KLANG – The Selangor Freight Forwarders and Logistics Association (SFFLA) has urged stakeholders in Port Klang to embrace a cutting-edge superhighway information system, catalysing a technological overhaul of the shipping district.
SFFLA president Datuk Tony Chia champions an RM20 million investment in the Malaysian Maritime Single-Window (MMSW) system to supercharge Port Klang, the world’s 12th busiest port. This digital wave promises to streamline customs documentation, invoices, and electronic data exchanges.
“All government agencies, even at the port or boat terminals, have their own software. So, (communication) becomes so siloed and not integrated,” he said in an interview with Scoop.
“This is why the government gave an allocation of RM20 million for the MMSW system, which we welcome.
“We are also looking (to improve) customs because its information systems are old – close to 30 years.”
Chia explained that a new customs systems project was initiated, but ultimately failed. He hopes the government can rehash matters of connectivity in the future.
While other nations had a singular border security department, Malaysia had dozens of agencies with separate jurisdictions over different imports.
This includes the Standard and Industrial Research Institute of Malaysia, the Construction Industry Development Board, and the Fisheries Department, among others.
Chia hopes that the ministry will also look into digitalisation, as he said Malaysia is falling behind other Asean nations in logistics performance and terminals, despite geographically being better positioned.
However, he underscored the importance of focusing on improving local performance instead of making comparisons with neighbouring countries.
“Of course, we like to compare ourselves with Singapore (in terms of logistics performance). Let Singapore do their thing, we do our housekeeping,” he said.
“If we can do better to improve our infrastructure together with digitalisation, I think we (would not) be worried about whether Singapore is doing better than us.”
Asked whether the lack of digitalisation was the sole factor leading to Malaysia losing its position, Chia said the nation’s red tape also played a role in pushing away investments.
“People who want to come into Malaysia to start businesses and encourage foreign direct investments, they always talk about government policies and bureaucracy,”
“(They say) ‘approval is so slow’. These are the areas they have to look into. That is why we are losing out,” he said, explaining that the tedious procedure resulted in a loss of clientele.
Chia also said digitalisation was inevitable, as major trade regulators such as the World Trade Organisation have adopted online documentation systems.
The recently passed 2024 Supply Bill saw the government allocating RM20 million as a matching grant to upgrade the MMSW system, aimed to unite the trading community through an integrated digital portal with other government agencies.
Meanwhile, another RM50 million was allocated as a matching grant with the Port Klang Authority to maintain its roads and enforce the overload limit on heavy vehicles. – November 8, 2023