Market Intelligence Report 2011/2012 Key Logistics Spots in Malaysia EUMCCI’s

EUMCCI’s Logistics Project Working Group

© EUMCCI 2012

EUMCCI’s KEY LOGISTICS SPOTS IN MALAYSIA

Market Intelligence Report 2011/2012

Editor

Ms. Jacqueline Chang

Policy & Project Manager, EU Services Sector Projects

Logistics Project Working Group

Mr. Marco Tieman

Head, EUMCCI Logistics Committee

(CEO, LBB International)

Mr. Kamarul Azman

Deputy Head, EUMCCI Logistics Committee

(Customs & Regulator Affairs Manager, DHL Express (Malaysia) Sdn Bhd)

Mr. M. Kanavathy

Director, Intercontinental Freight Express Sdn Bhd

Ms. Jacqueline Chang

Policy & Project Manager, EU Services Sector Projects

EUMCCI’s Project Team Assistants 2011/2012

Mr. Benedikt Muench

Communications Executive

Ms. Irene Koutra

Communications Executive

Mr. Johan Micael Henriksson

Communication Executive

Mr. Henrik Jensen

Communications Executive

Design and Production

Carlos Santiago Mélon

Web Implementation and Support Consultant, EUMCCI

BPC Solutions Sdn Bhd

EUMCCI’s Official Digital Map Solutions Provider

Map and Globes Specialist Distributor Sdn Bhd

EUMCCI’s Official Map Designer and Printer

All rights reserved. EUMCCI holds all copyright and other intellectual

property rights in this collective work. No part of this work may be

reproduced, copied, distributed, transmitted, translated or adapted

in any form or by any means – graphic, electronic or mechanical, and

including without limitation, photocopying, scanning, recording, taping

or by use of computer, the internet or information retrieval systems –

without written permission of EUMCCI through EUMCCI Policy and Project

Management Department: jacqueline@eumcci.com .

“EUMCCI’s Key Logistics Spots in Malaysia – Market Intelligence Report 2011/2012” is a registered

Trademark of the EU-Malaysia Chamber of Commerce & Industry.

Suite 3.03, Level 3, 161B Jalan Ampang, 50400 Kuala Lumpur, Malaysia

Tel: +603 2162 6298 Fax: +603 2162 6198 Email: eumcci@eumcci.com

Link to the Digital Map: http://services.eumcci.com/logistics-map

3

ACKNOWLEDGEMENTS

The EUMCCI’s Key Logistics Spots in Malaysia – Market Intelligence Report

2011/2012 would not have been possible without the joint efforts from the EU

Delegation to Malaysia, EU-Malaysia Chamber of Commerce & Industry

(EUMCCI) and its project partners Federation of Malaysian Manufacturers

(FMM) and Malaysian-German Chamber of Commerce & Industry (MGCC)

in assisting the Logistics Project Working Group in distributing the survey to

enable us to produce the map at http://services.eumcci.com/logistics-map.

We would like to thank Marco Tieman, Head of Logistics Committee,

Kamarul Azman, Deputy Head of Logistics Committee, M. Kanavathy, Head

of Logistics Project Working Group for their timely inputs into this Logistics

Project, the dedicated EUMCCI’s Project Team Members and the assistance

from all the EUMCCI’s staff.

David Jones, Chairman, Minna Saneri, General Manager from EUMCCI and

Mr. Pablo Iglesias Rumbo, Programme Manager, EU Delegation to Malaysia

have reviewed this document with great care and made valuable

suggestions. We would like to express our gratitude to EUMCCI’s network

for providing pertinent information and advice throughout the challenging

process of conducting the survey.

The present report depended also on the support of other organizations

outside the EUMCCI’s network. Our special thanks to Alvin Chua, President

of Federation of Malaysian Freight Forwarders (FMFF) and his team, Stefan

Pertz, Asian Trucker, Capt Mohd Noor Kasim, Executive Secretary and his

team from Malaysian Shipowners Association (MASA), Stewart Forbes,

Executive Director and his team at Malaysia International Chamber of

Commerce & Industry (MICCI), Dr. Nazery Khalid, Senior Fellow and his

team at Maritime Institute of Malaysia (MIMA), Fong Ming San and the

Secretariat of the Sabah Timber Industries Association (STIA) and University

Utara Malaysia for their great efforts and co-operation in distributing the

survey to their members and their database of key contacts.

We would also like to thank our main sponsor, MIDA, and our other sponsors

like CAPEC, ZonHotel, BNP Paribas, Kuehne + Nagel, LBB International,

International Freight Express, our official map partner Maps and Globes

Specialist Distributor Sdn Bhd and our official digital map designer BPC

Solutions for their support in preparation of this Survey and the Map, for

believing in this project and its valuable potential for Malaysia and foreign

business investors around the world.

4

CONTENTS

Acknowledgements 3

Foreword 5

Executive Summary 8

CHAPTER 1:

Introduction

EUMCCI’s Logistics Committee

Overview of the Logistics Project

Infrastructure Map of Malaysia

Overview on Current Infrastructure in Malaysia

Project Relevance with ASEAN FTA 2013-2015

9

9

9

10

11

13

CHAPTER 2:

Methodology

Purpose and Scope of the Survey

Outline of Survey and Timeline

Computation of the Aggregate Data

14

14

16

17

CHAPTER 3:

Results of the Survey

Statistical Information & Analysis

Current Logistics Landscape

18

19

23

CHAPTER 4:

Conclusions & Recommendations

24

EU Services Sector – Logistics Project Partners

EU-Malaysia Chamber of Commerce & Industry

Contact Us

27

28

29

5

Indeed the EU is supporting Malaysia’s ambitious logistics aims. Through the EU co-funded

project “Enhancing EU-Malaysia Business Dialogue and Cooperation in the Services Sector”

which is implemented by the EU-Malaysia Chamber of Commerce (EUMCCI), the EU is

engaging Malaysian authorities and the private sector on logistics issues of mutual interest

through information exchange and the promotion of EU best practice.

The Key Logistics Spots in Malaysia Map and its accompanying Market Intelligence Report,

prepared by EUMCCI’s Logistics Project Working Group, are also partly-funded by the project.

Based on similar exercises in Europe, the Map and Report provide European businesses, both

prospective and presently active in Malaysia, with market intelligence to facilitate commercial

decisions in relation to logistics needs. The Report looks at eight separate criteria, from

warehouse space to ICT infrastructure to cooperation of governments to determine the major

strengths of Malaysia’s logistics backbone. The tools, the first of their kind in Malaysia, will

serve policymakers to identify policy areas for improvement. Moreover, they implicitly open

further avenues for greater EU-Malaysia cooperation.

The EU’s Logistics Action Plan covers policy areas for continued cooperation between our

respective regions; environmental sustainability, greater innovation and interoperability are just

some measures to overcome challenges such as dependence on fossil fuels, congested roads

and ageing infrastructure. The promotion of seamless multimodal transport, regulatory

efficiency, the creation of green logistical corridors and the use of smart technologies are all

relevant to grow Malaysia’s expertise in logistics. The EU Delegation to Malaysia will lend its full

support in exploring new opportunities and build on the Map and Report of Malaysia’s Key

Logistics Spots.

In this respect, Malaysia's ambitions to become a regional logistics hub would certainly greatly

benefit from the successful conclusion of the EU-Malaysia FTA, which aims to bring about

greater openness to foreign players and investors to the Malaysian economy, including in

crucial services sectors like logistics.

I express my appreciation to the Ministry of Transport for their support for this endeavour and to

EUMCCI’s Logistics Project Working Group for their contribution in preparing these tools.

Similarly, I would like to thank the wide range of stakeholders, across Malaysia and spanning

the land, air and maritime industries, for completing the survey without which the Map and the

Report could not have been produced. I am also thankful to the Joint-Initiative Partners FMFF,

MICCI, Asian Trucker, MASA, MIMA, Sabah Timber Industries Association and UUM who

distributed the survey to their members.

And now: let’s move!

MESSAGE FROM His Excellency Vincent Piket

Ambassador and Head of Delegation of the European Union to Malaysia

Logistics is a crucial component of a modern economy, facilitating the

efficient flow of goods and personnel both within and beyond national

borders. It plays a strategic role in boosting productivity and

competitiveness across industries and the continued globalisation of

production means that logistics also constitutes an important area of

growth in itself. With its open economy and increasing integration in the

ASEAN, Malaysia is well placed to take advantage as a regional

logistics hub.

6

MESSAGE FROM MR. DAVID JONES, THE CHAIRMAN EU-Malaysia Chamber of Commerce & Industry

As a key component of the business services provided by the

EUMCCI and to bring value to our membership it was decided early

on to form industry sector committees where the members within

their particular sectors could review, discuss and table common

issues and offer suggestions for improvement. One such committee

focused on the logistics industry. As the former head of this

committee (our first) I considered this to be particularly important as

Malaysia continues to strive for competitive advantage in support

of both the services and manufacturing industries and attract both domestic and foreign investment.

The Logistics Sector Committee was established on 5th September 2005. During its embryonic

phase, its initial goals were to ensure that it represented a good cross section of EUMCCI

members operating within the sector, both foreign and local, and prioritise key issues. The

prime objective of the Committee was to enable dialogue with relevant government

departments where issues raised by members were consolidated and then brought to the

attention of the respective Ministry. This was carried out through various meetings held with

key government stakeholders. As part of the work carried out by the Committee, the first

EUMCCI Logistics Benchmark Survey was undertaken in January 2006 to establish a

Logistics Benchmark in Malaysia comparing Singapore, Thailand, India, Indonesia and China.

The aims and objectives of this survey were to study the costs of logistics in Malaysia when

compared to the other countries as well as to offer a comparison of Customs, Port Authority

and Government Agencies service quality and delivery mechanisms.

The current Logistics Project Working Group commenced work on the second survey on 25

March 2011. This survey will become the basis for both a hardcopy and digital map called Key

Logistics Spots in Malaysia distributed through the EUMCCI and the communication channels

of project partners both in Malaysia and abroad. The digital interactive map will be available on

the EUMCCI Services Sector Website, following a launch of the map by the Honourable

Malaysian Minister for Transport. The Malaysian Investment Development Authority (MIDA) is

an instrumental supporter for this project and we believe this will serve both as a business and

marketing tool and the Malaysia External Trade Development Corporation (MATRADE) offices

locally and abroad.

I take this occasion to thank the EUMCCI Logistics Project Working Group, our project

partners, the Committee Members, the many respondents and all those involved for their

contribution to the work of the Working Group. We look forward to their continued involvement.

I trust readers will find the information in the following pages helpful to both business and

governments in Malaysia as well as abroad, enabling readers to consider the business and

investment environment and regulatory framework in Malaysia.

The EUMCCI will continue to seek ways to make a valuable contribution in facilitating dialogue

on areas concerning the impact of bilateral foreign direct investment and trade and to make

appropriate recommendations to enhance the competitive landscape in Malaysia.

7

MESSAGE FROM MR MARCO TIEMAN

Head of Logistics Committee, EUMCCI

The launch of the “Key Logistics Spots in Malaysia” map featuring

the key nodal points in Malaysia and their key strengths could not

have presented in a more timely moment. The logistics sector

liberalization in Malaysia in 2013 will go hand in hand with the

creation of the ASEAN Economic Community by 2015, where

ASEAN will be a region with free movement of goods, services,

capital, investment and skilled labour. With an increase in

importance and its strategic location in ASEAN, it is crucial to qualify and quantify Malaysia’s

key strengths in logistics. For this, the Key “Logistics Spots in Malaysia” map will provide us

with an important reference.

In Malaysia alone, the logistics sector represents almost 12 per cent of the domestic economy

and the government has set a target under the Malaysia Third Industrial Master Plan (IMP3) to

increase that share through improving transportation infrastructure and services, investing in

human capital, adopting incentive mechanisms such as benchmarking and enhancing the use

of new technologies in a sustainable and environmentally friendly way.

This map provides logistics intelligence for industries and investors on critical aspects such as

availability of warehouse space, good transportation networks, transportation and warehouse

security, accessibility and connectivity, inter-governmental cooperation, availability of labour

and logistics training and availability of ICT infrastructure.

This report also provides policy recommendations on which areas Malaysia could strengthen

its logistics capabilities in order to enhance its competitive advantage as a logistics hub in

ASEAN.

As the Logistics Committee, we want to publish on an annual basis an intelligence report on

the key logistics spots in Malaysia. For this purpose we have started a working group under

the Logistics Committee to conduct a national survey.

We hope that the “Key Logistics Spots in Malaysia” map will be the start of a competitive drive

by the logistics industry and national and local governments in strengthening the logistics

nodal points in Malaysia.

As Head of the EUMCCI’s Logistics Committee, I would like to personally thank the Project

Sponsors, MIDA, CAPEC, ZonHotel, Kuehne-Nagel, BNP Paribas, Maps & Globe, LBB

International and International Freight Express for believing in this project enough to finance it;

the Project Partners, FMM and MGCC for their support and kind assistance and, of course,

the Joint-Initative Partners, FMFF, Asian Trucker, MASA, MICCI, MIMA, the Sabah Timber

Industries Association, UUM and the MOT for their kind support. Last but not least, I would like

to warmly thank the Logistics Project Working Group and the Logistics Committee Members

for their hard work and dedication to the targets set by both EUMCCI and the EU delegation

under the EU Services Sector Projects.

I am confident that you will find the Key Logistics Spots in Malaysia hardcopy and digital

interactive map and the accompanying Market Intelligence Report a valuable tool for your

organizations.

8

EXECUTIVE SUMMARY

Logistics forms the backbone of international trade and foundation of a

competitive advantage. Therefore, a better insight is needed into the existing strengths

of logistics clusters present in Malaysia. The ‘Key Logistics Spots in Malaysia’ Map

provides an actual insight into Malaysia’s key logistics spots based on a survey

conducted amongst shippers and users of these logistics nodal points.

In the survey, the current perception is measured on:-

(1) availability of sufficient land for logistics and warehouse space;

(2) presence of good transportation infrastructure (the main infrastructures like

highway, sea ports, airports and rail);

(3) presence of good ICT infrastructure (internet access and high speed internet

connections);

(4) accessibility and connectivity of logistics locations (public transport, no traffic

congestion, multi-modal access);

(5) cooperation of local government and other government agencies;

(6) availability of labour (skilled and unskilled labour);

(7) availability of education in logistics (vocational training, universities courses and

collaboration with universities and education institutes);

(8a) presence of good transport security; and

(8b) presence of good warehouse security.

The survey shows differences in strengths of the various logistics spots in

Peninsula and East Malaysia. It is evident from this survey that Malaysia has a strong

advantage in the availability of land for warehouse space. According to the survey a

current weak area is the collaboration of governments and other local government

agencies which the Malaysian Government is addressing.

With AFTA coming fully into effect by 2015, Malaysia is a preferred location for

warehouse facilities and regional distribution centres, leveraging on its additional

strength in connectivity and education system.

9

Chapter 1 INTRODUCTION

EUMCCI Logistics Committee

The EUMCCI Logistics Sector Committee was established on 5th September 2005.

During its embryonic phase, its initial goals were to ensure that it represented a good cross

section of EUMCCI members operating within the sector, both foreign and local, and prioritize

key issues. The Committee is now formed by representatives from both large and small

logistics companies who regularly discuss relevant issues, the means to resolve them or at

least minimize their impact. The committee lobbies the appropriate authorities and organizes

seminars and sector-related events. In addition, the committee acts as a forum for exchanging

information about logistics in Malaysia.

As part of the work carried out by the Committee, the first EUMCCI Logistics

Benchmark Survey was undertaken in January 2006 to establish a Logistics Benchmark in

Malaysia comparing Singapore, Thailand, India, Indonesia and China. The aims and

objectives of this survey were to study the costs of logistics in Malaysia when compared to the

other countries as well as to offer a comparison of Customs, Port Authority and Government

Agencies service quality and delivery mechanisms.

Overview of the Logistics Project

The EUMCCI Logistics Committee via the Logistics Project Working Group has

undertaken another survey (the second in the series) to gather reliable quantitative and

qualitative data for the business community in and outside of Malaysia to fulfil its mission to

promote, support and develop logistics in Malaysia as well as facilitate trade, logistics and

investments between the European Union and Malaysia. This is another effort to further the

Committee’s mission to be the representative body of the logistics industry in Malaysia, to

promote, support and develop logistics in Malaysia as well as facilitate trade, logistics and

investments between EU and Malaysia.

The survey is the basis for both a hardcopy and digital map of Malaysia’s key logistic

areas: ports, airports, warehouses, railways and highways and it will be called Key Logistics

Spots in Malaysia. Released by the EUMCCI, our project partners and other associations who

participated in this joint-initiative, the map will be distributed through the EUMCCI and the

communication channels of project partners both in Malaysia and abroad. The objective of this

nationwide survey was to produce this report entitled “Key Logistics Spots in Malaysia –

Market Intelligence Report” and the hardcopy as well as the digital interactive map on an ICT

platform accessible on any electronic and portable device for the business community.

.

We believe that the business community would greatly benefit from such readily

accessible market intelligence and be a source of meaningful industry information on the

logistics landscape in Malaysia.

The enclosed infrastructure map also highlights the five (5) Economic Corridors in Malaysia1. The 10

th Malaysia Plan focused on five corridors, in addition to the Greater Kuala Lumpur/Klang

Valley development which consists of high-density clusters with sectoral and geographical advantages. They are (1) Northern Corridor Economic Region (NCER) includes Perlis, Kedah,

Penang and Northern Perak. NCER’s vision is to be a world-class economic region by 20252. (2) East Coast Economic Region (ECER) includes Kelantan, Terengganu, Pahang and North of

Mersing, district of Johor3; (3) Iskandar Malaysia (IM) is the main southern development corridor in Johor, Malaysia

4(4) Sarawak Corridor of Renewable Energy (SCORE) is a major initiative

undertaken to develop the Central Region and transform Sarawak into a developed State by the year 2020. The core of the Corridor is its energy resources (28,000 MW), particularly

hydropower (20,000 MW), coal (5,000 MW), and others (3,000 MW)5 and (5) Sabah Development Corridor’s (SDC) aim is to capture higher value economic activities, promote balanced

economic growth with distribution and ensure sustainable growth via environmental conservation6

1 According to the Asian Development Bank

1, an Economic Corridor has the following characteristics: (1) Covers smaller, defined geographic space, usually, straddling a central transport artery

such as a road, rail line, or canal; (2) Emphasizes bilateral rather than multilateral initiatives, focusing on strategic nodes particularly at border crossings between two countries; and (3) Highlights physical planning of the corridor and its surrounding area, to concentrate infrastructure development and achieve the most positive benefits. 2 Source: http://www.ncer.com.my/site/

3 Source: http://www.ecerdc.com.my/ecerdc/

4 Source : http://www.iskandarmalaysia.com.my/

5 Source: http://www.sarawakscore.com.my/modules/web/

6 Source: http://www.sdc.gov.my/

11

Overview on Current Infrastructure in Malaysia

Logistics is an economic lifeline which is indispensable to the well-being of a country

as it plays a pivotal role in facilitating international trade. Malaysia’s logistics industry has four

modes of transportation: sea, road, rail and air. Due to its importance within the landscape, it

is a strategic industry on its own. Malaysia’s current infrastructure has enabled it to enjoy a

significant market share in freight traffic in the South East Asia region despite the discontinuity

of the two physical components of Malaysia’s territory, Peninsula Malaysia and the States of

Sabah and Sarawak.

Table 1: Malaysia’s Logistics Checklist7 is as follows:

SEA ROAD � 5 major ports (Port Klang, Tanjung Pelepas, Penang,

Kuantan and Bintulu) and 24 main ports

� Total port throughput volume: 2006 – 13,594,847 TEUs* 2007– 15,338,007 TEUs* * (twenty-foot equivalent unit)

� Sea cargo volumes are forecast to increase by 12.5 per cent to 493.7 million tonnes in 2011 and to increase 10.1 per cent to 545.13 million tonnes in 2012.

� Ports are expected to handle 36 million TEUs by 2020

� The North-South Expressway (NSE) is the longest expressway (772 kilometres) running from Bukit Kayu Hitam in Kedah near the Malaysian-Thai border to Johor Bahru at the southern portion of Peninsular Malaysia.

� East Coast Expressway (ECE) is an extension of Kuala Lumpur-Karak Expressway, which starts from Kuala Lumpur to Karak linking the West Coast and the East Coast of Peninsular Malaysia. It passes through 3 states: Selangor, Pahang and Terengganu. ECE III is an extension of East Coast Expressway (ECE) II which is under construction. ECE III will connect Kg. Gemuroh (Kuala Terengganu) to Kota Bharu, Kelantan; ending at Pengkalan Kubor, with an approximate length of 171 km. Phase IV of the ECE runs to the south, connecting Kuantan all the way to Johor Bahru.

� Pan Borneo Highway also known as Trans Borneo Highway, is a road network on Borneo Island connecting two Malaysian states, Sabah and Sarawak, with Brunei. The section that connects Sarawak, Sabah, and Brunei is the Lawas–Temburong (Brunei) . The length of the entire highway is expected to be about 2,083 kilometres (Malaysian section). The Indonesian sections of the Pan Borneo Highway are known as the Trans-Kalimantan Highway. The western route connects the city of Pontianak to Tebedu.

� Road transport: 187 haulier companies; 819

general cargo

� 7,256 registered prime movers

� 36,413 trailers

7 Trade and Transport Facilitation: The Malaysian Experience and Milestones, Services Development Division

Ministry of International Trade and Industry (MITI) MALAYSIA. See also, Logistics Invest Malaysia, New Sunday Times, 18 December 2011 page 11

12

RAIL AIR Keretapi Tanah Melayu Berhad (KTMB) provides land feeder services to: � Five port container terminals (Butterworth, Westports,

Northport, Pasir Gudang and Tanjung Pelepas)

� Three Inland ports (Ipoh, Nilai and Segamat)

� Four inland container depots (Three at Prai, Penang and one at Seri Setia Selangor)

� Four freight terminals

� Rail statistics for 2006 – total freight traffic was 4,466,000 tonnes

� Container handling – 298,206 TEUs

� Rail cargo volume is projected to reach 5.5million tonnes, an increase of 3.7 per cent in 2011. It is expected to increase to 6.2 million tonnes in 2012. Rail freight is predicted to handle 18.6 million tonnes by 2020.

Comprises: � Air cargo carriers and integrators

� Airport and cargo terminal operators

� Ground handlers

� Air cargo agents or airfreight forwarders

� Airport regulators

� 5 international airports (KLIA, Bayan Lepas,

Senai, Kuching and Kota Kinabalu) and 15 domestic airports.

� Total cargo handled: 2006 - 869,924 tonnes 2007 – 838,651 tonnes

� Air cargo volume is expected to expand by 12 per cent in 2011. KLIA contributed about 74.8 per cent to the total cargo volume by air in 2011. The air cargo volume is also expected to grow 3.9 per cent to 925,000 tonnes in 2012. Air freight is targeted to handle 2.4 million tonnes by 2020.

As for integrated logistics services, it comprises of

� Cargo intermediaries (freight forwarders, customs agents, multimodal transport operators,

third and fourth party logistics service

� Carrier intermediaries (shipping agents and airline agents)

� Warehouse operators (public and private warehousing operators, inland depot operators)

The contribution of the logistics industry (encompassing transport, storage and

communication services) to the Malaysian economy in 2005 was 8.8 per cent to Malaysia’s

GDP. To give more focus on logistics sector, the Government has set up the Malaysia

Logistics Council (MLC) in February 2007 to be the focal point for the overall coordination on

strategies, policies, regulations and rules for the logistics sector.

Currently, there are more than 22,000 companies in the logistics industry in Malaysia

involved in multiple areas of activities to enhance this industry. In Sarawak, logistics

companies are attempting to move beyond the traditional freight, warehousing and

transportation segments and offering more specialized logistics in niche sectors such as

electronic high-tech products, oil and gas, marine, pharmaceuticals and perishables.

It has been forecasted that the future of Malaysian logistics industry is expected to

increase by 11.5 per cent equalling to RM121 billion this year as compared to RM108.5 billion

last year. Furthermore, it is forecast to grow at a compound annual growth rate (CAGR) of

12.6 per cent to arrive at RM196.5 billion in 2015. This is largely due to the import-export

forwarding, shipping and airfreight related businesses, high technology and capital intensive

projects under the 10th Malaysia Plan and Economic Transformation Program (ETP) which

acts as a catalyst in creating opportunities for Malaysia’s logistics market. Foreign direct

investments are likely to flow into the electronics and electrical, oil and gas, healthcare and

solar-related industries.

13

Project Relevance with ASEAN Free Trade Agreement 2013-2015

Image Credits given to Malaysian Brands

The rationale in carrying out this project and to launch the “Key

Logistics Spots in Malaysia” map featuring the key nodal points

in Malaysia and their key strengths was coordinated and

managed prior to the commencement of the logistics sector

liberalization in Malaysia in 2013 which goes hand in hand with

the creation of the ASEAN Economic Community by 2015,

where ASEAN will be a region with free movement of goods,

services, capital, investment and skilled labour. With an

increase in importance and its strategic location in ASEAN, it is

crucial to qualify and quantify Malaysia’s key strengths in logistics. For this, the Key “Logistics

Spots in Malaysia” map will provide us with an important reference, in particular, transportation

and facilitation of freight traffic will be at the epicenter of the ASEAN Economic Community

(AEC), to be a reality by 2015. Particularly for Malaysia, the logistics sector, strengthened by

the capitalization on the country’s competitive advantages (good quality of infrastructure, solid

manufacturing and growing services industries, competitive pricing and introduction of ICT

enhancements in numerous nodal points), could make Malaysia the next leading logistics hub

in ASEAN.

14

Chapter 2 METHODOLOGY

Purpose and Scope of the Survey

The goal of the Survey is to measure the current perception of the shippers and users

on the key strengths of the major logistics nodal points in Malaysia and to present the results

in hardcopy and digital interactive map on Key Logistics Spots in Malaysia.

The Map (hardcopy and in digital format) will serve as an informative tool to guide

potential foreign direct investors from abroad in selecting the right locations for their factory or

logistics facility. It will also serve as an important reference point and reliable intelligence for

informed investment decisions.

The target population for the survey was entities active in the logistics industry,

manufacturers, retailers, universities and experts in the academia, consultancy firms as well

as other key stakeholders such as Chambers of Commerce and non-governmental

organizations.

The sample was obtained from the databases of our project partners, Federation of

Malaysian Manufacturers (FMM) and Malaysian-German Chamber of Commerce & Industry

(MGCC) and Joint-Initiative Partners such as: Federation of Malaysia Freight Forwarders

(FMFF), Asian Trucker, Malaysian Shipowners Association (MASA), Malaysia International

Chamber of Commerce & Industry (MICCI), Maritime Institute of Malaysia (MIMA) and Sabah

Timber Industries Association (STIA). These partners were approached based on the number

of members or registered companies in their databases and the widespread geographical

outreach it had in both Peninsula Malaysia and Sabah and Sarawak to assist in carrying out

this nationwide survey. A total of 103 responses were obtained when the survey was first

distributed from 1 August 2011 until the close of the survey on 19 November 2011.

Participation in the 2011 EUMCCI Survey

A total number of 103 responses were received by the Logistics Project Working

Group. Among the responses, 59.80 per cent were Malaysian companies and 40.19 per cent

were multinational companies with local branches in Malaysia.

In the selected sample, 35.29 per cent of the companies were providers of third party

logistics services (3PLs), 40.19 per cent were manufacturers, 9.80 per cent were retailers,

6.25 per cent came from the education and research sector, comprising of universities and

training institutions and 8.75 per cent represents others, namely consultancies, Chambers of

Commerce and non-governmental organizations. An overview of industry sample

segmentation can be found in Figure 1:

15

Figure 1: The Distribution Sample according to Industries

The survey targeted 9 states and 1 federal territory in Peninsula Malaysia namely:

Terengganu, Wilayah Pesekutuan (Federal Territory), Pahang, Malacca, Negeri Sembilan,

Penang, Selangor, Johor, Perak and Kedah and 2 states in East Malaysia namely: Sarawak

and Sabah, represented in the sample. Although there were no companies headquartered in

Kelantan and Federal Territory of Labuan present in the sample; the participants to the survey

had business activities in Kelantan and Federal Territory of Labuan and therefore provided

feedback in relation to their businesses in those States. An aggregate table of the

demography of the sample can be found in Figure 2 below.

Figure 2: The Sample Demographics Proportion

16

Outline of Survey and Timeline

The Key Logistics Spots in Malaysia Map, a project undertaken by the EUMCCI

Logistics Project Working Group was inspired by the logistics map of Netherlands; a project

carried out by the Magizine Logistiek and published annually.

The Logistics Project Working Group carried out a nationwide survey on 16 major

logistics nodal points measured by 8 criteria: (1) availability of sufficient land for logistics and

warehouse space (2) presence of good transportation (infrastructure) (3) presence of good

ICT infrastructure (4) accessibility and connectivity of logistics locations (5) cooperation of

governments (6) availability of labour (7) availability of education in logistics (8a) presence of

good transport security and (8b) presence of good warehouse security. The map depicts the

16 major nodal points identified together with perceived major strengths.

More details can be also obtained in the “Key Logistics Spots in Malaysia – Digital

Map” which can be found at http://services.eumcci.com/logistics-map

Table 2 was given as a guide to the participants of the survey where a list of 15

logistics locations was listed. The rationale for including “Others” in Table 2 was to allow the

participants in the survey to name a nodal point which may not have been included in the

initial list of 15 locations.

The participants were then asked to refer to the List of Logistics Locations and

provide their top three (3) locations based on the given 8 criteria listed above. Certain

questions were also listed inside the survey for the internal use of EUMCCI to obtain some

feedback from the participants and to plan for activities in 2012 and beyond.

Table 2: List of Logistic Locations

CODES Name of Locations CODES Name of Locations

1 Bintulu 9 Miri

2 Kemaman 10 Nilai

3 KLIA 11 Penang

4 Kota Kinabalu 12 Port Klang

5 Kuching 13 Port Tanjung Pelepas

6 Kuantan 14 Shah Alam

7 Labuan 15 Senai

8 Malacca 16 Others

Figure 3 below is a snapshot of the 2011 Survey Timetable which lead to the

drafting of the Key Logistics Spots in Malaysia-Market Intelligence Report 2011/2012.

17

Figure 3: EUMCCI 2011 Survey Timetable

Computation of the Aggregate Data

Calculation of results and weighting exercise:

The participants who completed the survey (using the SurveyMonkey e-survey link or

submitting the hardcopy survey which was duly entered manually into the SurveyMonkey

software) identified their top 3 top locations for each of the eight criteria, based on the

selection provided in Table 2.

The Logistics Project Working Group gathered the 103 responses and collated the

same in an excel word spreadsheet. For each identified nodal point, the frequency was

entered accordingly based on the 1st, 2nd or 3rd location for each criterion. For methodological

purposes and in order to avoid bias in computing the final results, the Logistics Project

Working Group adopted a standard weighting process. The rationale for doing so was

because all surveys suffer from non-sampling errors such as non-response, non-coverage,

and measurement errors. These errors may result in biases in estimates, and increased

variability in estimates. Our main concern is bias because it has the most serious effects on

inference and therefore adopting the standard weighting process would eliminate all doubts

and bias that may have existed.

The standard weighting process and strategies adopted for the absolute frequency of

choice of each nodal point per criteria were as follows:

(1) Top Location 1 was multiplied by 3;

(2) Top Location 2 was multiplied by 2; and

(3) Top Location 3 was multiplied by 1.

The total score for each location came from the addition of the weighted scores of Top

Locations 1, 2 and 3 respectively. For each nodal point, we then segregated its top three (3)

key strengths accordingly. In the case of similar values for two nodal points, we then analyze

the multipliers of each value and took the highest of the two values.

This was how we ended up identifying the 16 nodal points and its respective three (3)

key strengths. The results of the survey are distributed in Chapter 3 below.

18

Chapter 3 RESULTS OF THE SURVEY

Table 3: Top 3 strengths for 16 nodal points

STATES OF MALAYSIA

Sara

wak

Sabah

Fede

ral T

err

itory

of

Lab

uan

Tere

ngg

anu

Wila

ya

h

Pers

ekutu

an

Pahan

g

Mala

cca

Neg

eri S

em

bila

n

Penan

g

Sela

ngor

Johor

Perlis

Cri

teri

a

Bin

tulu

Miri

Ku

ch

ing

Kota

K

inab

alu

Lab

uan

Kem

am

an

KLIA

Kua

nta

n

Mala

cca

City

Nila

i

Penan

g

Port

Port

Kla

ng

Sha

h A

lam

Po

rt T

an

jung

P

ele

pas

Sen

ai

Padan

g

Besar

1 ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲

2 ▲ ▲ ▲ ▲ ▲

3 ▲ ▲ ▲ ▲

4 ▲ ▲ ▲ ▲ ▲ ▲

5 ▲ ▲ ▲

6 ▲ ▲ ▲ ▲ ▲

7 ▲ ▲ ▲ ▲ ▲ ▲

8a ▲ ▲ ▲ ▲ ▲

8b ▲ ▲ ▲ ▲ ▲

The numbered criteria represent the following:

1 – Sufficient land for warehouse space

2 – Presence of good transportation (infrastructure)

3 – Presence of good ICT infrastructure

4 – Accessibility and connectivity of logistics locations

5 – Cooperation of governments

6 – Availability of labour

7 – Availability of education in logistics

8a – Presence of good transport security

8b– Presence of good warehouse security

19

Statistical Information and Analysis

Apart from the results generated above, the participants in selecting the top three

locations for Criteria 2: Presence of good transportation (infrastructure), were asked

to identify the main infrastructure(s) present in each of the locations they chose.

The results are below:

Figure 4: Main Infrastructure for Criteria 2

From the above, highways were ranked as the first main infrastructure present

amongst the other types of logistics infrastructures that influenced the participants of the

survey in justifying their top three (3) locations. Currently in Malaysia, expressways are under

the administration of the Federal Malaysian High Authority (MHA), the Federal Routes and

State Routes are under the administration of the Malaysian Public Works Department (JKR).

These together with the Municipal Routes play a major role in providing good logistics

connectivity in the Malaysian landscape and also the bodies play a major role in maintaining

its efficiency y-o-y.

Sea ports were the second main infrastructure present amongst the other types of

logistics infrastructures that influenced the participants to the survey to select their top three

(3) locations. The participants’ choice supports the 2011 EUMCCI’s Logistics Position Paper8

8 The 2011 EUMCCI Logistics Position Paper is part and parcel of the 2011 EUMCCI Trade Issues and

Recommendations, an annual publication of EUMCCI. Kindly contact communications@eumcci.com to obtain a

Number of Votes in Percentage (%)

Criteria 2: The Main Infrastructure(s) Present in Each Chosen Location

Th

e r

an

kin

g o

f th

e p

refe

rre

d l

oca

tio

ns

ba

sed

on

th

e f

ou

r

ma

in i

nfr

ast

ruct

ure

s p

rese

nt

in e

ach

lo

cati

on

20

that Malaysia has leading seaports for the transshipment of global containers through Port

Klang and Port of Tanjung Pelepas.

Airports were the third main infrastructure present amongst the other types of logistics

infrastructures that influenced the participants to the survey in selecting their top three (3)

locations and it also supports the 2011 EUMCCI’s Logistics Position Paper that KLIA and

Senai Airport are leading airports in Asia and key logistics hubs for the (5) economic corridors.

The infrastructure that scored low was rail. Currently rail transport in Malaysia

comprises heavy rail (including high-speed rail like the KLIA Express) light rail transit which is

currently being expanded, monorail and funicular railway line. Railway network covers most

states in Peninsula Malaysia and Sabah but not in Sarawak. In Malaysia rail is used more for

transporting passengers. As for freight transport, heavy rail is only used. Petronas owns a

railway track linking its oil refinery complex and nearby town of Kerteh, Terengganu. The line

is mainly used to transport petroleum products and recently has opened for general freight

transport with operation being conducted by KTM. There have been proposals to extend the

said line.

As for Criteria 4: Accessibility and connectivity of logistics locations, the

participants in selecting the top three locations for Criteria 4, were asked to identify the main

reason for the accessibility and connectivity of the top logistics locations chosen. The results

are in Figure 5 below:

Figure 5: Main reasons for Criteria 4

hardcopy or visit http://services.eumcci.com [insert full hyperlink] for the soft copy of the said position paper. For the entire collection, visit www.eumcci.com (publications section)

Criteria 4: Main Reason(s) for Selecting the Locations

Number of Votes in Percentage (%) Th

e r

an

kin

g o

f th

e p

refe

rre

d l

oca

tio

ns

ba

sed

on

th

e t

hre

e

ma

in r

ea

son

s in

ea

ch l

oca

tio

n

21

From the above, multi-modal access was ranked as the first main reason amongst the

others that influenced the participants of the survey in justifying their top three (3) locations.

This supports all existing literature that were reported and published by the Malaysian

Government and its relevant agencies since 2010 that a multimodal transportation network is

crucial in Malaysia and it will be further developed under the 10th Malaysia Plan (10MP) to

improve trade efficiency and enhance the logistic systems (i.e. roads and rail leading to key

ports and airports while logistic management will be improved to raise cargo transportation

efficiency).

As for Criteria 7: Availability of education in logistics, the participants of the survey

(91.5 per cent respectively) concurred that vocational training and management subjects for

Education in Logistics should be given a similar weight in importance. Other complementary

subjects (52.43 per cent of participants) were also collected and are presented in Table 4

below. Below are the collated proposals in categories for easy reference. It is a useful list for

the consideration for the academia, tertiary institutions and related associations to consider

implementing based on the feedback by the participants of the survey.

Table 4: The subjects to be included in the syllabus/programmes are:

Vocational Training Subjects

The following vocational training was identified according to the following categories:

� Warehouse – training in operations, inventory managment, packing materials training;

� Logistics – training in planning & scheduling, material handling equipment, ICT

technologies, road and traffic flow management, transport management & planning

(certification courses for skill and unskilled professionals), haulage and land logistic

services, optimization and process flow, forklift training, mainframe system training;

� Aerospace & Maritime – training in operation procedure for handling of airfreight and

sea freight shipments, handling vessles, labour to loading of container, port /terminal

operations, shipping keypoints, fleet management, dangerous cargoes operations /

handling, cargo movement scheduling, liner shipping (booking until container loading

process and procedures), basic shipping courses, Port Management;

� Automotive – training in vehichle system management;

� Customs – training in port duties, forwarding clearances, customs clearances &

classification, tax exemption, harmonize tariff system, import/export procedures,

customs compliance;

� Law – training need for Incoterms, basic shipping legal documents such as bill of

lading, the law and its implication, various OGA (other government agency)

compliance;

22

� Admission/Qualifying Examinations – training needed for Chartered Institute of

Logistics & Transport, Institute of Chartered Shipbrokers, Institute of Purchasing &

Supply; and

� Soft skills – training in communication skills and professional image programmes

Management Subjects

The following management subjects were identified for both undergraduate and postgraduate

studies:

Bachelor of Arts MBA

Logistics and Supply Chain International Business and Supply Chain

Logistics Management Logistics and Supply Chain

� General Management

� Customer Service & People Skills

� Leadership and Motivation of Staff

� Inventory Management

� IT Management

� Value Added Logistics

� Lean Logistics and Warehouse Best

Practices

� Multimodal Management

� Drafting Business Proposals, Pricing,

Presentations

� International and Domestic Law on

Transportation

� Customs Law and International Trade

Law

� ECCN, Customs Act, Bill of Lading,

AWB, Letters of Credit, ATA Carnet

� Banking & Finance management

� Compliance procedures

� Accounting and Statistical Analysis

� Process Management and Balance

Score Card

� Distribution Networks

� Infrastructure Design

� Future Logistics Requirement

� Strategic Planning

� Global Logistics

� Understanding air transport industry

� Business Administration

� Sales and Marketing

� Project Management

Participants to the survey also identified that there should be also courses & training in the

following two areas:

� Freight forwarding

� 3PL and 4PL

Others

Other subjects identified as important were as follows:

� Latest security capabilities in transportation and warehousing

� Computer business

� English language courses

� Liability of inter-related parties

� International standards and KPIs

� Understanding financial ratios and cost base management

� Human Resource Management

� Health, Safety, Security and Environment studies

� Work Ethics

� Documentations

23

The Current Logistics Landscape

Figure 7: Current Strengths of Malaysia’s Logistics Landscape

The top three strengths in the present logistics landscape in Malaysia are

(1) Criteria 1: Sufficient warehouse space is present in the 12 nodal points namely:

Bintulu, Kuching, Kota Kinabalu, Labuan, Kemaman, Kuantan, Malacca City, Port

Klang, Shah Alam, Port Tanjung Pelepas, Senai and Padang Besar. These nodal

points are present in all 5 economic corridors. Please see Appendix 1.

(2) Criteria 4: Accessibility and connectivity of logistics locations is present in 6 nodal

points namely: Kuching, Kota Kinabalu, Labuan, KLIA, Kuantan and Nilai. These nodal

points are present in the Sarawak Corridor of Renewable Energy (SCORE), Sabah

Development Corridor (SDC), and East Coast Economic Region (ECER).

(3) Criteria 7: Availability of education in logistics is present in 6 nodal points namely:

Kemaman, Malacca City, Nilai, Penang Port, Shah Alam and Padang Besar. These

nodal points are present in Northern Corridor Economic Region (NCER) and East

Coast Economic Region (ECER).

In essence, it is the East Coast Economic Region (ECER) economic corridor which has

managed to acquire all the three strengths listed above and the nodal points are Kemaman

and Kuantan. Later below, Kemaman and Kuantan is featured with strong cooperation with

government as well.

Further, Figure 7:Strengths of Malaysia’s Logistics Landscape above supports the

fact that there is the availability of sufficient land for logistics and warehouse space, availability

of education in logistics and there is accessibility and connectivity of logistics locations (public

transport, no traffic congestion, multi-modal access). Hence, Malaysia has the potential to be

the preferred location for an Asia Regional Distribution Centre allowing for value added

logistics (VAL).

24

Section 4 CONCLUSIONS &

RECOMMENDATIONS

From the above premises, the Logistics Project Working Group believes that much still

needs to be done from now until 2013 and if Malaysia would like to play a key role in the

transportation and logistics of good flows which will be the epicentre of the ASEAN Economic

Community (AEC) which is aimed to be a reality in 2015.

Recommendations

Below are the issues that have surfaced from the survey results coupled with the

recommendations from the Logistics Project Working Group. These will also be included in the

2012 EUMCCI’s Logistics Position Paper that will be launched during the EU Trade Forum on

26 April 2012.

Criteria 1: Sufficient land for warehouse Space

The high availability of land for logistics warehouse space coupled with excellent

infrastructure confirms that Malaysia has a potential of being a logistics hub in South East

Asia. However, these are static advantages, which need to be combined with dynamic

advantages.

Recommendations:

To ensure that this would be sustainable in the long run, the practice of green logistics

would be pertinent. Initiatives such as better warehouse design, using daylight through the

warehouse roofing, use of recycled materials in building materials and finishing solar panels to

reduce energy consumption, wind turbines, use of LED/LVD lights, collection of roof water etc.

would be a good start for Malaysia.

The federal or state governments should initiate a green logistics pilot and introduce

special subsidies for green warehouse buildings to give birth to future international green/ECO

standards such as USGBC LEED 2009 (for green buildings) and ISO14001. This would then

enable efforts to promote FDI into Malaysia and promote Malaysia as a green Asia Regional

Distribution Centre by Matrade.

Criteria 2: Good transportation (infrastructure)

Currently, good transportation (infrastructure) was perceived from 5 nodal points out of

12 nodal points identified for sufficient warehouse space namely: Kota Kinabalu, Port Klang,

Port Tanjung Pelepas, Senai and Padang Besar. As these are indeed important gateways for

Malaysia, this provides also important advantage as logistics hub. However, these static

advamtages will require to incorporate dynamic advantages through high productivity and

sustainability aspects.

25

Recommendations:

For gateways, green initiatives are becoming more and more important. In Europe,

efforts have started with green transportation initiatives by moving to cleaner fuels for trucks

(like bio-diesel or gas), promoting the use of lower polluting sea and river vessels instead of

trucks, coordinating trasnport and starting in big cities. The state governments could start

studying various green city logistics schemes and implementing them in due course. Such city

logistics solutions which are a combination of innovative use of vehicles and monitoring via

regulations would be a good strategic step in sustaining the strength in the current 5 nodal

points. Further, MITRANS could also assist in creating awareness amongst logistics industry

on green logistics and work with some global companies in Malaysia to champion green

logistics.

Criteria 3: Presence of good ICT infrastructure

Recommendations:

To ensure that a secure and efficient warehouse hub is present in Malaysia, steps and

measures need to be undertaken to improve the ICT infrastructure in the SCORE, SDC,

Iskandar Malaysia and ECER corridors and Port Klang.

Criteria 8a & 8b: Presence of good transport & warehouse security

Recommendations:

There is also a need to step up the levels of warehouse security which are lacking in

the nodal points identified namely: Kuching, Kota Kinabalu Labuan, Kuantan, Malacca City,

Port Klang, Shah Alam, Senai and Padang Besar.

Similar efforts are also need to enhance transport security lacking in the nodal points

namely: Kuching, Kota Kinabalu, Labuan, Kemaman, Kuantan, Malacca City, Port Klang,

Shah Alam, Port Tanjung Pelepas and Senai.

In the 2011 EUMCCI’s Logistics Position Paper, 9 it has been advocated that there is a

need to improve the security of warehousing and transportation through legislation and

effective wifi and RFID technology. Further, the monitoring of goods movement can only be

realised with a solid ICT infrastruture.

9 The 2011 & 2012 EUMCCI Logistics Position Paper is part and parcel of the 2011 EUMCCI Trade Issues and

Recommendations, an annual publication of EUMCCI. Kindly contact communications@eumcci.com to obtain a hardcopy or visit http://services.eumcci.com [insert full hyperlink] for the soft copy of the said position paper. For the entire collection, visit www.eumcci.com (publications section)

26

Criteria 6: Availability of labour

Recommendations:

A Working Paper Series 62 on the Knowledge Cluster Formation in Peninsula

Malaysia If this should be the case, the proposals submitted at Figure 6: List of Specific

Logistics Subjects that Should be Available should be considered by professionals in the

academia, tertiary institutions and related associations providing Logistics Education. It would

also be worthwhile to set up a Task Force to study this in greater detail to ensure that

Malaysia does provide an opportunity for the growth of skilled labour that meets the demands

of the logistics industry.

Criteria 5: Cooperation of Governments

Recommendations:

Transparency, efficiency and support of logistics facilitation such as VAL goes hand in

hand.

The criteria of cooperation of governments is mainly focused on various governement

departments, local government agencies and customs who has a regulatory function and an

important role in revenue collection rather than a trade facilitating role. Therefore, cooperation

of all government departments, agencies including customs is pertinent in comparative

advantage as logistics hub under ASEAN. Therefore, there is a need to ensure that we have

knowledgeable government and customs officers to meet such demands and to ensure

smoother clearance processes. The proposals set out in the vocational training subjects list

should be considered and implemented accordingly for Customs and relevant government

officers as part of their professional development.

Harmonising the cooperation with all relevant government bodies would reduce the

fragmentation of responsibility of logistics and city logistics over various government

departments and local government agencies.

In conclusion, the above premise is important and should be taken into account prior

to the liberalization program of the logistics service sector which has been agreed amongst

the member countries to create an ASEAN single market by 2015. If all, or at least most, of

the recommendations are implemented and/or acted upon before 2013, Malaysia will

contribute to strengthen the ASEAN economic integration through liberalization and facilitation

measures in the area of logistics services. Further, it will also support the establishment and

enhance the competitiveness of an ASEAN production base through the creation of an

integrated ASEAN logistics environment. This is because the liberalization requires Malaysia

to strengthen its logistics industry, the capabilities of the logistics players and the multi-modal

transport infrastructure in order to attract FDI in logistics and trade to Malaysia in the future.

27

EU Services Sector – Logistics Project Partners

Main Applicant

EU-Malaysia Chamber of Commerce and Industry (EUMCCI)

EUMCCI promotes, supports and develops EU business interests

in Malaysia as well as facilitates trade, commerce and

investments between European Union and Malaysia

Logistics Project

Partners

Federation of Malaysian Manufacturer (FMM)

The Federation of Malaysian Manufacturers (FMM) is Malaysia’s

premier economic organisation. Since its establishment in 1968,

the FMM has consistently led Malaysian manufacturers in

spearheading the nation’s growth and modernisation. Today, as

the largest private sector economic organisation in Malaysia

representing over 2,000 manufacturing and industrial service

companies of varying sizes, the FMM is the officially recognised

and acknowledged voice of the industry.

Malaysian-German Chamber of Commerce (MGCC)

The Malaysian-German Chamber of Commerce and Industry

(MGCC) contribute to the trade and investment relations between

Germany and Malaysia and offers excellent services to members

and clients. These services are custom-tailored to the needs of

the private sector in order to benefit most from the many

advantages both Malaysia and Germany have to offer.

28

EU-Malaysia Chamber of Commerce & Industry In May 2003 the EU-Malaysia Chamber of Commerce and Industry (EUMCCI) emerged

from the former European Union Business Council (EUBC). EUMCCI is a public non-profit

organisation and does not get any funding from EU. The Chamber is financed by projects,

events, memberships and sponsorships. It is an umbrella organisation of all EU chambers

of commerce and business councils, whose members are also EUMCCI members,

altogether 1088 corporations.

Our Mission

To promote, support and develop EU business interests in Malaysia as well as facilitate

trade, commerce and investments between EU and Malaysia. In order to fulfill its mission,

EUMCCI carries out activities that will catalyze and stimulate networking of European

companies in Malaysia with the Malaysian business community, business associations,

relevant ministries, official representations and other Chambers in Asia. These activities

are balanced between social and business activities.

Objectives

� To develop and enhance EU position and image in Malaysia

� High profile lobbying/dialogue with Institutions, Government

� Speed up decisions and actions within the ministries and authorities

� Promote and market EU technologies, SMEs products and services in Malaysia

� Facilitate the dialogue between the European private sector and Malaysian government

� Provide consulting for EU funded project applications

� Promote the publications of the European Union (sole agent in Southeast Asia)

The above objectives are realized through the many activities of the Chamber be it

through participation in EUMCCI Industry Sector Committees and Working Groups or

submission of companies’ issues to Memorandums of Ministerial Dialogues. Our members

have access to a wide network of more than 1000 corporations in Malaysia, and are part

of the ever growing European Business Organisation (EBO) network worldwide. The

monthly VIP luncheons provide an excellent platform for high level exchange of views and

opinions with the relevant agencies.

EUMCCI Committees – Strong Lobbying Tool

The EUMCCI Committees are platforms for EUMCCI members of specific sectors. The 13

Committees meet regularly to discuss issues affecting their particular industries, to hold

seminars with guest speakers from the government, academia and business and to lobby

with the government. Each committee is responsible for writing a Trade Issues and

Recommendations paper outlining the most pressing business problems and

recommendations for the government to reduce these issues. Every year all Position

Papers drafted by the Committees are compiled into a “EUMCCI Trade Issues &

Recommendations” paper. This document is circulated among Government

administrations, relevant authorities in Malaysia and the European Commission in Brussels

For information on how to join EUMCCI, visit the EUMCCI website (www.eumcci.com) or

contact the EUMCCI Membership Department in Kuala Lumpur.

29

Contact Us

Chairman

Mr. David Jones

Email: david@eumcci.com

General Manager

Ms. Minna Saneri

Email: minna.saneri@eumcci.com

Finance and Adminstration Manager

Ms. Wong Sok Fun

Email: sfwong@eumcci.com

Membership Manager

Ms. Mary Lopez

Email: marylopez@eumcci.com

Events Manager

Ms. Geetha Veerasamy

Email: geetha@eumcci.com

Committees Coordinator

Ms. Ai Li Ch’ng-Koch

Email: ailikoch@eumcci.com

Marketing and Communications

Coordinator

Ms. Rebecca Simmonds

Email: rebecca@eumcci.com

Web Implementation and IT Consultant

Mr. Carlos Santiago Mélon

Email: santiago@eumcci.com

Policy and Project Manager (EU Services Sector Projects)

Ms. Jacqueline Chang

Email: jacqueline@eumcci.com

EU-Malaysia Chamber of Commerce & Industry

Suite 3.03, Level 3, Menara Atlan, 161B Jalan Ampang, 50450 Kuala Lumpur

Tel : +603-2162 6298 Fax : +603-2162 6198 Email : eumcci@eumcci.com

Websites : http://services.eumcci.com; www.eumcci.com