister
BY MUGUNTAN VANAR



Quote:
KOTA KINABALU: The cabotage policy must be liberalised or even abolished in order to make Sepangar Port a regional transshipment hub, state Special Tasks Minister Datuk Teo Chee Kang (pic) said.

"The cabotage policy, insofar as it applies to Sabah, should be re-evaluated by the Federal Government," said Teo, who is Liberal Democratic Party (LDP) president.

Both Sabah and Sarawak have been asking for the scrapping of the policy, which generally [B]allows only Malaysian-flagged ships to transport goods to the two states [/s]and has been widely blamed for the higher cost of goods.

Teo said the move would be in line with the state government's plan to upgrade Sepangar Port and elevate its position in the region.

It would also help Sabah's standing in the region's economy, he added.

Teo's statement comes in the wake of Sarawak Chief Minister Datuk Amar Abang Johari Tun Openg's call to repeal the policy.

Teo said Sabah has an open economy where "our business community trades with people and businesses in the international community, and funds could flow as investments across the border."

"When the time comes, we need to put in place policies and incentives which will attract more foreign vessels to call at Sepangar Port," he said.

However, Teo said, it was just common perception that the cabotage policy is the main cause of costlier goods in Sabah.

"I think it is just one of the many causes. I doubt very much that in the event the cabotage policy is abolished, the price of goods in Sabah will drop overnight.

"But we can expect more competitive freight charges for domestic routes, which would reduce logistics costs as a whole," he said.

Read more at http://www.thestar.com.my/news/natio...KhdmkhdPcWX.99
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Old April 27th, 2017, 12:20 PM   #10
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http://www.theedgemarkets.com/articl...tage-conundrum

The cabotage conundrum

Quote:
Is the cabotage policy the reason for the higher cost of living in Sabah?
Quote:
Shipowners say the real culprits are poor road infrastructure, lack of industrialisation and the traders in the state seeking higher margins as a result of lower volumes.

“I suggest they (the Sabah traders) expand their market to Indonesia and the Philippines, both of which have larger populations. This way, they need not mark up their prices so much as there is a larger market,” says a shipowner.
Quote:
In 2013, the cost of freight — inclusive of bunker adjustment but excluding terminal handling charges — was between US$1,400 and US$1,500. Last year, it plunged to US$800. At present, the rates are below US$1,000.
Quote:
While Sabah may not have much investment in the maritime sector, neighbouring Sarawak — with its vast river transport network — has a thriving maritime industry. Some of the larger shipping-related companies from Sarawak are Shin Yang Shipping Corp Bhd, Sealink International Bhd and Sarawak Slipways Sdn Bhd.

“These companies have owners who are politically well connected as well. It’s not just Sabah politicians one has to deal with … think of the big names in Sarawak,” the shipowner says.
Quote:
Meanwhile, the fact that the policy for Sabah is being reviewed is odd as Indonesia had implemented a cabotage policy in 2005 after its domestic shipping industry almost went under as a result of foreign companies dominating coast-to-coast shipping.
Quote:
In the US, the Merchant Marine Act of 1920, or more popularly known as the Jones Act, requires all goods transported by water between US ports to be carried on US-flagged or US-registered ships owned by US citizens and crewed by US citizens and permanent residents.
Quote:
“In times of national crises, Malaysian-flagged vessels will play a significant role, for example in delivering medical supplies or other aid, which cannot be left in the hands of foreigners,” says the shipowner.
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Old May 5th, 2017, 10:53 AM   #11
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Friday, 5 May 2017 | MYT 1:05 AM
POS Malaysia, Lazada develop e-commerce regional distribution centre


Quote:
KUALA LUMPUR: A RM60 million e-Commerce Regional Distribution Centre is being established in Sepang, Selangor, via a collaboration between Pos Malaysia Bhd and Lazada (M) Sdn Bhd.

The companies signed a Memorandum of Collaboration (MoC) on Thursday for this purpose.

Pos Malaysia Group Chief Executive Officer Datuk Mohd Shukrie Mohd Salleh said the centre, to be located at the former low-cost carrier terminal, will provide value-added services such as air-sea-land transportation solutions, international transshipment, postal and courier services as well as warehousing facilities, among others.

"The distribution centre can handle 182,000 tonnes of items. We are targeting 34 million items for next year followed by 64 million in 2019," he told reporters after the MoC signing here.

The MoC was signed by Mohd Shukrie and Lazada Malaysia Chief Executive Officer, Hans-Peter Ressel.

Mohd Shukrie said renovation works are expected to start next week and the centre is slated to begin operations on Aug 31.

"The hub is expected to benefit both international and local e-commerce players and customers in 30 countries in the Asia-Pacific region.

"Concurrently, the collaboration agreement will also see the establishment of a regional e-fulfillment hub based in Sepang," he added.

Mohd Shukrie said Malaysia Airports Holdings Bhd has allocated two-thirds of the terminal space of about 430,000 sq ft for the hub and 330,000 sq ft for Lazada''s Distribution Centre.

POS Malaysia will be footing the infrastructure cost, with Lazada supporting the five-year collaboration with its e-Commerce expertise, handling of items and training.

''The centre is a significant part of Pos Malaysia''s journey into the region and is an affirmation of our long-standing strategy to provide end-to-end integrated logistics, as part of our growth trajectory in the e-Commerce segment," said Mohd Shukrie.

Ressel said the collaboration would open doors for Malaysian small and medium enterprises to expand their businesses, as well as bring together, global businesses to global customers. - Bernama
http://www.thestar.com.my/business/b...bution-centre/
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Old May 7th, 2017, 12:44 PM   #12
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Latest News Sabah
Cabotage policy out the doors by June 1 – Najib
May 7, 2017, Sunday Rebecca Chong


Quote:
SANDAKAN: Prime Minister Datuk Seri Najib Tun Razak announced the abolishment of the cabotage policy for Sabah, Sarawak and Labuan starting from June 1, 2017.

Najib said leaders from Sabah and Sarawak have been continuously requesting for the policy to be reviewed as it is said to be the cause of high goods prices in both states.

However, the policy would still be applicable to cargo shipping operations within Sabah, Sarawak and Labuan.

Najib said this during the launching of the ‘Ekpresi NegaraKu’ programme at the Sandakan municipal field here today.

The cabotage policy was enforced since 30 years ago in Sabah, Sarawak and Labuan and it functions to control goods shipped from the peninsula to Sabah and Sarawak.
http://www.theborneopost.com/2017/05...-june-1-najib/
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Old May 9th, 2017, 01:43 PM   #13
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Sabah businessmen see drop in pricing of goods with cabotage exemption
9th May, 2017


Quote:
KOTA KINABALU: Sabah businessmen are upbeat that the exemption of the cabotage shipping fees will have an impact on the reduction cost of sea transport to Sabah, Sarawak and Labuan.

Sabah United Chinese Chamber of Commerce president Datuk Seri Gan Lau Wah said that the lowered cost in transportation would impact the cost of goods reaching consumers in the state.

“It is indeed good news to all Sabahans. With this liberalisation we foresee a drop in pricing of goods.

“It will benefit the people in the state and also those living rural areas,” he said in welcoming the announcement by Prime Minister Datuk Seri Najib Tun Razak that the cabotage policy would be exempted for Sabah, Sarawak and Labuan from June 1.

Gan said that the chambers had always been asking for the exemption or abolishment of the cabotage as it caused prices of goods to be more 20 per cent to 30 per cent higher in Sabah than in Peninsular Malaysia.

“The government’s decision is also timely as the current as current global economic climate remains uncertain,” he said.

Federation of Sabah Industries president Datuk Mohd Basri Gafar also welcomed the move as “great news” for the business sector and believed that it would have impact on bringing down the prices of goods in Sabah from June.

However, he said they would wait for mechanics and the full details of the cabotage exemption before making further statements.

Businesses and political parties across east Malaysia have been calling for the scrapping of the cabotage policy which was widely blamed for high cost of goods.

The cabotage policy was introduced in the 1980s as a way of promoting Port Klang as the country’s main trans-shipment hub as it would require goods from outside the country to go through that port before being shipped to Sabah, Sarawak and Labuan.

The exemption would cover shipment of goods between any port in the Peninsula and any port in Sabah, Sarawak and Labuan, between ports within Sabah and between ports within Sarawak. – PR
http://www.newsabahtimes.com.my/nstweb/fullstory/15546
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Old May 12th, 2017, 10:56 AM   #14
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Home / Sabah Local News
No overnight price reduction
Published on: Friday, May 12, 2017



Quote:
Kota Kinabalu: Much is still to be done to ensure a reduction in the prices of goods and the work will begin when the Cabotage policy exemption on Sabah, Sarawak and Labuan is implemented beginning next month.

Federation of Sabah Industries (FSI) Honorary Life President Datuk Seri Wong Khen Thau said the public must have a clear understanding that the Cabotage policy is not just about freight charges but also other issues.

"The Cabotage policy is not solely about price reduction but also about fair prices and fair competition and their effects on the growth of the manufacturing and other sectors in the country.

"We believe the so-called reduction in price will not be happening overnight as claimed by many quarters," he said during a joint press conference, here, Thursday.

Among those present were representatives of FSI, Sabah Housing and Real Estate Developers Association, Sabah Timber Industries Association, Malaysia Plastic Manufacturers Association (Sabah), Malaysian International Chamber of Commerce and Industry (Sabah), Kota Kinabalu Chinese Chamber of Commerce and Industry, Kota Kinabalu Forwarding Agents Association, Kota Kinabalu Container Lorries Association, Sabah Employers Association and Auto Traders Association of Sabah.

"Prices of goods will not drop immediately beginning June 1 as this is not a tax policy. It will take some time for the momentum to build up and if we are lucky, we may see some changes in prices a month after.

The people should understand how the Cabotage policy works."

Towards this end, Wong said FSI and the other associations strongly believe that several measures should be taken so that the liberalisation announced by Prime Minister Datuk Seri Najib Tun Razak will be realised more effectively.

"Firstly, the Government must endeavour to generate enough publicity and constantly promote the latest liberalisation move to the global business communities and attract foreign liners to call on Sabah ports for what good is the move if there is lack of awareness.

"The licensing authority also plays an important role in its effectiveness in implementation, above all, by adopting business-friendliness and reducing bureaucracy in issuing licence to foreign vessel owners keen to serve in this region," he said.

He added that a national logistics council should be formed and it should be well represented by stakeholders from the peninsula, Sabah and Sarawak for holistic views, input and coordination mechanisms to advance the nation's logistics development and trade facilitation.

"Apart from that, the granting of the block exemption order by Malaysia Competitions Commission under Section 8 of the Competitions Act 2010 to Malaysia Shipowners Association (Masa), Shipping Association of Malaysia (Sam) and Federation of Malaysian Port Operators Council (FMPOC) must be withdrawn. Such is a glaring example of anti-competitive behaviour and unfair trade practice to the detriment of Sabah's development.

By continuing to protect ship owners through the block exemption, the Government's effort to reduce prices through further liberalisation is counter-productive."

He also urged the realisation of the Sepanggar Bay Container Terminal (SBCT) as a hub port must be given top priority by the Federal Government in order to speed up foreign vessels calling on Sabah ports and to address imbalance issue.

"We feel that the RM1.1 billion allocation for SBCT is nowhere close to the government allocation for development of Port Klang as the hub. If we aspire to create another hub, we appeal for more funds for future planning…the Federal Government should allocate a few billion ringgit every year for the development of the hub," he said.

He also reminded the people that the recent announcement by the Prime Minister on May 7 does not amount to abolishment of the Cabotage policy.

"The Cabotage policy is still intact for the simple reasons that there is no repeal of the law giving effect to the Cabotage policy, and there is no exception to be given between Sabah and Sarawak ports."

Although the recently announced move is not the abolishment of the policy that they sought, Wong said they take the latest announcement with open hearts and hope the liberalisation move does not stop there.

"There are more measures we need to consider to ensure the full implementation of the full liberalisation to the benefit of Sabah and Sarawak."

Wong appealed to all private sectors, including shipping companies, to work together to achieve these causes and the development for the nation as a whole.

"However, we are not pursuing these causes for one sector only, we need to consider the holistic picture in building a strong Malaysia with equal level of economic development.

"Sabah and Sarawak are still far behind, we in the private sector feel that there must be a catch-up plan to bring about balanced development and create an egalitarian level of the two regions – East and West Malaysia," he said.

Meanwhile, Sabah Timber Industries Association (STIA) President Stephen Chaw welcomed the full liberalisation of the Cabotage policy, saying it is a win-win for all.

However, he said the move must be accompanied by improvement in port infrastructure.

"It took 30 years for Port Klang to be a hub and unless there is going to be improvement in port handling and services, it will be difficult to convince major shipping lines to make Sepanggar as transhipment hub," he said. - Ricardo Unto
http://www.dailyexpress.com.my/news.cfm?NewsID=117664
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Old May 12th, 2017, 11:22 AM   #15
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Home > Business > Business News
Friday, 12 May 2017
Mida: M’sia seeks to be distribution hub for global firms
BY ZAZALI MUSA



Quote:
SENAI: Malaysia wants to position itself as the leading regional distribution hub for companies from all over the world to distribute their products, parts and components in the region.

Malaysian Investment Development Authority (Mida) chief executive officer Datuk Azman Mahmud said it was in talks with automotive makers to set up their distribution facilities in the country.

He said the country has the right ecosystem to attract them to choose Malaysia over other countries in the region as their regional parts distribution centres.

“We can’t reveal which countries are they from and the names of the companies but we will update you (media) from time to time,’’ Azman told reporters at the opening of BMW group’s regional distribution centre here yesterday.

He said Mida would not focus only on automotive makers.

“We want to attract companies involved in other activities such as e-commerce to set up their regional distribution centres.”


Azman said the decision by BMW Group to expand its regional parts distribution centre from Port of Tanjung Pelepas opened a decade ago to Senai International Airport Free Industrial Zone here was testimony on the growing market opportunities in the region.

The RM130mil centre on over 775,000 sq ft is one of the largest BMW facility of its kind in the Asia Pacific region and it will support over 23 countries in the region as a logistics warehouse and parts distribution centre.

“Johor’s strategic location is an added advantage to attract companies from all parts of the world to set up their regional distribution centres,’ he said.

Azman stressed that Mida did not dictate investors planning to invest in Malaysia to choose certain states to set up their facilities as the final decision came from the top management of the companies.

BMW Group Asia, Pacific and South Africa senior vice president Hendrik von Kuenheim said the new regional parts distribution centre here would certainly played a key role in elevating Malaysia’s position in the regional automotive market.

He said the record sales performance achieved in Asia last year and in the first quarter of 2017, was a testament to the strength of BMW Group in the region.

“Although there are reports in economic slowdown, our key markets in the region – Malaysia, Singapore and Thailand – still doing well,’ said von Kuenheim.

The new parts distribution centre will be supplying o Malaysia, Singapore, Thailand, South Korea, Australia, New Zealand, Indonesia, Taiwan, Hong Kong, Macau, Brunei, the Philippines, Laos, Cambodia and Myanmar.

Others are Vietnam, Bangladesh, Mongolia, Sri Lanka, Tahiti, New Caledonia, Fiji and Guam. The new centre is also expected to create 120 job opportunities.
Read more at http://www.thestar.com.my/business/b...vtcxtOdFBBH.99
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Old June 1st, 2017, 06:18 AM   #16
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Sabah
Cabotage: No timeframe set
June 1, 2017, Thursday


Quote:
KOTA KINABALU: The government has not set any timeframe for the implementation of the Cabotage Policy exemption for Sabah and Sarawak, the Transport Ministry anonunced yesterday.

Towards this end, the Ministry of Transport has set up a task orce to assess the effect and impact of the exemption of Cabotage Policy.

“These findings will be used as basis for our assessment of the effectiveness of the exemption. The assessment exercise is expected to take at least a year,” the Transport Ministry said in a statement yesterday.

For the record, the ministry said the Cabotage Policy does not preclude or prescribe any vessel to make port calls in any port in Malaysia.

Foreign ships are free to make port calls to all ports in Sabah and Sarawak directly from foreign ports.

They are also allowed to sail from any ports in Sabah and Sarawak to foreign ports without calling at ports in Peninsular Malaysia given the route of these vessels are fixed by the shipping company and not by the government, it clarified.

The ministry made the clarification yesterday after Sarawak Infrastructure Development and Transportation Minister Tan Sri Dr James Jemut Masing said that the cabotage policy is to be exempted for six months before a decision is made on whether it should be abolished or maintained.

“It is an exemption of cabotage policy for a period of six months by the federal government and not total abolishment of the policy in Sarawak.

“Within the six months, Sarawak will gauge the situation without cabotage policy to see if it works. If it does, then the cabotage policy will be abolished. Otherwise, the policy might be here to stay,”
Masing told The Borneo Post recently.

He said this latest decision was made due to two main reasons. Firstly, the abolishment would deprive local shipping companies of business and secondly, for security reason.

“Without cabotage policy, it means international vessels may call at our local ports. The entry of these international vessels may pose a threat to our security. This is something we must take into consideration,”
said Masing who is also a Deputy Chief Minister.

Prime Minister Datuk Seri Najib Tun Razak announced the abolishment of the cabotage policy for Sabah, Sarawak and Labuan starting from June 1, 2017 as leaders from Sabah and Sarawak have been continuously requesting for the policy to be reviewed as it is said to be the cause of high prices in both states.

However, the policy would still be applicable to cargo shipping operations within Sabah, Sarawak and Labuan.

The cabotage policy has been implemented since 1980s.

The policy requires all domestic transshipment of goods to be made using Malaysian vessels. This means if there is a foreign vessel bearing goods for Kota Kinabalu or Kuching, it will have to call at an international port such as Port Klang for transshipment instead of going direct to the two East Malaysian ports.

From Port Klang, Malaysian vessels will take over the shipping responsibility of the goods from the foreign vessel and ship them to Kota Kinabalu or Kuching.

The process of calling at Port Klang, the transferring of goods from one vessel to another, the use of port facilities incur extra freight charges and other handling expenses.
http://www.theborneopost.com/2017/06...timeframe-set/
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Old June 20th, 2017, 08:22 AM   #17
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‘Maritime Industry Needs Clearer Picture Of Cabotage Policy’
Published on Tuesday, 20 June 2017 10:51


Quote:
KUALA LUMPUR: There is a need to make clear the uncertainties surrounding implementation of exemption of the cabotage policy for Sabah, Sarawak and Labuan, the Malaysia Shipowners’ Association (MASA) said.

Prime Minister Datuk Seri Najib Tun Razak had announced the exemption of the cabotage policy from June 1, 2017.

MASA chairman Faizul Ismail said in a statement a clearer explanation is required on whether the exemption will only affect general and containerised cargo or in a worst case scenario, is applicable to all cargo.

He said a major implication to the local shipping industry on implementation of the exemption is the potential abuse of controlled and subsidised goods distribution by the federal government, when it is carried by foreign-flagged ships.

“These goods may not land in East Malaysia, when proper controls are not in place for the foreign flagged ships. This is not the case when goods are carried by Malaysian-registered ships and discharged fully at ports there,” he added.

There is also the risk of the lack of presence of local ship-owners, due to the non-competitive environment for them in comparison to the foreign-flagged shipowners and operators.

In addition, the exemption of the cabotage policy will lead to the potential “dumping” of old ships from neighbouring countries to trade in Malaysian waters and should as such be capped at a certain age for entry.

MASA is encouraging the government to consider a review of the policy, including exemption being restricted to the International Transhipment Container (ITC) trade to all East Malaysian ports and not include, the indigenous products locally produced in West Malaysia and all type of cargoes.

Another suggestion is only the Main Line Operator or Foreign Ship Operator be allowed to partake in the feedering of ITC, with Non-Vessel Operator Common Carrier and International Freight Forwarders not permitted to partake of either local indigenous cargo or ITC.

In 1980, when the cabotage policy was introduced the Malaysian shipping industry tonnage had grown significantly to 12 million deadweight tonnage (DWT) in 2011 from 1.87 million DWT.

The development took about 30 years, taking into account all the challenges faced by the Malaysian shipping industry.

Currently, the shipping industry tonnage has shrunk to about nine million DWT due to the maritime business environment challenges such as low freight rates.

“With implementation of the exemption, there will as such be an irreversible damage and a very challenging task of rebuilding the lost tonnage, capability and capacity of the Malaysian shipping industry, due to high investment and capital costs,” Faizul said.
http://malaysiandigest.com/business/...ge-policy.html
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Old July 4th, 2017, 11:19 AM   #18
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Sabah
Sabah Ports signs MOU with Taiwan counterpart
July 4, 2017, Tuesday


Quote:
KOTA KINABALU: Sabah Ports Sdn Bhd and Taiwan International Ports Corporation Ltd (TIPC) signed a Memorandum of Understanding (MOU) on April 4 to explore business cooperation as well as look into strengthening bilateral port ties.

The MOU signifies a commitment from both parties to share port planning and operation strategies to enhance port performance and exploration of investment potential at Sabah Ports in Sabah.

“Over the past years, we have learnt of TIPC’s many programs of cooperation and long standing friendships with other port operators and we feel privileged that TIPC has agreed to collaborate with Sabah Ports. We are eager to have TIPC as our strategic partner at this opportune time as Sabah Ports is developing its Transhipment Hub initiative for Sapangar Bay Container Port (SBCP). Through this collaboration, we hope to convince TIPC on the great potential that the Ports as well as the State of Sabah, has to offer,” said Datuk Karim Bujang, chairman of Sabah Ports, during a briefing session for the delegation.

The MOU entered will benefit Sabah Ports as it seeks to engage the expertise of the well-established state-owned TIPC, which manages seven commercial ports in Taiwan and handled a total combined throughput of 225 million Twenty Equivalent Unit (TEUs) in 2016. This augurs well for Sabah Ports as it embarks on the SBCP expansion plan which will upgrade the ports’ capabilities to handle 1.21 million TEUs during the first phase of development and upon completion, will have the ability to accommodate 3.76 million TEUs.

“The main goal of the MOU signing is to create the synergy of mutual expertise and advantages for seeking cooperation opportunity in all aspects. We would like to share our different experience in port operation, cruise tourism, Free Trade Zone, logistics, land development, knowledge of port planning and construction for SBCP,” said Wu Meng Feng, chairman of TIPC.

Signing the MOU on behalf of TIPC, Wu further added that TIPC’s general manager is expected to visit Sabah Ports for further cooperation evaluation.

The seven ports managed by TIPC include ports at Keelung, Taichung, Kaohsiung, Hualien, Taipei, Suao and Anping.

Signing on behalf of Sabah Ports was its managing director, Ng Kiat Min who is also the Group Managing Director for Suria Capital Holdings Berhad, witnessed by Karim.
http://www.theborneopost.com/2017/07...n-counterpart/
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Old July 6th, 2017, 09:15 PM   #19
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Home > Business > Business News
Thursday, 6 July 2017 | MYT 6:13 PM
Local companies urged to capitalise on air cargo industry


Quote:
SEPANG: Local companies need to act quickly to grab the opportunities and participate in the Kuala Lumpur International Airport (KLIA) cargo space which is currently having an exciting growth as foreign interest grows.

Transport Minister, Datuk Seri Liow Tiong Lai said Alibaba Group founder Jack Ma “has come here” and took a big space at KLIA cargo area, in an apparent reference to the Digital Free Trade Zone initiative.

Speaking to reporters after launching the Renesas Electronics Kuala Lumpur Global Parts Distribution Centre here today, he said space is in short supply now as many other companies are also eager to invest here.

“Don’t wait and see, come quickly,” Liow told local companies.

He said he had already told Malaysia Airports Holdings Bhd to give priority to local companies which needed space in the cargo area.

“We are in a very exciting milestone to make Malaysia as the ASEAN logistics hub as we have never seen so much interest in KLIA Cargo after Jack Ma, and now Japanese company, Renesas, came here, while many local companies are expanding here,” he said.

On Renesas Electronics distribution centre, Liow said the effort by company and Tasco Bhd to establish the centre took three years and 300 new staff had been recruited and trained for cargo handling at the facility.

“The opening of this centre is not just a milestone event for Tasco but also for the logistics industry in Malaysia as it marks a new standard for other companies to benchmark,” he added.
He said that Tasco also was planning to venture into cold chain for food and beverage industry.

“That’s an area where we need support as well, as a lot of vegetables and flowers from Cameron Highlands are sent through Singapore, not KLIA, because we do not have a good cold chain system in Malaysia,” he added. - Bernama
Read more at http://www.thestar.com.my/business/b...5OeLrIFezxf.99
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Old July 7th, 2017, 07:51 PM   #20
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Transport ministry mulls cargo handling procedures
By Kalbana Perimbanayagam - July 7, 2017 @ 10:14pm


Quote:
BENTONG: The Transport ministry is mulling a review of its procedures in handling cargo that goes through Malaysian ports to curb smuggling activities.

This follows the recovery of over 7,000kg of ivory worth RM40 million in a container that was shipped into Hong Kong via Port Klang in Malaysia from Africa.

Transport Minister Datuk Seri Liow Tiong Lai said the shipment was on transit in Port Klang before it was redicrected to its destination.

This was why a full scan and screening was not conducted on the container that was declared to be a consignment of frozen fish, he said after attending a Hari Raya celebration with Felda Sungai Kemahal residents here.

Liow said the Standard Operating Procedure was followed in shifting the container where the ivory was found from one ship to another at Port Klang when it arrived from Africa.

"We believe our SOP for transitting consignments are tight enough, because the consignments are not brought onto land or meant to enter Malaysia.

"The port authories only play a movers role, thus full scanning and screening is not a compulsory on our side, as long as there's a shipment order and complete documentations," Liow said.

In the particular case however Liow said the sender had manipulated the shipment order and falsely claimed the consignment as frozen fish to deceive the port authorities.

"The receiving country is the one responsible of conducting a 100 per cent checks on any shipment, which entered the country," he said but stressed had the authorities receive the information earlier, things could have been different.

Three people from a trading company had been arrested in connection with the recovery of the ivory in Hong Kong, believed to be a major shipment hub for illicit wildlife products.
https://www.nst.com.my/news/nation/2...ing-procedures
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