Transport, Logistics and The Economy

What is Logistics?

2026-08-17T21:31:24.434-07:00

Logistics is not merely the movement of goods; it is the management of relationships, time, information, and trust.

Logistics is often described as the movement of goods from one place to another. That description is correct—but incomplete. Trucks, ships, warehouses, ports, containers, and aircraft are the visible parts of logistics. Yet what makes logistics work is less visible: the quality of relationships, the discipline of time, the accuracy of information, and the trust that binds many independent parties into a single reliable chain.

Logistics beyond movement

A product reaches its customer not because a vehicle is available, but because a supplier produces on schedule, a planner forecasts demand, a warehouse picks accurately, a haulier collects on time, a terminal receives the cargo efficiently, documents are approved, a carrier maintains its schedule, and the consignee is ready to receive the shipment.

Each activity may be performed by a different organisation, but the customer sees only one outcome: whether the delivery was correct, complete, undamaged, and on time.

This is why logistics is not merely physical movement. It is the management of a promise. Every order placed creates an expectation. Every booking, shipping instruction, delivery slot, customs declaration, and proof of delivery is part of the promise that the right product will arrive at the right place, at the right time, in the right condition, and at the right cost.

Relationships: the human infrastructure

No supply chain operates in isolation. Producers rely on transporters. Transporters rely on warehouse readiness and terminal access. Ports rely on shipping lines, cargo owners, customs agencies, pilots, tug operators, truckers, and inland distribution networks. Retailers rely on reliable suppliers and accurate replenishment information.

The most sophisticated infrastructure cannot indefinitely compensate for weak cooperation. A port may have cranes, berths, and yard space, but it cannot deliver reliable service if the vessel schedule is uncertain, documents are incomplete, containers arrive late at the gate, or cargo owners and authorities fail to coordinate. Similarly, a warehouse management system cannot resolve a supply disruption if suppliers, planners, and customers do not communicate openly.

Strong logistics relationships are therefore built on clear commitments, fair commercial terms, joint planning, timely problem-solving, and respect for each party’s role. Collaboration depends on information sharing, openness, coordinated planning, mutual benefit, shared risk, and recognition of the interdependence of supply-chain partners.

Time: the real currency

In logistics, time is often more valuable than distance. A shipment can cross an ocean in days yet lose its commercial value in a few hours of delay at a gate, warehouse, border checkpoint, or transhipment hub.

Time affects inventory costs, production continuity, vessel turnaround, truck utilisation, customer service, product freshness, and cash flow. For perishable cargo, pharmaceuticals, emergency supplies, and time-sensitive manufacturing inputs, time is not only a cost factor—it may determine whether the cargo retains any value at all.

But good logistics is not simply about being fast. It is about being reliable and predictable. A customer can plan around a four-day lead time if it is dependable. What damages production schedules and customer confidence is not necessarily a longer transit time, but an uncertain one.

The World Bank’s logistics indicators assess the ability to establish reliable supply chain connections, including infrastructure, logistics services, border controls, tracking capabilities, and the frequency with which shipments reach consignees within scheduled or expected delivery times.

Information: the chain’s nervous system

Goods may move physically, but information must move first—and often faster. Before a container is loaded, there must be an order, a forecast, a booking, a packing list, a commercial invoice, a customs declaration, cargo instructions, and a transport plan. During transit, stakeholders need status updates. On arrival, the consignee needs advance notice, clearance information, and delivery confirmation.

When information is delayed, inaccurate, fragmented, or unavailable, physical operations begin to fail. A truck may arrive at a warehouse that is unprepared. A container may miss a vessel because documentation was incomplete. A retailer may experience a stock-out because inventory records did not reflect actual demand. A customer may lose confidence because no one can say where the shipment is or when it will arrive.

Digital technology can improve visibility, but technology alone is not enough. A dashboard is only useful when the data are accurate, shared at the right time, and translated into action. Information becomes logistics value when it enables a warehouse to plan labour, a port to plan yard capacity, a carrier to adjust a schedule, a customs authority to clear cargo efficiently, or a customer to make a timely decision.

Trust: the invisible asset

Trust is perhaps the most undervalued form of logistics infrastructure. It reduces the need for constant checking, repeated negotiation, emergency escalation, and costly buffers. Where trust is strong, partners share forecasts earlier, report problems honestly, coordinate capacity, and resolve disruptions together.

Trust does not mean ignoring contracts, standards, or compliance. On the contrary, it grows from consistently honouring them. A reliable haulier earns trust by arriving as promised. A freight forwarder earns trust by providing accurate status updates, even when the news is unfavourable. A terminal earns trust through fair, transparent, and predictable operations. A regulator earns trust through clear, efficient, and consistently applied procedures.

When a disruption occurs—a delayed vessel, a damaged container, a road closure, a system outage, or a sudden surge in demand—trust determines whether partners blame one another or work together to maintain the flow of goods. Research on supply-chain collaboration identifies information sharing, trust, and aligned incentives as key foundations for effective cooperation and resilience.

One chain, one outcome

Consider an exporter in Sabah shipping processed palm-based products to an overseas buyer. The shipment may involve a factory, a truck operator, a container depot, a port terminal, customs and quarantine agencies, a shipping line, a transhipment hub, an overseas distributor, and final retail delivery.

The factory may finish production on time. The truck may arrive as scheduled. The port may have sufficient berth capacity. Yet the shipment can still fail if the export documents are incomplete, the container is not released, the vessel connection is missed, or the buyer receives no advance information for onward distribution.

From the customer’s perspective, these are not separate failures. They constitute a single failed service experience.

That is the essential lesson of logistics: each participant may manage a different activity, but all participants collectively deliver a single outcome. Effective logistics therefore requires a whole-system mindset—one that avoids optimising a single department at the expense of the overall flow. The OECD likewise stresses that supply-chain resilience should focus on system-wide performance rather than on a single isolated objective.

The enduring principle

The movement of goods is the visible outcome of logistics. The real work lies beneath the surface: aligning people, synchronising time, sharing reliable information, and sustaining trust at every handover.

Logistics is not merely the movement of goods; it is the management of relationships, time, information, and trust.

When these four elements are well managed, cargo flows, customers are served, businesses can plan, ports and warehouses operate productively, and economies connect more effectively with markets. When neglected, even the best vehicles, largest warehouses, and most advanced systems cannot prevent the supply chain from breaking down.

The Low Altitude Economy

2026-08-17T21:27:13.212-07:00

Drone-based last-mile delivery holds particular promise for Sabah because its rugged terrain, scattered islands, and dispersed rural communities make conventional road logistics slow and expensive, and drones offer a way to bypass these constraints entirely.

Why Sabah Is a Strong Fit

Sabah's geography—mountainous interiors, remote longhouse settlements, and island communities separated by water—creates exactly the kind of "hard-to-reach" delivery problem that drones are best suited to solve. Unlike Peninsular Malaysia's dense urban corridors, Sabah's dispersed population means road-based last-mile delivery often involves long detours, poor infrastructure, and high per-parcel costs, whereas drones can fly direct routes regardless of terrain. Industry sessions at the Sabah Drone Open Day 2024, moderated by MIGHT for SEDIA, specifically flagged food, medicine, and reconnaissance delivery to remote areas as the highest-value drone use cases for the state.

The Hyperway Partnership

In 2024, Sabah entered into a landmark agreement with Hyperway, a Web3-based drone infrastructure project within the peaq ecosystem, to build a Decentralised Physical Infrastructure Network (DePIN) that supports autonomous drones and even air taxis. This network relies on community-owned ground relay stations that use 5G and satellite links to maintain seamless communication between drones and control centres, rather than relying solely on centralised telecom infrastructure. A key stated goal is to boost Sabah's agricultural sector through drone-powered cargo operations, reducing the time and cost of moving goods from farms and plantations to markets or ports.

Value Proposition for Businesses

For logistics operators and e-commerce players, the business case for drones in Sabah rests on several measurable advantages:

Cost reduction: studies suggest drone delivery can cut last-mile costs by as much as 70% compared to traditional vehicle-based methods, a significant factor where road distances in Sabah are long and fuel/labor costs are high.
Speed: drones bypass congested or poorly maintained roads entirely, taking direct flight paths that dramatically shorten delivery times to remote kampungs and islands.
Labour relief: with delivery workforce shortages a persistent industry issue, drones can absorb routine rural deliveries, freeing human couriers for more complex urban routes.
New market access: drones enable service to communities that are currently commercially unviable to serve by road or boat, effectively expanding the addressable delivery market.

Positioning Within the Low-Altitude Economy

Sabah authorities have explicitly framed drone logistics as part of a broader "low-altitude economy" strategy, positioning it as a potential new growth engine alongside agriculture and tourism. This requires coordinated effort between government regulators, telecom/infrastructure providers, and drone operators to establish air corridors, safety standards, and BVLOS (beyond visual line of sight) flight approvals. The Malaysian drone package delivery market overall is projected to grow from about USD 27.8 million in 2024 to USD 324.4 million by 2029, and Sabah's geographic profile positions it to capture a disproportionate share of that growth given its acute need for alternatives to road-based delivery.

Remaining Challenges

Despite the promise, realising this vision in Sabah still depends on resolving regulatory approval for autonomous BVLOS flights, building reliable connectivity infrastructure in low-signal rural areas, and proving payload/battery range sufficient for Sabah's distances and weather (monsoon rain, wind over hilly terrain). Public trust and community buy-in—particularly since the Hyperway model depends on community-owned relay stations—will also be critical to scaling beyond pilot programs

2024-10-04T22:14:00.000-07:00

Bridging Movement and Markets: A Rail Vision for Kota Kinabalu's Future

Kota Kinabalu is facing mounting transportation challenges. Despite numerous initiatives over the years, such as Bus Rapid Transit (BRT), Light Rail Transit (LRT), and Mass Rapid Transit (MRT), none have materialized into a comprehensive public transport network. With a population now estimated at over 601,000, the city's existing public transportation network, dominated by buses, is struggling to meet the demands of its rapidly expanding population.

Kota Kinabalu is renowned for its scenic beauty, rich cultural heritage, and rapidly expanding economy. However, with this growth comes the pressing need for a more efficient and reliable public transport system that can serve the city’s expanding population and support its burgeoning supply chain economies.

The current bus services are unreliable and with limited-service coverage, making it clear that Kota Kinabalu must embrace a more innovative solution. The minibuses or vans are not popular with the locals mainly because of the lack of control over its operations, poor maintenance and the behaviours of the drivers. The disarray in bus schedules is a significant deterrent for commuters. This unpredictability makes it difficult for workers and students to rely on buses for their daily commutes.

The answer lies in developing a dual-purpose rail transit system that accommodates both passengers and light cargo, starting with the critical link between the Sapangar Bay Container Port (SBCP) and the city centre. This strategic move will not only enhance urban mobility but also streamline logistics, fostering economic growth and supporting the city's transition into a dynamic trade and industrial hub. The locals are more attracted to this concept of commuting rather than the bus services.

Current Transportation Challenges

The existing public transportation network in Kota Kinabalu, dominated by buses, is struggling to meet the demands of a rapidly growing population, now estimated at over 601,000. The challenges are twofold, affecting both commuters and the supply chain.

During peak hours, heavy traffic congestion delays buses, causing frustration for commuters and reducing overall productivity. This problem is further exacerbated by the increased use of private vehicles, which adds to the congestion and worsens air quality.

Many residential areas, especially on the outskirts of the city, are inadequately serviced by the current bus network, limiting access to public transport options. Additionally, the transportation of light cargo from the port to industrial and commercial centres is constrained by road congestion, leading to delays in goods reaching their destinations.

Kota Kinabalu's economic growth is heavily reliant on the efficient movement of goods, particularly from KKIP, a major industrial park. The dependence on road-based transport for moving cargo from the port to distribution centres and industrial parks creates bottlenecks and inefficiencies, increasing transportation costs and hampering the city's competitiveness.

The Proposed Dual-Purpose Rail Transit Network

The introduction of a dual-purpose rail transit system offers an innovative solution to these challenges, providing both passenger services and light cargo transportation. This hybrid approach would involve specially designed trains capable of carrying both commuters and light freight, ensuring seamless connectivity across the city and supporting supply chain efficiency. The proposed network includes four key lines, all radiating from a central hub in Kota Kinabalu:

Line 1: SBCP-KKIP-UMS Line:

By connecting the Sapangar Bay Container Port (SBCP), Kota Kinabalu Industrial Park (KKIP), University Malaysia Sabah (UMS), and the city centre this line will facilitate the efficient movement of goods from the port to the industrial park while serving students and workers commuting between UMS and the city. It will support businesses reliant on timely delivery of raw materials and finished products.

Line 2: Inanam-Likas Line

Serving the northeastern region, connecting residential areas like Inanam and Likas to the city centre will cater to daily commuters while also offering light cargo services for goods being transported to markets and distribution centres in these areas.

Line 3: Penampang-Lido Line

Extending to the southeast, linking Penampang, Lido, and surrounding residential and commercial zones to the city centre is designed to reduce traffic congestion and provide reliable transport for both passengers and light goods, this line will support the movement of agricultural products and retail goods from these areas.

Line 4: Lok Kawi-KKIA-Tg. Aru Line

Connecting southern areas, including Kota Kinabalu International Airport (KKIA), Tanjung Aru, Sembulan, and the city centre, this line will facilitate airport access for travellers while also providing a route for light cargo transport, particularly perishable goods that require swift movement to maintain quality.

The Case for a Dual-Purpose Rail System

Streamlining the supply chain and enhancing trade: the ability to transport both passengers and light cargo on the same rail network will have a transformative impact on Kota Kinabalu’s supply chain economy. Key benefits include:

Reduced Transit Times where the rail system will offer faster transit for light cargo between the port, industrial zones, and commercial centres, bypassing road traffic and ensuring timely deliveries. Cost Efficiency whereby utilizing a shared infrastructure for both passengers and cargo, the rail system reduces transportation costs for businesses, making products more competitive in the market.

The SBCP-KKIP-UMS Line is especially critical for facilitating industrial growth. As SBCP aims to double its handling capacity by 2025, the dual-purpose rail system will ensure efficient cargo movement, making the region more attractive to investors and manufacturers. This will create jobs, stimulate economic activity, and support the development of a robust industrial base.

For passengers, the rail system will offer a reliable, efficient alternative to road-based transport, reducing travel times and alleviating congestion. This improved mobility will benefit daily commuters, students, tourists, and workers, enhancing the overall quality of life in Kota Kinabalu.

The dual-purpose rail system will contribute to a reduction in carbon emissions by decreasing the number of trucks on the road for cargo transportation and offering a cleaner mode of travel for passengers. This aligns with Kota Kinabalu's sustainability goals and efforts to create a greener, more liveable city.

Implementing this dual-purpose rail system could have significant economic benefits through Job Creation where Investment in public transportation can yield 50,731 jobs per USD1 billion invested and economic return of public transportation investment offers a 4 to 1 economic return. In terms of business sales, a planned public transportation investment could yield more returns in business sales in three cities examined in a recent study. It will also reduce transportation costs where the share of transportation costs in the final costs of goods typically declines with improved transport infrastructure. This will also lead to increased productivity where efficient transportation reduces costs in many economic sectors, while inefficient transportation increases these costs.

Funding

Given the scale of this project, a multi-faceted funding strategy is essential. Potential options include federal and state government grants. Unless there is a concerted effort in seeking the fund we will again fail to secure it. That leaves Public-Private Partnerships (PPPs) as an alternative. By partnering with private investors, the project can leverage additional funding and expertise. Private entities may be interested in the potential revenue streams from passenger fares and cargo transport services, making PPPs an attractive option.

The Critical Importance of the SBCP to Kota Kinabalu City Line

The SBCP to Kota Kinabalu City Line is the linchpin of this dual-purpose rail system, and its successful implementation is crucial for economic reasons.

By providing a direct, congestion-free route for moving goods from the port to the city and industrial areas, this line will eliminate delays and reduce transportation costs. It will ensure that products reach their destinations faster, supporting industries reliant on just-in-time (JIT) delivery and perishable goods that require rapid transport.

Efficient connectivity between SBCP and Kota Kinabalu will attract investment, stimulate industrial growth, and enhance the region’s competitiveness. This line will be essential for expanding trade opportunities, positioning the city as a key player in the regional and global supply chain.

Economic and Environmental Impact of the Proposal

By shifting a portion of light cargo transport from road to rail, the dual-purpose line will significantly reduce traffic congestion on key routes, improving travel times and reducing emissions. This will make the city more liveable and sustainable in the long run. Failing to develop this dual-purpose rail system would have dire consequences, including supply chain bottlenecks where without an efficient transport link, delays in cargo movement will increase, raising costs and reducing the competitiveness of local businesses. It will also stifle economic growth. Investors may be deterred by the lack of efficient transport infrastructure, limiting industrial expansion and job creation. Continued reliance on road transport will exacerbate traffic congestion and environmental degradation, reducing the quality of life for residents and making the city less attractive to tourists and businesses.

Way Forward

The development of a dual-purpose rail transit system that accommodates both passengers and light cargo represents a transformative step towards enhancing Kota Kinabalu's transportation infrastructure. This innovative solution will support economic growth, improve urban mobility, reduce congestion, and promote sustainability, ensuring the city remains a vibrant and competitive hub for trade and industry. As Kota Kinabalu looks to the future, investing in such a rail system will unlock the city's full potential, creating a dynamic and prosperous urban centre for generations to come.

By embracing this integrated approach to transportation, Kota Kinabalu can set a precedent for other growing cities, demonstrating how a dual-purpose rail system can effectively support both passenger mobility and supply chain efficiency, paving the way or sustainable urban development.

While it's not entirely fair to say the federal government has consistently failed Kota Kinabalu, there is a clear pattern of unfulfilled promises and inadequate support for the city's transportation needs. The repeated failure to implement proposed solutions suggests a systemic issue in the planning, funding, and execution of major infrastructure projects in the region. Perhaps a new Regional Authority/Government may wield more powers. Perhaps it is timely to consider a Metropolitan or Regional Authority similar to Greater London Authority as we inch forward to the future from getting stuck with repeated failures in getting fundings.

Moving forward, a more collaborative and committed approach between federal and state governments is necessary. Kota Kinabalu's authorities may need to develop more robust and financially viable project proposals. There is a need to explore alternative funding models, including public-private partnerships. It might also be a good strategy to consider smaller-scale, incremental improvements that can be implemented more quickly while working towards larger, long-term solutions.

The proposed dual-purpose rail transit system could be a game-changer, but its success will depend on securing reliable funding and commitment from both federal and state levels of government.

Graphical illustration of the new dual-rail network for Kota Kinabalu

2024-09-25T16:20:00.000-07:00

Public Transportation in Kota Kinabalu
The Impact of Public Transportation Challenges on Kota Kinabalu's Attractiveness-part 3

Efficient and accessible public transportation is a key factor in a city's liveability and attractiveness to residents, businesses, and visitors. However, many growing cities struggle to develop public transit systems that can keep pace with rapid urbanization and increasing mobility demands. Kota Kinabalu, the capital city of Sabah, Malaysia, faces significant challenges with its current public transportation infrastructure that are negatively impacting its appeal and competitiveness compared to other major cities in the region. This essay will examine the public transit issues in Kota Kinabalu, analyse their effects on the city's attractiveness, and draw comparisons with cities that have implemented successful public transportation systems.

Current State of Public Transportation in Kota Kinabalu

Kota Kinabalu's public transportation system is primarily comprised of public buses, with limited rail-based transit options currently available. However, the bus network faces several major issues that deter ridership and limit its effectiveness as a mobility solution for the city:

Unreliable and infrequent service: Bus schedules are often unpredictable, with long and inconsistent wait times between buses. This makes it difficult for residents to rely on public transit for daily commutes or time-sensitive trips.
Limited coverage: Bus routes do not adequately serve all areas of the expanding city, leaving many neighbourhoods with poor access to public transportation. The lack of connectivity between different parts of the city via public transit is a significant barrier.
Poor quality of infrastructure: Many bus stops and terminals in Kota Kinabalu are in unsatisfactory condition, lacking basic amenities and comfort for passengers. This creates an unpleasant experience for riders.
Lack of integration: There is minimal integration between different bus lines or with other modes of transport, making transfers and multi-modal trips inconvenient.Traffic congestion: Buses often get stuck in the same traffic congestion as private vehicles, leading to slow travel times that cannot compete with car travel.

Aging bus fleet: Many of the buses are older models that lack modern amenities and comfort features expected by riders. As a result, public transportation usage in Kota Kinabalu is declining as more residents opt for private vehicle ownership and usage. This shift is exacerbating traffic congestion and environmental issues in the city.

Impact on City Attractiveness

The inadequate public transportation system in Kota Kinabalu is negatively impacting the city's attractiveness and liveability in several key ways:Economic effects: Traffic congestion resulting from high private vehicle usage is creating economic inefficiencies and lost productivity. The lack of reliable public transit options also limits job accessibility for residents without cars.

Environmental concerns: Increased reliance on private vehicles is worsening air pollution and contributing to higher carbon emissions in the city.

Reduced mobility and accessibility: Residents without access to private vehicles, including lower-income groups, the elderly, and people with disabilities, face significant mobility challenges due to the limitations of the public bus system.

Quality of life: Long commute times, traffic stress, and lack of convenient transportation options negatively impact residents' quality of life and overall satisfaction with the city.

City image: An inefficient public transportation system projects an image of poor urban planning and infrastructure, which can deter potential residents, businesses, and investors.

Tourism impacts: Visitors to Kota Kinabalu may find it challenging to navigate the city without reliable public transit options, potentially affecting tourism experiences and the local tourism economy.

Comparisons with Cities with Robust Public Transport
To understand the potential benefits of an improved public transportation system, it is instructive to compare Kota Kinabalu with cities that have implemented successful transit networks:

Copenhagen, Denmark.

Copenhagen is renowned for its efficient and integrated public transportation system, which includes:
An extensive metro network with frequent service
A comprehensive bus system with dedicated bus lanes
Seamless integration between different modes of transport
A focus on transit-oriented development

As a result, Copenhagen consistently ranks as one of the most liveable cities in the world. Public transport usage is high, with over 50% of residents commuting by bicycle or public transit. This has led to reduced traffic congestion, improved air quality, and enhanced urban mobility.

Melbourne, Australia: Melbourne's public transportation system features:
The world's largest tram network
An extensive train system serving the greater metropolitan area
Integrated ticketing across all modes of public transport
Real-time information systems for passengers

Melbourne's robust public transit infrastructure has contributed to its reputation as one of the world's most liveable cities. The system provides efficient mobility options for residents and visitors alike, supporting the city's economic growth and enhancing its attractiveness to businesses and talent.

Recommendations for Kota Kinabalu

To enhance its attractiveness and address current public transportation challenges, Kota Kinabalu should consider the following strategies to develop a comprehensive public transportation master plan that includes,

1. Introduction of higher-capacity transit modes like Bus Rapid Transit (BRT) or light rail,

2. Expansion and optimization of bus routes to improve coverage,

3. Implementation of dedicated bus lanes to improve service reliability and speed,

4. Improve service quality and reliability by Increasing service frequency on key routes, implementing real-time tracking and information systems for passengers and modernizing the bus fleet with newer, more comfortable vehicles,

5. Enhancing infrastructure by upgrading bus stops and terminals with better amenities and passenger information and developing multimodal transit hubs to facilitate transfers between different modes

6. Implement integrated ticketing and fare systems to make multi-modal trips more convenient

7. Adopt transit-oriented development principles to encourage dense, mixed-use development around major transit nodes

8. Invest in public awareness campaigns and incentives to encourage public transport usage

9. Explore partnerships with private sector operators to improve service delivery and innovation

By addressing its public transportation challenges, Kota Kinabalu can significantly enhance its attractiveness as a place to live, work, and visit. Improved mobility options will support economic growth, reduce environmental impacts, and enhance overall quality of life for residents. Looking to successful examples like Copenhagen and Melbourne can provide valuable insights and inspiration for developing a world-class public transportation system that meets the needs of a growing, dynamic city.

Overview

Willingness and commitment from multiple stakeholders are crucial factors in overcoming Kota Kinabalu's public transportation and urban planning challenges.

Political willingness: There needs to be strong political will from local and state government leaders to prioritize public transportation improvements and sustainable urban planning. This includes, 1. Committing adequate funding and resources to public transit projects, 2. Implementing policies that promote public transit use over private vehicles, and 3. Making difficult decisions that may face resistance, like dedicating road space to bus lanes.

Public willingness: Citizens need to be willing to embrace changes and shift behaviours such as 1. Being open to using improved public transit options instead of private vehicles, 2. Participating actively in community engagement efforts around urban planning, 3 Accepting short-term inconveniences for long-term gains in liveability

Business community commitment: The private sector needs to support sustainable urban development by, 1. Investing in transit-oriented developments, 2. Providing incentives for employees to use public transit, 3. Partnering with the government on public-private transit initiatives

Long-term commitment: Improving public transportation and urban liveability requires sustained, long-term commitment through, 1. Developing and adhering to comprehensive long-term urban plans, 2. Maintaining focus on goals across political cycles and leadership changes, and 3. Committing to ongoing funding and improvements, not just one-time projects

Commitment to equity and inclusivity: There must be a commitment to creating a public transportation system that serves all residents, through 1. Ensuring affordability and accessibility for low-income communities, 2. Designing transit systems to accommodate elderly and disabled users, 3. Extending quality service to all areas, not just central business districts.

Willingness to innovate:
Stakeholders need to be open to new ideas and technologies, by 1. Exploring smart city solutions for traffic management and transit operations, 2. Considering innovative funding models like public-private partnerships, and 3. Learning from successful examples in other cities and adapting them to local context

Commitment to sustainability:
There must be a strong commitment to environmental sustainability in urban planning, in 1. Prioritizing green infrastructure and transit-oriented development, 2. Setting and working towards ambitious emissions reduction targets, and 3. Integrating climate resilience into all urban planning decisions.

Willingness to collaborate:
Effective improvements require collaboration across sectors and jurisdictions, by 1. Fostering partnerships between government agencies, businesses, and community groups, 2. Engaging in regional planning efforts that extend beyond city boundaries, and 3. Encouraging interdisciplinary approaches to urban challenges.

By fostering these types of willingness and commitments among various stakeholders, Kota Kinabalu can overcome its public transportation challenges and work towards becoming a more attractive, liveable, and sustainable city. This will require strong leadership, community engagement, and a shared vision for the city's future.

Sky Bridges: Fortifying Sabah's Aerial Response During Calamities

2024-09-25T08:25:00.000-07:00

As the spectre of unprecedented challenges looms on the horizon, Sabah stands at a critical juncture. When nature unleashes its fury, rendering roads impassable and communities isolated, our aviation industry emerges as the vital lifeline, weaving an intricate network of sky bridges that connect, sustain, and rescue those in peril.

While the intricacies of aerial disaster response may be highly specialized, this article aims to provide a cursory, yet comprehensive overview of the measures needed to fortify Sabah's aerial capabilities. By exploring these concepts, we hope to foster public understanding and engagement in this crucial aspect of our state's disaster preparedness.

Several areas are crucial to be had and managed during these times. Let’s explore them:

1. Infrastructure Preparedness
STOLport’s and Helipads - Sabah's unique geography necessitates a network of Short Take-Off and Landing (STOL) airports and strategically placed helipads. Regular maintenance and upgrades of these facilities are essential to ensure their readiness during emergencies. This includes maintaining runway surfaces in optimal condition, ensuring clear approach paths and upgrading navigation aids and lighting systems for improved all-weather capabilities

2. Fuel Depots
Establishing and maintaining strategic fuel depots throughout Sabah is crucial for extended emergency operations. This ensures that aircraft have sufficient fuel to conduct prolonged missions in affected areas.

3. Fleet Readiness
Diverse Aircraft Fleet - Sabah Air Aviation, the state's oldest general aviation company, should maintain a diverse fleet capable of handling various missions such as helicopters for accessing areas without runways, STOL aircraft for efficient transport between rural airstrips and consideration of amphibious aircraft for flood-prone areas.

4. Maintenance and Training
Implementing strict maintenance schedules and regular training programs for pilots, mechanics, and support staff is crucial. This includes simulated disaster response scenarios, training in adverse weather operations and cross-training personnel on different aircraft types for flexibility

5. Operational Readiness
Emergency Response Plans - Developing and regularly updating comprehensive emergency response plans tailored to Sabah's specific needs is essential. These plans should cover flood response protocols, landslide evacuation procedures and coordination with other emergency response agencies.

6. Inter-Agency Coordination
Establishing clear communication channels and protocols with other emergency response agencies, local authorities, and the military ensures seamless coordination during crises.

7. Technological Integration
Advanced Weather Forecasting - Investing in advanced weather forecasting technology improves decision-making and operational planning during unstable weather conditions.

8. Real-Time Tracking Systems - Implementing state-of-the-art tracking systems for all aircraft enhances safety and coordination during emergency operations.

9. Community Engagement
Rural Airstrip Network - Expanding the network of rural airstrips in collaboration with local communities improves access to remote areas.

10. Community Education Programs
Conducting regular outreach programs to educate remote communities on emergency procedures and how to prepare landing sites for helicopters in case of emergencies is crucial.

International Best Practices
Sabah can learn from international best practices in aviation disaster response by:

· Adopting SPHERE Standards for humanitarian aid, which specify minimum requirements for water, shelter, and healthcare during disasters.

· Implementing programs like Get Airports Ready for Disaster (GARD) to assess and improve airport capacity for handling humanitarian aid influx.

· Utilizing night vision technology and all-weather aircraft to extend operational capabilities.

Fortifying Sabah's aerial response to calamities requires a multifaceted approach that encompasses infrastructure preparedness, fleet readiness, operational planning, technological integration, and community engagement. By implementing these strategies and learning from international best practices, Sabah can significantly enhance its ability to provide rapid and effective assistance to interior regions during emergencies, regardless of the challenges posed by weather or terrain.

The aviation industry's role in disaster response goes beyond immediate relief efforts. As highlighted by the United Nations Humanitarian Air Service, air operations are vital in reaching remote and challenging locations, delivering aid workers, food, and medical supplies. Sabah's aviation sector must be prepared to play this crucial role, serving as a lifeline for affected communities long after the initial crisis has passed. By investing in these preparedness measures, Sabah can ensure that its aviation industry stands ready to build "sky bridges" – vital connections that bring hope, aid, and recovery to communities in their time of greatest need.

Sky bridges and aerial response can enhance disaster relief operations in Sabah through:

1. Enhanced Efficiency of Disaster Relief Operations:

2. Utilization of Aerial Reconnaissance in Disaster Scenarios:

3. SINPDEC's Role in Coordinating Disaster Response:

In Brazil, which has a system similar to what Sabah might implement:

· The National System of Civil Protection and Defence (SINPDEC) coordinates disaster response operations at the state level.

· Each State Secretariat of Civil Protection and Defence is responsible for planning, coordinating, and executing civil protection and defence actions.

· They provide necessary resources and equipment for response operations and define procedures for using helicopters in logistical air transport activities during disasters.

To fortify Sabah's aerial response during calamities, it would be beneficial to:

· Invest in infrastructure like STOLport’s and strategically placed helipads.

· Maintain a diverse aircraft fleet including helicopters, STOL aircraft, and possibly amphibious aircraft.

· Implement comprehensive training programs for personnel.

· Develop detailed emergency response plans and improve inter-agency coordination.

· Integrate advanced technologies like real-time tracking systems and improved weather forecasting.

· Engage with local communities to expand the rural airstrip network and educate on emergency procedures.

By implementing these measures, Sabah can create effective "sky bridges" that provide crucial support during disasters, enhancing its ability to respond swiftly and effectively to calamities in remote and challenging areas.

In the face of increasingly unpredictable natural disasters, Sabah's aviation industry stands as a critical lifeline for affected communities. Our past experiences have taught us valuable lessons about the extensive scope of operations required to meet such challenges effectively. As we confront the realities of climate change, we must anticipate that future calamities may surpass the scale of what we've encountered before. This calls for a comprehensive approach that goes beyond the traditional boundaries of disaster response.

Specialized Knowledge and Experience
The cornerstone of our preparedness lies in the wealth of specialized knowledge and experience accumulated over years of operations. This expertise, held by our frontline responders and aviation professionals, is invaluable in navigating the complex scenarios that disasters present.

Community Involvement
It's crucial to recognize that disaster preparedness and response is not solely the responsibility of those on the frontline. As citizens of Sabah, we are all affected by these events, directly or indirectly. Therefore, it's imperative that the entire community becomes involved in and supportive of our preparedness efforts.

Expanding Our Scope
Given the potential for more severe and frequent disasters due to climate change, we must expand the scope of our operations beyond what we've previously encountered. This means:

1. Enhancing our aviation infrastructure to handle increased demands

2. Broadening our training programs to cover a wider range of scenarios

3. Strengthening community education and involvement in disaster preparedness

4. Investing in cutting-edge technology for improved forecasting and response

5. Fostering stronger inter-agency and community partnerships

Forging Sabah's Resilient Future
By sharing the burden of preparedness across all sectors of society, we can build a more resilient Sabah. This collective effort will provide not just comfort and assurance to our communities, but a robust foundation for our state's future. As we stand at the crossroads of challenge and opportunity, we must recognize that our strength lies in unity and shared purpose.

Our aviation industry stands as a beacon of hope, ready to bridge the gaps when disaster strikes. But true resilience goes beyond infrastructure – it resides in the hearts and minds of our people. Each citizen, from the bustling cities to the remote villages, has a crucial role to play. Whether it's supporting our aviation sector's preparedness initiatives, actively participating in community disaster drills, or simply staying informed and ready to lend a helping hand, every action contributes to our collective safety net.

As we move forward, let us embrace this shared responsibility with vigor and determination. Our commitment today will shape the Sabah of tomorrow – a state not just prepared for calamities, but one that thrives in the face of adversity. By fostering a culture of preparedness, we're not just building "sky bridges"; we're weaving an unbreakable network of support that spans our entire state.

Together, we can ensure that our response mechanisms remain strong, agile, and ready to serve when they're needed most. From the coral-fringed coasts to the mist-shrouded peaks of Mount Kinabalu, every corner of our beloved Sabah will stand resilient, knowing that behind each challenge lies the unwavering spirit of our people.

Let this be our pledge: That in times of calm, we prepare; in times of crisis, we unite; and always, we stand as one Sabah – ready, resilient, and resolute. For in our shared commitment lies not just our strength, but the very essence of who we are as a people. Together, we will not just weather the storms but emerge stronger, writing a new chapter of resilience in the rich tapestry of Sabah's history.

2024-09-25T08:17:00.000-07:00

Public Transportation in Kota Kinabalu Sustainable Approach to Urban Mobility – part 2

Kota Kinabalu has experienced significant growth over the past few decades. This growth has brought about numerous challenges, particularly in the realm of public transportation. As the city expands, the demand for efficient, reliable, and accessible public transport systems has become increasingly critical.

Various factor had contributed to the current public transportation problems in Kota Kinabalu, including increasing private vehicle ownership, inefficient bus services, lack of integration, severe traffic congestion, and environmental considerations. This article delves into these root causes, exploring their implications and potential solutions, particularly focusing on how road infrastructure can be improved to support a more effective public transportation system.

The Rise of Private Vehicles
One of the most significant challenges facing public transportation in Kota Kinabalu is the rising trend of private vehicle ownership. The allure of personal vehicles stems from several factors, including convenience, comfort, and the perception of safety. As the population of Kota Kinabalu grows, so does the number of residents opting for private transportation. According to recent statistics, vehicle ownership in Malaysia has surged, with many families now owning multiple cars.

Implications for Public Transport
The increasing reliance on private vehicles has led to a decline in public transportation ridership. Many residents view public transport as an inconvenient and unreliable option, leading to a vicious cycle where fewer riders result in reduced services and further deterioration of public transport quality. This shift not only exacerbates traffic congestion but also impacts the environment, as more vehicles on the road contribute to higher emissions and pollution levels.

Current State of Bus Services
The public bus system in Kota Kinabalu has been criticized for its inefficiency and unreliability. Many residents’ express dissatisfaction with various aspects of the service, including bus frequency, punctuality, and overall comfort. Buses often run late or do not adhere to published schedules, leading to frustration among passengers who rely on them for commuting.

Quality Disparities Across Routes
Another issue is the disparity in service quality across different routes. While some areas, particularly those closer to the city centre, enjoy relatively better bus services, outlying regions often suffer from inadequate coverage and infrequent service. This inconsistency makes it challenging for residents in less serviced areas to rely on public transport, further pushing them towards private vehicle usage. The city centre, including areas like Bandaran Berjaya and the waterfront, likely has more frequent bus services due to higher demand and tourist traffic. In contrast, suburban areas like Menggatal or Telipok may have less frequent services, with buses running only every hour or even less frequently.

Comparative Analysis of Transportation Modes
In addition to buses, other modes of transportation, such as taxis and minivans, play a role in the public transport landscape. Taxis offer comfort but are often expensive, limiting their use to those who can afford them. Minivans, while more accessible, have capacity limitations that affect their efficiency in meeting high demand. The lack of a cohesive strategy to integrate these services further complicates the public transport scenario.

The Need for Integration
A well-functioning public transportation system should ideally be integrated, allowing for seamless transfers between different modes of transport. However, Kota Kinabalu lacks such a system. The absence of coordination between buses, taxis, and other forms of transportation leads to inefficiencies and confusion for passengers. By bringing multiple transport services under one roof, a centralized terminal facilitates better coordination of schedules and routes, reducing waiting times and improving overall efficiency.

Barriers to Integration
Several barriers hinder the establishment of an integrated public transportation system in Kota Kinabalu. These include the lack of a centralized transport authority, insufficient funding for infrastructure improvements, and inadequate planning. Without a cohesive strategy to unify various transport modes, the public transport system remains fragmented, making it less appealing to potential users.

Traffic Congestion
Traffic congestion is a significant issue in Kota Kinabalu, particularly during peak hours. The road network struggles to accommodate the growing number of vehicles, leading to long delays and increased travel times. Major roads, such as Tun Fuad Stephens Road and Coastal Road, often experience severe congestion, impacting not only commuters but also local businesses and emergency services.

Effects on Public Transportation
The congestion problem is further exacerbated by the inefficiencies of the public bus system. Buses caught in traffic are unable to maintain schedules, leading to a loss of reliability. This situation discourages potential riders from using public transport, perpetuating the cycle of reliance on private vehicles. As a result, the city faces a dual challenge: addressing traffic congestion while simultaneously improving public transport services.

Impact of Transportation on the Environment
The environmental impact of transportation systems is another critical aspect to consider. Public transportation typically produces less pollution compared to private vehicles. Promoting public transport can contribute to reducing the city's carbon footprint, which is an important consideration in urban planning. As the city grapples with increasing vehicle emissions, transitioning to a more robust public transport system could play a vital role in achieving sustainability goals.

Strategies for Improving Road Infrastructure
To address the public transportation challenges in Kota Kinabalu, improving road infrastructure is essential. The existing infrastructure struggles to accommodate the growing demand for mobility, leading to severe traffic congestion and dissatisfaction among residents.

Implementing Transit-Oriented Development (TOD) Transit-Oriented Development focuses on creating compact, walkable communities centred around high-quality public transportation systems. By integrating residential, commercial, and recreational spaces with public transport hubs, Kota Kinabalu can reduce reliance on private vehicles and encourage the use of public transport.

Developing a Centralized Bus System
Establishing a centralized bus system is essential for improving public transportation in Kota Kinabalu. This system should include (1) Dedicated Bus Lanes - Creating dedicated lanes for buses can help reduce delays caused by general traffic congestion, ensuring that buses can operate more efficiently. (2) Improved Bus Terminals - Upgrading existing bus terminals to accommodate more passengers and provide better facilities can enhance the overall user experience.

Enhancing Road Infrastructure
Improving the overall road infrastructure is critical to supporting public transportation. This can be achieved through (1) Widening and Upgrading Roads - Expanding key roads to accommodate more lanes can alleviate congestion while ensuring that investments in public transport are prioritized. (2) Implementing Smart Traffic Management Systems - Utilizing technology to manage traffic flow can help reduce congestion and improve travel times for all vehicles, including buses.

Incorporating Sustainable Practices as Kota Kinabalu develops its transportation infrastructure, it is essential to incorporate sustainable practices. This includes promoting non-motorized transport through dedicated pedestrian pathways and cycling lanes, as well as investing in electric buses to reduce the environmental impact of public transport.

Community Engagement and Education
Engaging the community in the planning process is vital for the success of any transportation initiative. Public consultations can help identify the specific needs and preferences of residents, ensuring that the proposed solutions are practical and widely accepted.

Challenges and Opportunities
Implementation Delays - The slow progress in establishing all planned integrated terminals has hindered the development of a fully integrated system.

Coordination Among Stakeholders - Effective implementation requires coordination between various stakeholders, including different transport operators and government agencies.

Infrastructure Development - The success of a centralized terminal depends on supporting infrastructure, such as dedicated bus lanes and improved road networks.

Technology Integration - Incorporating modern technology, such as real-time information systems and integrated ticketing, can significantly enhance the effectiveness of a centralized terminal.

Future Prospects
BRT Integration - The planned BRT system, when fully implemented, will use the centralized terminals as key nodes in the network, improving overall connectivity.

Multi-modal Integration - Future plans should focus on integrating not just buses, but also other modes of transport like taxis, ride-sharing services, and potentially water-based transport given Kota Kinabalu's coastal location.

Transit-Oriented Development - Centralized terminals can serve as focal points for transit-oriented development, encouraging dense, mixed-use development around these transport hubs.

By fully realizing the potential of centralized terminals, Kota Kinabalu can address many of its current public transportation challenges. These hubs can serve as the backbone of an integrated, efficient, and user-friendly public transport system, aligning with the city's vision of becoming a sustainable and liveable urban centre. However, successful implementation will require sustained commitment, adequate funding, and effective coordination among all stakeholders involved in the city's transportation ecosystem.

Conclusion
The public transportation problems in Kota Kinabalu are multifaceted, stemming from increasing private vehicle usage, inefficient bus services, lack of integration, significant traffic congestion, and environmental considerations. Addressing these root causes requires a comprehensive approach that prioritizes the enhancement of public transport services, the establishment of an integrated transportation system, and effective traffic management strategies. By improving road infrastructure and implementing sustainable practices, Kota Kinabalu can create a more efficient, reliable, and sustainable public transportation system that meets the needs of its growing population and improves the overall quality of life for its residents.

2024-09-25T08:13:00.000-07:00

Understanding the Current State of Public Transportation in Kota Kinabalu-part 1

Public transportation is a cornerstone of urban living, significantly impacting residents' quality of life. In cities like Kota Kinabalu (KK), effective public transport systems can reduce traffic congestion, lower emissions, and enhance accessibility for all citizens. As urbanization continues to rise globally, the need for efficient public transport becomes increasingly critical.

In KK, where the population is growing and urban sprawl is evident, the reliance on private vehicles has led to numerous challenges that affect the overall liveability of the city. Public transportation is not merely a means of getting from point A to point B; it is an essential service that fosters community interaction, promotes inclusivity, and enhances the overall quality of life. The importance of public transport extends beyond convenience; it is a vital component of a sustainable urban ecosystem. As we delve into the current state of public transportation in KK, it becomes evident that addressing these issues is vital for transforming the city into a more attractive place to live.

Article Series Outline
Such importance that public transportation play in our daily lives had prompted me to look in-depth on this subject matter covering the various scenarios that relates to the issue.

Part 1: Today’s article brings us to appreciate the current state of public transportation in Kota Kinabalu with an overview of public transportation's significance in urban living and the challenges.

Part 2: Analysing the Root Causes of Public Transportation Problems. This will bring us to delve into the historical context of past public transport initiatives and their failures and their lack of long-term planning and investment.

Part 3: The Impact of Current Public Transportation Challenges on City Attractiveness. This will bring us to a comparative analysis with cities that have robust public transport systems (e.g., Melbourne, Copenhagen) and how efficient public transport enhances liveability and attracts newcomers.

Part 4: Proposing Solutions for an Improved Public Transportation Scenario. This will bring us towards a comprehensive public transport plan, suggestions for increasing bus frequency, better route planning, and integration with other transport modes and the importance of community engagement in planning.

Part 5: A Vision for the Future of Public Transportation in Kota Kinabalu. This closing series will recap the importance of addressing public transport issues, highlight the benefits of a robust public transport system and to share a hopeful vision for the future of public transport in KK.

The Current State of Public Transportation
Kota Kinabalu currently relies heavily on private vehicles, with reports indicating that 97% of residents use their own cars for daily commuting. This overwhelming dependence on personal vehicles has resulted in severe traffic congestion, particularly during peak hours. The number of vehicles on the road has been increasing at an alarming rate of 8.3% annually, leading to longer commute times and heightened frustration among residents.

The existing public transport options, such as minibuses and transit buses, are often inadequate. They suffer from issues like infrequent service, poor route planning, and a lack of comfort, which discourage their use among residents. For instance, many bus routes do not adequately connect outlying areas to the city centre, making it challenging for residents in these regions to access employment, education, and essential services. As a result, public transport is often viewed as a less desirable option compared to the convenience of private vehicles. Moreover, the infrastructure supporting public transport in KK is often underdeveloped. Many bus stops lack basic amenities such as shelters and seating, making waiting for public transport uncomfortable and uninviting. This situation is exacerbated by the absence of real-time tracking systems, which leaves commuters uncertain about bus arrival times, further deterring potential users.

Infrastructure Challenges
The lack of investment in public transport infrastructure has led to a system that is not only inefficient but also unappealing to potential users. According to a report by McKinsey, cities that prioritize the development of public transport infrastructure tend to perform better in terms of liveability and overall satisfaction among residents. In KK, the absence of dedicated bus lanes and the limited coverage of public transport routes highlight the urgent need for a comprehensive overhaul of the existing system.

Socioeconomic Implications
The current state of public transport in KK also has socioeconomic implications. Low-income families, who may not have the means to own a vehicle, are disproportionately affected by the inadequacies of public transport. This lack of access can hinder their ability to secure employment and access essential services, perpetuating cycles of poverty and inequality. The reliance on informal transport options, such as minibuses, often leads to higher costs and less reliable service, further exacerbating these challenges.

Impact on Attractiveness of the City
An efficient public transport system not only eases congestion but also makes KK more attractive to potential newcomers. Cities with robust public transport systems, like Melbourne and Copenhagen, rank highly in liveability and happiness indices. These cities demonstrate that a well-planned public transport system can significantly enhance urban life by providing residents with reliable, convenient, and affordable mobility options. Improving public transport in KK can enhance its appeal, making it a desirable place for families and professionals alike. A well-functioning public transport network can lead to reduced traffic congestion, lower emissions, and improved air quality. This, in turn, contributes to a healthier urban environment, which is increasingly important to residents and newcomers who prioritize sustainability.

Social Equity and Inclusion
Public transport fosters social equity by providing mobility options for individuals who may not have access to private vehicles, such as the elderly, students, and low-income families. When public transport is accessible and affordable, it promotes inclusivity and ensures that all residents can participate in the social and economic life of the city. This sense of community and belonging is essential for creating a vibrant urban environment where residents feel connected and engaged.

Economic Benefits
The economic benefits of a robust public transport system are also significant. Research indicates that every RM1 invested in public transportation generates approximately $5 in economic returns. Public transport creates jobs, stimulates local economies, and reduces household transportation costs, allowing families to allocate resources to other essential needs. By enhancing public transport, KK can stimulate economic growth and attract businesses looking for a vibrant and accessible urban environment.

Enhancing Safety and Public Spaces
The presence of public transportation options, along with reduced traffic congestion, can lead to safer streets and reduced traffic-related accidents, contributing to community safety and well-being. Additionally, public transportation investments often lead to the revitalization of public spaces, including transit stops, stations, and surrounding areas, enhancing the aesthetic appeal and functionality of urban environments.

Studies Related to Public Transportation in Kota Kinabalu
Several studies have been conducted to analyse the impact of inadequate public transportation in Kota Kinabalu (KK). The following are some key findings from the available search results:

User Perception of Public Transport in Kota Kinabalu
A study published in the Journal of Asian Behavioural Studies identified components of satisfaction with public bus service in Kota Kinabalu City, Malaysia. The study used factor analysis to analyse user perceptions and found that factors such as service quality, comfort, and safety significantly impact user satisfaction with public transport.

Congestion Patterns in Kota Kinabalu
Another study examined the recurring and non-recurring congestion patterns on the Tuaran Bypass and Sulaman KKIP road networks in Kota Kinabalu. The research found that the heavy reliance on private vehicles and inadequate public transport options have led to severe traffic congestion, particularly during peak hours.

Modelling of Congestion Pricing in Kota Kinabalu
A pilot study on the modelling of congestion pricing in Kota Kinabalu concluded that the congestion charge price affects the readiness of residents to shift from using their private vehicles to public transport. This suggests that improving public transport options and implementing congestion pricing measures could encourage a modal shift towards more sustainable transportation.

Overview of Transportation Issues in Kota Kinabalu
A research paper published by the Universiti Malaysia Sabah provided an overview of the transportation issues in Kota Kinabalu. The study identified the variety of transportation systems available, determined the problems faced, and highlighted the impacts of inadequate public transport on the city's development.

Comparative Study with Changsha City Centre
A comparative study between Kota Kinabalu and Changsha City Centre found that KK's public transport system suffers from longer average travel times, degraded travel efficiency, poor road network adaptability, and large-scale traffic jams. These issues are directly linked to the inadequacies of the public transport system.

In summary, the studies conducted in Kota Kinabalu have consistently highlighted the negative impacts of inadequate public transportation, including user dissatisfaction, traffic congestion, and reduced economic and social development opportunities. These findings underscore the urgent need for improvements in public transport infrastructure and services to enhance the liveability and sustainability of the city.

Redefining Human Lifestyles in the 21st Century

2024-09-25T07:48:00.000-07:00

The AI Revolution: Redefining Human Lifestyles in the 21st Century

Artificial Intelligence (AI) has rapidly evolved from being a concept of science fiction to becoming one of the most essential drivers of technological and societal change in the 21st century. AI is no longer a futuristic vision confined to laboratories; it is now deeply integrated into the fabric of everyday life, shaping how humans work, live, and interact.

As AI systems become more ubiquitous, they redefine human lifestyles in profound ways, affecting health, work, homes, entertainment, transportation, and social interactions. However, as with all major technological advancements, this transformation comes with its own set of challenges and ethical considerations.

AI in Health and Well-Being

One of the most transformative impacts of AI can be seen in healthcare, where it is revolutionizing how we diagnose, treat, and manage health and well-being. AI-powered systems, such as wearable fitness trackers and health apps, monitor vital signs, sleep patterns, and activity levels, offering real-time feedback that enables individuals to make healthier lifestyle choices. For example, devices like Fitbit and Apple Watch can detect anomalies in heart rates or sleep cycles and offer personalized recommendations for improving one’s fitness regimen or daily routine.

AI’s impact goes far beyond consumer health wearables. In diagnostics, AI algorithms analyse medical data, including imaging scans, patient histories, and genetic information, to assist doctors in diagnosing diseases earlier and with greater accuracy. For instance, AI tools are now being used to detect cancers, heart disease, and neurological conditions at early stages, potentially saving lives through timely interventions. Predictive algorithms also allow for more personalized treatment plans, considering an individual's unique genetic and lifestyle factors.

In the realm of mental health, AI has opened up new possibilities for personalized care. AI-powered applications offer users tools for mood tracking, stress management, and even cognitive behavioural therapy (CBT). These apps make mental health care more accessible by offering therapy programs tailored to the individual and removing traditional barriers such as high costs and the stigma associated with seeking help. This democratization of healthcare is empowering individuals to take control of both their physical and mental health in ways that were not possible a decade ago.

However, while AI offers immense potential, it also raises ethical concerns regarding data privacy and the potential for over-reliance on technology in healthcare. The data collected by AI health tools is sensitive and ensuring that it is stored securely and used responsibly is essential to maintaining patient trust.

AI in Work and Productivity

The transformation of the workplace through AI has been one of the most discussed aspects of technological progress. AI is fundamentally reshaping how tasks are performed, what kinds of jobs exist, and the skills required to thrive in a modern economy. Routine tasks that once required human input—such as data entry, customer service, and scheduling—are now automated through AI, freeing up employees to focus on more creative and strategic initiatives.

For example, AI-powered virtual assistants, like those from Google or Microsoft, manage emails, schedules, and data analysis. These tools are drastically improving workplace productivity by handling repetitive, mundane tasks more efficiently than humans could. AI also streamlines complex tasks such as data mining and financial analysis, offering real-time insights that help businesses make more informed decisions.

However, the introduction of AI into the workforce has created both opportunities and challenges. While AI creates new roles—particularly in areas like AI development, data science, and human-AI collaboration—it is also rendering certain jobs obsolete. Automated customer service bots, for example, are replacing traditional call centre roles, and self-checkout machines in retail stores are reducing the need for cashiers.

This shift emphasizes the importance of lifelong learning and adaptability. To remain competitive in an AI-driven economy, employees need to continuously acquire new skills, particularly in data analytics, coding, and complex decision-making. The rise of AI will likely increase the demand for jobs requiring emotional intelligence, critical thinking, and human oversight—areas where humans excel over machines.

AI’s integration into the workplace is also leading to a debate about the future of work. Will AI augment human capabilities, or will it eventually replace humans in more complex tasks? While the long-term effects are still unfolding, it is clear that AI will continue to shape the global workforce in profound ways.

AI in Homes and Daily Living

The integration of AI into homes is another significant shift that is redefining human lifestyles. The modern home has become "smarter" thanks to AI-powered devices and applications. Virtual assistants such as Amazon’s Alexa, Google Assistant, and Apple’s Siri are transforming how we interact with our living spaces. These AI-driven systems respond to voice commands, allowing users to control everything from lighting and temperature to security systems and entertainment. Smart home technologies are offering unprecedented convenience by automating everyday tasks, creating a seamless integration of AI into daily living.

AI also plays a pivotal role in enhancing energy efficiency in homes. Smart thermostats, such as Google’s Nest, learn user preferences and optimize heating and cooling systems to reduce energy consumption without sacrificing comfort. AI-enabled lighting systems adjust brightness based on the time of day or the presence of people in the room. As a result, homes powered by AI become more sustainable, reducing both energy costs and environmental impact.

Beyond smart devices, AI is revolutionizing household management. AI-powered cleaning robots, such as iRobot’s Roomba, automate floor cleaning, and AI-driven grocery delivery services simplify meal planning and shopping. These technologies are freeing families from time-consuming chores, allowing more time for personal interests and relationships. In essence, AI is changing the dynamics of home life, improving convenience, security, and overall quality of living.

While AI is making homes more efficient, there are concerns about data privacy and surveillance. Many of these smart home devices collect significant amounts of data about user habits, raising questions about how companies use and store that information. Protecting privacy while leveraging AI’s benefits is a delicate balance that needs careful consideration.

AI in Shopping and Entertainment

AI’s impact on consumer behaviour is most visible in the way we shop and consume media. E-commerce platforms such as Amazon, Shopee, and Lazada use AI to create highly personalized shopping experiences. These platforms employ recommendation engines that analyse user browsing history, preferences, and past purchases to offer tailored suggestions. This level of personalization enhances the user experience, making shopping more efficient while increasing customer satisfaction and engagement.

In addition to e-commerce, AI plays a significant role in the entertainment industry. Streaming platforms such as Netflix, YouTube, and Spotify use machine learning models to recommend content based on user preferences. These algorithms analyse viewing or listening habits and continuously refine recommendations to keep consumers engaged. AI helps platforms curate content in a way that aligns with individual tastes, ensuring users are exposed to media that interests them, thus enhancing entertainment consumption.

AI is not only shaping content recommendations but is also influencing content creation itself. Tools powered by AI are being used to generate music, write scripts, and create visual art. AI has even been employed in filmmaking and video game development, helping creators streamline workflows and enhance creativity. While these tools assist human creators, they also raise philosophical questions about the nature of creativity and whether AI-generated content should be considered "art."

AI in Transportation and Mobility

The transportation sector is another area undergoing a major shift as AI is integrated into mobility solutions. Autonomous vehicles are at the forefront of this transformation, with companies like Tesla and Waymo leading the development of self-driving cars. These AI-powered vehicles promise safer roads, reduced traffic congestion, and more efficient energy use. Although fully autonomous vehicles are still in development and face regulatory hurdles, AI-driven systems are already being implemented in conventional cars to assist with tasks such as navigation, collision detection, and adaptive cruise control.

In public transportation, AI-powered traffic management systems are optimizing routes to reduce congestion and minimize fuel consumption. AI analyses real-time data on traffic flow, weather conditions, and road usage, adjusting traffic lights and recommending alternative routes for drivers. These smart systems contribute to making cities more sustainable by reducing emissions and improving the efficiency of transportation networks.

Ride-hailing services such as Grab and Uber also use AI to match drivers with passengers efficiently, optimizing routes and reducing wait times. AI’s integration into transportation is not only making travel more convenient but also playing a critical role in sustainability efforts by cutting down carbon emissions and energy consumption.

6. AI and Social Interaction

AI is even transforming how humans interact with one another, particularly on social media platforms. AI algorithms curate content feeds, ensuring users see posts and updates that align with their interests. This personalized experience enhances engagement, but it also comes with challenges. Algorithms can inadvertently create "echo chambers," where users are exposed primarily to viewpoints similar to their own, reinforcing biases and limiting exposure to diverse perspectives. This raises ethical concerns about the role AI plays in shaping public discourse and influencing social interactions.

On a more personal level, AI is enhancing communication through translation apps and virtual meeting platforms. Real-time translation services powered by AI, such as Google Translate, are bridging language barriers, making global communication more accessible. AI-powered virtual meeting tools, like Zoom and Microsoft Teams, enable seamless communication across geographies, facilitating remote work and international collaboration.

AI’s role in social interaction is undoubtedly making the world more interconnected, but it also raises questions about privacy and the over-reliance on algorithms for personal relationships.

The Ongoing Transformation of Lifestyles through AI

AI’s influence on human lifestyles in the 21st century is undeniable. From healthcare and work to homes, entertainment, and transportation, AI is enhancing productivity, convenience, and personalization. However, this transformation is not without challenges. Ethical concerns regarding data privacy, job displacement, and AI’s potential impact on human creativity and decision-making need to be addressed as AI continues to evolve.

The redefinition of human lifestyles through AI is an ongoing process. While AI offers tremendous benefits, balancing technological advancement with human-centric values is crucial. The future of AI holds immense possibilities, and how society navigates this transformation will determine whether AI ultimately enhances the quality of life for all or exacerbates existing challenges. Responsible development and ethical governance of AI will be key to ensuring that its impact remains positive and inclusive.

AI’s influence on human lifestyles in the 21st century is undeniable, with profound changes seen across a wide range of domains, from healthcare and work to homes, entertainment, and transportation. AI’s ability to enhance productivity, increase convenience, and provide personalized experiences is reshaping the way people live, work, and interact with the world. However, as AI continues to evolve, it brings with it a set of complex challenges that require careful consideration.

One of the central questions surrounding AI’s ongoing transformation is how to ensure that the benefits are distributed equitably across society. While AI promises enhanced efficiency and personalized services, not everyone has equal access to these technologies. The digital divide, particularly between developed and developing nations or even within different regions of a country, could exacerbate social inequalities. Policymakers, businesses, and governments must work together to bridge this gap, ensuring that AI’s transformative power is accessible to all and does not widen the socio-economic divide.

AI raises significant ethical concerns, particularly around data privacy, autonomy, and accountability. With AI systems collecting and processing vast amounts of personal data, individuals’ privacy is more vulnerable than ever before.

2024-02-08T05:54:00.000-08:00

The Organisation of Ports in Sabah

Port operations are a vital component of maritime trade, with compliance in environmental and safety practices being paramount for sustainable operations. Port operations constitute an essential pillar of Sabah's regional economy, prominently featuring Sabah Ports Sdn. Bhd. and POIC Ports as key players. In Sabah, the regional economy is heavily reliant on port operations. Their licensing agreements set the foundation for their operations, roles, and responsibilities.

Ports in Sabah are organized and managed to cater to various types of maritime activities, ranging from container handling to oil and gas services as well as palm oil products. The landscape of port management and operations includes both publicly managed and private ports, reflecting a blend of government oversight and private sector efficiency aimed at enhancing the state's maritime infrastructure and trade capabilities. Private ports in Sabah, often specialized and developed to cater to specific industries or economic zones, play a crucial role in the region's economic development.

Aside from a defined ports structure as being either a public or a private port, there are also proliferations of what are termed as 'Private jetties' in Sabah to serve a variety of purposes, ranging from supporting the operations of specific industries to providing access for private resorts and tourism activities. These jetties are essential components of Sabah's maritime infrastructure, facilitating efficient transportation and logistics, particularly for sectors such as palm oil, timber, aquaculture, and tourism.

Sabah Port Authority Enactments

The Sabah Ports Authority within the context of its Enactment (17 of 1981), act as the landlord of all wharves, servicing ships on a common-user basis, and oversees warehouses that serve as transit storage for goods. The Privatisation Enactment (2 of 1998) marks a significant shift in the management of Sabah’s ports, redefining the Sabah Ports Authority (SPA) from a direct operator to a regulatory and oversight body.

Privatisation Agreements

The Sabah Ports privatisation agreement refers to the transfer of operational rights and responsibilities of ports in Sabah, Malaysia, to a private entity. This process typically involves the government of Sabah entering into an agreement with a private company, allowing the company to manage, operate, and possibly develop the ports in exchange for a concession period. The objectives of such privatisations are often aimed at improving efficiency, attracting private investment, enhancing port infrastructure, and providing better services to port users.

The privatization agreement has significantly transformed the operational landscape of Sabah's ports, redefining the roles and responsibilities of the Sabah Ports Authority (SPA). As the regulatory body, SPA's functions have been adjusted to focus more on oversight, strategic planning, and policy development, ensuring that port operations align with broader economic and environmental goals.

Regulatory Oversight

SPA's paramount role involves establishing comprehensive regulations and standards to govern port operations, focusing on efficiency, safety, security, and environmental protection, ensuring all port operators comply with these standards.

Strategic Planning and Policy Development

SPA engages in strategic planning and policy development to guide the growth and development of port infrastructure and services, aligning with broader economic and developmental goals.

Licensing and Concession Management

The authority is responsible for issuing licenses to port operators and managing concessions, ensuring that these entities meet the operational, safety, and environmental standards set forth by SPA.

Infrastructure Development Oversight

SPA oversees and approves major infrastructure development within ports, ensuring projects align with strategic objectives and operational requirements, and meet the future demands of trade and logistics.

Environmental Protection and Sustainability

SPA enforces environmental standards, promoting sustainable practices among port operators to minimize ports' environmental impact and ensure compliance with national and international environmental guidelines.

Safety and Security Enforcement

Ensuring the safety and security of ports and maritime operations falls under SPA's remit, including the implementation of security protocols in line with international maritime security standards.

Stakeholder Engagement

SPA plays a crucial role in mediating and facilitating dialogue and collaboration among various stakeholders, including port operators, government bodies, and local communities, to ensure port operations are aligned with public and economic interests.

Monitoring and Performance Evaluation

SPA monitors the performance of port operations, conducting evaluations to ensure port operators meet efficiency and service quality benchmarks, and taking corrective actions when standards are not met.

Privatised entities

In Sabah, two distinct entities have come under a concession agreement with Sabah Ports Authority, i.e., Sabah Ports Sdn. Bhd. and POIC Ports playing significant roles. Their licensing agreements set the foundation for their operations, roles, and responsibilities.

Legal and Regulatory Framework

Sabah Ports Sdn. Bhd. operates under a comprehensive licensing agreement that outlines its duties and rights in managing several ports across Sabah. This agreement is regulated by the Sabah Ports Authority.

POIC Ports, particularly in Lahad Datu, are governed by a different set of agreements and regulations, tailored to the specific industrial and developmental goals of the Palm Oil Industrial Cluster (POIC).

Scope of Operations

Sabah Ports Sdn. Bhd. is licensed to manage a wide range of port operations, including container handling, bulk, and liquid cargo, and providing logistic solutions.

POIC Ports have a more focused operational scope, primarily supporting the palm oil industry and related sectors, including the facilitation of raw materials and processed goods.

Roles and Responsibilities

Sabah Ports Sdn. Bhd. is responsible for ensuring the efficiency, safety, and security of port operations across its managed ports.

POIC Ports have a unique role in integrating port operations with the industrial needs of the POIC, emphasizing on facilitating the export of palm oil products and related commodities.

Compliance and Standards

Both entities are required to comply with national and international maritime standards, but POIC Ports may have additional compliance requirements related to environmental and industrial standards due to their specific focus on the palm oil sector.

Impact on Regional Development

Sabah Ports Sdn. Bhd. plays a crucial role in general economic development, enhancing trade and connectivity for a broad range of industries in Sabah.

POIC Ports are strategically important for the development of the palm oil industry and related sectors, contributing to job creation and economic diversification in targeted regions.

Challenges and Opportunities

Sabah Ports Sdn. Bhd. faces challenges in managing diverse operations and meeting the growing demands of international trade. Opportunities lie in expanding port capacities and enhancing technological integration.

POIC Ports encounter specific challenges related to industrial growth and environmental sustainability. There are significant opportunities in leveraging the growth of the palm oil industry to expand port and logistic services.

As an overview, the licensing of Sabah Ports Sdn. Bhd. and POIC Ports reflects their distinct roles in Sabah's maritime and industrial landscape. While Sabah Ports Sdn. Bhd. is focused on a broad range of port operations essential for the state's overall economic development, POIC Ports are specialized, aiming to support and stimulate the growth of the palm oil industry and related sectors. Understanding these differences is crucial for stakeholders to navigate the opportunities and challenges within Sabah's maritime and industrial sectors effectively.

Summary

Under the Privatisation Enactment, SPA's functions and responsibilities have evolved to ensure that the privatization of port operations aligns with Sabah's strategic interests. Through regulatory oversight, strategic planning, and stakeholder engagement, SPA ensures that privatized ports operate efficiently, safely, and sustainably, contributing to the region's economic development and competitiveness in the regional maritime industry.

As for private jetties operations in Sabah they continue to be under license given by SPA. Some of them will graduate into a full bloom private ports depending on the nature and volume of trades managed. A couple may be fully operated commercially as a public port looking at the future of the economy of Sabah taking advantage of development within the BIMP-EAGA Regions especially on the move of the Indonesian capital to Nusantara in East Kalimantan. END.

A Transport Masterplan for Sabah

2024-02-08T05:39:00.000-08:00

I have elaborated in my previous article on the setting up of a Sabah Logistics Council (SLC). This is a critical precursor towards a transport masterplan for the state. I am now attempting to fast forward a situation where on the successful setting up of the SLC, what would it take to bring us to a transport masterplan.

A transport masterplan is a comprehensive and long-term strategy that outlines the vision, goals, and objectives for the development and management of a transportation system within a specific region or city. The underlying factors considered in formulating a transport masterplan can vary depending on the local context and specific needs, but here are some common factors:

1. Population Growth: Understanding the projected population growth in the area is crucial as it directly impacts transportation demand. The masterplan should account for the anticipated increase in residents and their commuting patterns.

2. Existing Infrastructure: Evaluating the current transportation infrastructure, including roads, highways, railways, airports, and public transit systems, helps identify strengths, weaknesses, and areas in need of improvement or expansion.

3. Mobility Patterns: Analysing existing travel patterns, including commuting flows, peak travel times, and traffic congestion hotspots, provides insights into the current transportation needs and challenges. This information can guide the development of strategies to enhance mobility and reduce congestion.

4. Land Use and Urban Planning: Coordinating transportation planning with land use and urban planning is crucial. Integrating transportation considerations into land use decisions helps create walkable neighbourhoods, encourages transit-oriented development, and reduces the need for long-distance travel.

5. Environmental Sustainability: Promoting sustainable transportation solutions is essential for reducing greenhouse gas emissions, improving air quality, and minimizing the environmental impact of the transport system. The masterplan should incorporate strategies to encourage the use of public transit, walking, cycling, and electric vehicles.

6. Economic Development: Recognizing the role of transportation in supporting economic growth is important. The masterplan should consider the transportation needs of businesses, industrial areas, commercial centres, and logistics hubs to ensure efficient freight movement and facilitate trade.

7. Technological Advancements: Keeping abreast of emerging technologies and transportation innovations is crucial for a forward-looking masterplan. This includes considering intelligent transportation systems, electric and autonomous vehicles, mobility-as-a-service (MaaS) platforms, and data-driven approaches to optimize transportation operations.

8. Stakeholder Engagement: Engaging with various stakeholders, including government agencies, transportation operators, community organizations, businesses, and the general public, ensures that the masterplan reflects diverse perspectives, needs, and aspirations. Collaborative decision-making and input from stakeholders can lead to more effective and widely accepted transportation solutions.

9. Funding and Resources: Developing a realistic financial framework to support the implementation of the masterplan is essential. Assessing available funding sources, potential public-private partnerships, and exploring innovative financing mechanisms can help ensure the feasibility and sustainability of the proposed transportation initiatives.

By considering these underlying factors, a transport masterplan can guide the development of a transportation system that is efficient, sustainable, and responsive to the needs of the community it serves and for improvement of the supply chain industry in general.

There are many examples of transportation master plans in our country. For instance:

• Penang Transport Master Plan (PTMP) is a comprehensive and well-connected transport strategy that sets the framework for an integrated and modern transport system in Penang, Malaysia. It covers both land and sea, comprising various transportation systems and services such as an elevated light rail transit (LRT) line, bus rapid transit (BRT), tram, taxi, e-hailing, ferry and water taxi.

• National Transportation Master Plan (NTMP) is a policy document that guides the development of the logistics industry in Malaysia to further improve its productivity and competitiveness with the vision to become “The Preferred Logistics Gateway to Asia”. The NTMP outlines five strategic shifts and 21 action items to be implemented.

• National Transport Policy (NTP) 2019-2030 is an overarching policy that provides direction for relevant federal ministries and agencies as well as state governments and local authorities in Malaysia to develop and streamline transport initiatives towards a common goal. The NTP aims to enhance mobility for all Malaysians while ensuring environmental sustainability.

As for now the overall situation in the state as regards the logistics and transport industry is as follows:

1. Sabah lacks the basic transport and logistics infrastructure to serve its economics needs. There is a need to put things in perspective before we can embark upon a comprehensive masterplan.

2. There is critical need for data support for any planning to take place. Data from the supply chain industry is crucial towards any planning efforts to take place.

3. The need to set up a body such as a Sabah Logistics Council (SLC) is crucial to take stock of things and to put things in perspective to enable analysis of the status of ongoing activities.

4. There is no coordinating body to address issues faced by the industry especially of logistics players in providing efficient services. This is where the SLC role will serve as a one roof institution to collect data and information and to harness them and recommend for ways of resolving them.

5. The prime objective is to put things in perspective so that we can put up the basic needs of the economy which is to facilitate trade.

6. With trade facilitation mechanism in place, it would be timely for a Transport Masterplan to be mooted.

7. It is therefore crucial that all stakeholders need to play their roles to ensure that we have the necessary data collected and collated to move forward efficiently.

These are crucial needs towards an eventual transport masterplan for Sabah. With a masterplan we should then be able to steer and facilitate trade and the economy in a planned and sustainable manner. This way we will be better able to channel the finances towards a cohesive transport infrastructure development. Budgeting towards harnessing transport needs of the community will be well directed towards a cohesive transport infrastructure development and improve mobility and improving the supply chain economy.

We take note of two master plans, namely the Kota Kinabalu Public Transport Master Plan and the Traffic Improvement and Urban Transport Master Plan for Kota Kinabalu Central Business District (CBD), which will complement the bigger picture of a grand masterplan. It is therefore timely that we take such plans to a higher level covering a broader perspective of the logistics and transport industry to work towards an efficient, productive and sustainable economy for the whole state.

END.

Seaport as a Logistics and Industrial Node in Global Supply Chains

2024-02-08T05:20:00.000-08:00

Seaport as a Logistics and Industrial Node in Global Supply Chains

Quoting a study entitled ‘Institutions and Industrial Development in Sabah’, published in 2022 by Firdausi Suffian, Kasim Mansur, Ika Suzieana Jamluddin, Arnold Puyok , and Azmi Abdul Majid, I found several phrases that are of profound importance when discussing about economic reforms. These are that:

i. Industrialization is the key to structural change.

ii. The institutions embedded with political consideration and private interests somehow has constrained the state to implement effective industrial policy.

iii. There is scant attention on the role of institutions to take centre stage in analysing in economic growth and development.

iv. Institutions are widely known as “rules of the game” in a society.

v. Industrial development has wide sectoral interlinkages that have the capacity to pull the rest of the economy in all sectors.

In the foregoing article, these phrases are of profound importance when discussing the role of ports in the economic development of any country. The port as an institution are critical enablers and catalyst of the speed and impact it makes to the state economy. The critical role of the port as an institution towards the management of the economy is what spurs me to introduce the subject matter for a better understanding of its roles and functions and eventual responsibility to the state.

Seaports are points of convergence between the land and the sea of passengers and freight activities. While the marine side can involve huge geographic coverage related to global trade, the land side is related to the region and locality of ports.

Ports handle high volume of freight, as against other type of terminal combined.

The emergence of civilisation saw the start of trade networks which later require ports as its outlets. Ports have played a crucial role in facilitating trade and commerce across the world ever since. Although maritime transport technology has much evolved, the role and function of ports basically remain the same. Ports serve as gateways for international trade, connecting countries and regions across the world. They play a vital role in the global economy by generating employment opportunities and contributing to the growth of various industries.

It’s fascinating to see how seaports have evolved over time, and it will continue to play a critical role in shaping the future of our world.

A port is traditionally defined as a transit area, a gateway through which goods and people move from and to the sea. It is a place of contact between the land and the sea that is termed as a node where ocean and inland transport systems interact, and a place of convergence for different transportation modes. Since the sea and inland transportation modes have different capacities, the port assumes the role where cargo is consolidated or deconsolidated, known as a load breakpoint.

In general, ports are classified into two categories, seaports, and inland ports.

The ports are diverse in sizes and functions. Ports also have a geographical diversity in terms of the sites being used for port activities such as rivers, bays to offshore locations and now a truly port on land called inland port.

The ports can be described from a supply chain perspective as being, ‘A seaport is a logistics and industrial node in global supply chains with a strong maritime link with clusters of activities directly or indirectly linked to transportation and logistics processes within global supply chains.’

Defining the Seaport

A modern seaport is not solely considered as a load breakpoint in various supply chains but should be considered a value-adding transit point. As nodes within transportation and logistics networks, ports have a location, whose relative importance can fluctuate given economic, technical, and political changes. This location capitalises on the advantages of a port site characterised by fundamental physical features influencing the nautical profile, such as water depth, access channels, and availability of land.

Categorisation of Seaports

The diversity of ports can be ascertained by their classification into various types of ports according to their specific role and functions. Ports can be categorized based on many dimensions, such as:

Scale. Refers to port size in terms of its area, annual cargo throughput, the size of its hinterland, the number of shipping services it is connected to, or the number of customers. The scale of a port is commonly associated with its economic and commercial importance in the market it serves.

Geographical attributes. Refers to the main characteristics of the port site and situation. There are various locational setting of port sites, such as in a bay, along a coastline, on a river, or in an estuary. Many sites have natural advantages, while for others, the site needs to be improved with dredging and landfills. Although a port site is fixed, its situation is relative to the main shipping lanes and hinterland, or its proximity to and interactions with cities or urban areas it served.

Governance and institutional settings. Refers to the terms of land ownership and the roles of institutional arrangements between the public and private sectors. Many ports are publicly owned but have terminals operated by private organizations.

Port functions. Refers to the range of services offered by the port, such as cargo handling, logistics, and distribution, industry, and maritime services. They are subject to competitive elements since the services offered by one port can be offered by another port.

Specialization. Refers to the cargo handled, such as containers, conventional general cargo, liquid bulk, dry bulk, or roll-on-roll-off cargo. Some ports are specialized in handling passenger traffic, namely cruise ships and ferries. Another specialization is based on port-centric industries such as steel plants, energy plants, automotive, or chemical industries. Logistics activities are also an important contributor to port specialization.

Ports serve a derived demand that can be segmented into specific markets. These markets include cruise ports and terminals, the break-bulk market, ports as complexes supplying and distributing energy, the provision and management of containers, and the cold chain technology that has allowed ports to play an active role within these supply chains, particularly with refrigerated containers (reefers).

One of the main driving forces of change in the port industry emerges from globalization and the shift from supply-driven to demand-driven economies. The supply-driven economy was based on economies of scale in production, standardization, and mass consumption of standard products. This approach changed as a growing individualism began to have an impact on consumption patterns. This brought about a shift to a more demand-driven economic system, combined with global production networks on the supply side of the markets.

I hope this information has provided some insights into the characteristics of seaports and is intended for educational purposes in helping to disseminate knowledge and awareness of the important function of a port in any economic development. We shall explore how our local ports in Sabah fare within the context discussed above in a future article. Seaports play a crucial role in the economic development of Sabah and reportedly the port operations in Sabah generated 90.1% of the operating ports total revenue in 2020 END.

Illustration:

Catalysing Sabah's Logistics Sector: Unveiling the Sabah Logistics Council

2023-12-09T14:12:00.000-08:00

ARTICLE FOR PUBLICATION WITH ASIA TIMES PULSE (Published on 30th Nov., 2023) Catalysing Sabah's Logistics Sector: Unveiling the Sabah Logistics Council In an era characterised by swift economic evolution and global connectivity, the significance of robust logistics and transportation systems cannot be overemphasized. Sabah, a pivotal Malaysian state, has astutely recognised the pivotal role these sectors play in its growth and competitiveness. To steer the trajectory towards progress, the state is introducing a visionary initiative - the Sabah Logistics Council (SLC). This forward-looking council is poised to redefine the logistics landscape and usher in a future brimming with potential. Championing the Vision The foremost objective of the Sabah Logistics Council is to institute a specialized body that comprehensively addresses every facet of logistics and transportation within the state. This strategic endeavour is essential for discerning the intricacies of logistical development in Sabah, ensuring the efficacious implementation of initiatives, and effectively resolving pertinent issues within the logistics domain. Moreover, the SLC will wield its influence to furnish leadership and synchronization, amplifying the overall logistics and transportation sector in Sabah. By bolstering these sectors, the state administration aims to stimulate investments, kindle economic growth, and uphold its competitive standing in both local and global arenas. Architecting a Blueprint for Success The beating heart of the Sabah Logistics Council's mission lies in crafting and executing an all-encompassing Sabah Transportation Masterplan. This strategic blueprint shall serve as the compass for enhancing the administration, operation, and proliferation of logistics and transportation infrastructure across the expanse of the state. This ambitious venture aspires to transform Sabah into a bustling logistics hub that caters to the region's internal requirements while firmly establishing itself as a commanding player in the broader logistics landscape. A Symphony of Collaboration The establishment of the Sabah Logistics Council heralds an era of heightened collaboration between governmental entities, private sector stalwarts, and other stakeholders immersed in logistics and transportation. This alliance holds the power to expedite project implementation, facilitate knowledge sharing, and harmonize efforts to optimize infrastructure growth and efficiency within the sector. Furthermore, the council assumes the responsibility of tackling pressing challenges encountered by industry players, ranging from bridging infrastructure gaps and navigating complex regulatory terrains to countering skill deficiencies. By doing so, the Sabah Logistics Council endeavours to sow the seeds for an ecosystem that propels sustainable growth and resilience. CILTM: The Driving Force At the epicentre of this transformative journey stands the Chartered Institute of Logistics & Transport Malaysia (CILTM). As the industry lead body for both the Ministry of Human Resource and the Ministry of Transport, CILTM is uniquely poised to infuse expertise, innovation, and direction into the logistical fabric of Sabah. Notably, CILTM's eminence extends beyond its role as an industry lead body; it assumes a pivotal role in the working group, ensuring its integral participation in every facet of the council's operations. A Permanent Secretariat: A Steadfast Pillar To ensure the seamless execution of its mandates, the Sabah Logistics Council will be fortified by a dedicated permanent secretariat. This administrative backbone will play a pivotal role in coordinating activities, streamlining communication, and overseeing the day-to-day functioning of the council, thereby ensuring the fulfilment of the council's envisioned objectives. Charting the Path Forward The launch of the Sabah Logistics Council marks a watershed moment in the narrative of Sabah's logistics and transportation sectors. By converging an array of stakeholders under a single banner, the council endeavours to forge a unified approach towards surmounting challenges, embracing opportunities, and forging an unprecedented era of growth. Sabah's voyage towards becoming a regional logistics powerhouse has commenced, spearheaded by the Sabah Logistics Council and further invigorated by the indomitable spirit of CILTM. Through collaboration, strategic planning, and visionary leadership, Sabah stands poised to emerge as a beacon of logistics excellence, galvanizing economic progress and elevating the well-being of its people to unprecedented heights. END. Ts Hj Ramli Amir Former President, The Chartered Inst. of Logistics & Transport, Malaysia (CILT MALAYSIA) Currently CILT International Vice President for Southeast Asia

Transport, logistics and supply chain education

2018-06-17T06:27:00.002-07:00

Transport, logistics and the supply chain education

The words transport, logistics and supply chain had been used very loosely in public when discussing on issues with regards to the movement of people or goods. A good many debates had ensued as a result as to which particular heading is fit for its purpose.To get things started let me just bring you to how I myself was dragged into this realm of the issue and how I slowly began to understand its proper usage in a particular circumstances and context.

After completing my Higher School Certificate in 1972, those days we have to wait a few months until about march the next year to await for the results to be out. Those were the free time when opportunity to earn some pocket money were aplenty those days doing temporary jobs and those days even as temporary workers we can afford to jump from job to job. I was one of those. Having secured a job as a personnel clerk with Malaysia Airlines and being there for some three months, I was off to join Radio Television Malaysia to be a deejay with the English Service then. It was a very enjoyable stint spinning songs during the odd hours. We had a chance to read news, even though it was to be a late late news, when I thought people are already fast asleep and no one is actually listening to you. That was that when good fortune strike again when opportunity arose with Sabah Ports Authority offering the position of Assistant Traffic Superintendent (ATS) with a basic salary of RM500.00 a month which in those days were the highest paying job basing on the School Certificate results. This was the actual beginning of my introduction to the transport world, not withstanding I was with MAS not long back, but it was as a backroom job. This is different as ATS as we were known then, we were at the forefront of things and directly pitched into the daily operational routines ensuring that ships are berthed, cargoes are properly handled on discharge. We also have to assure that cargo space in the godown are provided to store the incoming goods. The job is about cargo handling efficiency both on the wharf and also in the godown.

Being young and having foregone the opportunity of continuing and furthering our education after completing our School Certificate or HSC for the good money offered then, I was lucky that the desire to further my education was kept burning. It was also good that there was this Chartered Institute of Transport (CIT) based in the United Kingdom (UK) offering external course on the subject of Transport. To further our education means we have to pay our ways through correspondences courses and enter for its yearly examination as an external student. The papers were prepared and sent all the way from UK. As an external examination it was deemed tough and passes appears a rarity. It was an examination divided into four parts, with Intermediate at 2 levels and finals at 2 levels. It was accepted that passing all the levels in four years means a creditable. By god’s grace I made it within this time frame. This was my introduction to the transport world for the movement of people and goods.

Transport

During those time, issues pertaining to the movement of people and goods were focus on the modes of transport itself ie the buses, the lorries, the ships and planes. It was a question whether there were enough ships and buses, never mind the late schedules. So the terminology of “transport” used then was apt for the point in time. It was the time of the Agricultural revolution where tools and equipment to harvest the produce were seen in numbers. And there were also great needs of trucks to transport the produce. So everything is transport for conveyance of either goods or people.

Come the early part of the Industrial Revolution there were mass production of engines and other equipment. The need to have enough number of buses and other modes of transport were satisfied. When needs are satisfied new needs will arise. What are they. An affluent society now needs not only the numbers of transport vehicles but need them as vehicle to meet an ever rising demand for convenience and comfort. It is now not enough that you have the number of buses but society now needs certainty on bus schedules. Demanding for certainties on bus schedules means that other than ensuring that the number of buses are available, it must now be available on time as per schedule. How do we ensure that the schedules are met. It can only be done with proper detailed plannings which involve a lot of backroom planning involving the workshop and mechanics to ensure buses are running smoothly all the time. Welcome to the logistics world!

The logistics system

At the time when logistics role becomes relevant to society, there was this Institute of Logistics that has been established to look after the education and enhancement of the logisticians

Remember when transport was first made available, having buses is god sent, never mind it runs late. As society is fed regularly with this service and as society becomes affluent, demand for a higher lifestyle becomes the order of the day. The society now wants a scheduled service and that failing to meet the schedule means it is a derogation of lifestyles and abrogation of responsibilities.

In the logistics system, what goes behind the machine or the vehicles performance and efficiency is the result of efficient logistics system that has taken place behind what the public see on the road. The pains and sufferings of the logisticians behind the efficient performance of the vehicles is the result of commitment of those men putting in the odd hours to ensure the bus are available for public service very early the next morning. Very little appreciation is given to this group of people by the public.

However it goes without saying that the lot more effort in ensuring bus running efficiency does cost money to maintain such services. We know every new demand of society must go along with it a cost to it. It is only fair and has been a reflection of transport and logistics costs throughout.

Transport and logistics in perspective

We have thus far seen the workings of two economic activities and what they serve in their everyday usage as perceived by the community at large. What about supply chain then. Supply chain is the management of the elements or activities on the actual transport demanded and its efficient performance as depicted by the logistics systems that goes behind the transport activities.

The supply chain

Envisage a big picture where the activity of say the production of an automobile. The production of cars has to gather all the components and raw materials that are needed to produce them. The tyres, the interior panelling, windscreens, power window components the chassis and the engines and many others has to be assembled or made elsewhere and brought to the assembly plant to be fully assembled. The production of the windscreen maybe made in other factories that specialises in making them. To move the screen to the main assembly plant one has to use transport vehicles and this aspect is rightly called the transport mode. Once the screen reaches the assembly plant it becomes another logistics items in the list of inventories kept in the warehouse of the assembly plant. How it is stored and taken out is systemised for easy identification for storing and retrievals.

Now when all parts including the screen had been fitted to form a complete car,it is ready for shipment out to their sales department that market the cars. Again the movement of the completed vehicle out of the assembly plant by using vehicular trucks that could carry up to ten cars to bring to the sales depot is a mode of transport.

Overall as a big picture supply chain management tracks down the flow of production from the ordering or procurement of parts and other raw materials factories to the main assembly plant and from there to the sales depot and finally to wholesalers and individual customers. How efficient is the whole process from obtaining of the raw materials or parts to the time when final customer got to drive the car matters in the context of supply chain management. To supply chain managers an efficient system must not allow for any hiccups along the process that may delay the delivery of the vehicles within the targeted period of production.

The Impact of specialisation

In perspective, all fresh graduates will find job that will allow them to slowly gather experience that has not been taught at school. A fresh graduate cannot be made to shoulder a responsibility which far outweigh his capability to carry out such job relying on just his school degree and no experience.

In the field of logistics graduates are exposed to the specialisation of jobs say in the warehouse where he first start as stock taker and later moved to procurements of supplies and parts. He may later be moved to other sections like the delivery section taking charge of delivery of goods as ordered by their customers.

In the banking industry, when one graduate even with an MBA, he has to start with at the front desk ie at the counter. This the usual training process as exposure for any budding banker. He may later be moved to say the loans and credit departments and so on to gather the experiences and be able to see a section if not all the big picture in running a banking outfit.

The positioning of supply chain management

Once the person has experienced the bigger part of the banking industry work process, he maybe slowly introduced to position of responsibility as head of corporate loan division which by itself requires experience to handle credits and loans issue which at a higher level involving billion dollar credits, it calls for heavy responsibility to recommend for such loan to be given out. Over time he might be ready to helm the banking overall management.

We will recall that all those experiences he had earlier are all specialised activities which when collected over time will provide him with good over all big picture to prepare him for the future big challenge. This is the supply chain scenario.

The Merger

The merging of the Institute of Logistics (IoL) and The Chartered Institute of Transport (CIT) brought about the birth of an institution called Institute of Logistics & Transport or ILT way back in 1919 and obtaining its royal charter in 1926.

The Chartered Institute of Logistics and Transport(CILT) in the UK is the membership organisation for professionals involved in the movement of goods and people and their associated supply chains.

Members of the Institute are involved in the management and design of infrastructure, systems, processes and information flows and in the creation, management and development of effective organisations. The work of our members impacts directly on people, society and the environment, on business profitability and economic growth.

The Chartered Institute of Logistics and Transport in the UK is a registered charity and part of the CILT international family with over 33,000 members in countries across the world.

Our vision is for The Chartered Institute of Logistics and Transport to enable innovation, excellence and value creation for both individuals and corporate bodies by being the leading membership organisation and education provider within our community of professionals.

Our mission is to add value to individual and corporate members by enhancing their knowledge, careers, and businesses by setting, supporting and delivering professional standards and education and by promoting logistics, transport and their associated supply chains to society as a whole. We do this by providing members with:

Connection

Networking and sharing of good practice and innovations with professionals from across multiple sectors and modes through regional and national events, our Young Professionals and special interest groups.

Professional voice

Representing and promoting the membership and profession through our publications and policy.

Professional recognition

For members to be recognised as professionals by attaining and retaining membership, including chartered status.

Personal development

Career advancement through Continuing Professional Development (CPD), education, qualifications, networking, mentoring and knowledge sharing.

The Role of CILT Malaysia

The Chartered Institute of Logistics and Transport in Malaysia (CILTM) had its beginnings in 1965 with the formation of Malaysia Section. This was to fulfil the need for the qualified locals in the field of logistics and transport after independence and the increasing demand in the transport industries. In October 1990, the Malaysia Section was upgraded to that of a National Council. Today, the situation in the logistics and transport industry even more dynamic and the demand for trained logistics and transport managers and operators is greater than ever.

Internationally, the institute has about 33,000 members with about half the number residing outside the UK, mostly in the Commonwealth countries. Malaysia has about 2,000 members of all grades. Membership of the CILT not only offers today’s transportants a breadth and depth of training through its excellent examination system, it also offers the opportunity to exchange valuable ideas and experiences with other logistics and transport professionals.

The Institute also constantly strives to keep up with the ever changing development in the Industry.

The Institute’s Qualifying Examinations are internationally recognised professional transport and logistics qualification of a high educational standard. A Member with a pass in the CILT Qualifying Examination is accepted as equivalent to a general degree. Together with appropriate work experiences, they lead to full Membership and the designatory letters of “CMILT” which is recognised by the Public Services Department in Malaysia as equivalent to an honours degree of a local university, subject to MQA criteria conferred upon the programme. Avenues for post-graduate studies in the logistics and transport field may be pursued at any local or overseas universities offering such courses.

From a National Council Status in 1990 it has now achieved a Territorial status

Malaysians that had served as President of the International Council is Tan Sri Aziz Abd Rahman former CEO MAS.

After 40 years Malaysia is to be honoured another Presidential Elect for the 2020-2022 term. He will be the current CILT Malaysia President – Dato Abd Radzak Malek.

Public Policy and Guidance

CILT is dedicated to shaping change in all aspects of logistics, supply chain and transport. CILT plays a vital role in the development of policy and guidance, producing regular submissions to the Government, and other bodies as well as publishing reports and consultation responses which review and respond to recent policy proposals.

Has no political affiliations. Our principal concerns are that transport and logistics policies and procedures should be effective and efficient; based on objective analysis of the issues and practical experience and that good practice should be widely disseminated and adopted. To meet these aims, a great deal of work is undertaken by our network of Forums and policy working groups and channelled through the Public Policies Committee.

CILT public policy is solely lead and developed by our members. Member input into policy reports and consultation responses ensures that CILT reflects the current concerns of the supply chain, logistics and transport professions.

CILT Malaysia and government

CILT Malaysia is the sole body recognised by the government of Malaysia having the status of an advisory capacity to the transport and logistics performances in the country. It sits in the various government board in relation to transport and logistics policies. It sits on the panel of the Inquiry Committees on major accidents in the country. It is tucked in under the purview of the MOT. Previously was under MITI.

The MOHE gives recognition to its professional logistics programme both as a stand alone and as embedded programmes of 22 local universities and Colleges as CILT Malaysia’s training provider.

The programme

CILT Malaysia has its professional programme meant for working matured students known as Professional Qualifying Examination in Logistics which is of 56 hours credit hours falling short of MQA approved study hours limit. But this could be easily extended to the 92 hours credit hours requirement by MQA if meant for later recognition by the Ministry of Higher Education as of equivalent to a degree issued locally. This programme can be embedded in the university programme and if 70% of the content of the PQE syllabus is matched then embedding of the programme would be acceptable.

There is a very good reason why Universities and colleges opt to run an embedded programme specially those business programmes as it adds value to the qualification that they would attain aside from getting the degree that they originally signed in. It gives them added value and put them in better position having additional professional qualification when applying for jobs, not only in Malaysia but overseas where CILT are present overseas. Bearing in mind that logistics as a subject matter is in every facet of economic activities and that their contribution to the overall economic performance is critical, it therefore goes without saying that logistics is a must have subject in the furtherance of education.

For the Universities and colleges, having a double major qualification is a good attraction to those intending to join the university. It is like killing two birds with one stone.

Stronger Together

Please email us at ramliamir@cilt-m.com.my for further clarification.

The future of Sabah Manufacturing industry

2018-06-17T06:24:00.002-07:00

The future lies in securing parallel development in all logistics projects

'You have it, I must have it too' seems an unfair quote. However, situationally it does make sense especially if it counts for the nation's social integration as the pillar to nation building. It would in fact be a reasonable proposition for Sabah to ask for the very same type of projects that West Malaysia is having, because the rationale is the same in respect of and as impetus to economic development. The difference would be in the size and scope. It is especially true for Sabah because of its dependence on tourism, transportation is a critical basic necessity for us to move forward and be successful in it. With it too comes the boosting of economic activities in other major sectors such as the manufacturing and our agro-based industry.

West Malaysia's logistics towards the future
Everything is happening in West Malaysia. The development in all sectors are taking place in West Malaysia. We watch in awe as one by one mega projects are launched and completed. We talk good things about it as Malaysian should. We are proud that it is happening in Malaysia. It doesn’t matter where you are, in Perlis, Sabah or Sarawak, we are all proud especially when talking to non Malaysian. We are promoting our nation to be one which is not left behind by other nation in the development of the transport and logistics scene. Not only that the projects are game changers but its costs and value are mind boggling.

The Highways
The motorway in the United Kingdom and the North South (PLUS) Highway were game changers for the economy of the United Kingdom and also West Malaysia. In the eighties when this was mooted and implemented, it creates big impact on people and goods movement from north to south and from east to west. It cuts travel time. It injected spurts of development along the highways. It is transformation time. Wow, this is great news indeed especially for the logistics industry in all fronts, from road development to trucking businesses and express buses. It spurs tourism allowing travels to many places where time was an obstacle before.

This is one project which we should have it earlier when the PLUS Highway was implemented not withstanding that we now have the Pan Borneo Highway (PBH) in progress. The point we are making here is that such scale of project should have been implemented at the same time here in Sabah as well but perhaps in a very small scale linking maybe two short distance places which in itself would count for a scalable game changing impact in the affected area. We do take note that the government never stopped road development projects, in fact so many good roads have been completed over the years but it was never in the scale of the PBH project on a per kilometre basis.

The ports
The scale of development in the port industries in West Malaysia is beyond comprehension where there are major developments taking place in all the major ports there, from Kemaman Industrial Port to, Kuantan, Johor, Pelepas, Port Kelang and Penang have all undergone major expansion in their own rights. However nothing comes near to development that goes on in Port of Tg. Pelepas, and the two ports in Kelang that is North Port and West Port. The three ports accounts for the major tonnages handled by all ports in Malaysia in terms of containers handled. The development that took place in the three ports are huge in order to accommodate big vessels. Port of Tanjung Pelepas for example places 18 new gantry cranes orders in readiness for the completion of new wharf development. This way no delays occur as equipment orders are made and delivered on completion of the project.

Although Sabah Ports only lately received grants from the Federal government to the tune of RM1.1 billion, still this amount is only the first that it received from the federal government for a long time even then it is not a holistic sum as Sabah Ports has to find their own financing to come up with its wharf and yard equipment.

This should be the way development should take place in Sabah where logistics projects such as port development must also be made available to Sabah in order for it to push through the market and help to develop its manufacturing industry by making available platforms for goods to be exported. The value may not be comparable to what the West Malaysian ports are getting but there must be grants to be given for port development programmes. It should not be a case of not being a federal port that Sabah port being a state port has to find its own money to finance its projects.

High Speed Train
The Kuala Lumpur-Singapore High Speed Rail (HSR) is a strategic project between the Governments of Malaysia and Singapore that aims to facilitate seamless travel between the two capital cities, enhance business linkages, and connect the peoples of both countries closer together. With terminus stations in Kuala Lumpur's Bandar Malaysia and Singapore's Jurong East, the HSR link is expected to cut the travel time between the two cities to 90 minutes.

We asked ourselves if there was any similar project that Sabah should have. This might be too advance for Sabah, but spare a thought to the present Sabah State Railway. It looks like this is very much a social development programme that was inherited from the colonial days. But let it be there although not money making for now but as the impetus to economic development in the interior and as the neucleus for future expansion. Nonetheless we are not asking for a high speed rail, but at worst there should be conscious efforts in upgrading the lines and tracks that we have from the station near Sabah College to Tenom. The future plan is to double track where possible for now, at least from Tg Aru to Beaufort and let further development take root from there.

We made a mistake in pulling out the the rail track that connects to the old port at Jesselton point. This must be due to inability to see the future by not benchmarking on what western countries had transformed their trains into as a system for mass transportation in the urban areas. This line must be reinstated.

East Coast Rail Links
The East Coast Rail Link (ECRL) is being touted as an economic “game changer” for the country. The 600-kilometer electrified line will connect Kuala Lumpur with Kelantan through the rural states of Pahang and Terengganu, cutting traveling time to as little as four hours and easing pressure on the road network by getting more people and cargo onto trains. There are also plans to extend the line west to Port Klang, Malaysia’s busiest port.

The government says the 55-billion-ringgit ($12.8 billion) project which has been launched recently is expected to be ready for use in 2024. It will boost trade and tourism and close the development gap between the country’s west and east coasts. Some seven passenger trains each day are expected to leave Kuala Lumpur to make the journey east, with cargo trains projected to carry 37 million tonnes a year of containers, iron ore, coal and other commodities by 2030.

It is interesting to note that this ECRL will connect to Kuantan port in the eastern coast of West Malaysian which is currently being expanded with billion ringgit investment in partnership with China investors. The sea linkage will connect with the ECRL to Port Kelang thus providing a through transport service avoiding the need for some cargoes not to be shipped directly to Port Kelang. Some may see it as a competitor to Sapangar Bay Container Port (SBCP) but I opine that SBCP's strategic location provides it with its own niche market as a regional hub. It has its own charm, we must believe in it.

What do we have in store for Sabah. This is the time to start planning our own cross country line from West coast to the East.

Sabah's logistics pride
What is our logistics pride. Presently it’s a definite yes for the Pan Borneo Highway, we are slowly getting into line of what West Malaysia has. Better late than never. However the point is from now we should be moving in tandem to what is taking place in the west. We should never be left behind, As stated above, never mind the scope, we can go smaller but we need to have it because that’s what is needed as a tool for economic development.

A much needed solution to boost nation building
A country's need in building a nation based on unity in diversity, calls for a basic provision to be had by communities in all the states in the country. The idea is to make people happy with what they have. This will pave the way for national integration for the good of our future. Logistically this is translated to be that basic logistics infrastructure must be in place parallel to what big brother has. Again it must be stated here that it is not to be a "quid pro quo" situation but a situation which regional development, especially with Sabah and Sarawak separated by big stretch of a distance over the South China Sea, must take place so that a worthy development that uplifts the standard of living of the region is made available. This means we must have good roads, we must have good public transportation system which is not totally dependent on buses, we must have alternatives to road transport, transport mode in the like of a light rail mass transit system, good airports and good transport system that can carry goods all over Sabah cheaply.

How would this be implemented
The idea is that we must ask for it at the earliest possible time. The earliest possible time to act is in parallel with what West Malaysia is having or going to have. It must be stated that the rationale is common to wherever it is built. It is an eco-socio-political reasoning to benefit the region. We are not going to ask for the sky but something that can provide the basics for logistics to be in place and to prosper for the future. Making it late might be too prohibitive in cost for its future implementation. Have the basic infrastructure ready as the nucleus for the future. Have it small, implementable but ready for the future.

A good example would be to put back track the rail line to Kota Kinabalu city as what we had before. The future would be an extension to the north towards Sapangar, or the east to Penampang. We cannot forever be assumptive of the excuse that we do not have the population to sustain it. A subsidy if needed must be directed to where it is of critical necessity. A commuter line is needed as an alternative to road transport. It is dangerous not to have alternative as the road system is a trap in itself looking at the flood situation in the state today.

Trap in the making
If Sabah does not request that parallel logistics development be had, where do you think Sabah's development be in the future? Noting that we do not have super highways compared to West, we do not have LRT's (Light Rail transit), nor do we have high speed trains, and what more rail lines that traverses through our interiors to help open our our back yard industries.

If we don’t ask for it, even in the minutest of scope, when would we have them? Is it the case that we will forever be relying on public urban buses scheme, It has always been the excuse that we do not have the population or the volume of goods for these to be had. Would it be 20 years down the line that we would be given say the LRT.

These situation will slow us down in our development effort, it will stunt growth and the impetus and motivation to move forward and create the hives of economic activities that will further support other industries to grow.

How would Sabah be without these transport technology as a tool to boost our economy. Will we ever be transformed as a developed state by relying on urban rapid transit buses to ferry passengers including tourist. Population will be increasing, may be not as fast now but it will hog the road system. It is fair assumption that traffic congestion will be on the increase measured every five years. How far can we expand our urban roads, how much of viaducts and flyovers do we need to build. Perhaps its development cost then would be too prohibitive. This is where the rationale of having a system planned early and constructed early is to avoid the future prohibitive cost catching us. Let us learn from the first two flyovers that was built in Kota Kinabalu, where last year suddenly we see flurry of flyovers are being built and good that it is in the process of being completed. By the look of things we are set to build more flyovers, but these are partial and temporary sectoral solutions. Once we cross over and join the highways, traffic congestion will await us before we move on to another flyovers. These road expansions will have to slowdown somehow with the introduction of other mode of transport like the light rail which is not dependent on the road system.

This is in fact a trap that we are building ourselves into, if we don’t start early, even in its smallest of scale. It might just be too costly for us to build them later. It is a critical transport problem as dependent on the road system alone as a means of public conveyance may cause a standstill to the transport system and affect the economy.

"Stronger Together towards TN50"

World class environment for Sabah by 2033

2017-09-26T01:50:00.002-07:00

Plan to create world class environment in Sabah by 2033

September 25, 2017, Monday by Johan Aziz

NABAWAN: Although Sabah has achieved much development and progress since 54 years of independence, it is still lagging behind most states in Peninsular Malaysia especially rural development, said Minister in the Prime Minister’s Department Tan Sri Joseph Kurup.

He said in order to bridge this gap, the State Government had come up with the visionary Sabah Structure Plan 2033 to turn the state into one with a world-class environment for working, studying, playing, visiting, business and investment.

“This will create a lot of employment opportunities for people in this state. This is a comprehensive state government effort for long term, integrated and balance with the aim of promoting the socio-economic development of the state,” said Kurup when closing the MYTV and MOP program at Pagalungan sub-district here yesterday.

In other words, he said this development plan would enable the people of this state to improve their quality of life in a well-managed environment with a sustainable communication system and transportation.

In addition, he said the central government had also planned rural development through the Rural Mega Surge Bounce Up Program (PLMLB) with the aim of eliminating rural poverty through increased income and quality of life as well as accelerating development in remote, isolated and abandoned areas.

“For example, the government has introduced an agropolitan project implemented by the Ministry of Regional and Rural Development (KKLW) and the Sabah Development Corridor. This project helps participants get out of the poverty line and increase income by actively participating in the plantation sector.

“To continue the development of rural areas, the Rimbunan Kasih Program targeted at the poor was introduced through the Government Transformation Program 2.0 (GTP 2.0).

“The program aims to transform rural areas to attract private investment, provide job opportunities and economic activities as well as encourage young people to return to serve in rural areas,” he said.

In addition, the Pensiangan member of parliament said the government was focused on creating entrepreneurs among rural youths through a new program called the Rural Business Challenge (RBC).

He said it is a form of business planning competition and is open to youths in rural areas and the implementation of this program is expected to increase income and employment opportunities for the people, especially in rural areas.

To improve the quality of basic physical and social infrastructure, he said the government focused on four core developments, namely construction and upgrading of roads to link rural areas to social and economic centers (JALB), supply of clean and well maintained water through additional extensions and alternative solutions (BALB), construction and upgrading of houses for the poor and hardcore poor (PBR), and electricity supply to the people with special focus on Sabah and Sarawak (BELB).

He said the MYTV program yesterday was one of the Barisan Nasional (BN) efforts to equip rural youths with skills so they can participate and contribute to the ongoing development in their area.

“I believe the MYTV program will enable participants to become more competitive and resilient.

“This strategy is very accurate because the academic achievement of many of our youths in rural areas is moderate and they have no skills. They will face a high risk of economic marginalization and social exclusion if there is no program intervention,” he said.

Kurup said that with skills training through MYTV in fields such as Woodworking, Bricklaying, Piping, Electrical Wiring, Culinary, Pastry/Bakery, Beauty, Handicraft and Agricultural Technology, opportunities will open up for participants to get jobs.

He said therefore, they could increase their income and thus increase the socio-economic level of their families respectively.

“I have learnt that there has been overwhelming response from MYTV participants where 186 people have enrolled and exceeded the original expectation of 120. Congratulations to all MYTV program participants from Pagalungan Area.

“Their decision to participate in the program is an accurate and wise decision, although participation in the MYTV program requires time and energy sacrifice, but it is a good investment for the future,” he said.

He hopes that a significant portion of the 186 participants will continue their training in institutions of higher learning such as the Institute of Mara Skills, the Malaysian Building Academy, the Community College, Giat Mara and so on.

He was also informed that a Mobile Community Transformation Center (Mobile CTC) was being held at the same time. In addition, the Malaysian Armed Forces are also involved with the Mobile Outreach Program (MOP) providing medical services, dentistry, military exhibition and registration of Territorial Army volunteers.

Kurup expects the residents of Pensiangan and Nabawan, especially Pagalungan, to utilize all the services and facilities provided in the Mobile CTC and MOP program.

He said the integration of initiatives and solid support by various departments had a positive effect on program participants and the general public in the context of prospering the lives of the people, especially in rural areas of the state.

Kurup also hopes that this program will be further enhanced throughout the state in the future with more solid offerings and more agency engagements.

Also present at the ceremony was Brigadier General Dato Anuar Rijaludin of the Malaysian Armed Forces.

Among the agencies involved were the State Secretary’s Office, Chief Minister’s Department, Federal Secretary’s Office, State National Security Council, Prime Minister’s Department, Royal Malaysian Police, State Malaysian Treasury, Ministry of Finance (Mobile CTC), State National Unity and National Integration, National Anti-Drug Agency, State Information Department, Sabah Economic Development Corporation, State Malaysia Broadcasting Department, Sabah Women’s Affairs Department, Sabah Handicraft Center, Sabah Foundation, Tambunan Community College, Nabawan District Office and Pagalungan Sub-District.

2017-08-13T21:29:00.003-07:00

Logistik dan lonjakan ekonomi sebagai proses integrasi sosial negara

Kita sering mendengar akan peranan logistik dalam memacu aktiviti ekonomi dan seterusnya menganjak dan melonjakkan status sesuatu program atau projek itu. Kita dapat melihat contoh yang amat jelas dari pengalaman yang dapat ditimba daripada peranan logistik di Semenanjung Malaysia dan betapa ianya mengimpak akan ekonomi tempatan dan dipersekitarannya.

Dari awal lagi dengan terlaksanaannya projek seperti lebuhraya utara-selatan (PLUS) dan setelah itu diikuti pula oleh beberapa lebuhraya lain yang menghubung beberapa pekan dan bandar seperti NKVE, Malaysia Expressway, Karak Highway, Shah Alam Express dan banyak lagi, kita dapat melihat impak yang besar secara langsung kepada pengguna lebuhraya tersebut dan juga penambahan aktiviti kepada ekonomi tempatan dan juga tidak kurang besarnya impak kepada kawasan persekitaran yang berkait dengan penjanaan aktiviti lebuhraya tersebut.

Begitu juga dengan projek lain seperti sistem laluan keretapi pantas dari Singapura ke Kuala Kuala Lumpur dan yang terbarunya ialah projek East Coast Rail Link (ECRL). Sebelum ini juga kita dapat melihat betapa projek mega perhubungan dalam Kuala Lumpur dan persekitarannya seperti mono rail, LRT, MRT dan Komuter telah menukar corak perjalanan dan aktiviti ekonomi mereka yang menggunakannya dan juga ekonomi persekitaran laluan sistem tersebut.

Lebuhraya

Sebagai contoh Lebuhraya PLUS telah memberikan laluan lebuhraya yang terpanjang di Semenanjung menghubungi negeri Perlis di utara tanah air ke Johor diarah selatan dan juga ke pantai timur menghubungi negeri Pahang, Terengganu dan juga Kelantan. Impak secara langsung ialah untuk membawa pengguna lebuhraya ini ke destinasi dengan begitu cepat sekali dan dalam masa yang sama oleh kerana pembuatan jalan raya menurut piawaian keselamatan yang tinggi daripada jalan raya biasa, maka kita boleh menganggap yang perjalanan itu akan dapat dibuat dengan lebih selamat lagi. Sebelum ini perjalanan dari Kuala Lumpur ke Ipoh akan memakan masa lebih 6 jam akan tetapi dengan lebuhraya ini yang mengurangkan kesesakan jalanraya terutama sekali dikawasan persimpangan, maka dengan lebuhraya ini perjalanan dapat diteruskan tanpa mengalami kesesakan dijalanraya utama, kecuali apabila pengguna akan keluar dari lebuhraya untuk masuk ke sesebuah tempat itu dengan menggunakan jalan raya biasa.

Disini ia berkemungkinan untuk mengalamai kesesakan lalulintas seperti biasanya. Ini tidak akan berlaku selagi pengguna masih berada dilebuhraya kerana perjalanan ini tidak boleh terhindar dengan penungguan disepanjang lebuhraya tersebut. Jalan susur keluar juga merupakan satu laluan keluar yang selesa dan hanya apabila bertemu dengan jalanraya untuk laluan ke kawasan tempatan yang hendak dituju maka mungkin terdapat penungguan kerana memberi laluan kepada kereta yang menggunakan jalanraya tersebut dari arah lain.

Kini perjalanan dari Kuala Lumpur ke Ipoh hanya memakan kurang dari 4 jam dan jika melalui keretapi ETS perjalanannya jauh lebih pantas lagi ia itu dalam masa 2 jam sahaja.

Begitulah betapa peranan infrastruktur logistik berupaya menukar senario perjalanan seseorang itu dan memberi makna baru kepada tujuan perjalanan dimana aktiviti yang hendak dibuat kelak di destinasi yang dituju, kini boleh diselesaikan dalam masa yang singkat dan tidak memerlukan lagi seseorang itu perlu menginap dan bermalam disesuatu tempat itu. Masa oleh itu tidak terbuang dan banyak aktiviti yang boleh dijalankan dalam masa tersebut yang dulunya terbuang akan tetapi masakini banyak lagi aktiviti sampingan yang dapat dilaksanakan.

Logistik telah menaikkan taraf aktiviti perekonomian seseorang pengguna itu dan juga memperbanyakkan aktiviti ekonomi di sesuatu tempat yang terlibat itu. Ini pada keseluruhannya telah mengimpak dan menganjak ekonomi tempatan serta melonjakkan ekonomi negara.

Sistem Rel Pantas (High Speed Rail)

Sistem ini yang lebih dikenali sebagai HSR telah pun ditandatangani oleh kedua negara terlibat iaitu Singapura dan Malaysia untuk mengujudkan sistem perjalanan melalui rel dengan kelajuan yang tinggi yang memboleh perjalanan daripada Singapura ke Kuala Lumpur dalam masa dua jam sahaja berbanding dengan perjalanan melalui jalan raya yang memakan lebih 4 jam dan tidak termasuk karenah yang dialami di balai pemeriksaan tambak johor dan link kedua.

Perhubungan antara dua negara akan meningkatkan lagi banyak aktiviti individu mahupun korporat dan akan melonjakkan aktiviti perekonomian dikedua negara. Sistem perhubungan seperti ini kini adalah perkara biasa untuk mempertingkat aktiviti usahasama dua negara.

Dalam masa yang sama juga telah dilapurkan bahawa perlaksanaan HSR ini telah mengundang keinginan 150 syarikat tempatan dan antarabangsa untuk menyertai penyediaan teknologi ini dan juga trak rel (rail track) untuk digunakan oleh teknologi HSR seperti ini. Ini akan menjana peluang pekerjaan kepada penduduk tempatan dan memberikan pendedahan kepada para profesional yang terlibat dalam perlaksanaan teknologi ini seperti jurutera dan pakar IT. Sama seperti yang kita alami apabila mengujudkan kan sistem rel LRT dan monorel dimana kepakaran profesional kita telah mendapat perhatian dunia dan pihak Arab Saudi telah menggunakan kepakaran orang Malaysia dalam mengujudkan sistem rel pengangkutan disana seperti untuk pengangkutan jemaah haji.

East Coast Rail Link (ECRL)

Sistem rel ini yang telah dimaklumkan akan menelan belanja RM55 bilion adalah projek logistik yang terbesar yang pernah diselenggarakan di negara kita. Projek ini dijangka akan mengimpak perekonomian negeri negeri di pantai timur seperti Pahang, Terengganu dan juga Kelantan. Ini benar benar akan melonjakkan ekonomi tempatan dan persekitarannya mahupun buat individu ataupun peningkatan besar kepada ekonomi tempatan. Ini juga akan menganjak paradigma minda kepada perekonomian yang terlibat kerana inilah anjakan kepada ekonomi yang membawa makna besar kepada pertumbuhan ekonomi negara dan dalam masa yang sama akan membawa negeri negeri pantai timur ini ke persada kebangsaan dan juga antarabangsa dan secara langsung berpeluang dan berupaya untuk menyertai langsung perniagaan yang terujud dengan adanya projek ini.

Selain dari pinjamatan masa perjalanan ini, perkara yang penting dalam pengujudan sistem perhubungan ini ialah untuk membawa keluar dari kepompom tradisi akan cara pemikiran penduduk tempatan dan mula melihat akan sesuatu dari kacamata nasional dan juga antarabangsa. Selama ini negeri negeri yang terlibat hanya memainkan peranan disebalik tabir sahaja dan tidak secara langsung. Ekonomi persekitaran akan teranjak maka dengan ini amat rugi penduduk dan syarikat tempatan jika tidak mengambil peluang yang tersedia ini.

Projek mega selainnya

Selain daripada projek mega yang tersenarai diatas, kita juga melihat beberapa projek maha besar dalam industri logistik seperti pembinaan dan pembesaran pelabuhan pelabuhan di Pelabuhan Kelang, dengan dua pelabuhannya Northport dan juga West Port serta PelabuhanTanjung Pelepas (PTP). Terdapat juga beberapa projek pelabuhan yang lain diperbesarkan seperti di Pulau Pinang dan juga Lumut. Pelabuhan Kuantan juga telahpun mengambil langkah untuk memperbesarkan pelabuhannya dengan kerjasama negara China untuk mengujudkan pelabuhan alternatif kepada Pelabuhan Kelang dan juga PTP yang terletak di Selat Melaka. Pelabuhan Kuantan pula terletak di pantai timur menghadapi Laut China Selatan dan akan berpeluang mencipta corak perniagaan yang baru. Sama ada projek ini akan membawa impak kepada perkembangan pelabuhan di Sabah terutama sekali Pelabuhan Kontena Teluk Sapangar (SBCP) adalah sesuatu yang perlu difikirkan oleh negeri Sabah yang juga berkeinginan untuk menjadikan hab pelabuhan di rantau ini.

Logistik dan lonjakan ekonomi bagi negeri Sabah

Jika kita tinjau projek dan program ekonomi yang terdapat di Semenanjung, kita dapat melihat bahawa dan kita akan terharu dengan apa yang berlaku di Sabah. Senarai projek yang diperkatakan diatas nampaknya tidak berlaku disini. Hanya projek lebuhraya Pan Borneo (PBH) sahaja yang layak dikelasifikasikan sebagai projek yang berdaya untuk menganjak perekonomian negeri Sabah. Sebagai negeri yang merdeka dalam Malaysia, Sabah perlu ada beberapa projek yang dapat menukar corak perhubungan, mempelbagai alternatif pengangkutan dan projek yang mengimpak kepada perekonomian secara individu mahupun korporat.

Projek Lebuhraya Pan Borneo (PBH)

Projek PBH merupakan satu satunya projek mega yang dapat kita banggakan kerana buat pertama kalinya kita akan dapat melihat impak secara langsung projek ini kepada perekonomian negeri Sabah terutama sekali dikawasan kawasan dimana PBH akan diselenggarakan. Pelonjakan ekonomi amat senang dilihat dimana ekonomi luar bandar terutama di kawasan laluan selatan negeri Sabah yang akan menghubungi Keningau dan Tawau kini terbuka kepada perekonomian yang lebih pesat. Pusat eko-pelancungan seperti Lembah Maliau akan lebih senang di hubungi dengan laluan lebuhraya yang mempercepatkan perjalanan dan juga laluan yang akan menjadi lebih selamat digunakan.

Projek Pembesaran Pelabuhan Kontena Teluk Sapangar (SBCP)

Projek ini yang telah diluluskan oleh kerajaan Pusat bernilai kira kira RM1.1 bilion adalah dijangkakan untuk memainkan peranan besar dalam membangkitkan ekonomi negeri Sabah terutama sekali dalam sektor Pembuatan (manufacturing) apabila ianya akan dijadikan hab persinggahan dirantau Asia ini berlandaskan ianya terletak dikawasan perairan yang strategik di Laut China Selatan. Ianya strategik dari beberapa sudut yakni pertamanya dalam konteks pusat persinggahan dalam BIMP-EAGA , kedua sebagai pusat persinggahan untuk aktiviti perkapalan untuk negara di timur Asean dan ketiga yang hebat kerana ia merupakan laluan perkapalan di lauan pelayaran Laut China Selatan yang merupakan laluan perkapalan yang tersibuk di dunia.

Disini SBCP boleh menggantikan pelabuhan Kelang sebagai pusat pemunggahan bagi kontena untuk Asia Timur. Ada beberapa cara yang SBCP boleh memainkan peranan ini tertakluk kepada keupayaannya untuk mengendali sebanyak mana kontena yang boleh. Adalah dijangka projek pembesaran SBCP ini akan siap menjelang tahun 2021 dan dijangka akan dapat mengendali 1.2 juta kontena (teus) setahun. Pengambilalihan peranan sebagai hab persinggahan daripada pelabuhan Kelang ini akan tertakluk kepada jumlah kontena dalam setahun yang dapat dikendali oleh SBCP oleh kerana pada keseluruhannya jumlah kontena untuk kedestinasi Timur Asia termasuk timur jauh seperti China, Taiwan, Hongkong, Korea dan Jepun adalah melebihi 3 juta kontena teus oleh itu tidak dapat dikendalikan oleh SBCP dalam masa yang singkat ini. Maka dengan ini SBCP boleh menjadi hab persinggahan kepada kontena yang datangnya dari negara timur ASEAN sahaja sebagai permulaan sebelum dapat mengendalikan keseluruhan kontena untuk rantau Asia.

Impak kepada industri pembuatan di Sabah

Alasan mengapa ekspot daripada sektor pembuatan ini tidak dapat bersaing dengan harga pasaran luar negara ialah atas sebab kos penghantaran yang tinggi. Dengan adanya nanti hab persinggahan ini yang dikendalikan di SBCP maka banyak kapal dagang yang akan singgah ke SBCP untuk tujuan mengangkut kontena yang bertaraf persinggahan atau pun yang dipanggil 'transhipment goods' dan juga kontena yang memangnya terjana oleh industri pembuatan di Sabah. Ini akan memberikan status ekspot yang berdaya saing dipasaran luar negara. Cara sebegini tidak akan melanggar peraturan dasar kabotaj kerana selama ini pun dasar kabotaj tidak menghalang akan penghantaran kontena antara pelabuhan di Sabah dengan mana jua pelabuhan luar negara.

Sabah masih ketinggalan

Apabila dibandingkan dengan aktiviti mega yang terlaksanakan di Semenanjung, Sabah nampak jauh ketinggalan dari aspek penjanaan aktiviti ekonomi demi memacu kemajuan dipelbagai sektor di negeri ini. Walaupun boleh kita katakan bahawa oleh kerana negeri Sabah tidak sesibuk di Semenanjung maka memadailah dengan apa yang kita ada namun demi kemajuan ekonomi dan sosial negeri ini, Sabah perlu mengujudkan pelbagai program dan projek dan tidak hanya bergantung kepada dua projek ini sahaja. Yang amat ketara sekali ialah kita tidak ada projek logistik alternatif kepada mod perjalanan darat. Di darat kita hanya mempunyai bas sebagai mod pengangkutan awam selain dari perkhidmatan teksi. Sebaiknya menurut trend yang ada di semenanjung mahupun di lain lain negara maju, setiap bandarraya perlu ada sistem pengangkutan yang menggunakan rel atau trak seperti LRT dan sebagainya. Nampak kosnya amat tinggi dengan penggunaan yang dikira tidak mendatangkan pulangan yang baik, ini bukanlah persoalannya. Kalau sistem ECRL di Semenanjung yang kita juga tidak mengetahui pulangannya melalui penggunaannya, Sabah juga perlu menyediakan sesuatu untuk masa hadapan walaupun dikira mahal dan tidak berbaloi buat masa ini. Perbandingan seperti ini perlu dibuat agar Sabah tidak ketinggalan jauh dari aspek pelaksanaan projek mega bagi maksud membantu lonjakan ekonomi negeri Sabah sendiri.

Apa yang penting bagi Sabah ialah mengujudkan projek contoh seperti LRT walaupun liputannya tidak lah luas hanya setakat untuk menghubungi kawasan yang dikira kritikal untuk membantu pertumbuhan ekonomi kawasan tersebut. Pembesaran projek tersebut boleh kita buat dengan cara berperingkat. Jika kita tidak menyediakan tapak permulaan, maka adalah amat sukar untuk projek ini diwujudkan kelak dan pada harga yang begitu tinggi pula. Saya ulangi, yang penting wujudkan sesuatu seiringan dengan objektif yang digunapakai di semenanjung. Ertinya kita seiringan dengan apa yang dilaksanakan di Semenanjung. Mereka ada LRT, kita juga perlu projek contoh LRT. Kalau mereka ada projek mega pelabuhan, kita juga ada. Kalau mereka ada projek ECRL kenapa pula kita tidak boleh menyediakan projek yang sama untuk membuka eknomi luar bandar. Mungkin ECRL di Sabah kita boleh ikuti laluan PBH agar pembenaannya tidak menyukarkan dengan adanya lebuhraya yang boleh mengangkut peralatan keperluan bagi pembinaan ECRM kita di Sabah.

Prinsip kebersamaan, terbuka dan adil

Inilah prinsip keterbukaan dan adil untuk sama sama membangun negara Malaysia. Selagi kita tidak mengambil sikap ini selagi itu jurang ekonomi akan semakin meluas antara semenanjung dan Sabah serta Sarawak. Program yang sama perlu kita adakan juga di Sabah, cuma liputan, keluasan serta nilainya mungkin berbeza menurut keadaan tempatan. Penulis faham bahawa ramai yang masih menganggap bahawa sikap, konsep dan prinsip yang diutarakan diatas nampak melampau, akan tetapi hasrat ini amat suci jika dilihat dari aspek pembangunan negara yang bersepadu. Ini boelh dierti katakan sebagai pembangunan yang seimbang antara semenanjung dan juga Sabah dan Sarawak. Model ini bakal membawa kita kepada satu era kegemilangan proses integrasi sosial negara kita yang tercinta ini.

"Bersama kearah TN50"

Penulisan ini adalah sumbangan ‘The Chartered Institute of Logistics & Transport Malaysia, Sabah’ untuk masyarakat. Maklumbalas boleh dihantar kepada ramliamir@cilt-m.com.my

(Published in the New Sabah Times on 13th August 2017)

AirAsia Hubbing in Sabah, Malaysia

2017-08-09T16:53:00.002-07:00

Fulfilling Sabah's quest to boost tourism industry through AirAsia's phenomenal growth

Travel within Sabah is greatly enhanced and made affordable by Air Travels where its city and major towns are connected by air. Much time is saved compared to travelling by road plus the comfort during the journey and reaching its destination unruffled. With low cost airline such as AirAsia it will help making decision to fly even easier by air. Air travel is now available using Malaysia Airlines and or MasWings within Sabah and with AirAsia in the fray, travellers has now the luxury of more numbers of flights available.

AirAsia's phenomenal growth continues with its cheap air travel in Asia being already ASEAN largest budget airline by fleet size after having leveraged its hub-and-spoke model to connect numerous cities. Now with the growth of the region's middle class, the airline is eyeing new routes and markets, especially China.

AirAsia Bhd has launched three new international routes from Kota Kinabalu, Langkawi and Penang. It has also launched direct flights from Kota Kinabalu to Wuhan, Langkawi-Guangzhou and Penang-Ho Chi Minh.

"We saw ASEAN before ASEAN saw us," quipped Tony Fernandes, the airline group's chief executive. AirAsia's modest start with just two aircraft in 2002 coincided with the region's economic integration under the ASEAN Free Trade Agreement. AirAsia immediately saw the huge potential in an area with a population of over 600 million, with growing economies but poor connectivity.

AirAsia has associate companies in Asia Aviation Capital, an aircraft leasing company, which is 100% owned, AirAsia Japan at 49%, Thai AirAsia at 45%, Indonesia AirAsia at 49%, Phillipines AirAsia held 49% stake through its associate company. It also owned long distance carriers in AirAsia X in Malaysia, Thai AirAsia X and Indonesia AirAsia Extra

Tan Sri Tony Fernandes noted that the timing was great, reckoning that the airline would not have taken off much earlier. Luck played a big part, but they took advantage of it. Marketing the airline under the banner "Now everyone can fly," AirAsia enhanced air travel with its short-haul, no-frills service, charging for everything from baggage to meals in return for low fares. The theme reflects their focus on making travel available and affordable to everyone.

As demand for budget air travel increased, Fernandes expanded into Indonesia, the Philippines and Thailand, setting up affiliate airlines as a way to go around the countries' strict regulations that prohibit full foreign ownership of companies. This arrangement has worked well, allowing each airline to grow using local talent.

Thai AirAsia the group's largest affiliate by fleet size is led by Tassapon Bijleveld, who built a career in the music industry like Fernandes. If you can manage international artists like Madonna, you can manage anyone, saidTassapon, when asked how he could run an airline without prior experience.

The Thai affiliate flies to over 52 destinations from six hubs, serving three key markets in Indochina, China and India. Tassapon said he will focus on building more routes to Indochina and India after successfully opening up routes to China on a bilateral, open skies policy. To boost ancillary income, the airline is planning to launch predeparture duty-free sales online next year, capitalizing on the strength of its major shareholder, King Power, Thailand's leading travel retailer.

Indonesia AirAsia is headed by Dendy Kurniawan, a Fulbright scholar with experience in the public and private sectors. After cutting capacity drastically the past two years as the company struggled, Kurniawan wants to develop the existing hub in Medan to complement the Jakarta, Bali and Surabaya hubs.

"It is the time to start our growth story again this year," says Kurniawan, noting that there is an over emphasis on Bali as a tourist destination. There were about 12 million foreign visitors in Indonesia last year, of whom five million went to Bali. The government hopes to attract 20 million visitors in 2019, and Kurniawan says AirAsia can play a significant role through its domestic hubs that already connect to over 100 destinations in nearly 20 countries.

In a recent move, The Ministry of Tourism Indonesia had officially unveiled collaboration plan with AirAsia in promoting the wonders of Indonesia to Malaysian. This is no surprise it has a vast connectivity network across the country and to Malaysia. AirAsia connects to Malaysia through more than 350 flights a week covering 15 cities. Launching of direct flights from Kuching to Pontianak had recently taken place to meet growing demand. Their well established routes within Asia is set to boost connectivity further and boost arrivals of tourist from other countries as well. As for Sabah we hope this effort by the republics tourism ministry will cover Sabah and at the same time the Tourism Board in Sabah must also push for locals to visit Indonesia. We need the Jakarta, Bandung and Bali connectivity as these are the places where Sabahans normally go.

Similarly, Philippines AirAsia is also stepping up efforts to create new tourist destinations in the country. Its latest route will link Kuala Lumpur to the southern Philippine city of Davao.

Low cost carrier, AirAsia, is here to stay in Sabah, stated Fernandes. Earlier on, a claim that AirAsia would cease operations in Sabah should the airline be forced to move to Terminal 1 of the Kota Kinabalu International Airport was proven wrong as the Airline made its appearance at Terminal 1 of KKIA. He reiterated that he never intended to threaten to pull out AirAsia routes to Sabah. He clarified that it was never the case, and it is not his style. He further stated that he was always been very committed to developing Sabah as a hub.

AirAsia have a very strong relationship with Sabah tourism, are constantly engaging with Sabah Chief Minister, the Tourism, Culture and Environment Minister and Sabah Tourism Board to further explore growth opportunities for Sabah. Sabah remains key to AirAsia and also a very important hub for AirAsia.

To him the issue at stake then was that it was critical for AirAsia to remain in Terminal 2 where the passenger service charge (PSC) was RM32 and at Terminal 1 where the PSC is significantly higher at RM65, it would affect its ability to offer low fares and in turn cause diminishing demand from the public, lowering passenger traffic into the state. RM30 makes a huge difference in their decision to fly or not. A large number of our passengers travel as families, so paying the higher passenger service charge would be a burden to them he said.

Fernandes added that if demand drops due to the increase, it will make the routes unprofitable which will result in the possibility of route suspensions. This was the reason why he was pushing Malaysia Airports, the Sabah Government, and the Federal Government to either make Terminal 2 an LCC terminal or build a new low cost terminal at that point in time. Sabah is one of the reasons AirAsia exists and it will never abandon Sabah. But he maintained that the harsh reality is, no one will want to fly with rising costs. People who know me know that I have zero arrogance and I am very open for discussions.

According to Fernandes, AirAsia has great plans for Sabah and the airline had invested greatly in developing new routes out of the state and adding more flight frequencies for the benefit of tourism in Sabah. The presentation demonstrated how the LCCT and LCC business model would benefit the economy and spur growth in the aviation industry, adding that outbound and inbound travel in Sabah and Sarawak was increasing and would be a big market for AirAsia. AirAsia operates 504 weekly flights to and from the Kota Kinabalu International Airport (KKIA).

The LCC business model allows AirAsia to grow at a fast rate because all that is required is a simple terminal and simple airport facilities. All these would translate into low operating cost and low charges. This will allow AirAsia to offer low fares and stimulate demand, and generate more revenue for airports. The catalytic impact would be higher contribution to the country’s economy. It does not mean however that safety and basic comfort is not factored in. The laws does provide the safety of airline operations.

AirAsia has been successful in reducing operational cost through service savings (no-frills cabin service), outsourcing and electronic tickets. The carrier is able to offer fares that are 40 to 60 per cent lower than its full-service competitors cost advantages arising from the nature of its operation include higher seating density and higher daily aircraft utilisation flying out of secondary airports.

The formula for low cost is to increase the affordability of air travel. By doing that, budget airlines will be able to attract more people, which will increase the load factor. This, in turn, gives the airlines more money, which they could use for expansion, increasing frequencies and developing more routes. All these would create more growth for the country. However, if travel becomes unaffordable and the load factor decreases, the airlines will suffer and cut back on expansion. As growth level declines, there will also be loss of revenue for the government.

Perhaps as recently announced by Fernandes that a new operator should be allowed to operate our Malaysian airports instead of just Malaysia Airports Holding Berhad. It has been seen that MAHB is not keen at all to operate a low cost carrier terminal, LCCT. The writer is in agreement with Fernandes that the economics of operations of commercial airlines must take precedence over the policies as embedded in MAHB. To prosper, all assistance must be handed over to LCC operators as they are the ones that has opened up the door for air travel markets, as they proposed lower fares maybe as much as 60percent lower than a scheduled commercial airline. Comparing with the maritime sector, even in Port Kelang there are two different operators in North Port and Westport. Such competition is healthy and brings about value for money for clients. It is the same with airport operators, why should we be saddled by one operator in MAHB? If MAHB is open to trends in air travel then they must see that low cost travel is the order of the day. The same principle is applied to passenger travel on the road where Uber and GrabCar e-hailing operation has been allowed in addition to the standard taxi operation because this is the trend. This is how the market wants it. But sadly for air travel MAHB is holding on to monopolised this sector of the industry and do not see the market and its impact created by low cost airlines. This is not a healthy sign as this is against the current trend. Current trends are creations of the market and should not be overlooked.

AirAsia Berhad, which is the largest contributor to the AirAsia Group, displayed impressive operating numbers in the third quarter of this year, with demand growth of 11 per cent year-on-year, outpacing capacity growth of two per cent.

MIDF transport and logistics analyst Tay Yow Ken said this had led to a higher load factor of 89 per cent, increasing the probability that the fourth quarter load factor could breach the elusive 90 per cent milestone. In addition, more rational pricing strategies by competitors have eased pressure on average fares, lending support for AirAsia’s yields to improve.

"Stronger Together Toards TN50"

A contribution to society from The chartered Institute of Logistics & Transport Malaysia, Sabah Section. Feedbacks can be addressed to ramliamir@cilt-m.com.my

"Now everyone can fly"

Profiling e-hailing services

2017-08-09T16:38:00.002-07:00

Profiling e-hailing services

E-hailing services such as Uber and Grab have now been legalised after the Land Public Transport (Amendment) Bill 2017 was passed in the Dewan Rakyat. Minister in the Prime Minister’s Department Datuk Seri Nancy Shukri said e-hailing services as well as conventional taxis would be supervised by the Land Public Transport Commission (SPAD). It follows therefore that all complaints regarding e-hailing services can now be directed to SPAD and the body will take action accordingly.

All rules and regulations imposed on conventional taxis will be applied to the e-hailing drivers as well and this includes regulations on medical check-ups, periodic vehicle inspections, insurance requirements and drivers’ identification card. e-hailing service providers should be responsible in providing car insurance to the drivers, which also includes insurance coverage for its consumers.

The amendments to Malaysia’s Land Public Transport Act and the Commercial Vehicles Licensing Board (CVLB) Act will allow ride hailing services to operate on an “intermediation business license”, a new category specific for the service. The new license will regulate “the business of facilitating arrangements, bookings or transactions of an e-hailing vehicle whether for any valuable consideration or money’s worth or otherwise”, according to the CVLB bill made available on the Malaysian parliament website.

The Cabinet since last year had agreed to legalise ride-hailing services even as taxi driver associations protested, arguing that their livelihoods were threatened by the private hire services.

This also means that Grab and Uber are set to expand in the region. Grab expects to raise US2.5 billion from investors in a bid to extend its lead over Uber in the region, as major companies aim to tap into Southeast Asia’s developing economies driven by a young and tech-savvy population.

Implementation

On July 27, the Dewan Rakyat passed amendments to the Land Public Transport Act 2010 and the Commercial Vehicles Licensing Board Act 1987. They are scheduled to be gazetted by October for implementation nationwide.

On Aug 1, Land Public Transport Commission (Spad) chief executive officer Mohd Azharuddin Mat Sah held a press conference on the Land Public Transport Act (Amendment) Bill 2017.

The briefing touches on the Taxi Industry Transformation Programme (TITP) that was unveiled on Aug 16 last year, and said the 11 programmes are on track.

The first was to regulate e-hailing as an intermediary service. Azharuddin spelt out the definitions and criteria for e-hailing operators, vehicles and drivers. Many people are not aware that e-hailing included taxi apps such as EzCab, and not just Uber and Grab. All e-hailing operators are required to be locally incorporated, and their vehicles and drivers in Peninsula Malaysia must be registered with SPAD.

The insurance must cover driver, passenger, vehicle and third party. Under the Road Transport Act 1987, all motor vehicles must be insured for legal liability for death or bodily injury to third parties, and this is incorporated in all motor insurance policies. However, the cover could be null and void if the vehicle was driven under the influence of drugs or alcohol, or a private vehicle is used for hire or reward, such as carrying fare-paying passengers. As such, terms and conditions of motor insurance policies for private vehicles must be amended, and premiums adjusted if necessary, when they are used for e-hailing services.

Under the old Motor Tariff, the premium for private vehicles was only RM26 for every RM1,000 under comprehensive insurance, but RM69.80 for painted taxis (metered and non-metered), and RM102.50 for limousine taxis. Insurance cover for painted taxis includes legal liability to passengers. To insure four passengers in a limousine taxi under similar cover, the additional premium was RM78.

As for taxi and e-hailing drivers, they would be covered under the Self-Employment Social Security Act 2017, which was enforced in June. It is compulsory for them to be registered by end of the year, but they will have to pay between RM157.20 and RM592.80 annually.

Individual permits

The second programme listed under TITP was issuance of individual permits and cash grant for drivers exiting rental-purchase agreements with taxi companies.

On June 21, 157 metered taxi drivers and 143 non-metered taxi drivers received individual taxi permits, with 43 receiving RM5,000 each for the purchase of a new taxi. Since last September, SPAD has received 3,474 taxi permit applications and approved 1,722.

Since inception in 2010, SPAD had not issued any new permits to taxi companies and this was recently confirmed by Nancy Shukri, when replying to a question in Parliament recently.

The third programme was to liberalise vehicle model for taxis, allowing all vehicle brands and models that achieved a minimum 3-Star safety rating under the Asean New Car Assessment Programme to be used. This move was also in line with small and affordable models, such as the 4-Star Perodua Axia, being used for e-hailing services. But new taxis of various models are not seen on the road.

The fourth programme was to standardise the terms and conditions of rental-purchase agreements between taxi companies and drivers. Half a century ago, the Hire Purchase Act 1967 was passed in Parliament and hire-purchase agreements were standardised.

The fifth programme was to introduce mandatory KPIs for taxi operators. This imposition is certain to upgrade professionalism of taxi companies and drivers but would surely be the death knell for weaker operators and cabbies.

The sixth programme was to impose stringent pre-screening processes on drivers, including health checks, criminal records, traffic offences and violations of SPADs operating licence conditions.

But it would be difficult to filter out those with mental health issues. The National Health Morbidity Survey 2015 by the Health Ministry revealed that 4.2 million out of 14.4 million Malaysians aged 16 and above suffered from mental issues, or over 34 percent.

Use of a merit and demerit system

The prevalence in Kuala Lumpur was higher at 40 percent, and that was for ordinary folk. It would be no surprise the percentage was much higher for taxi drivers, given that many refused to use the meter and were aggressive towards passengers, e-hailing drivers and enforcement authorities.

The seventh programme was to use a merit and demerit system to increase service standards by working closely with RTD to include a full list of offences for taxi drivers under the Kejara Demerit Points System.

The eight programme was to rationalise metered fare structure. The same metered rate would be applicable for all new Teksi 1Malaysia (TEKS1M) and budget taxis. Existing TEKS1M drivers are given the option to migrate or remain with higher fares.

The ninth programme was to rationalise zonal fare using distance-based calculation to ensure consistency and fairness for both taxi drivers and passengers at terminals and airports.

The tenth programme was to allow for dynamic fare for metered taxis providing e-hailing services. While they can continue to collect higher regulated fares as clocked by the meter from street-hailing passengers, taxi drivers may also participate in e-hailing and accept lower fares to run more trips.

The eleventh programme was to implement mandatory training for taxi drivers, which include orientation, entrepreneurship, safety, vehicle maintenance and customer service. Perhaps this is an area where The Chartered Institute of Logistics & Transport Malaysia could play its role by providing for the much needed training to upskill the drivers.

Azaharuddin announced that vehicles to be used for e-hailing services must be lesser than five years from date of registration with RTD, with seating capacity for up to 10 passengers.

These vehicles must be sent for inspections at Puspakom upon reaching their third and fourth year. Taxi drivers too no longer need to send their vehicles for inspections every six months but annually after three years.

E-hailing drivers too are required to have a digital Driver’s Card issued by Spad after they have been certified fit and attended customer service training, in addition to possessing a valid driving licence and free from summonses and criminal record.

Malaysia made history with the passing of the Land Public Transport Act (Amendment) Bill 2017, as it was the first country to legalise e-hailing services. E-hailing operators are now obligated to obtain Intermediate Business Licence from Spad in order to operate legally.

The business scenario

Singapore based Grab operates private car, motorcycle, taxi and car-pooling services across seven countries with 1.1 million drivers, and claims a market share of 95 percent in third-party taxi-hailing and 71 percent in private vehicle hailing in Southeast Asia.

Asia has become the new frontline for U.S. tech companies seeking to grab their share of fast growing markets but the local users still determine which one to go for. Ride-hailing app Uber is one American company confronting local rival in the fight for passengers in Southeast Asia after Singapore's Grab secured $2 billion from Softbank and Didi Chuxing. Uber started offering services in Singapore in early 2013, and expanded to Malaysia later that year. For users already accustomed to the service, the experience was seamless. But for locals, especially in Malaysia, it suffered from three problems. First, it was noticeably more expensive than traditional taxi alternatives. And second, payment could be made via credit card only, despite the fact that consumers strongly preferred using cash. Finally, Uber like other car services in Malaysia suffered from perceptions that it was unsafe, especially for female riders.

Somehow in April 2016 Uber Technologies Inc. was forced to sell its China operations to rival Didi Chuxing. The brief but spectacular battle between the two ride-hailing operator had cost Uber at least $2 billion. Uber, free of an expensive price war, appears to be able to focus its resources on other markets, including rapidly growing Southeast Asia. That's now going to be a lot harder because GrabTaxi Holdings Pte. Ltd., Southeast Asia's dominant ride-hailing company, announced it had raised $2 billion (with another $500 million on the way) to help it lock up the region. The company was already well ahead of Uber locally, largely due to a deft business plan that focused on meeting the needs of the Southeast Asian consumer, especially in payments. The fresh funds should widen that lead and call into question whether Uber's one-app-fits-all approach to the global ride-hailing business can work. The deal cements an alliance between SoftBank, Didi and Grab, which competes against Uber in markets from Malaysia to Thailand. The Singapore-based ride hailing company said it expects to close another $500 million from unspecified new and existing backers. That would take its valuation north of $6 billion, making it the most valuable startup in Southeast Asia.

On paper, at least, the 10 very different countries in Southeast Asia seems exactly like the kind of market in which a well-capitalized global technology company like Uber should prosper. The region is now the world's fourth largest internet market, with just over half of its 640 million citizens online. The markets are growing rapidly, fuelled by young, middle-class consumers eager to spend.

According to a study conducted by Google and Temasek, Singapore's sovereign wealth fund, the Southeast Asian ride-hailing market is expected to be worth $13.1 billion in 2025, up from $2.5 billion in 2015. Even better, every major Southeast Asian country is expected to have a $1 billion market of its own by then, with ride-hailing making up 15 percent of total travel expenditures in the region.

Uber started offering services in Singapore in early 2013, and expanded to Malaysia later that year. For users already accustomed to the service, the experience was seamless. But for locals, especially in Malaysia, it suffered from three problems. First, it was noticeably more expensive than traditional taxi alternatives. And second, payment could be made via credit card only, despite the fact that consumers strongly preferred using cash. Finally, Uber like other car services in Malaysia suffered from perceptions that it was unsafe, especially for female riders.

Having grown up in Malaysia, Grab's co-founders launched the company in 2012 in large part to solve the security problem. Among other safety related feature, the Grab app allows users to share their journey in real-time with others. The app also includes an emergency button that connects passengers with the nearest police department and, in the interest of protecting female drivers and passengers, the company recently introduced in-car CCTV cameras.

The company accepts cash or credit cards. That appeals to drivers as well as passengers, helping to expand the company's fleet. (Uber begun introducing cash payments as well in major Southeast Asian markets over the last couple years.) Recognizing that many of Southeast Asia's drivers are older and suspicious of technology, and that some can't afford a smartphone, the company has made active efforts to bridge the connectivity gap: The founders themselves have tutored drivers one-on-one at local coffee shops, while the company subsidizes the purchase of smartphones for poorer drivers.

There's no public data available on Southeast Asia's ride-hailing market, but Grab claims it enjoys a 95 percent market share in third-party taxi hailing, and a 71 percent share in private hailing. Indeed, within Southeast Asia, and especially Malaysia and Singapore, it's largely taken for granted that Grab has more cars available.

Grab isn't taking that commanding lead for granted. To further cement its advantage, it has moved into electronic payments. It bought an Indonesian company whose technology allows mobile phone users to pay cash for online credit and its latest round of funding is earmarked to expand GrabPay, an electronic payment system for which customers also buy credits. Grab has been upfront that it envisions transforming itself via GrabPay into a consumer company that offers financial services and shopping, as well as transportation.

It bodes well that at least one other local ride-hailing firm is attempting the same transformation, hoping to fuel its diversification through e-payments. For Uber, however, this is an uphill task in Southeast Asia. With little more to offer than a ride, it's in jeopardy of losing out to smaller companies that has taken advantage of digital technology.

The record financing follows Uber’s retreat from Russia and China, massive markets where Uber spent billions but ultimately giving way to well-financed and savvy local rivals. In Southeast Asia, it’s waging a costly war against not just Grab but also Go-Jek, a motorcycle e-hailing ride, which is holding its own on its home turf of Indonesia. The local players have thus far shown greater initiative in terms of launching services such as digital payments, said Ajay Sunder, vice president of digital transformation at Frost & Sullivan in Singapore.

Grab has been a lot more aggressive than Uber, making new acquisitions and launching new services in the region backed by solid financing. The Grab saga appears to be one of the largest investments in the region.

“Stronger Together Towards TN50”

A contribution to Society from the Chartered Institute of Logistics & Transport Malaysia, Sabah Section. Feedbacks can be addressed to ramliamir@cilt-m.com.my

Sapangar Bay Container Port as National Load Centre to cure Sabah's shipping woes

2017-08-04T02:26:00.000-07:00

Sapangar Bay Container Port as a national load centre to cure Sabah's shipping woes

Issues on cabotage has gone quiet for a while. The last that was heard from the Authority is the announcement on exemption to the Cabotage Policy with a lukewarm response from those that has interest in them in Sabah and Sarawak. It has in fact amused the public that there was no details on the mechanism for implementation. What was received from the Ministry of Transport is that, 1.the Prime Minister upon his announcement of the Cabotage Policy Exemption on May 7, 2017, did not set any time frame for the implementation of the exemption. 2. the Minister of Transport also did not set any time frame for the exemption, and 3. that towards this end, the Ministry of Transport has set up a Task Force to assess the effect and impact of the exemption of the Cabotage Policy. These findings will be used as basis for assessment of the effectiveness of the exemption. The assessment exercise is expected to take at least a year.

Looking at it from Sabah's perspective, the author is not at all confident that the Authority will move forward to abolishing the cabotage policy on a probable account that the ship owners association will make a very very strong representation to protect the benefits that they have received as a member of the association, though the public may dispute this that it is time to end the preferential treatment that they have been receiving of which taxation is one that makes for the best part of these benefits which in return there is nothing to show from the association in respect of improving shipping fleets as part of the deal.

The Authority will also be hard pressed to trade off the national interest aspect of the policy in which shipping fleets will be available to the government to make use in time of emergencies where these commercial fleets can be commanded to carry supplies and people as the need be. Sabah for that matter will have to respect this clause in the Ordinance of 1952, that it may help Sabah to resolve issues as it affect them during emergencies.

With the above situation what chance has Sabah got to ensure that its economy can be boosted as a result of the situation that cabotage policy has apparently and in part caused their product becoming uncompetitive for overseas market. I would say lets kiss the issue goodbye and focus on a practical and proven solution to attract shipping activities into Sabah water.

There are basically three interest groups that shipping services and statistics will impact upon in Sabah. They are the ports (Sapangar Bay Container Port specifically), the manufacturers and the government.

Sapangar Bay Container Port

Sapangar Bay Container Port (SBCP) strength is its strategic location along the maritime silk route on the South China Sea. It is midway between the Far East countries and Singapore and Peninsula Malaysia. It can be turned into a transshipment hub for cargoes destined for the East Indonesian market, the Pacific belt and down south to Australia and New Zealand. It is a perfect location for the BIMP-EAGA market.

SBCP is affected in a way that with or without cabotage policy ships will shy away from coming. Although direct shipping services by foreign vessels can visit SBCP even under the cabotage rule, they can only carry such numbers of containers that is required of the Sabah market. However the coming of the ships has to be balanced by the number of containers that they are able to bring back on its return voyage. It has been proven that there is no sufficient numbers that can justify a balanced cargo load for making the trip. What has happened is that, the ship may come but the journey to Sabah can be costly to justify the cost of the voyage. Importers may have to be charged a penalty equivalent to perhaps double the freight cost taking into account the nearly empty load on its return journey. SBCP needs the volume to be considered worthy as a premier port. It can take its time to build on this but it will also take that long for the industry at the backyard to prosper as they depend on the port as their outlet to the market. The question therefore, is there a way to get those numbers of containers fast?

The answer is YES, not relying on the laws but on a practical solution that has been proven to work. The answer is declaring SBCP as the National Load Centre for cargoes that is carried by ships on the South China Sea route for the Asian market. The Asian market comprises of the groupings or regional cluster of countries of The Far East markets, East Asean region and also the BIMP - Eaga region. These clusters has its own market for the container trades. The capability of the port to handle the number of cargoes that is derived from the cluster will determine which cluster that can best suit the volume that can be effectively handled by SBCP.

On a general assumption, the cluster of the Far East countries comprising China, Japan, Korea and Taiwan will be too large for SBCP to handle in the near future when the expansion project is completed in 2020. SBCP on completion is only forecasted to handle slightly over 1 million teus. The cargoes generated for the far east market account for more than 2million teus. Since it is a big market we have to allow for the freedom of choice for the market to determine which port to use. Ships and shippers are free to choose if to use SBCP or Port Kelang in this situation. A lesser tonnage which will come from the cluster of countries in the East Asean region which comprises basically the Indochina countries of Vietnam and Cambodia, those cargoes generated from the eastern port of Thailand that is port like Laem Chabang and also from the Philippines. It is safe to assume that the cargoes from this cluster will be ably handled by SBCP.

The other cluster comprising of the BIMP-EAGA countries may well be too small a number if this cluster is considered for its cargoes to be handled by SBCP. Further this market has not been fully developed for trading amongst member countries to be commercially realised.

The National Load Centre

National load centre status had been conferred on Port Kelang way back in 1993 via a Ministerial Directive coming from the Minister of Transport. The effect is to cause all cargoes for shipment from the various ports in the country to be shipped via Port Kelang so that there will be a marked improvement of the number of containers handled whilst at the same time each ports will and is free to handle its own container cargoes meant for foreign destinations. The objective of this Directive is to enable Port Kelang to catapult to a higher ranking position in a list of world's busiest ports. This they did and they are now in 12th position and Port of Tanjung Pelepas at 19th position.

Port Kelang has now outlived the necessity of having to rely on the Directive as through the years they have developed their niche market that will enable them to retain their 12th position or so in the world ranking. Will one million teus extracted out of their statistics hurt them? No, as this statistic will still feature in their books only that it may appear in a different category for example either as export or transshipment cargo.

Now to help Sabah's economy to grow, SBCP need the one million teus to enable them to achieve a hive of shipping activities in the shortest possible time to help spur its manufacturing industry, and not rely on building blocks one at a time where it may take a long time to realise the dream of generating this volume of cargo. This reminds us of how Port of Tanjung Pelepas came into being as an international status port with the injection of two million teus brought by Maersk Line when it shift its operation from Singapore. This was immediate. We hasten to think how long would they achieved this status if there was not an immediate injection of the two million teus. The concept is the same here for Sabah. An immediate injection of a sizable volume of container cargo will immediately transform SBCP port to an international status and at the same time spur the economic development of its backyard and manufacturing sector.

Will a Ministerial Directive be had for Sabah? The beauty of this directive is that it doesn’t hinge on the cabotage policy as domestic cargoes will be carried by Malaysian registered ships from ports in Peninsula Malaysia to Sabah and vice versa and the shipment out of Sabah will be a direct shipment to foreign destinations well within the context of cabotage policy. Sabah will therefore be able to operate as a transshipment hub. We take note that cabotage policy does not preclude or prescribe any vessel to make port calls in any port in Malaysia.

With a huge economic potential availed for Sabah as a result of increased shipping activities, investment into the state will also increase and more so for investment for port equipment to enhance its performance to meet new demands and needs due to increased shipping activities.

The Manufacturers

The manufacturers woes is that their product has become uncompetitive overseas as the freight they paid is excessively high due to uneconomic operation of ships without a balanced cargo for both end of the journeys causing the shipping company to charge a higher rate for the container going one way. This means that the freight from say Japan to Sapangar Bay is charged at a higher rate to justify for economics of operations for less than cargo load carried. As is the current situation shipping their products via Port Kelang attracts a far costly freight since there is an element of double handling of the container when it reaches Port Kelang and also the fact is that by going through Port Kelang it will be covering a greater distance compared to shipping it direct from SBCP to the Far East market since distance wise it is much nearer. Journey wise it is tantamount to doubling back to SBCP before proceeding to its destination.

How will the national load centre concept work for them? With increased number of ships plying in and out of SBCP, there is no more issue of penalty to be imposed as there are enough load to carry to and out of SBCP. This will generate increased production for the products and also generate other economic activities for the export market. This is an immediate direct injection of interest in the manufacturing sectors in Sabah arising from an immediate availability of shipping space. If the port were to take its time in coming up with the targeted number of containers to be handled, it will also take time for the manufacturing industry to be rejuvenated.

The State

With increased and improved port performance on handling of arrivals of more ships will denote a vibrant economy. A vibrant economy will attract more investments for the benefit of the state economy.

A national load centre as a concept is the answer to the survival of the state economy especially the manufacturing sectors for both downstream and standalone projects. Reliance on tourism alone as the source of state income and of shipment of crude and raw materials will not provide a broader base for the state economy and therefore lacking in a solid platform for economic survivability.

It will not hurt ship owners in Malaysia as they will still be in business to carry cargoes from within the Malaysian ports. What we need is for ships foreign and domestic alike to bunch into SBCP to create the hives of shipping activities which will allow our local products to be shipped directly to East Asian and including the Far East markets much more cheaply than before. At the same time with opportunities such as this being available for our exporters more investments will pour in to take advantage of this situation and creating more export products and a healthy state economy.

Ramliamir is a member of the Chartered Institute of Logistics & Transport Malaysia. He can be contacted at ramliamir@cilt-m.com.my

2017-03-10T22:53:00.002-08:00

Logistics and transport as the catalyst for economic development in Sabah

Our prime minister had made a very important statement regarding the East Coat Rail Link (ECLR) for the East Coast states in Peninsula Malaysia in that it is a mean to close the gap between the varying development progress between the regions in the country especially between the East and West coast of peninsula Malaysia. So transportation is a critical factor in ensuring development of economic activities. With the implementation of the ECLR the gross domestic product (GDP) of the three east coast states is projected to grow by 1.5%. It will change the economic landscape of Kelantan, Terengganu and Pahang turning them into trade hubs, tourism destinations and new investment focus. It is a game changer that would spur higher growth.

By the same token, Sabah has a mega transport project that would be a game changer for Sabah and that is the Pan Borneo Highway to improve connectivities and spur development along the highways in the hope that it would be a catalyst for economic activities, especially in manufacturing to take place.

In addition, the construction of the East Coast Rail Line (ECRL) for Sabah's East Coast can change the landscape of Sabah's east coast with the opening up of the district’s economy through rail access.

The same goes for the construction of rail lines in terms of commuter rail service to serve Kota Kinabalu and its suburban districts. A good linkage between Sapangar Bay Port (SBP) and the Kota Kinabalu Industrial Park (KKIP) is an absolute must if we want to see SBP as a new kid on the block in transhipment makes the impact that it had been hoped for. It is however well noted that a tunnel had been dug to provide for a shorter access to the KKIP to make way for faster and cheaper cargo transportation from Sapangar Port to the KKIP. KKIP is an important landside depot as it helps the port to quickly clear space in the port area thereby avoiding congestion of operation within the port.

The creation of a superior port must be supported by a host of related industries and activities and that one cannot wait for the other to exist before it is started. It has to be in tandem so that it would create the lure for investors yearn for bringing in the much needed activities to generate its industries.

Planning is a total and holistic approach to ensure that critical industries and sectors are served. Investors will look at what is the current status of the economy of Sabah, re the concrete plans that had been approved to make the plan happen. Only then will investor be happy to commit investing in Sabah.

Take for example the palm oil industry. It is a huge business where Sabah produces about 40% of the nation's output but Sabah cannot take advantage of this in developing down streaming of activities of this industry. Since there is no manufacturing activities that will be generated, our logistics industry will also suffer with no land transportation activities to be seen and thereby no port container operation taking place. We are missing on the spectrum of pushing our economic activities to a greater height by not down streaming the palm oil industry.

We use to say that in the transport and logistics sector planning must precede the demand and therefore the supply of the infrastructure must be made available first so that it will generate traffic. There are many a time that activities will only happen when they see that there are facilities available for them to plan and suit their needs and activities.

So in general it is a question of the hen or the egg first. Government would have to be strong in committing to creating an environment that will create a conducive window for development. Such planning frame does not happen here as the budgetary constraints will always be for the obvious necessities but not those that is a future necessity which if done now could make for great savings in cost rather than wait for the time when it is to be implemented at an exhorbitant cost but has to be implemented as it has become a critical need.

Railway is expensive. That is why rail planning must have a parallel development strategy. It has to be measured by the performance of other competitive modes such as road and air. In our case, it therefore requires not only careful planning but also has to be accompanied by long-term strategic policies that will reverse the domination of the road transport sector. We have definitely been road- or highway-biased, preferring to invest heavily on highways and focus more on cars as a mode of transport.

It is therefore quite refreshing when a leader, in reference to our Prime Minister on the development of the East Coast Rail Line, touches on the importance of rail and how it can play a significant role in the future transport sector. A rail system, for its rigidity and fixed route, needs to have other supporting infrastructure that will make it work. With the right support and connectivity, it can, after all, be made to be more efficient than road transport.

Since it can also accommodate more traffic (freight and passengers), a well-planned railway, of an appropriate design, speed and technology, can outperform road mode in terms of better travel time and capacity. It is, after all, a cheaper mode of transport and less polluted.

Planners must incorporate the need to connect the existing network with a new rail network, so that connectivity can be enhanced and the future network expanded.

This is strategic planning for the transport and logistics sector, a statement that we often find missing and definitely lacking in many transport project planning documents or blue prints.

We are also hoping that projects developed and harnessed under the Sabah Development Corridor (SDC) would all be successful so that it will add to the economic well being of the state. Logistics being one of the pillar in transforming Sabah’s economy in the context of the SDC would provide for a seamless impetus and kickstarts to many projects that is being undertaken privately. Only when state development plans like the SDC is well in placed woul eventually spur investments and development coming into the state.

2017-03-10T22:51:00.003-08:00

Graduate Unemployment in Malaysia

"The top industry that leads the job market is in the Manufacturing & Logistics sector"

Every year over 200,000 students graduates from institutions of higher learning. Being a university graduate no longer guarantee a job. As the number of graduates climb each year, students are facing tough competition amidst a shaky economy. This article seeks to state the facts why fresh graduates are unemployed in Malaysia, and what can be done to increase employability.

Unemployment issue in Malaysia

Research has it that one of the factors that contribute to the unemployment problem among the Malaysian graduates is the quality of the graduates.

There are employers in the industry, who gave negative comments on the graduates and mentioned that the graduates do not have suitable skills and qualifications to meet the needs of the industry. The graduates are also weak in respect of employability skills and lack of good quality work performance.

A study conducted by Central Bank of Malaysia in 2002 also found that the Malaysian graduates are less skilled as compared to the international graduates. The skills include technical skills, problem-solving skills and communication skills, especially in English language. Research also found that several primary weaknesses of Malaysian graduates are in the areas of management, problem-solving, communication, leadership, creativity, critical thinking, proactive, self-confidence and interaction skills.

These are obstacles for the graduates in finding jobs. It was also stated the several factors also contributed to the unemployment problem among the graduates such as the lack of the interactions between educational institutions and the industry resulting in the lack of training to prepare graduates for the real world.

Industries has also reported that the reason for job vacancies is because of lack of candidates who are qualified for the posts. This is shown from a report by National Associated of Manufactured (NAM), in which it is revealed that there are gaps exists in the range of skills in almost all of the working fields. Consequently, this is the reason that makes a candidate not selected for failing to meet the requirements of the industry.

A study conducted in 2008 found that graduates of Higher Educational Institutions in Malaysia has minimum preparation in facing the challenges posed by globalization and k-economy phenomena. This situation may result in the hiring of foreign workers.

A good academic achievement therefore is no longer a guarantee for our graduates to land a job. Since there is a big gap between the quality levels of the Malaysian graduates with that expected of an international standard, this provides us with a big challenge in order to ensure that our country has skilled, versatile and marketable graduates.

Human capital theory state that human capital that has a high knowledge and skills contribute to the increase of the country’s economic productivity. It also stated that a high investment in producing useful human capitals is important as long as it give high and positive impacts to the economic productivity.

The Current Scenario

Finding shows that unemployment in Malaysia is concentrated among the youth. About 200,000 students graduate annually where one in four fresh graduates remain unemployed six months after graduation. Six out of 10 of those unemployed are below the age of 24.

Among fresh graduates with tertiary education 31.4% degree holders are unemployed, of which 43.4% come from the arts and social science. The Field of studies breakdown are, Arts & Social Science 43.4%, Technical 24.5%, Science 20.2%, ICT 8.1% and Education 3.9%.

The majority of unemployed fresh graduates are from public universities (IPTA) at 51%, 34% from private Universities (IPTS), 13% from Polytechnics, 2% from Community Colleges. Based on Job Street Survey, 64% of employers said they did not care whether graduates were from foreign, private or public universities.

As per JobStreet survey, employers are saying that 68% of fresh graduates were asking for unrealistic salary and benefits, with 30% expecting a starting salary of RM6,500. Top reasons for fresh graduates unemployment are poor attitude or character 59%, poor command of English 64%, and poor communication skills 60%. Employers also felt graduates lacked adaptability, multitasking skills, decision making skills and problem solving skills.

Job postings on JobStreet only fell 1% in 2015. 88% of employers stated that they are maintaining or increasing hiring in 2016.

The top 5 industries leading the job market are manufacturing and logistics, banking & financial services, construction, ICT, and wholesale & retail.

The top three specialisations that is in high demand are sales & marketing, accounting and engineering.

The technology related jobs that are trending are cloud related jobs, mobile developers, SEO/SEM specialists, UI/UX designers and digital/social media marketing specialists.

How to increase employability

· Improve proficiency in english. The majority of companies conduct their business in english, so it is critical to be proficient. They must practise both written and oral english, surround themselves with the english language and to keep improving and learning. It is a marathon not a sprint.

· Gain work experience. This allows one to observe how skills, ideas and knowledge are applied in the working world. This can be done by taking up an internship during semester breaks, participate in job shadowing programmes and to take part in extracurricular activities.

· Develop skill sets to be more well-rounded. Straight A's, 1st class honours or a CGPA of 4.0 does not guarantee employment.Hard skills in computer literacy, numeracy, writing skills and language skills need to be learned and developed. Soft skills such as communication, problem solving, creativity & innovation, time management and teamwork are also crucial.

· Be responsible. One in three employers stated that candidates often fail to turn up for the interview. One must prepare well for the interview, must be appropriately dressed and most importantly to show up for the interview.

What it meant is that candidates should develop transferable skills, not just specialist skill, to enable them to do other job roles.

2017-02-13T23:41:00.000-08:00

DIGITAL TRANSFORMATION

In this digital age, companies that deliver an engaging and satisfying customer experience fitting into their lifestyle will gain competitive advantage. To get into a deeper understanding of digital transformation we must look into what it is, why it needs to be at or near the top of our strategic imperatives but also how to begin the journey of transformation.

Business leaders must be thinking about disruption. Businesses have always disrupted and replaced other businesses. In the early 1800s in England, factories with mechanical looms threatened to replace traditional shops making hand woven cloth, which led to riots among weavers fighting to save a way of life. These weavers were literally at war against mechanization and progress.

Disruption isn’t new. What’s new is the pace of disruption. What may have taken decades in the past seems now to happen overnight.

Uber burst on to the scene just a few years ago and already is taking down the taxi industry in New York City and here in Malaysia, erasing the value to this long-established business. Like the weavers, taxi drivers are fighting back too, suing and blaming Uber for ruining their livelihood.

Transform or die, that’s the theme of this article and the mantra of many a forward-thinking business leader.

Digital technology (or, as some refer to it, “infotech”) has disrupted large part of the economy, from taxi drivers to travel agents, from book sellers to movie vendors, and it will continue to disrupt and overturn seemingly entrenched businesses that are slow to recognize and respond to the digital tsunami.

To avoid being swept away by the digital era, businesses must embrace digital transformation.

Digital transformation is how business becomes a digital enterprise, and transforming the organization into a digital enterprise is necessary to compete for digital customers.

Technology enables this transformation, but digital business is not about IT transformation. Nor is it about using IT to improve operational efficiency. Digital business is about finding new marketing, engaging new customers, and generating new sources of revenue.

The goal is to find innovative ways to engage the new breed of customers and ultimately capture a greater share of their digital market and growing purchasing power. Digital transformation is the means by which companies will create those new business models and revenue streams.

What is meant by digital enterprise, as well as related concepts such as digital economy and digital platform. What is in it in customer experience and changing customer expectations and how does digital customers accelerate the need for digital transformation.

What are the examples of business and industries undergoing transformation and what that looks like - What is the concept of a digital platform, its characteristics and components. What is the model which can be used to assess our own digital maturity and readiness for transformation.

What does the digital customer want?

They want more choice and customization.

They require instant access to product information wherever they are.

They expect to receive products quickly and with zero defects.

Ordering, billing, and payment transactions must be simple, streamlined, and accurate.

Supply chain excellence is key to a superior customer experience, but has become incredibly challenging in today’s business environment.

The digital supply chain must accommodate a rapid cycle of product introductions and personalized offers, cope with exploding volumes of cross-border transactions, and operate seamlessly and efficiently within a fragmented, global ecosystem of partners and suppliers - all while maintaining profitability and service levels.

To excel in this new environment, businesses need to radically change or, in many cases, completely overhaul their supply chain processes.

There is a need to digitize core business processes and adopt emerging technologies for increased flexibility, productivity, cost savings, and streamlined transactions with supply chain partners.

A Digital Ecosystem

During the transition to a digital business, organizations need to re-envision their business not as a standalone entity in which activities flow in an orderly, predictable way, but as part of an extended digital ecosystem from which they, their customers, or any member of the ecosystem can gain information on products and services according to their needs and easily pivot their operations to meet demand.

Embracing digital transformation in Malaysia After a rather poor start a few years ago, Malaysian enterprises - across most verticals - are finally starting to embrace digital transformation in a more serious way. This is a significant progress -- as it means that Malaysian companies are now more aware of the importance of digital transformation and that the questions asked by companies have moved from 'What is digital transformation? Why do I need it?' to 'How do I transform digitally? How do I embark on this journey?'

According to Oracle Corp's country manager for its Malaysian operations Fitri Abdullah, one of the reasons the conversation is changing is that IT and digital transformation are no longer merely issues and concerns of the IT departments.
Increasingly, the organisation is having conversations on digital transformation with the CEOs, the human resources team, the finance team. It is no longer just us and the IT department. CA Technologies APJ vice president Richard Gerdis agreed and he believed that another reason why digital transformation agenda is gaining steam is because they know that - from various case studies and reports - it will positively impact the company's bottom-line.
According to CA Technologies' recent global study, it showed that companies and enterprises embarked on the digital transformation journey are seeing a positive impact to its business performance.
The global study - which compiles feedback from 1,770 senior business and IT executives, including those in Malaysia - revealed that respondents saw an average increase of 37% in terms of revenue from new business sources.

The study also showed that those who embarked on digital transformation saw customer satisfaction increased by 40%, and speed-to-market jumped by 33%. About three quarters of the respondents saw an improvement in customer experience, and increase in digital reach.

Port Tariff Hike at Port Klang

2015-01-09T18:22:00.002-08:00

Urban Transport

2014-10-29T20:31:00.005-07:00

Kuala Lumpur has been ranked the fourth most affordable city in the world in terms of urban transport prices, according to journey-planning platform GoEuro.

GoEuro said Kuala Lumpur was among 60 cities ranked in the Urban Transit Price Index, which took several factors into account.

"Distance, time and taxes were among the data gathered by GoEuro from official provider sites," GoEuro said in a statement.

On average in Kuala Lumpur, a public transport ticket costs US$0.74 (RM2.43) per ride, a taxi journey US$3.68 per 10km and an Uber journey US$5.05 per 10km.

According to GoEuro, the most expensive city for urban transport is Stockholm where public transport costs US$4.96 per ride.

A taxi journey in Stockholm costs US$40.04 per 10km and an Uber journey US$48.57 per 10km.

The cheapest city for transport overall is New Delhi where an average public transport ticket costs US$0.22 per ride, a taxi journey US$2.62 per 10km and an Uber journey US$4.40 per 10km.

GoEuro said INFORMATION about the cost of getting to and from the airport, train or bus station to a hotel was essential, especially when on a budget.

"As disruptive technologies like Uber and ride sharing become more common, travellers have more options than ever before.

"Understanding the price and how it may vary from city to city is a valuable resource for the BUSINESS and holiday traveller."

The Urban Transit Price Index is an in-depth comparison of urban transport prices in 60 cities across the world as part of the GoEuro Price Index series. – October 30, 2014.

- See more at: http://www.themalaysianinsider.com/malaysia/article/kl-ranked-4th-cheapest-city-for-urban-transport#sthash.JdPuFJJm.dpuf

VAN RENTALS KOTA KINABALU 2

2014-09-11T16:26:00.000-07:00

abalu

	Lok Kawi Zoo, Monsopid Cultural Village, Mari-mari Cultural Village MYR 230 * 8 * 4

	Half Day Charter Service to Attraction Point MYR 450 * 8 * 4

	Full Day Charter Service to Attraction Point MYR 450 * 8 * 4

	8 Hours Charter Service MYR 500 * 8 * 2

	2D1N Charter Service to Attraction Point MYR 520 * 8 * 4

	Golf Course Transfer MYR 140 * 8 * 4

	Overland Charter Service MYR 620 * 8 * 4

	3D2N Charter Service to Attraction Point