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CHAPTER FIVE: Logistics stakeholders
Contents: Introduction, Ministry of Transport Malaysia, Bilateral and International Agreements, Royal
Malaysian Customs, Land Public Transport Commission, Road Transport Department, Permit Issuing
Agencies for Cross Border Trading, Trade Associations and Chambers of Commerce as Intermediaries,
The Logistics Businesses, Conclusion
Key points:
1. The Ministry of Transport Malaysia is fundamentally a policy formulating,
planning and supervising entity and its regulatory and policy implementing
functions are carried out by various statutory agencies under its purview. The
functional responsibilities are structured into three divisions – Land and
Logistics, Maritime, and Aviation. These agencies oversees the development of
the all aspects of logistics economy, from its infrastructure development,
international harmonisation of flow of goods, governance of logistics activities
to policy development.
2. Malaysia is a signatory to various bilateral and international agreements,
conventions and protocols, which are aimed at enhancing efficiency of cross-
border trade. The responsibility of planning, formulating, negotiation,
implementing and managing these agreements is under the purview of MOT.
3. Royal Malaysian Customs is the government agency responsible for
administrating the nation's indirect tax policy. JKDM administers seven main
and 39 subsidiary laws. Besides this JKDM implements 18 laws for other
Government agencies in its gatekeeping function for the flow of goods across
national borders.
4. The Land Public Transport Commission is empowered under the Land Public
Transport Act 2010. Its function covers the drawing up policies, planning,
regulating and enforcing all matters relating to land public transport and for
Peninsular Malaysia. Land public transport covers train, bus and taxi services
as well as road- and rail-based freight transport. It works in close cooperation
with other enforcement agencies such as the Royal Malaysian Police and the
Road Transport Department.
5. The Road Transport Department Malaysia, under the Land and Logistics
Division, is responsible for licensing of vehicles and drivers and the enforcement
of the Road Transport Act 1987 Act 333 to ensure safe drivers and safe
vehicles. Its enforcement activities also include provisions from the Commercial
Vehicle Licensing Act 1987.
6. There are over 20 agencies under 12 different ministries that exercise regulatory
controls on the import and export of controlled goods. They are the permit
issuing agencies having the regulatory aim of protecting the environment, the
biodiversity of the country, health and safety of the people, local businesses and
national security and sovereignty. Permits are also used to protect local
industries, particularly manufacturing, against practices such as anti-dumping
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protection. Control is also exercised on strategic trade items to protect the
national interest.
7. Intermediaries here are the organisations that assist communication and
coordination between the logistics businesses and the regulators. They provide
services and/or build relationships for regulatory compliance and issue
resolutions between regulators and the businesses. These are the trade
associations and chambers which act as go-betweens between the businesses
and the authorities to deal with regulatory and other issues of concern to
businesses. The authorities regularly consult with these bodies on government
policies and their implementation.
8. To cope with business demands and constraints on government capacity
expansion and to improve service delivery, the Government outsources some
of its functional activities to private firms or privatises specific functional
activities or sets up a private commercial entity or appoint trade associations to
deliver the services. These services may be inspection, testing, certification,
data processes among others.
9. Ports and shipping are major links in the logistics chain and are essential in
facilitating trade in Malaysia and the port operators assumed a critical role in
trade and transport, providing a link between the shipping service and the inland
transport system. The ports act as crucial points of interface with other transport
modes - road, rail, river and air. The port operators are regulated by the Port
Authorities under the respective Port Authorities Acts.
10. Warehousing is an important intermediate activity in the logistics chain. The
warehouse activities include receipt of product, storage, shipment, and order
picking. Managing warehouses efficiently ensures that goods flow from the
manufacturers or producers to consumers in without interruptions and
undesirable delays. Except for bonded or licensed warehouses, there is no
specific warehousing regulation for this activity.
Introduction
The Seven-step Transportation Chain model, referred here as the logistics value
chain (LVC), provides a process-based framework for analysis on reducing
unnecessary regulatory burdens (RURB) on the logistics industry. This framework
focuses on sea freight import-export logistics activities.
The LVC analysis guides the search and identification of stakeholders of interest for
this study. The stakeholders may be as two main groups – the businesses and their
trade associations, and the regulator which is represented by the ministries and their
agencies. Many Government agencies also out-sourced some of their regulatory
activities, such as inspection and certification activities. The trade associations and
these Government outsourcing entities will be referred to as intermediaries of
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businesses and regulators. Many industry and government websites are able to
provide pertinent information on the stakeholders. Two notable web portals have been
most helpful in identifying these key stakeholders. They are the Malaysian Trade
Facilitation portal (myTRADELINK; www.mytradelink.gov.my) and the Malaysia
Logistics Directory portal (www.msialogistics.com).
This chapter provides relevant information on the stakeholders who have major roles
in this LVC. A number have been approached to help identify unnecessary regulatory
burdens of this particular logistics sub-sector. The stakeholders are analysed as three
separate groups being (a) the regulators represented by the ministries and the
agencies, (b) the businesses representing the logistics businesses and the
consignees/consignors, and (c) the intermediaries.
Ministry of Transport Malaysia1
The four modes of transportation – air, land, rail and sea – are the core elements in
the LVC. These modal activities in freight transportation have varying degrees of
hazardous impacts on people and the environment. To mitigate any potential
hazardous impacts regulatory interventions are deemed necessary on these activities.
The Ministry of Transport (MOT) takes on the responsibility of ensuring the country’s
freight transportation is safe and efficient and facilitating economic growth. The role of
MOT is as defined in its various functions as shown in Box 5.1 below.
Box 5.1: Functions of Ministry of Transport Malaysia The functions of the Ministry are:
Plan, devise and implement policies with regards to rail, maritime, aviation
transportation and ports.
Implement physical development projects which involve rail, maritime, port and civil
aviation infrastructure.
Manage the integration of intermodal transportation to achieve seamless travel.
Provide Licensing Services :
Service provider licenses and concessionaires (albeit commercial vehicles).
Individual vehicle licenses - private cars, business, pilot for aviation and maritime
and others
Domestic Shipping Licenses
Registration of all modes of vehicle.
Determining the pricing policy (except for land commercial vehicles).
Monitoring of policies and concessionaire / government linked companies.
Identifying and monitoring legal issues, service and safety standards.
Conduct regional and international cooperation programmes in the transport sector.
Source: Ministry of Transport Malaysia; http://www.mot.gov.my
1 Ministry of Transport Malaysia; http://www.mot.gov.my
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The MOT is fundamentally a policy formulating, planning and supervising entity and its
regulatory and policy implementing functions are carried out by various statutory
agencies under its purview. These agencies ensure that the policy and various
regulations are implemented to ensure the economic objectives of the country are
achieved. The various agencies are illustrated in the MOT organisation chart in Box
5.2 below.
The policy and regulatory operations in MOT are implemented by three distinct
divisions namely, a) Land and Logistic Division, b) Maritime Division, and c)
Aviation Division. Each of these divisions has its own defined functions and
objectives under the responsibility of different functional units. Box 5.3 summarises the
roles and functions of these three divisions.
The enforcement and regulatory duties for land transport are under the
responsibilities of agencies such as the Road Transport Department (JPJ), Department
of Railways, Railway Assets Corporation (RAC), Road Safety Department (RSD) and
the Malaysian Institute of Road Safety Research (MIROS). Their statutory authority is
defined by two main Acts:
a) the Road Transport Act 1987
b) Railways Act 1991.
As for maritime transport, enforcement and regulatory duties are under the
responsibilities of different agencies such as the Marine Department of Malaysia,
MDM, Penang Port Commission, PPC, Port Authority of Johor, LPJ, Port Klang
Authority, PKA, Kuantan Port, LPKTN, Bintulu Port Authority, LPB, Maritime Institute
of Malaysia, MIMA.
These maritime agencies are empowered under their respective regulations:
a) Cargo Transport by Sea Act1950 [Act 527]
b) Merchant Shipping Ordinance 1952 [Ord. 70/1952]
c) Federal Fire Dues Act 1953 [Act 243]
d) Penang Port Commission Act 1955 [Act 140]
e) Port Authorities Act 1963 [Act 488]
f) Bintulu Port Authority Act 1981 [Act 243]
g) Privatization Port Act 1990 [Act 422]
h) Langkawi International Yacht Registry Act 2003 [Act 630]
i) Gazette On The Exemption Of Foreign Cruise Vessels From The Domestic
Shipping License Requirement
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Box 5.2: Agencies under the Ministry of Transport
Source: Ministry of Transport Malaysia; http://www.mot.gov.my
The regulation of civil aviation is under the purview of the Department of Civil Aviation.
Unlike the maritime agencies, DCA is a standalone authority which governs all aspects
of aviation activity. The governing function is to maintain and enhance the safety,
security and efficiency of aviation activities. Aviation activities and transport under the
DCA are governed by the following regulations:
j) Civil Aviation Act 1969 [Act 3]
k) Carriage By Air Act1974 [Act 148]
l) Aviation Offences Act1984 [Act 307]
m) Act Airport and Aviation Services (Operating Company)1991 [Act 467]
n) International Interest Act in Mobile Equipment (Aircraft) 2006 [Act 659]
o) Civil Aviation Regulations 1996
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Box 5.3: Functional Divisions of MOT The Land and Logistics Division is responsible for the development and implementation
of National Transport Policy. The policy is designed to ensure that public land transport
sector remains safe and efficient, based on current needs. The main functions are:
To formulate policies on driving licenses, driving schools, vehicle registration, road
safety and technical standards of vehicle conforming to international standards.
To formulate transport policies in order to increase the quality of land transport
services.
To ensure policies/processes are aligned with National Key Result Area (NKRA)
initiatives.
To develop an integrated rail transportation infrastructure network and multi-
modalism
To implement Malaysia obligation under the ASEAN agreement and cross border
related to road and rail transportation.
To ensure all rules under Railways Act 1991 and Road Transport Act 1987 are in
line with current needs.
To monitor and coordinate infrastructure development projects in the rail-based
transport sector.
To formulate policies on fare rates for railway services.
The Maritime Division consist of 5 units: Port, Maritime Safety, Economy Maritime,
Domestic Shipping Licensing Board Secretariat and International Convention. Maritime
Attache Office is currently attached to High Commission of Malaysia in London to oversee
the debate and discussion held at the International Maritime Organization which involves
Malaysia’s maritime interest. The main functions are:
To encourage Malaysian entrepreneur participation in the shipping industry both
locally and abroad.
To plan and implement policies on navigational safety, pollution prevention from
ship, ship security, property and life at sea.
To frame and implement policies, coordinate and oversee activities of federal ports.
To process application for domestic shipping license.
To review and update existing laws or formulate new laws relating to ports and
shipping, as well as to ratify international conventions related to maritime sector.
The Aviation Division is responsible for all civil aviation affairs in Malaysia. This division is
made up of five units as follow: Air Transport, Airport Services, Aerospace & Industrial
Hubbing, Licensing & Rural Air Services, and Safety/Security & Convention. The main
functions are:
To plan and review the policies relating to air services from time to time.
To expand the international air services network through air negotiations.
To ensure the planning, building and maintenance of airport infrastructure is in
accordance with the specified standards.
To ensure that all existing rules and regulations in air transport / aviation are in
accordance with the guidelines stipulated by the International Civil Aviation
Organisation (ICAO).
Source: Ministry of Transport Malaysia; http://www.mot.gov.my
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Bilateral and International Agreements2
In order to achieve enhanced efficiency for cross-border trade, Malaysia is a signatory
to various bilateral and international agreements, conventions and protocols. The
responsibility of planning, formulating, negotiation, implementing and managing these
agreements is under the purview of MOT.
For land transport, MOT is activity involved with other countries and relevant
international organisations in programmes related to land transport and safety, through
the:
i. coordination, monitoring and management of the land transportation industry
for enhanced efficiency and effectiveness within the ASEAN region
ii. provision of platforms for international discussions and negotiations
iii. coordination and simplification of procedures for the operation of transit
transportation
iv. updating global changes into the legal framework governing the land
transportation system
v. formulation of infrastructure development policies and review of the domestic
legal framework in order to adopt and adapt the best global practices
Malaysia is a signatory to a list of protocols and working frameworks with the ASEAN
neighbours. The Box 5.4 below illustrates.
Box 5.4: Agreements and Protocols with ASEAN 1) ASEAN Framework Agreement on the Facilitation of Goods in Transit, AFAFGIT (16
December 1998) a) Protocol 1 Designation of Transit Transport Routes and Facilities (8
February 2007) b) Protocol 2 Designation of Frontier Posts (Negotiation Stage) c) Protocol 3 Types and Quantity of Road Vehicles (15 September 1999) d) Protocol 4 Technical Requirements of Vehicles (15 September 1999) e) Protocol 5 ASEAN Scheme of Compulsory Motor Vehicle Third-Party
Liability Insurance (8 April 2001) f) Protocol 6 Railways Border and Interchange Stations (Negotiation Stage) g) Protocol 7 Customs Transit System (Negotiation Stage) h) Protocol 8 Sanitary and Phytosanitary Measures (27 October 2000) i) Protocol 9 Dangerous Goods (20 September 2002)
2) ASEAN Framework Agreement on the Facilitation of Inter-State Transport, AFAFIST (10 December 2009)
3) ASEAN Framework Agreement on Multimodal Transport, AFAMT (17 November 2005)
4) MoU Between The Government of Brunei Darussalam, Indonesia, Malaysia and The Philippines on Cross-Border Movement of Commercial Buses and Coaches (2 November 2007)
5) MoU Between The Government of Brunei Darussalam, Indonesia, Malaysia and The Philippines on Transit and Inter-State Transport of Goods (25 June 2009)
2 Ministry of Transport Malaysia; http://www.mot.gov.my
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Source: Ministry of Transport Malaysia; http://www.mot.gov.my
Box 5.5: Bilateral and International Maritime Agreements Bilateral Shipping Agreements with the following countries (effective date)
1) Bangladesh (19 April 1983) 2) Turkey (8 September 1983) 3) Belgo - Luxemburge (12 February 1985) 4) Sri Lanka (17 June 1985) 5) Pakistan (24 August 1985) 6) Union of Soviet Socialist Republics -
Russia (31 July 1987)
7) China (9 September 1987) 8) Indonesia (17 June1988) 9) South Korea (21 July 1988) 10) Romania (26 February 1991) 11) Vietnam (31 March 1992) 12) South Africa (7 March 1997)
Internal Maritime Conventions (effective date) include: 1) International Convention on Load Lines (LL) 1966 (12 April 1971) 2) Convention on the International Maritime Organization 1948 (17 June 1971) 3) Convention on the International Regulations for Preventing Collisions at Sea (COLREG) 1972,
as amended (23 December 1980) 4) International Convention for the Safety of Life at Sea (SOLAS) 1974, as amended (19 January
1984) 5) Protocol of 1978 relating to the International Convention for the Safety of Life at Sea 1974, as
amended (19 January 1984) 6) International Convention on Tonnage Measurement of Ships (Tonnage) 1969 (24 July 1984) 7) Convention on the International Mobile Satellite Organization (INMARSAT) 1976, as amended
(12 June 1986) 8) Operating Agreement on the International Mobile Satellite Organization 1976, as amended (12
June 1986) 9) International Convention on Standards of Training, Certification and Watchkeeping for
Seafarers (STCW) 1978, as amended (30 April 1992) 10) Protocol of 1978 relating to the International Convention for the Prevention of Pollution from
Ships, MARPOL 1973, as amended - Annexes I and II (31 January 1997) 11) Protocol of 1978 relating to the International Convention for the Prevention of Pollution from
Ships, MARPOL 1973, as amended - Annexes V (31 January 1997) 12) International Convention on Oil Pollution Preparedness, Response and Co-operation, OPRC
1990 (30 October 1997) 13) Amendments Adopted in November 1991 to the Convention of the International Maritime
Organization - Institutionalization of the Facilitation Committee (9/9/ 2004) 14) International Convention on Civil Liability for Oil Pollution Damage, CLC 1992 (9 June 2005) 15) International Convention on the Establishment of an International Fund for Compensation for
Oil Pollution Damage, FUND 1992 (9 June 2005) 16) The International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 -
Bunkers Convention 2001 (12 February 2009) 17) The International Convention for the Limitation of Liability for Maritime Claims, 1976 as
Amended by Protocol of 1996, LLMC Convention 1996 (10 February 2009) 18) International Convention on the Establishment of an International Fund for Compensation for
Oil Pollution Damage, FUND (16 October 1978) 19) MARPOL 73/78, Annex III: Regulations for the Prevention of Pollution by Harmful Substances
Carried by Sea in Packaged Form (1 July 1992) 20) MARPOL 73/78, Annex IV: Regulations for the Prevention of Pollution by Sewage from Ships
(27 September 2003) 21) MARPOL 73/78, Annex VI: Regulations for the Prevention of Air Pollution from Ships (19 May
2005) 22) International Convention on the Control Harmful Anti-fouling Systems on Ship (17 September
2008) 23) The Control and Management of Ship’s Ballast Water 2004 (Yet to Enter Into Force)
Source: Ministry of Transport Malaysia; http://www.mot.gov.my
As for maritime transport, Malaysia has concluded agreements with a number of
countries since the eighties to strengthen bilateral cooperation in the maritime sector.
The main provisions of such agreements are:
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a) On special treatment clause
b) Confirmation of ships and seafarers certificates
c) Bilateral consultation mechanism to strengthen cooperation.
Currently, Malaysia has concluded a total of 12 bilateral agreements on shipping and
has ratified many international conventions adopted by the International Maritime
Organisation (IMO). These are listed in Box 5.5.
In the case of aviation, Malaysia is a member of the International Civil Aviation
Organisation, ICAO. Here, a number of international conventions have been ratified.
These are listed in Box 5.6 below.
Box 5.6: International Civil Aviation Conventions 1) Convention for the Unification of Certain Rules Relating to International Carriage by
Air (1929) 2) Convention on International Civil Aviation (1994) 3) Convention on the Privileges and Immunities of the Specialized Agencies (1947) 4) Convention on Offences and Certain Other Acts Committed on Board Aircraft (1963) 5) Convention for the Suppression of Unlawful Seizure of Aircraft, Hague Convention
1970 6) Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation,
Montreal Convention 1971 7) Convention on International Interests in Mobile Equipment (2001)
Source: Ministry of Transport Malaysia; http://www.mot.gov.my
Royal Malaysian Customs (Jabatan Kastam DiRaja Malaysia, JKDM) 3
Royal Malaysian Customs (Jabatan Kastam DiRaja Malaysia, JKDM) is the
government agency responsible for administrating the nation's indirect tax policy.
JKDM administers seven main and 39 subsidiary laws. Besides this JKDM implements
18 laws for other Government agencies.
Customs duty is a tax levied on imports by Customs to raise state revenue and/or to
protect domestic industries from overseas competitors. In Malaysia, all goods dutiable
on import are put through customs duty according to Customs Duties Order, 1996. The
types of duties are import duty, goods and services tax (replacing the previous sales
tax) and export duty. In other words, the core business of JKDM is to collect tax
revenue in line with the established regulations. JKDM is to collect the tax revenue
efficiently and help the expansion of trade and industry through continuous facilitation
whilst enhancing legal compliance in order to safeguard the nation's economic, society
and security interest.
The principal regulations which comes under the purview of Customs are,
a) Customs Act 1967
b) Goods and Services Tax 2014 (replacing the Sales Tax Act 1972)
3 Royal Malaysian Customs (Jabatan Kastam DiRaja Malaysia, JKDM); http://www.customs.gov.my/
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c) Excise Act 1976, and
d) Free Zone Act 1990.
Subsidiary regulations known as Customs Orders are formulated and issued to
administer the requirements of these Acts. Box 5.7 gives the list of Customs regulations
currently in force.
Box 5.7: List of Customs Regulations The Gazettes of Acts and subsidiary regulations (titles in Bahasa Malaysia) as listed in Customs Websites (as of 8/1/2015): http://www.customs.gov.my 1. Akta Cukai Jualan 1972 Perintah Cukai Jualan (Pengecualian Pindaan) 2009 2. Akta Cukai Jualan 1972 Perintah Cukai Jualan (Kadar Cukai No.2) (Pindaan No.2)
2009 3. Akta Cukai Jualan 1972 Perintah Cukai Jualan (Kadar Cukai No2) (Pindaan No.3)
2009 4. Akta Cukai Jualan 1972 Perintah Cukai Jualan (Pengecualian Pindahan No.2) 2009 5. Akta Kastam 1967 (Bhg I) 6. Akta Kastam 1967 (Bhg II) 7. AKTA ZON BEBAS 1990 Pemberitahuan Zon Bebas (Pindaan) 2009 8. Akta Zon Bebas 1990 Pemberitahuan Zon Bebas (Kawasan yg Diisytiharkan
(Pindaan) 2009 9. Peraturan Cukai Jualan (Pindaan) 2009 [P.U.(A) 361] 10. Peraturan Cukai Perkhidmatan (Pindaan) 2009 [P.U.(A) 363] 11. Peraturan Perintah Kastam (Pindaan No4) 2009 Pindaan Peraturan 11A 12. Perintah Duti Eksais (Pindaan) 2009 13. Perintah Duti Kastam (Barang Negeri ASEAN) (Tatanama Tarif Berhamonis ASEAN
dan Tarif Keutamaan Samarata)(Pindaan No.3) 2009 14. Perintah Duti Kastam (Barang Negeri-Negeri ASEAN) (Tatanama Tarif Berhamonis
ASEAN dan Tarif Keutamaan Samarata)Pindaan No,4 15. Perintah Duti Kastam (Pengecualian) (Pindaan) 2009 16. Perintah Duti Kastam (Pindaan No.3) 2009 17. Perintah Duti Kastam (Pindaan No.4) 2009 18. Perintah Duti Kastam(Barang-Barang Perjanjian Perkongsian Ekonomi Malaysia-
Jepun) (Pindaan) 2009 19. Perintah Kastam (Duti Anti-Lambakan) 2009 20. Perintah Kastam (Larangan Import) 2009 21. Perintah Kastam (Larangan Mengenai Import) (Pindaan No.2) 2009 22. Perintah Kastam (Larangan Mengenai Import) (Pindaan No.3) 2009 23. Perintah Kastam (Nilai-Nilai Kenderaan Motor Pasang Siap yg Diimport) (Baru
Pindaan) 2009 24. Perintah Kastam (Nilai-Nilai Kenderaan Pasang Siap yg Diimport) (Pindaan Baru
No.2) 2009 25. SENARAI WARTA 2009 (listing of Amendments)
Source: Royal Malaysian Customs; http://www.customs.gov.my
As the sole “gatekeeper” for goods entering and existing the country’s points of cross
border trade, Customs is also responsible for ensuring that the requirements of 18
other laws for the clearance of goods are met. These requirements are implemented
by the Permit Issuance Agencies (PIA). Legitimate documentation, good references
(codes, guidelines, notices, etc.) and strict procedures become the core regulatory
control instruments for Customs clearance of goods into and out of the country. Any
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inefficiency in Customs operations could become serious bottlenecks in import-export
trade logistics.
Land Public Transport Commission (Suruhanjaya Pengangkutan Awam Darat,
SPAD)
The Land Public Transport Commission (SPAD) was officially established on 3 June
2010 following the enactment of the Suruhanjaya Pengangkutan Awam Darat Act 2010
in May 2010 (Act 714) and the function of SPAD is empowered with the gazetting of
the Land Public Transport Act 2010 (Act 715). Through Act 715, SPAD takes over the
functions of Commercial Vehicles Licensing Board (CVLB), Department of Railways
and licensing of tourism vehicles of the Ministry of Tourism in Peninsula Malaysia. The
Acts and subsidiary legislations under the purview of SPAD are:
a) Land Public Transport Act 2010
b) Suruhanjaya Pengangkutan Awam Darat Act 2010
c) Commercial Vehicle Licensing Board Act 1987
d) Commercial Vehicle Licensing Board (Amendment) Act 2010
e) Land Public Transport (Compounding Of Offences) Regulations 2011.
f) Land Public Transport (Compounding Of Offences) (Amendment)
Regulations 2013.
g) Land Public Transport [Motor Vehicles (Commercial Transport)
(Amendment) Rules 2013] Regulations 2013.
h) Land Public Transport [Motor Vehicles (Commercial Transport)
(Amendment) Rules 2013] Regulations 2014 - Corrigendum.
The function of SPAD covers the drawing up policies, planning, regulating and
enforcing all matters relating to land public transport and for Peninsular Malaysia. Land
public transport covers train, bus and taxi services as well as road- and rail-based
freight transport. SPAD enforcement is carried out in close cooperation with other
enforcement agencies such as the Royal Malaysian Police and the Road Transport
Department4. For the long term, SPAD has developed a 20-year master plan – the
National Land Transport Master Plan in 2012 (currently available for public comment).
The Master Plan has established eight key objectives for freight transport as shown in
Box 8 below.
According to the National Land Transport Master Plan, the strategic objectives of
developing land freight in Malaysia are to increase efficiency and flexibility, strengthen
reliability and to promote safety and social wellbeing. SPAD already has plans to
develop the land freight sector along these objectives. These are:
Strengthening rail infrastructure and strengthening connectivity across
modes, as well as the implementation of city logistics strategies
Enhancing the regulatory framework to raise standards of reliability
4Land Public Transport Commission (SPAD); http://www.spad.gov.my/
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Enforcing emissions standards and holding both the drivers and operators
accountable for their safety records5.
Box 5.8: Objectives for Freight Transport National Public Transport Master Plan – Eight Objectives for Freight Transport: 1. Competitive framework that strikes a balance between sustainability and reliability 2. Cohesive and rigorous planning of routes and networks, which are diligently reviewed
and regularly updated 3. Implementation of multi-modal integration initiatives and programs, which may include
ports, airports and other points of entry to the LFT network 4. Diligent administration, regulation and monitoring of service standards 5. Coordinated enforcement with relevant authorities on land freight transport matters 6. Coordination and cooperation with relevant authorities to amalgamate land freight
transport planning with spatial matters to achieve cohesive plan 7. Skilled and competent human capital and services in the land freight transport sector 8. Lower environmental impact of land freight transport through reducing omissions of
noise and pollutants, use of technology, and optimal use of resources. Source: SPAD; http://www.spad.gov.my/projects/national-master-plan/final-draft-national-land-public-transport-master-plan-nlptmp
Road Transport Department (Jabatan Pengangkutan Jalan, JPJ) Malaysia
The Road Transport Department (JPJ) Malaysia6 is one of the departments under the
Land Division, Ministry of Transport Malaysia. It is responsible for licensing of vehicles
and drivers and the enforcement of the Road Transport Act 1987 Act 333 to ensure
safe drivers and safe vehicles. Its enforcement activities also include provisions from
the Commercial Vehicle Licensing Act 1987.
There are two primary aspects to JPJ’s regulatory role: safety and revenue collection.
On safety the focus is on the competence of vehicle drivers and the reliability of the
vehicles. Revenue is generated from the collection of road tax and administrative
charges such as fees from licensing, testing and permits issuance. These regulatory
aspects are provided in Act 333 and the various subsidiary legislations and
administrative rules arising from this Act. Act 333’s primary aim is to regulate motor
vehicles, road traffic safely and revenue from the use of public roads. The Act has
various provisions covering:
The regulation of motor vehicles and traffic on the streets and other matters
with respect to streets and vehicles
The protection of third parties against risks arising from the use of motor
vehicles
The coordination and control of the means and facilities for transport
5 SPAD: National Public Transport Master Plan (16 October 2013); http://www.spad.gov.my/projects/national-master-plan/final-draft-national-land-public-transport-master-plan-nlptmp 6 Road Transport Department (Jabatan Pengangkutan Jalan, JPJ) Malaysia; http://www.jpj.gov.my/
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The coordination and control of the means and facilities for the construction
and adaptation of motor vehicles
Any related purposes on road safety.
To achieve its regulatory responsibility effectively, JPJ has established its primary
objectives as:
To establish and regulate the registration and licensing of motor vehicles in
a systematic, reliable and innovative manner to produce competent, law
abiding and prudent drivers of motor vehicles
To enforce and administer the road transport law with integrity and
commitment to create a society that has a culture of adherence to the rules
of the road
To monitor and administer motor vehicle safety standards with efficiency and
integrity to meet the needs of the environment and the country's automotive
industry.
Permit Issuing Agencies for Cross Border Trading
There are over 20 agencies under 12 different ministries that exercise regulatory
controls on the import and export of controlled goods. Table 5.1 lists the permit issuing
agencies and regulations enforced for international trade. The complete list of other
Government agencies issuing permits, the Permits Issuing Agencies (PIA) is given in
the Appendix.
The regulatory interventions aim at protecting the environment, the biodiversity of the
country, health and safety of the people, local businesses and national security and
sovereignty. Prohibited products such as explosives, arms and dangerous drugs are
subjected to strict controls. Import/export licences and permits are required for various
types of cargo and these can be obtained from various PIA. A general list of these
licences and permits from the different PIA is shown in Table 5.2.
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Table 5.1: Permit Issuing Agencies Agencies Enforced Regulations
Ministry Of Home Affairs; www.moha.gov.my
Film Censorship and Enforcement Division
Royal Malaysian Police; www.rmp.gov.my
Customs Act 1967
Film Censors 2002 (Act 620)
Explosives Act 1957 (Act 207)
Ministry of Works; www.kkr.gov.my
Construction Industry Development Board; www.cidb.gov.my
Customs Act 1967
Construction Industry Development Board Act 1994 (Act 320)
Ministry of Health; www.moh.gov.my
Pharmaceutical Services Division; www.pharmacy.gov.my
Poisons Act 1952 (Act 366)
Sale of Drugs Act 1952 (Act 368)
Dangerous Drugs Act 1952 (Act 234)
Ministry of International Trade and Industry; www.miti.gov.my
Import and Export Control Section
Trade Cooperation and Industry Coordination Section
Strategic Trade Secretariat
Customs Act 1967
Strategic Trade Act 2010 (Act 708)
Countervailing and Anti-Dumping
Duties Act 1993 (Act 504)
Ministry of Agriculture and Agro-based Industry; www.moa.gov.my
Paddy and Rice Industry Division
Malaysian Quarantine and Inspection Services (MAQIS); www.maqis.gov.my
Department of Veterinary Services; www.dvs.gov.my
Agriculture Department (Pesticides Control Division); www.doa.gov.my
Agriculture Department (Crop Protection and Plant Quarantine Division)
Federal Agricultural Marketing Authority (FAMA); www.fama.gov.my
Customs Act 1967 (Act 235)
Akta Lembaga Kemajuan Ikan Malaysia (LKIM) 1971 (Act 49)
Akta Lembaga Pemasaran Pertanian Persekutuan (FAMA) 1965 (Act 141)
Pesticides Act 1974 (Act 149)
Plant Quarantine Act 1976 (Act 167)
Control of Padi and Rice Act 1994 (Act 47)
New Plant Variety Protection 2004 (Act 634)
Animal Act 1953 (Amendment 2006) (Act 647)
Ministry of Plantation Industries and Commodities
National Kenaf and Tobacco Board;
www.lktn.gov.my
Malaysian Cocoa Board; www.koko.gov.my
Customs Act 1967
National Kenaf and Tobacco Board 2009 (Act 692)
Malaysian Cocoa Board (Incorporation) Act 1988 (Act 343)
Ministry of Science, Technology and Innovations
Atomic Energy Licensing Board; www.aelb.gov.my
SIRIM QAS International Sdn Bhd (Civil and Construction Section); www.sirim-qas.com.my
SIRIM QAS International Sdn Bhd (Communication and Multimedia Certification Section)7
Customs Act 1967
Strategic Trade Act 2010 (Act 708)
Atomic Energy Licensing Act 1984 (Act 304)
Ministry of Natural Resources and Environment
Department of Environment; www.doe.gov.my
Customs Act 1967
Environmental Quality Act 1974 (Act 127)
National Parks Act 1980 (Act 226)
7 SIRIM QAS International Sdn Bhd is a Government-own business entity.
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Department of Wildlife and National Parks; www.wildlife.gov.my
Ministry of Energy, Green Technology and Water
Energy Commission; www.st.gov.my
Customs Act 1967
Strategic Trade Act 2010 (Act 708)
Energy Commission Act 2001 (Act 610)
Ministry of Information, Communication and Culture
Malaysian Communications and Multimedia Commission (MCMC); www.skmm.gov.my
Customs Act 1967
Strategic Trade Act 2010 (Act 708)
Malaysian Communications and Multimedia Commission Act 1998 (Act 589)
Ministry of Resource Planning and Environment
Sarawak Timber Industry Development Corporation; www.sarawaktimber.org.my
Forest Department Sarawak; www.forestry.sarawak.gov.my
Customs Act 1967
Sarawak Timber Industry Development Corporation Ordinance 1973
Forests (Amendment) Ordinance 2003
Ministry of Modernisation of Agriculture
Department of Agriculture Sarawak (Veterinary Division); www.doa.sarawak.gov.my
Customs Act 1967
Veterinary Public Health Ordinance 1999
Source: MPC compilation
Table 5.2: Import/export Licences and Permits Types of Cargo Permit Issuing Agency
General goods and motor vehicles Ministry of International Trade and Industry
Pesticides Pesticide Board, Plant Protection Section, Department of Agriculture
Animals (domestic) and animal products
Department of Veterinary Services, Ministry of Agriculture Malaysia
Wild animals and corals Department of Wildlife And National Park
Arms and explosives The Royal Malaysian Police
Telecommunication equipment Ministry of Energy, Telecommunication And Posts, Department of Telecommunication Malaysia
Electrical goods Electrical Inspectorate Department Energy Commission of Malaysia
Live fish Ministry of Agriculture Malaysia, Fisheries Department
Pharmaceutical goods Ministry of Health, Pharmaceutical Services Division
Toxic and hazardous wastes Department of Environment
Plants and Plant Products Department of Agriculture Source: Shipping in Malaysia; http://malaysiashipping.info/
Permits are also used to protect local industries, particularly manufacturing, against
practices such as anti-dumping protection. Control is also exercised on strategic trade
items to protect the national interest. The regulation is also meant to facilitate trade
and industry. A document - Certificate of Origin (CO) - to certify the place of growth,
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production or manufacture of the goods is frequently needed for export of goods by a
country. The CO identifies goods and contains a certification by a government
authority, or other empowered body, that the goods in question originate in a specific
country. The main criteria used in determining the origin of goods are:
Manufacturers, exporters or traders must be registered with Suruhanjaya
Syarikat Malaysia (Companies Commission of Malaysia)
Products that manufactured in Malaysia and use 100% local content, or
Manufactured in Malaysia through a transformation process which changes
the tariff code classification at six (6) digit level, or
Manufactured in Malaysia and contains at least 25% local content
Certificates of Origin can be broadly classified into types, namely Preferential
Certificates of Origin and Non-Preferential Certificates of Origin. The issuance and
acceptance of Certificates of Origin is governed by the International Convention on the
Simplification and Harmonisation of Customs Procedures. Preferential Certificates of
Origin (PCO). The PCOs are used to apply for preferential tariff reduction for products
offered under the Free Trade Agreements (FTA) between Malaysia and partner
countries, provided the rules of origin are fulfilled. The certifying authority for all the
preferential certificates of origin is the Trade Cooperation and Industry
Coordination Section of MITI. Table 5.3 lists the types of PCO available to Malaysian
industries.
To improve the efficiency and capacity for issuance of PCO, MITI appoints chambers
of commerce and trade associations to be issuers of PCO. These intermediaries must
meet the following criteria:
Appointed by Ministry of International Trade and Industry (MITI)
Legally registered under The Registrar of Associations and is not dormant
Membership must not be less than 150 (including members at branch
office)
Fee charged must not exceed the ceiling rate determined by MITI
Sufficient number of staff, office space and equipment for issuing NPCOs8.
There is also a web-based facility for the application of PCO online, the Electronic
Preferential Certificate of Origin or ePCO. This facility is operated by dagangnet.com
(http://www.dagangnet.com/). The application allows manufacturers/ exporters to
obtain the PCO in the form of an official online document.
For agriculture produce, CO is issued by the Federal Agricultural Marketing
Authority, FAMA (http://www.fama.gov.my/). Producers/exporters need to apply using
the CO form from FAMA and submit the form together with the completed Export
Permit Application (PK 2 Form). This can be done FAMA offices (include state offices).
8 MITI - Guidelines On Issuance Of Non-Preferential Certificates Of Origin (06 Sep 2010); http://www.miti.gov.my/cms/content.jsp?id=com.tms.cms.article.Article_bad14748-c0a81573-aba0aba0-215a2171
102
One particular initiative of importance to local exporting industries is the General
System of Preference (GSP). The GSP is a system whereby developed countries
grant preferential treatment to eligible products imported from developing countries, so
that export of developing countries would be competitive in the developed countries
markets. The preference-giving country is also known as the donor country, and the
preference-receiving country as the beneficiary country.
Table 5.3: Types of Preferential Certificates of Origin Type Application
Generalised System of Preference (GSP) Trade document used to obtain reduced or duty free tariffs on eligible products exported by the preference receiving countries to markets of the preference giving countries on the general rates of duty normally applicable.
Preference giving countries are Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Germany, Greece, Norway, Switzerland, Belarus, Russian Federation, Turkey, Finland, France, Hungary, Ireland, Italy, Latvia, Lithuana, Luxembourg, Malta, Netherlands, Poland, Romania, Slovakia, Slovenia, Spain, Sweden and United Kingdom.
ASEAN Trade in Goods and Agreement (ATIGA)
Effective in 1993
ASEAN China Free Trade Agreement (ACFTA)
Fully implemented – July 1, 2005
ASEAN Korea Free Trade Agreement (AKFTA)
Entered into force on June 1, 2007
ASEAN Japan Free Trade Agreement (AJFTA)
Entered into force on February 1, 2009
ASEAN India Free Trade Agreement (AIFTA)
Entered into force on January 1, 2010
ASEAN Australia New Zealand Free Trade Agreement (AANZFTA)
Entered into force in January 1, 2010
Malaysia Pakistan Closer Economic Partnership Agreement (MPCEPA)
Fully implemented – January 1, 2008
Malaysia Japan Economic Partnership Agreement (MJEPA)
Entered into force on July 13, 2006
Malaysia New Zealand Free Trade Agreement (MNZFTA)
Entered into force on August 1, 2010
Malaysia India Comprehensive Economic Cooperation Agreement (MICECA)
Entered into force on July 1, 2011
Malaysia Chile Free Trade Agreement (MCFTA)
Entered into force on February 25, 2012
Malaysia-Australia Free Trade Agreement (MAFTA
Entered into force on January 1, 2013
Source MITI; www.miti.gov.my
The Rules of Origin (ROO) are an essential parts of the GSP scheme in order to
ensure that the benefits of Preferential Tariff treatment under the GSP are confined to
products genuinely produced by or substantially transformed in the preference
receiving countries. Strict enforcement of rules of origins necessary to prevent
products originating from third countries and traded in transit or products which are
only slightly worked upon and do not undergo a true process of manufacture from
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benefiting under the GSP. The main elements of the rules of origin under the GSP are
(a) origin criteria, (b) consignment conditions, and (c) documentary evidence9.
The regulatory intervention that aims at protecting local industries is anti-dumping.
Dumping is said to occur when goods are exported at a price lower than its “normal
value”. This is deemed an unfair trade practice, particularly when the firms from the
exporting country are suspected selling at subsidised prices, which is deemed to
undermine the competitiveness of local firms. The WTO allows anti-dumping measure
to be applied only under the circumstances provided for in Article VI of GATT 1994 with
pursuant to investigations conducted in accordance with the provisions of this
Agreement10. Malaysia's international rights and obligation in this area are governed
by her membership in the WTO and of the WTO Agreements on Anti-Dumping and
Subsidies & Countervailing Measures.
In Malaysia, there is the Countervailing and Anti-Dumping Duties Act 1993 (Act
504) that empowers the Investigating Authority to take remedial measures against
unfair trading by foreign manufacturers/exporters and to provide a framework for
investigating allegations of injury caused by dumped or subsidized imports. The
Investigating Authority is the Trade Practices Section of MITI.
When a Malaysian domestic industry is of the view that there is evidence of subsidy
and/or dumping and that the subsidy and/or dumping is causing injury, a written petition
may be submitted to commence the process of a countervailing and/or an anti-dumping
action to the Investigating Authority of MITI. Under Act 504, a written petition must be
filed by or on behalf of the domestic industry and should contain sufficient evidence of
dumping (or in the case of a countervailing action, evidence of subsidized imports),
injury and a causal relationship between the dumped (or subsidized) imports and the
alleged injury. In this context the petitioner must be supported by the domestic
producers whose collective output/production constitutes more than 50% of the total
production of the domestic producers expressing either support or opposition to the
petition and the domestic producers expressing support to the petition amount to 25%
of the total production of the domestic industry11.
9 MITI – General System of Preference (17/2/2014);
http://www.miti.gov.my/cms/content.jsp?id=com.tms.cms.section.Section_697f7757-c0a81573-66466646-1561dbc6 10 WTO, Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994, Uruguay Round Agreement; http://www.wto.org/
11 MITI, Anti-Dumping and Countervailing Measure (21 Aug 2014); http://www.miti.gov.my/
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Trade Associations and Chambers of Commerce as Intermediaries
Intermediaries here are the organisations that assist communication and coordination
between the logistics businesses and the regulators. They provide services and/or
build relationships for regulatory compliance and issue resolutions between regulators
and the businesses. These include the trade associations and chambers which
represents the various business communities.
Trade associations and chambers act as go-betweens between the businesses and
the authorities to deal with regulatory and other issues of concern to businesses. The
authorities regularly consult with these bodies on government policies and their
implementation. The trade association intermediaries for the import-export trade
logistics are given in Table 4.6 of Chapter Four. Any regulatory issues arising in the
logistics value chain are communicated and discussed between the respective
associations and the authorities.
Table 5.4: The Key National Business Chambers and Associations Name Address Contact
Associated Chinese Chamber of Commerce and industry Malaysia (ACCIM) www.acccim.org.my
Lot 6.05 & 6.06, 6th Floor, Menara Promet, Jalan Sultan Ismail, 50250 Kuala Lumpur.
Ms.Chong Mon Yee Tel : 03 2145 2503 Email: chongmay@accim.org.my
Federation of Malaysian Manufacturers (FMM) www.fmm.org.my
Wisma FMM, No.3, Persiaran Dagang, PJU 9, Bandar Sri Damansara, 52200, Kuala Lumpur
Shamini Sakthinathan Tel : 03 6276 1211 Email: shamini@fmm.org.my
International Chamber of Commerce Malaysia www.iccmalaysia.org.my/
Wisma FMM No. 3 Persiaran Dagang, PJU 9, Bandar Sri Damansara, 52200 Kuala Lumpur
Tel: +603-62867200 Email: iccm@iccmalaysia.org.my
Malay Chamber of Commerce Malaysia (MCCM) http://www.malaychamber.com
33-35, Jalan Medan Setia 1, Plaza Damansara Bukit Damansara 50490 Kuala Lumpur
Tel : 03-20962233
Malaysian International Chamber and Industry (MICCI) http://www.micci.com/
C-08-08, Plaza Mont'Kiara, 2 Jalan Kiara, Mont Kiara, 50480 Kuala Lumpur, Malaysia
Stewart Forbes Executive Director Tel: +603-62017708 Email : micci@micci.com
National Chamber of Commerce and Industry of Malaysia (NCCIM) http://nccim.cmshosted.net/
MENARA MATRADE, Level 3, West Wing, Jalan Khidmat Usaha, Off Jalan Duta, 50480 Kuala Lumpur
Secretary General Dato Syed Hussein Al Ha Tel: 603-6204 9811 Email: enquiry@nccim.org.my
Malaysian Associated Indian Chambers of Commerce and Industry (MAICCI) http://www.maicci.org.my/
JKR 3190, Jalan Ledang Off Jalan Duta 50480, Kuala Lumpur
Dato' M.Davendran Hon. Secretary General Tel: 603 2011 0478 Email : info@maicci.org.my
Source: Author’s compilation
The exporters and importers or shippers are represented by their associations and
chambers. There are also many other community-based, industry-based, foreign
industry-based associations, both at the national and state levels. The community–
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based associations representing the three communities are the Chinese, Indian and
Malay Chambers. The Ministry of International Trade and Industry, MITI has a directory
listing of 73 of these entities (includes the Arab, China and German chambers). Table
5.4 is a list of the major local chambers and associations.
Multinational companies and foreign-based industries are also represented by the
country-based chambers. The notable chambers are the American Chamber of
Commerce (AMCHAM), the EU-Malaysia Chamber of Commerce and Industry
(EUMCCI), the Malaysia Australia Business Council (MABC), Malaysian-German
Chamber of Commerce and Industry (MGCC), and the Japanese Chamber of Trade
and Industry, Malaysia (JACTIM). Table 5.5 lists some of the key foreign chambers in
the country. The industry-based associations are many representing the different
industries and trades in the country, such as those representing electrical and
electronics industry, the textile industry, the steel and foundry industry, the automobile
industry, the construction industry, pharmaceutical industry, among others.
Table 5.5: List of Key Foreign Business Chambers in Malaysia Name Address Contact
American Malaysian Chamber of Commerce (AMCHAM) http://www.amcham.com.my
Suite 6-1A, Level 6 Menara CIMB, Jalan Stesen Sentral 2, KL Sentral, 50470 Kuala Lumpur
Jesselynn Lai Government Affairs Manager Tel: +603 2283 3407 Email: jesselynn@amcham.com.my
Arab Malaysian Chamber of Commerce Berhad (AMCC) http://amcc.com.my
Suite 21.02 – 21.03, 21st Floor Menara Haw Par, Jalan Sultan Ismail, 50250 Kuala Lumpur
Carlotta Elena Cawalleri Tel : +(60)3 2078 9990 Email : info@amcc.com.m
British Malaysian Chamber of Commerce (BMCC) http://www.bmcc.org.my
4th Floor, East Block, Wisma Selangor Dredging, 142-B, Jalan Ampang, 50450 Kuala Lumpur,
Tel: +60 3 2163 1784 Email: membership@bmcc.org.my
EU-Malaysia Chamber of Commerce and Industry (EUMCCI) http://www.eumcci.com/
Suite 10.01, Level 10, Menara Atlan, 161B Jalan Ampang, 50450 Kuala Lumpur.
Rozitaayu bt Zulkifli Corporate Communications Manager: Tel: +603-2162 6298 Email: eumcci@eumcci.com
Japanese Chamber of Trade & Industry, Malaysia (JACTIM) http://www.jactim.org.my/
Suite 6.01, 6th Floor, Millennium Office Block, Peti #4, 160, Jalan Bukit Bintang 55100 Kuala Lumpur
Secretary-General TEL (03)2142-7106 E-mail: jactim@jcci.com.my
Kazakhstan-Malaysia Chamber of Commerce http://www.kmcc.com.my/
Box No.43, Level 17, West Block, Wisma Selangor Dredging, 142C, Jalan Ampang, 50450 Kuala Lumpur
Bakhtiyor Abdulloev International Relationships Manager Tel: +603 2181-1676 Email: secretariat@kmcc.my
Malaysia Australia Business Council (MABC) http://www.mabc.org.my/
C-26-3A, 3 Two Square No 2 Jalan 19/1
Shaun Miranda MABC Secretariat Tel: +603 7960 9490
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46300 Petaling Jaya
Email: shaunmiranda@mabc.org.my
Malaysia Canada Business Council (MCBC) http://www.malaysia-canada.com/
29-5 Jalan PJS 5/30 Pusat Dagangan Petaling Jaya Selatan (PJCC) 4 6150 Petaling Jaya
Natasha Abu Al-Ashari Office Administrator Tel: 603 7785 0799 Email: mcbc@malaysia-canada.com
Malaysia-China Chamber of Commerce (MCCC) http://www.mccc.my
No.8-2, Jalan Metro Pudu, Fraser Business Park, Off Jalan Yew, 55100 Kuala Lumpur
Mr.Ting Chin Ching Tel: +603-9223 1188 Email: sec@mccc.my
Malaysian French Chamber of Commerce and Industry (MFCCI) http://www.mfcci.com/
Unit No. 2B-10-3, 10th Floor, Plaza Sentral, Jalan Stesen Sentral 5, 50470 Kuala Lumpur,
Tel: + 60 3 2035 6970 Email: mfcci@mfcci.com
Malaysian-German Chamber of Commerce and Industry (MGCC) http://www.malaysia.ahk.de/
Suite 47.1, Level 47, Menara Ambank 8, Jalan Yap Kwan Seng 50450 Kuala Lumpur
Ms Cheryl Sim Communications Officer Tel: +60-3-9235 1800 Email: info(at)malaysia.ahk.de
Malaysian Italian Chamber of Commerce and Industry (MITCCI) http://www.mitcci.org.my/
32A, Jalan Ampang, 14M,14th Floor, Plaza Ampang City 50450 Kuala Lumpur
Munindran al Vasuthavan P.R for Asia Tel: 006.03.42566121 Email: mitcci.se@gmail.com
Malaysia New Zealand Chamber of Commerce (MNZCC) http://www.mnzcc.org.my/
Level 21, Menara IMC No. 8, Jalan Sultan Ismail 50250 Kuala Lumpur
Tel: +60 3 2724 0354 Email: mnzcc@mnzcc.org.my
Malaysian Spanish Chamber of Commerce & Industry, (MSCCI) http://www.lacamara.org.my/
20th Floor, Menara Boustead, 69, Jalan Raja Chulan, 50200 Kuala Lumpur
Tel:- (60/3) 2148 7300 E-mail:- info@lacamara.org.my
Source: MPC compilation
Aside from these industry-based associations, there are also services business-based
associations which play a major role in mediation and negotiation with the Government
on logistics matters. A summary listing of many these trade intermediaries is shown in
Box 5.9.
Box 5.9: Summary List of Trade Intermediaries of Logistics Businesses Trade Associations and Chamber of Commerce 1. Airfreight Forwarders Association of Malaysia (AFAM) - www.afam.org.my 2. Associated Chinese Chamber of Commerce and Industry of Malaysia –
www.acccim.org.my 3. Association of Consulting Engineers Malaysia – www.acem.com.my 4. Association of Malaysian Hauliers - http://www.amh.org.my/ 5. Association of Private Hospitals of Malaysia (APHM) - www.hospitals-malaysia.org/ 6. ASEAN Ports Association, Malaysia - http://www.apamalaysia.com 7. Building Materials Distributors Association of Malaysia – www.bmdam.org.my 8. Cement and Concrete Association of Malaysia – www.cnca.org.my 9. Central Region Shipping Association - http://www.crsa.com.my/ 10. Commercial Vehicles Rebuilders Association Malaysia ( CVRAM) -
www.cvramrebuilt.com
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11. Electrical and Electronics Association of Malaysia (TEEAM) - www.teeam.org.my 12. Federation of Malaysian Consumers Associations (FOMCA) - www.fomca.org.my/ 13. Federation of Malaysian Foundry & Engineering Industries Association of Malaysia –
www.fomfeia.org.my 14. Federation of Malaysian Freight Forwarders – www.fmff.net 15. Federation of Malaysian Manufacturers – www.fmm.org.my 16. Johor Lorry Operators’ Association - http://www.jloa.org.my 17. Machinery & Equipment Manufacturers Association – www.mema.org.my 18. Malay Chamber of Commerce Malaysia – www.dpmm.org.my 19. Malaysia Hardware, Machinery & Building Materials Dealer’s Association (MHMBA) -
http://www.mhmba.org.my 20. Malaysia Steel and Metal Distributors’ Association (MSMDA) -
http://www.metaldealer.org.my/ 21. Malaysian Air-Conditioning & Refrigeration Association (MACRA) -
http://www.macra.org.my/ 22. Malaysian Association of Convention and Exhibition Organisers and Suppliers
(MACEOS) - www.maceos.com.my 23. Malaysian Association of Pharmaceutical Suppliers (MAPS) - www.i-maps.my/ 24. Malaysian Associated Indian Chamber of Commerce and Industry –
www.maicci.org.my 25. Malaysian Automotive Association (MAA) - http://www.maa.org.my 26. Malaysian Employers Federation - www.mef.org.my/ 27. Malaysian Footwear Manufacturers Association (MFMA) -
http://wms2.malaysiafootwear.com/ 28. Malaysia Furniture Entrepreneur Association (MFEA) - www.mfea.org.my 29. Malaysian Gas Association (MGA) - http://www.malaysiangas.com 30. Malaysia Heavy Construction Equipment Owners' Association (PAJPBM) -
http://pajpbm.com/ 31. Malaysian International Chamber of Commerce and Industry – www.micci.com 32. Malaysian Iron & Steel Industry Federation – www.misif.gov.my 33. Malaysian Knitting Manufacturers Association (MKMA) - http://www.mkma.org/ 34. Malaysian Organisation of Pharmaceutical Industries (MOPI) - http://mopi.org.my/ 35. Malaysian Oil & Gas Services Council (MOGSC) - http://www.mogsc.org.my/ 36. Malaysian Palm Oil Association (MPOA) - http://mpoa.org.my/ 37. Malaysian Plastics Manufacturers Association – www.mpma.org.my 38. Malaysian Rubber Glove Manufacturers Association (MARGMA) -
http://www.margma.com.my 39. Malaysian Rubber Products Manufacturers’ Association – www.mrpma.com 40. Malaysian Shipowners’ Association – www.malaysianshipowners.org 41. Malaysian Structural Steel Association – www.mssa.org.my 42. Malaysian Textile Manufacturers’ Association (MTMA) - http://www.fashion-asia.com/ 43. Malaysian Tin Products Manufacturers' Association (MTPMA) -
http://www.mtpma.org.my/ 44. Master Builders’ Association Malaysia – www.mbam.org.my 45. Metal Dealers’ Association – www.metaldealer.org.my 46. National Chamber of Commerce and Industry of Malaysia -
http://nccim.cmshosted.net/ 47. National ICT Association of Malaysia (PIKOM) - http://www.pikom.org.my/ 48. Palm Oil Refiners Association of Malaysia (PORAM) – http://poram.org.my 49. Pan-Malaysia Lorry Owner’s Association (PMLOA) 50. Pharmaceutical Association of Malaysia (PhAMA) - www.phama.org.my/ 51. Persatuan Insurans Am Malaysia (PIAM) - http://www.piam.org.my/ 52. Real Estate and Housing Developer’s Association Malaysia – www.rehda.com 53. SME Association Malaysia - www.smemalaysia.org/ 54. Sabah Timber Industries Association (STIA) - http://www.stia.com.my
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55. Sarawak Chamber of Commerce and Industry (SCCI) - http://www.scci.org.my 56. Sarawak Timber Association (STA) - http://www.sta.org.my/ 57. Shipping Association Malaysia (SAM) - http://www.sam.org.m 58. Steel Wire Association of Malaysia – www.swam.org.my 59. Timber Exporters' Association of Malaysia (TEAM) - http://www.team.org.my
Source: Author’s compilation (also from Malaysian Spanish Chamber of Commerce & Industry; http://www.lacamara.org.my/)
Government Intermediaries
The country’s external trade has been expanding continuously over the last three
decades. As such, the demand on government services also increases annually. To
cope with business demands and constraints on government capacity expansion, the
government outsources some of its functions, by privatising specific government
functions, setting up or appointing a private and commercial entity to run the
outsourced function. These entities are monopolistic outsourced service providers.
In the case of Customs, the online customs clearance activities have been
outsourced to a company Dagang Net Sdn. Bhd. which is an e-commerce service
provider. Dagang Net has performed over 275 million electronic transactions and
RM1.8 billion worth of Customs duty payments and serves more than 5000
customers12.
The road transportation authority – Department of Road Transport Malaysia
(Jabatan Pengangktan Jalan, JPJ) - has outsourced vehicle inspection to a private
company PUSPAKOM Sdn. Bhd. (http://www.puspakom.com.my). Established in
1994, PUSPAKOM is a wholly-owned subsidiary of DRB-HICOM Bhd., a conglomerate
that is listed on the Kuala Lumpur Stock Exchange. It is the only vehicle inspection
company appointed by the Malaysian Government to undertake all mandatory
inspections for commercial and public vehicles, as well as private vehicles for hire-
purchase financing, ownership transfer and insurance purposes13.
As the individual authorities have serious limitations in both capability and capacity in
managing ICT systems and applications, many electronic data processing functions
are outsourced to a privately incorporated entity, MYEG. MY E.G. Services Bhd.,
MYEG is a concessionaire for Malaysian Electronic-Government (e-Government)
MSC Flagship Application. MYEG builds, operates and owns the electronic channel to
deliver services from various Government agencies to Malaysia citizens and
businesses. MY E.G. Services Bhd. was incorporated in Malaysia as a private limited
company on 17 February 2000 as I.T. Marvel Sdn. Bhd.
The e-Government Initiative is a Government programme which focuses on delivering
improvements of Government internal operations and its service delivery. The initiative
12 Dagang Net Sd. Bhd. (February 2015), About Us - Commerce the Dagang Net Way; http://www.dagangnet.com/index.php/about-us/about-us.html 13 PUSPAKOM Sdn. Bhd.; http://www.puspakom.com.my
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focuses on allowing citizens to retrieve information and perform transactions with
various service suppliers in a convenient and timely manner by utilizing its Electronic
Services (e-Services)14.
The Logistics Businesses
Freight forwarders play an important role in the logistics chain as they manage the
transportation of goods across the globe for exporters and importers. They provide the
services that ensure goods, to be moved, meet all necessary conditions to pass
through customs and that all the necessary paperwork is in order, as well as ensuring
that goods are properly handled. These are firms specializing in arranging storage
shipping of merchandise on behalf of its shippers. It usually provides a full range of
services including: tracking inland transportation, preparation of shipping and export
documents, warehousing, booking cargo space, negotiating freight charges, freight
consolidation, cargo insurance, and filing of insurance claims.
In Malaysia, the freight forwarding business is represented by geographically-located
associations affiliated to the national Federation of Malaysian Freight Forwarders15
(see Box 10). These geographically-located associations are:
i. Selangor Freight Forwarders and Logistics Association, SFFLA - 589
company members; http://www.sffla.com/
ii. Johor Freight Forwarders Association, JOFFA - 241 company members;
http://joffa.net/
iii. Penang Freight Forwarders Association, PFFA - 115 company members;
http://pffa.org.my/
iv. Kota Kinabalu Forwarding Agent Association, KKFAA - 52 company
members.
v. Sarawak Forwarding Agencies Association, SFAA - 84 company
members; http://sfaa.ent.my/
vi. Labuan Freight Forwarders Association, LFFA - 10 company members.
As can be seen the Selangor Freight Forwarders and Logistics Association,
SFFLA, which is based in Klang is the largest in the region as Port Klang remains the
largest port in Malaysia. The association was formed and registered in 14th June 1973
under the Societies Act 1966. Initially, the name of the association was "Association of
Forwarding Agents Port Klang" and in May 2003 the association changed its name to
SFFLA. SFFLA mission is to promote its members’ activities (upstream businesses)
and to enhance the awareness of Port Klang as the premier port in Malaysia, promoting
14 MY E.G. Services Bhd, MYEG; https://www.myeg.com.my 15 Federation of Malaysian Freight Forwarders; http://www.fmff.net/
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the services and incentives available in the port and promoting more activities for the
business community and logistics players (downstream businesses)16.
Box 10: Federation of Malaysian Freight Forwarders
FMFF was registered in September 1987 as a National Association representing the
Freight Forwarders in the logistics industry. In 2000, the Ministry of Transport endorsed
and recognized FMFF as a national Association to represent the logistics industry.
Current membership in FMFF nationwide is about 1091 members with several applicants
pending approval. FMFF membership as per State association is as follows’-
Selangor Freight Forwarders and Logistics Association, SFFLA - 589 company
members.
Johor Freight Forwarders Association, JOFFA - 241 company members.
Penang Airfreight Forwarders Association, PFFA - 115 company members.
Kota Kinabalu forwarding Agent Association, KKFAA - 52 company members.
Sarawak Forwarding Agencies Association, SFAA - 84 company members.
Labuan Freight Forwarders Association, LFFA - 10 company members.
FMFF is affiliated to FIATA (International Federation of Freight Forwarders Association),
AFFA (ASEAN Freight Forwarders Association), FAPAA (Federation of Asia Pacific Air
Cargo Associations, MNSC (Malaysian National Shippers Council).
FMFF participates in many government forums such as Dialogues with MITI and MOF,
Customs Liaison meeting, MOT, MLC, Trade and Facilitation Action Council (MITI) and
provides industry views and inputs for policy makers’ consideration.
FMFF was established in 1987 as a National Association with the following objectives:-
To unify all freight forwarders in the country through the promotion of co-operation
and understanding among members
To protect and represent the interests of members at the National and International
levels.
To improve the quality and standards of services of members through information
and data exchange, documentary simplification systems and organisational
development and internationalisation.
To establish, maintain and promote ethical standards within the profession.
To arbitrate in the settlement of disputes and difficulties arising between members.
16 Selangor Freight Forwarders and Logistics Association; http://www.sffla.com/
111
To foster the growth and awareness of freight forwarding through appropriate
publications and promotions.
To foster and improve relations with shippers, carriers, governmental bodies and
other related and interested parties.
To provide for vocational training at the national level.
Source: Federation of Malaysian Freight Forwarders (16/2/15), http://www.fmff.net/
Hauliers are persons or companies employed in the transport of goods or materials
by road. Trucks carry the major volume of the freight tonnage moved in the country,
maybe as much as 80 per cent. With industry relying this heavily on road carrier
transport, changes and efficiency in the trucking industry can have major ramifications
for shippers. Shippers need to be aware of truck-related regulation and legislation.
These regulations and how they are implemented can influence how shippers and their
road carriers do business together. The road carrier transport business is represented
by two main trade associations in Malaysia, (a) Association of Malaysian Hauliers,
AMH and (b) Johor Lorry Operators’ Association, JLOA.
Ports Authorities and Ports Operators: Ports and shipping are major links in the
logistics chain and are essential in facilitating trade in Malaysia and hence crucial to its
economic prosperity. On this, the country’s ports have assumed a critical role in the
overall pattern of trade and transport, providing a link between the shipping service
and the inland transport system. Today, with world-class facilities, Malaysia’s ports act
as crucial points of interface with other transport modes - road, rail, river and air.
In 1987, the Economic Planning Unit (EPU) in the Prime Minister’s Department
commissioned a study and drew up a blueprint for a national port policy. Outlining
recommendations and action plans to enhance the growth and development of
Malaysia’s ports, it set the pace for rapid port development. Central to the policy was
port privatization and the establishment of a national load centre featuring modern
terminal facilities and large cargo volumes to attract large container vessels.
Prior to the enactment of the Port (Privatisation) Act 1990, Act 422, ports in the country
were operated by Port Authorities. With the advent of the Act 422 the major ports in
the country were privatized and these entities are regulated by their respective Port
Authorities. Table 5.6 shows the privatised major sea ports. Ports in the country are
either under the purview of the Federal Government or the State Government. Those
administered by the Federal Government, under the jurisdiction of the Ministry of
Transport, can be categorized into major and minor ports. The major Federal ports are
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Port Klang, Penang Port, Bintulu Port, Kuantan Port, Kemaman Port, Johore Port and
Tanjung Pelepas Port, all regulated by port authorities.
In addition, there are around 80 minor ports or jetties under the regulation of the Marine
Department. The ports in Sabah are governed by Sabah Ports Authority, while
Sarawak has three separate port authorities supervising the ports in Kuching, Rajang
and Miri.
Table 5.6: Major Sea Ports under the Port (Privatisation) At 1990 Penang Port Penang Port Commission Penang Port Commission Act 1955
Port Kelang Kelang Port Authority Port Authorities Act 1963
Kuantan Port Kuantan Port Authority Port Authorities Act 1963
Pasir Gudang Johore PortAuthority Port Authorities Act 1963
Bintulu Port Bintulu Port Authority Bintulu Port Authority Act 1981
Malacca Port Malacca Port Authority Port Authorities Act 1963
Kemaman Port Kemaman Port Port Authorities Act 1963
Tanjung Pelepas Port
Johor Port Authority (Tanjung Pelepas)
Port Authorities Act 1963
Source: Act 422, Schedule (Section 2)
The largest seaport in the country is Port Klang, serving the Klang Valley which is the
most well-developed and industrialized region in Malaysia. For its strategic location, it
is designated as the load centre for both local and regional containers to generate
critical mass at one port making it an attractive destination for Main Line Operators.
This has resulted in the diversion of cargo from other ports to Port Klang, which handles
sixty over per cent of Malaysia’s container trade and is a major regional distribution
and transhipment hub17. It is the world’s 13th largest container port18, handling
10,350,409 twenty-foot equivalent units (TEU) out of the total of 20,876,442 TEU
handled in the county in 2013. This represent almost 50 per cent TEU handled in the
country. Port Klang has two of its terminals, operated by two companies, Westports
Malaysia Sdn. Bhd. (www.westportsmalaysia.com) and Northport (Malaysia) Bhd.
(www.northport.com.my), together both boast of world-class facilities that can cater to
the world's largest ships and have trade connections with more than 500 ports around
the world.
Port of Tanjung Pelepas (PTP), Malaysia's transhipment port at the southern tip of
Peninsular Malaysia, began operations in 1999 but has grown spectacularly to
become the 20th largest container port in the world (2015). As the trans-shipment hub
for the southern region, PTP achieved an annual cargo volume of 7.63million TEUs in
17 Nazery Khalid (2005), The Development of Ports and Shipping Sector in Malaysia,Marine Institute of Malaysia (MIMA) 18 World Shipping Council (2015), Top 50 World Container Ports; http://www.worldshipping.org/about-the-industry/global-trade/top-50-world-container-ports
113
2013. PTP has attracted two of the world’s largest container service operators,
Moller-Maersk and Evergreen, to become its shareholders. The port operator is
Pelabuhan Tanjung Pelepas Sdn. Bhd. (www.ptp.com.my/)
Johor Port was established in 1977 and features diverse cargo, storage and logistics
facilities. It enjoys a strategic location in a busy transport hub in the south-eastern tip
of Peninsular Malaysia, attracting major carriers such as Evergreen, Wan Hai and
PIL. The port operator is Johor Port Bhd. (www.johorport.com.my)
Penang Port, the gateway port to Peninsular Malaysia’s northern region, is an
established port serving one of the region’s busiest trade routes. The port serves as
the main gateway for shippers in the northern states of Malaysia and also the southern
provinces of Thailand. Penang Port is well connected with land and air modes and is
accessible to and from all the major economic regions in Peninsular Malaysia. The port
operator is Penang Port Sdn. Bhd. (www.penangport.com.my Penang Port is the
oldest and longest established port in Malaysia. Capable of handling 25 million tons of
cargo annually, it enjoys connectivity with over 200 ports worldwide. Penang Port is
fully equipped to handle all types of cargo such as containers, liquid, dry bulk, break
bulk and others and provides a multitude of services to cater for their safe and efficient
transit via the port’s various terminals and facilities.
Kuantan Port serves the Eastern Corridor of Peninsular Malaysia stretching from
Kelantan to Pahang, focusing on the cluster of international chemical plants in the
Gebeng Industrial Estate. As such, its port facilities feature palm oil berths, liquid
chemical berths, mineral oil berths and a MTBE (methyl tertiary butyl ether) terminal.
The port operator is Kuantan Port Consortium Sdn Bhd (KPC); http://www.ijm.com/
KPC is jointly owned by IJM Corporation Berhad and Beibu Gulf Holding (Hong Kong)
Co. Ltd on a 62:38 equity holdings with the Government of Malaysia having a special
rights share. KPC is given the concession period of thirty years since 1998 to manage,
operate and develop Kuantan Port. With the development of the New Deep Water
Terminal (NDWT) a new Privatisation Agreement shall be entered for a period of thirty
years. Kuantan Port is an all-weather port and a multi-cargo deep sea port facing the
South China Sea. Strategically located on the eastern seaboard it serves the industrial
and the petrochemical industries in the East Coast Industrial Corridor. Supported and
has a vast market outreach and a strong network of global shipping connections.
Kemaman Port is located on the East Coast of Peninsular Malaysia, serving the steel
plants, crude oil terminals, gas processing plants, refineries and petrochemical
complexes. The facilities at this port, one of the deepest seaports in Malaysia and the
gateway to the Asia-Pacific region, include three multipurpose berths, one liquid
chemical berth and one LPG export terminal. It is also a supply base catering to the
needs of petroleum companies operating off the shores of Terengganu.
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Bintulu Port, located on Sarawak’s north-eastern coast, is the only export gateway for
the country’s biggest export earner – liquefied natural gas (LNG) produced off the
Bintulu coast. Commencing operations in 1983 and privatised in 2001, its facilities
include an LNG terminal, LPG jetty and a new dedicated container terminal equipped
with the latest and most modern port equipment and other supporting facilities. It is
recognised as the world’s largest single LNG port featuring three LNG jetties capable
of handling up to 25 million tons per year.
Also in Sarawak there are two riverine ports, Kuching Port and Miri Port, which serve
the southern and northern part of the state respectively. As for Sabah, The Sabah
ports deal mainly with exports of timber, petroleum-based products, palm oil, cocoa
beans, rubber and mineral oils. These cargos are moved via the seaports at Kota
Kinabalu, Sepanggar Bay, Sandakan, Tawau, Lahad Datu, Kudat, Kunak and Labuan,
all accessible to international shipping. A new container terminal at Sepanggar Bay will
handle the whole of state’s container operations except for general cargo.
All these ports and their respective Port Authorities are members of the ASEAN Ports
Association Malaysia with the aim of fostering friendship and extending support and
cooperation to promote the interest of ports. The founding members of ASEAN Port
Association (APA), originally known as the ASEAN Port Authorities Association,
consist of government agencies in the ASEAN countries, which are recognized and
functioning either as a corporate body or as a bureau. The Port of Singapore Authority,
Indonesia Port Corporations, Kelang Port Authority (Malaysia), Port Authority of
Thailand and Philippine Ports Authority function as corporate bodies19.
Warehousing: A warehouse is a storage place for products. Principal warehouse
activities include receipt of product, storage, shipment, and order picking. Managing
warehouses efficiently ensures that goods flow from the manufacturers or producers
to consumers in without interruptions and undesirable delays. These days, seller of
goods generally outsource warehousing function to third parties - Third Party
Warehousing. A good Warehouse Management System (WMS) is crucial to efficient
warehousing. The WMS is used in effectively managing warehouse business
processes and direct warehouse activities, including receiving, put-away, picking,
shipping, and inventory cycle counts. WMS will have support of radio frequency
communications, allowing real-time data transfer between the system and warehouse
personnel. It will also maximize space and minimize material handling by automating
receiving and put-away processes20.
Warehousing is an important elemental link in the logistics chain. Although the main
function is storage and distribution, to ensure cost efficiency of the logistics chain,
warehousing also functions as repacking and packaging, goods receiving and
stocking, processing shipments, picking and consolidating, regulatory inspections,
19 ASEAN Ports Association Malaysia; http://www.apamalaysia.com/ 20 Inbound Logistics, Glossary of Supply Chain Terms; http://www.inboundlogistics.com/cms/logistics-glossary/
115
tariff assessment and customs clearance, and so forth. Warehousing remains a cost
function and as such its functional efficiency is crucial to logistics.
Some countries have special Acts for warehousing such as the Uniform Warehouse
Receipts Act21 that sets forth the regulations governing public warehousing. The
regulations define a warehouse manager's legal responsibility and define the types of
receipts he or she issues. There is no such Acts in Malaysia but warehouses are
government under the Street, Drainage and Building Act 1974, Act 133, which covers
the construction and use of the structure. As for warehousing operation, there are
different regulations and authorities governing them depending of the types of goods
handled. For general goods or consumer goods, governance is generally through the
Ministry of Domestic Trade, Co-operatives and Consumerism (MDTCC).
For drugs and pharmaceuticals, the storing, handling, distributions, labelling and
packaging, traceability and re-calling among others are govern by the Pharmaceutical
Services Division of the MOH. The MOH also has various guidelines such as the Good
Manufacturing Practices (GMP) and Good Distribution Practices that industries need
to follow.
Dangerous goods and radioactive materials are strictly regulated and the governing
authorities include the Department of Safety and Health (DOSH), the Atomic Energy
Licensing Board (AELB), the Fire & Rescue Department of Malaysia (BOMBA) and the
Department of Environment Malaysia (DOE).
There are also warehouses under the direct control of Royal Malaysian Customs, such
as the Licensed Manufacturing Warehouse (LMW), which is a premise licensed
under section 65A of the Customs Act 1967. It is control by way of documentation and
subject to all customs rules and regulations. Licensed manufacturing warehouse is a
facility provided for export oriented companies too22.
Warehouses located in the free zones are governed by the Free Zone Act 1990. A
free zone is a designated, secured area in which commercial and industrial activities
are carried out and gazetted by the minister of finance as stated under the section 3(1)
Free Zone Act 1990. There are two types of free zone that is the free industrial zone
(FIZ) and free commercial zone (FCZ). Free Zone Authority is appointed by the
minister under section 3(2) of the Free Zone Act 1990 to manage the zone. Customs
control at the free zone is at the minimum and basically only at the gate point. FIZ is a
place where most of the manufacturing activities carried out are for export purpose. It
is a facility meant for export-orientated companies. Besides that, FIZ can also carry out
other activities such as evaluation, testing of goods, research, designing etc.
21 Warehouse Receipts Act, Victoria, British Columbia, Canada; http://www.bclaws.ca/civix/document/id/complete/statreg/96481_01 22 Royal Malaysian Customs (Draft as at 5 January 2014), Goods and Services Tax, Guide on free Industrial Zone and Licensed Manufacturing Warehouse; http://gst.customs.gov.my/en/rg/SiteAssets/industry_guides_pdf/Bi%20FIZ%20and%20LMW%20-%20271013_to%20upload5.1.14.pdf
116
Another type of warehouse located in a designated area and approved by the Royal
Malaysian Customs (RMC) under Section 65 of the Customs Act 1967, for storing
dutiable goods is the bonded warehouse. Since 1981, its function has been enhanced
for other activities such as break bulking and trading to facilitate commercial activities
as well as to make it a distribution hub within the ASEAN region. Its creation also
helped to reduce port congestion and for convenience of the importers23. Warehouses
are generally third party warehouses serviced by logistics companies. Some freight
forwarders also manage warehouses largely for receiving, put-away and consolidating
functions. Interested parties can contact trade associations representing freight
forwarders, hauliers and lorry for information on relevant logistics service providers.
Other intermediaries for logistics and warehousing include msialogistic.com which is
under the Marshall Cavendish Business Information Private Limited and a member of
Times Publishing Group. As a leading publisher of niche industry directories, it
publishes more than 40 trade directories annually covering a wide spectrum of key
industries. Its website http://www.msialogistics.com/ is a good search engine for
logistics providers in Malaysia. Another intermediary which is useful for searching is
the Alibaba.com http://www.alibaba.com/countrysearch/MY/logistic-service.html. The
search engine can locate most logistics service providers in the country.
Conclusion
This chapter gives the overview of the key stakeholders in sea freight logistics. The
Ministry of Transport oversees all aspects of the country logistics covering the
development of the logistics economy and infrastructure to the regulation and
enforcement of established regulators. The importation and exportation of goods are
governed by many regulations depending on the types of goods. The Royal Malaysian
Customs has the role as gatekeeper for all goods traded across the country’s borders
through the various ports, airports and border crossings. Some of the regulatory
activities have been outsourced to improve efficiency of regulatory enforcement.
The key stakeholders in the logistics chain are the importers and exporters (shippers)
and the logistics services providers. The shippers who comprise manufacturers and
goods traders are those involves in trading of goods across the national borders. Most
of these businesses have established trade associations and chambers to represent
their voice to the Government on regulatory, policy and other economic issues.
23 Royal Malaysian Customs (Draft as at 27 October 2013), Goods and Services Tax, Guide on Warehousing Scheme
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Appendix
LIST OF THE 26 OGAS ISSUING PERMITS (also known as PIAs)
1. Film Censorship & Enforcement Div., Min of Home Affairs (MOHA)
2. Royal Malaysia Police, MOHA
3. Construction Industry Development Board, Min of Works
4. Pharmaceutical Services Div., Min of Health
5. Import & Export Control Sec., Min of International Trade & Industry (MITI)
6. Trade Cooperation & Industry Coordination Sec., MITI
7. Strategic Trade Secretariat, MITI
8. Paddy & Rice Industry Div., Min of Agriculture (MOA)
9. Malaysian Quarantine & Inspection Services, MOA
10. Department of Veterinary Services (MOA)
11. Department of Fishery, MOA
12. Pesticides Control Div., Dept. of Agriculture (DOA)
13. Crop Protection & Plant Quarantine Div., DOA
14. Federal Agriculture Marketing Dept., MOA
15. Malaysian Pineapple Industry Board, MOA
16. National Kenaf & Tobacco Board, Min of Plantation Industries (MOPIC)
17. Malaysian Cocoa Board, MOPIC
18. Atomic Energy Licensing Board, Min of Science, Tech & Innovations (MOSTI)
19. Civil & Construction Sec., SIRIM
20. Communication & Multimedia Certification Sec., SIRIM
21. Dept. of Environment (DOE), Min of Natural Resources & Environment
(MONRE)
22. Dept. of Wildlife and National Parks, MONRE
23. Energy Commission, Min of Energy, Green Tech & Water (MOEGTW)
24. Malaysian Communications & Multimedia Commission (MCMC), Min of
Information, Communication and Culture (MOICC)
25. Sarawak Timber Industry Development Corporation, Min of Resource Planning
and Environment, Sarawak
26. Forest Department, Sarawak
27. Veterinary Div., Department of Agriculture, Sarawak.
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