Selangor Journal

Selangor Logistics Gateway of South East Asia

 

 

10 July 2018, Shah Alam – The logistics industry is expanding rapidly in Malaysia especially in the Klang Valley, in tandem with the robust growth of the digital economy and industry 4.0 in the country. Recognising the potentials of Selangor becoming the logistics gateway to South East Asia catering to the needs of the ASEAN and APAC region, the Malaysian Investment Development Authority (MIDA) and Invest Selangor jointly organised the Investment Forum on Logistics Industry with the theme, ‘Deepening Logistics Supply Chain in Selangor’ at the Concorde Hotel Shah Alam today.

The half day event, which attracted approximately 200 logistics players, was officiated by YB Dato’ Teng Chang Khim, Senior Executive Councillor of Selangor State Government. Also present at the event was Mr. Arham Abdul Rahman, Deputy Chief Executive Officer of MIDA and Dato’ Hasan Azhari Hj. Idris, CEO of Invest Selangor.

In YB Dato’ Teng’s keynote address, it is highlighted that this is the first time ever for Invest Selangor and MIDA to organise an Investment Forum on Logistics Industry. He believes that this initiative will continue in order to position the industry in Selangor and make the state a regional hub for logistics.

“We want to see more collaborations and cooperation between Invest Selangor and MIDA as well as other related agencies and organisations to boost the logistics supply chain in Selangor,” YB Dato’ Teng.

“Being the world’s 24th largest trading nation, Malaysia’s logistics industry plays an integral role in enabling the growth of the country’s supply chain. From MIDA’s on-going engagements with the industry, we noticed an increasing trend of companies venturing into more specialised activities. We hope to see more industry players emulating some of these best practices as well as leveraging on the facilities provided by the Government, such as the Integrated Logistics Services (ILS) and International Integrated Logistics Services (IILS) to encourage the growth of Malaysian companies in the logistics industry,” Arham Abdul Rahman, the Deputy and CEO of MIDA adds at the forum held in today.

As at April 2018, MIDA has approved 89 ILS projects with total investment of RM5.9 billion. Meanwhile, 123 companies have been approved with IILS status enabling them to obtain the Freight Forwarding License from Customs.

YB Dato’ Teng says that in terms of economic growth, while Malaysia recorded an increase from 4.2% in 2016 to 5.9% in 2017, Selangor, as usual, scored a higher growth of 7.1% in 2017 as compared to 4.8% in 2016. “Manufacturing sector contributed about 30% of the Selangor GDP. Furthermore, the manufacturing sector in Selangor had also recorded a growth of 7.9% in 2017. Based on this statistics, we can see how important the logistics companies are in Selangor to support the economic growth.”

Dato’ Hasan in his welcoming remarks said that Invest Selangor’s commitment is to ensure all the necessary business friendly features are made available in the state. He is confident that Selangor will continue to be the most competitive place to do business in the ASEAN landscape, providing the best and most conducive investment environment for local and foreign investors.

The Malaysia Institute of Transport (MITRANS) in collaboration with MTRANS Logistics and Transportation Solutions (MTLT) also launched its Malaysia Logistics Performance Index (MLPI) during the event today.

The MLPI establishes performance indicators for the freight logistics industry in Malaysia based on the views of industry professional particularly the local logistics service providers and manufacturers. It also provides comparisons with the findings from the Logistics Performance Index (LPI) conducted by the World Bank. This interactive database can be used as a one stop data centre towards developing a more comprehensive strategic plan for Malaysia’s logistics industry.

The investment forum aimed to provide more insights on the logistics industry’s readiness in terms of technology, talent development and infrastructure. The panel discussion was moderated by the Chairman of the Federation of Malaysian Manufacturer’s Selangor branch with panellists that consisted of key speakers from Sin-Kung Logistics, Port Klang Authority, MITRANS and Logistics Worldwide Express (LWE). Selangor Logistics Clinics (Business Matching Sessions) were also provided for participants to engage with 10 related organisations at the forum.

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