Issues and Challenges of Logistics in Malaysia: a Perspective

In the Asia Pacific region, the potential for ascendth in logisticals is very promising. Although Malaysias scotch growth rate is change magnitude, exactly advances in logistical in this state is tranquil on modest level. Under the Third Industrial headwaiter Plan (IMP3), which was launched in 2006, Malaysias logistics schooling were charted carefull and diligently as to keep on pace with other countries in South east Asia. However, Malaysia is still lagging behind neighbour countaries such as Singapore, Thailand and Vietnam on transportation, bureaucratic and logistical issues.These issues get hold of to be emend so that Malaysia displace compete with these three countaries. Major Comments Author Assumptions Transport and Logistics issues The production possibilites enclosure (PPF) is the boundary between those combinations of goods and services that can be produced and those that cannot produce. In this issues, logistics development are the production and the problem are poor transport infrastructure, develop transport and logistics services and slow and costly bureaucratic procedures are the regretful issues that gives high logistics cost in Malaysia.Further much, the use of technology also inevitable in order to make some improvements to make logistics more efficient. approximately 20 years, Malaysia still trying to lose weight transport and logistics cost. However, increasing in imports and exports but storage capasity in Malaysia are not well improve gives big impact to economics growth in Malaysia. This causes demand and tote up are cannot be fulfil. Eventhough Malaysia adding new berths but Malaysia still cannot cope with increasing amount of space easy on both depots and depots which causes Maritim still not fully efficient.In these issues, we must build as many as the new berths in order to maintain high capasity. For multimodal transport issues, Malaysia uses containers for the nautical part of trips, loading and unloading them i n the ports rather at the kickoff and destination of their cargo. This eliminates the main cost-saving advantages of container use. However, poor transport infrastructure makes are terrible its hard for unloaded. This is because road and rail infrastructure are not so good oddly in East Malaysia. Furthermore, backing documentation in customs clearances need to be simplified in order to reduce port congestion.In addition, freight forwarding assiduity are still underdeveloped with only 10% of trade-related transport services uses this way. This causes demand and ply are not meet in positive ways. The high cost of land adit to ports, reinforced by the effects of production agglomeration, find caused an excessive concentration of export-related activities in port cities and essentially restricted the benefits of trade growth to the areas immediately surrounding ports. However, if the benefits of trade are to be more widely distributed, the penalties of inaccessibility need to be addressed.Such action could not only stimulate trade-induced growth in currently inaccessible areas, but if successful, this could reduce and slower the growth of trade-induced urban congestion and pollution in port cities. Analysis In IMP3, specific targets has been set for the logistics industry which is to grow at 8. 6% during the 15-year plans period. In the other hand, logistic industry shall contribute 12. 1 to GDP (Keluaran Dalam Negara Kasar, KDNK) by 2020. Moreover, Malaysian ports shall exert 36 millions TEUs (container) by 2020, 2. 4 million tonnes for air freight and 18. 6 million tonnes for rail freight.Author Suggestion on Improvement In order to make improvement in logistics development, the Goverment postulate to addressed a few(prenominal) things such as Domestic Integration, Private Sector Collaboration and restrictive Environment for Transportation. For Domestic Integration, transportation services should be improved especially road, waterways and railways in East Malaysia. For example through with(predicate) postharvest services, cargo consolidation through farmer or business associations, information on prices and market demand, access to credits and human skills. In the other hand, the needs of quality logistics for high-value products needs to improve.Such as freight forwarding, 3PL, warehousing, storage, packaging, e-business use and tracking services. Private field are tend to more competetive than public area. To encourage private sector collaboration, the Government has established the Malaysia Logistics Council (MLC) in January 2007 which is i. To provide leadership and serve as a focal point to address all issues relating to the development of the industry, ii. superintend and coordinate implementation of programs and activities of the respective Agencies/Authorities at both national and State levels involved in the development of the industry, iii. Steer research and tuition activities of the Center of Excellence for Lo gistics and Supply Chain and iv. Streamline strategies and policies governing the logistics industry which cuts across several implementing authorities. Minor Comments (Figures) 1. Logistics Development Supply When Logistics industry increases, the tote up loop shifts rightward 2. Maritime Issues However, when Storage capacity cannot cope with the space available make supply decreases, thus the supply curve shifts leftward.3. Multimodal Transport unsuccessful person in multimodal transport for loading and unloading are decreases, the supply curve shifts leftward. . Ports and Land Access When Ports and Land Access are not fully functional, the the supply curve shifts leftward. 5. Air encumbrance The decreases in Air Freight operations makes the supply curve shifts leftwards. Conclusions The needs of major improvement need to be done in order to improve logistics arrangements such as ports and infrastructure, freight management, connectivity and usage of technology. Malaysia will continue to review and undertake reformist liberalisation of its services industry taking into account domestic potential as well as to enhance competitiveness at the orbiculate and regional levels.References * http//academia.edu/1360843/Issues_and_Challenges_of_Logistics_in_Malaysia_A_Perspective * http//academia.edu/1059313/Logistics_and_Supply_Chain_in_Malaysia_Issues_and_Challenges * http//www.apec.org.au/docs/10_TP_SUPPLY/7.%20Trade%20and%20Logistics%20-%20An%20East%20Asian%20Perspective.pdf