13 hours ago
Strengthen logistics sector, govt urged
KUALA LUMPUR: The logistics sector is sounding the alarm over escalating operating costs fuelled by economic uncertainties and geopolitical tensions.
Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) president Datuk Ng Yih Pyng said it is crucial for the 13th Malaysia Plan and federal budget to prioritise strengthening logistics infrastructure to sustain the sector's competitiveness.
'The ACCCIM Logistics and Transport Committee has been engaging with members to address key issues such as rising operational costs, inspection backlogs and customs clearance efficiency.
'Rising operating costs, driven by increased minimum wage, fuel expenses and upcoming tax implementations on rental or leasing services, pose a significant challenge to our logistics sector.
'The phased 30% tariff hike at Port Klang beginning July 1 is also a pressing issue that could strain industry players,' he said at the ACCCIM Power Chat 6.0 here yesterday.
Also present were Transport Minister Anthony Loke, who was the guest of honour, industry players and ACCCIM constituent members.
Ng noted that logistics players are also bracing for the indirect effects of US tariffs and the Israel-Iran conflict, which could disrupt supply chains, shipping routes and freight charges.
'Malaysia's total trade reached a record RM2.89 trillion last year, with the freight sector projected to grow by 5.2% annually until 2030.
'The numbers are clear. We must ensure our infrastructure and logistics services are both efficient and adaptable to evolving demands,' he said.
Another issue, said Ng, is the backlog of commercial vehicle inspections affecting the implementation of the Industry Code of Practice (ICOP) for transport safety.
'While ICOP aims to enhance safety standards, inspection delays could hinder its effective enforcement.
'Improving customs clearance is urgent as efficient processing is critical for smooth international trade.
'Malaysia's port dwell times are longer than those in Singapore, Indonesia and Vietnam, according to the World Bank's Logistics Performance Index 2023.
'We urge the establishment of a Single Integrated Window to streamline trade and customs operations through digital technology,' he added.
On the upcoming 13th Malaysia Plan and federal budget, Ng stressed the importance of focusing on critical areas, particularly the enhancement of logistics and transport infrastructure.
'Strengthening infrastructure, including port upgrades and improving road and rail connectivity, along with developing cold-chain facilities in underserved regions, is vital for ensuring seamless domestic and cross-border supply chains,' he said.
He called on the government to establish a transparent and consistent regulatory environment, highlighting that 'clear regulations and uniform application of logistics policies are necessary to reduce uncertainty for industry players navigating compliance and investment decisions'.
'Accelerating digitalisation and promoting green technologies in logistics are crucial.
'Providing grants and incentives will help small and medium enterprises transition to efficient, sustainable operations, especially in high-stakes pharmaceuticals and food safety sectors,' he said.
Ng highlighted regional disparities, particularly in Sabah and Sarawak, where inadequate cold-chain infrastructure and inconsistent policy enforcement hinder logistics investment in the region.
'Strategic investment in East Malaysia is not just vital but overdue. Enhancing logistics there will unlock vast economic potential and support regional inclusivity,' he said.
Ng also called for enhanced human capital development and road safety.
'A future-ready workforce equipped with digital and technological skills is essential for sustaining Malaysia's logistics competitiveness,' he said, adding that a comprehensive approach to road safety is needed, including road design improvements, safety engineering, public education and strict enforcement.
Additionally, Ng highlighted the foundational principles of '4C - Communication, Clarity, Consistency and Collaboration' as essential for fostering effective partnerships between the government and stakeholders.
He also commended the Transport Ministry for initiatives like the National Transport Policy and the development of smart port infrastructure.
'Effective execution of these initiatives is crucial for economic impact,' said Ng.
