Friday November 11, 2011





Assalamualaikum W.B.T, Good Afternoon and Salam 1Malaysia.

Yang Berbahagia Datuk Wira Jalilah Baba,
Group Chairman, PKT Logistics Group

Yang Berbahagia Dato’ SK Tio,
Group Founder and President of PKT Logistics Group;

Yang Berbahagia Dato’ Michael By Tio,
Group CEO and Managing Director of PKT Logistics Group;

Members of the Press, and

Honourable Guests.

1. Firstly, I would like to thank PKT Logistics Group for inviting me to officiate this momentous occasion.

2. Over 30 years, PKT Logistics Group’s growth has been on the uptrend. It has evolved from a custom brokerage and forwarding service provider and later diversified downstream to provide complimentary services such as NVOCC (Non Vessel Operating Common Carrier), container haulage, warehouse and distribution-under subsidiary companies. This is a success story of which Malaysian companies can learn from the advantages of organic growth. Start small but move from strength to strength.

3. I am also encouraged by PKT Logistic’s vision, which is to be one of Malaysia’s champions of the logistics industry in this region and the rest of the world.

4. Logistics has assumed a very prominent role as it provides the backbone to facilitate international trade. The value chain involves integration of various service providers – transport, distribution, freight and ancillary services – to deliver a total supply chain solution. In order to give more focus on this sub-sector, the Government has set up the Malaysia Logistics Council (MLC) in 2007 to be the focal point for the overall coordination on strategies, policies, regulations and rules for the logistics sector.

Honorable Guest,

5. The services sector is already in the driver’s seat of the Malaysian economy but it had taken us sometime to realise its importance. In fact, this realisation only took place in 2006 when the Government launched the Third Industrial Master Plan for the period 2006 to 2020. The IMP3 had identified eight services sub-sectors, including the ICT, distributive trade, tourism and logistics sub-sectors, as growth engines of the future to be further developed to enhance Malaysia’s trade and global competitiveness. In this regard, the IMP3 also identified GDP growth targets and the quantum of investments required annually to increase its share of the GDP to 65 per cent by 2020.

6. We are therefore a new boy on the block as far as services are concerned. We are only now moving towards a services economy, particularly at a time when many developed countries, including those in the European Union, have already established competitive services sub-sectors that are well poised and geared towards taking full advantage of opportunities in this sector. The fact that services accounts for nearly 70 per cent of the GDP of the EU and for more than 75 per cent of the GDP in some of your member states indicates the competitiveness of this sector in your countries.

7. The services sector in Malaysia is poised to achieve greater heights. Apart from the NEM and the Third Industrial Master Plan, the Government is also actively engaging the private sector through the Tenth Malaysia Plan to focus on growth of specific services sub-sectors to uplift the sector’s contribution to the GDP. In addition, the Government also undertakes to better the enabling environment through revision of regulatory frameworks as well as liberalisation of select subsectors. Efforts are also being streamlined to raise the level of value-added, innovation and creativity into the sector.

8. If you browse MITI website through the list of sub-sectors that were unilaterally liberalised, you would appreciate that:

• We are liberalising these sub-sectors earlier than our commitments to liberalise by 2015 in the ASEAN Framework Agreement on Services by 2015;

• We have gone beyond the 70 per cent ASEAN equity that we are committed to achieve in AFAS by 2015;

• Several sub-sectors, such as computer related services, are sub-sectors that our trading partners had expressed interest in our negotiations; and

• With WTO negotiations not making much progress, the unilateral liberalisation was aimed at offering international investors an opportunity to participate in the economy, thus not limiting it to only those countries with which we have free trade arrangements.

9. What does Malaysia want when it liberalises the services sector?

• We want foreign investors to invest in a wide range of services sub-sectors, not only limited to sub-sectors such as finance and insurance, real estate and distributive trade;

• We want to add new capacities and capabilities in the country, not only to fill in vacuums in services supply within the country but to position the investments to take advantage of ASEAN integration. The liberalisation of theme parks, convention centres, hotels and restaurants were aimed at further enhancing our attraction as a tourist destination. Such high impact projects have multiplier effect on the economy and build capacities for the future;

• We want technology and expertise to provide quality life for the aged and disabled, when we liberalised welfare homes and homes for the disabled;

• We want to create high value jobs and help up-grade skills and expertise in the country and not invest in sub-sectors where the domestic workforce will continue to compete with foreign workers for a decent wage; and

• We want to provide a first mover advantage in some sectors that is already liberalised in ASEAN, such as the logistics sub-sectors.

Honourable Guests,

10. Some people perceive that by giving more focus to the services sector, the manufacturing sector is no longer a priority. This is not a correct interpretation of this new focus. The development of the services sector would in fact complement and support the development of the manufacturing sector. This is particularly true of the reliance of the manufacturing sector on a competitive and efficient logistics supply chain to move its goods and products to the consumers in overseas market.

11. As manufacturers outsource production parts and components worldwide to lower the cost of production, the logistics sector assumes a critical role towards achieving this objective.

12. This brings me to the purpose of our meeting today which is the launching of PKT Logistic’s Green lighthouse. The modern and Green features to be incorporated in this lighthouse is indeed in line with the Government’s policy to promote the Green Building in Malaysia.

13. I am made to understand that PKT Logistic intends to invest over RM240 million in Malaysia over time. It is anticipated that this will contribute significantly to the country through various multiplier effects such as the creation of new high-income jobs that will help create a high-income society as mooted by our Prime Minister. This is a good sign and I would urge other companies to similarly increase their investments in Malaysia.

14. Finally, I would like to congratulate the management of PKT Group and all of PKT Logistics’ staff as you celebrate a new chapter in PKT’s history. I wish you all the success for the future. I am told that today the 11-11-11 (11th of Nov 2011) is particularly auspicious. This seems like a very good start.

Thank you.

1 comment:

logistics companies uk said...

I agree, logistics represent international trade and is its backbone..