Thai Floods hobble Japanese logistics firms
The severe flooding in Thailand has hampered the operations of Japanese shipping companies, inundating some of their warehouses and weakening demand for transporting goods, according to Nikkei Report.
Each of the logistics firms conducts daily updates of maps showing the areas that are flooded so they can deliver products and parts using trucks in areas accessible to vehicles. But making on-time deliveries is difficult due to congestion, they say.
Nippon Express experienced flooding at five warehouses at the Hi-Tech Industrial Estate and Rojana Industrial Park. Although it has managed to avoid damage to clients' cargo by putting it on racks and by moving it to other facilities, "we can't go near flooded warehouses, so we have been unable to check inside," said president Kenji Watanabe.
Even so, more than 80 percent of the floor space of the firm's Thai warehouses is dry, and there has been a sharp increase in calls from customers about moving production equipment.
Nippon Express decided to dispatch about 30 personnel from Japan and Singapore to help out in Thailand. With flood damage spreading in Bangkok, the company may also move the headquarters of its Thai unit from the capital to Laem Chabang.
Yusen Logistics suspended operations at its warehouse at the Nava Nakorn industrial zone, and it moved clients' goods such as electronic devices and autoparts to other locations. However, the movement of freight has been slow because factories that are supposed to receive the shipments have closed down.
Kintetsu World Express has shut its warehouse in the Rojana park after the facility was inundated. Although business has slowed, it is continuing to operate using unaffected facilities.
Kawasaki Kisen Kaisha's (“K’’ Line) containerships departing from Japan make two port calls in Thailand a week, but the firm is considering temporarily scaling back service to once a week.
Nippon Yusen KK (NYK) has discontinued stops at the port of Bangkok because loading and unloading works have been affected, and is using the port at Laem Chabang instead.
With automobile production down in Thailand, NYK’s automobile carriers made half the usual number of port calls in the country last month.
Mitsui OSK Lines (MOL), which transports 10,000 to 20,000 vehicles out of Thailand every month, has cancelled some stops in the country.
“K’’ Line said that it has not yet made plans for its automobile carriers to make port calls in Thailand this month on the view that transport demand will fall by some 17,000 vehicles a month.
Saturday, November 5, 2011
Friday, November 4, 2011
Malaysia's Economic Transformation
Malaysia’s economic transformation: One year on
Invest Malaysia came to Hong Kong yesterday to give a one-year report on its plan to join the rich world by 2020.
According to the plan, Malaysia will need to add 3.3 million people to its workforce, grow its economy by 6% a year and attract $444 billion of investment (hence the trip to Hong Kong) during the coming decade to reach its targeted gross national income (GNI) of $523 billion by 2020 — or $15,000 per capita, up from $6,700 today.
“The plan is to make us all rich for a very long time,” said Jala, during a lunchtime speech.
That is why Malaysian prime minister Najib Razak has made national transformation a priority, appointing Jala in January last year as the chief executive of the newly created performance management and delivery unit (or Pemandu, which means “driver” in Malay).
Jala came to the job after a career in the private sector with Shell and a stint as chief executive of state-owned Malaysia Airlines, which he helped return to profitability after heavy losses. At Pemandu, he has brought in an army of international consultants, auditors and communications specialists.
He was in Hong Kong yesterday as part of Invest Malaysia, accompanied by senior executives from Bursa Malaysia and OSK Securities, to pitch the country as an investment opportunity to fund managers from Hong Kong and China. The main message was a simple one: Malaysia is making a wholesale drive to modernise, under the guidance of a professional management team that speaks your language.
After the first year of the transformation programme, Malaysia remains on target to hit its key economic goals — the full-year figures forecast that the economy will have created 11% of the jobs it needs to add by 2020, attracted 12% of the investment and moved 13% of the way to its GNI target.
It is making progress on structural reforms too. A new competition law will come into force in January 2012 and a further 17 industries will be opened to foreign competitors, including professional services such as law and accounting, as well as some healthcare sectors and telecommunications services.
The government is also divesting its assets with a plan to limit its role in business. Felda Global, the commercial arm of government-owned Federal Land Development Authority (Felda), raised $269 million from the IPO of sugar refiner MSM in June and is planning its own IPO for the first half of 2012. In all, the government has 24 divestments in the pipeline for this year and next.
The message is getting through to some people, it seems. This year’s World Economic Forum Global Competitiveness Report identifies broad improvements in Malaysia’s institutions, macroeconomic environment, education and training, and the development of its financial markets.
A big part of the challenge will be to keep the investment coming in. Jala conceded during his presentation that the country may not reach its goal for 2011. One of the problems the country faces is that investors have tended to find it a boring, defensive market, according to Chris Eng, head of research at OSK Securities. “Defensiveness is cold comfort in a bear market, when the value of most asset classes tends to shrink,” he said.
Building stronger ties within Asean, particularly between the various exchanges, is one avenue that is being explored as a way to stimulate further investment, but that is a slow process and Malaysia is in a hurry.
The path it has chosen is a good one, but it remains to be seen if investors will be convinced.
Thursday, November 3, 2011
LOGISTICS - Lean Six Sigma Logistics
Thinking Out of the Box - the hallmark of success
Thursday November 3, 2011
SOBA winners say thinking out of the box is one of the hallmarks of success
By DALJIT DHESI, EUGENE MAHALINGAM and EDY SARIF
starbiz@thestar.com.my
PETALING JAYA: Perseverance, hard work and thinking out of the box are some of the hallmarks of success, said top winners of the coveted The Star Outstanding Business Awards 2011 (SOBA 2011).
“Our company's motto is to think differently from our competitors and persevere during tough times. Besides being different, we do not give up easily and always strive to do better. We also adopt some of the best practices in the industry and provide attractive benefits to our employees,” said Vista Laser Eye Center Sdn Bhd CEO Lim Boon Siong.
A total of 27 awards in 11 categories were presented at the SOBA 2011 ceremony held at the Royale Chulan Kuala Lumpur on Tuesday. Eight were platinum awards, 10 gold and nine silver. There were a total of 115 entries from 83 companies this year.
Vista Laser, which offers eye correction procedures, clinched the premier Business of the Year Platinum Award. It also won a platinum for Best Employer. Last year, the company won the gold award in the Best Employer category.
PKT Logistics wins three awards: (from left) P’ng Tean Hau, group chief operating officer with Best Employer Silver Award; Datuk Michael B.Y. Tio, group chief executive and MD with the Entrepreneur of the Year Gold Award; Datuk Jalilah Baba, group chairman; Augustine Lee, group chief financial officer with Business of the Year Silver Award.
A first time winner, City-Link Express (M) Sdn Bhd founder and CEO David Tan expressed his happiness and hoped to try much harder next year. The company clinched a platinum for the Outstanding Malaysian Brand category.
“Our strength lies in the people who are working for us and a strong brand name that is backed by more than 32 years of experience in the business,” he said.
Expressing his disbelief, Hextar Chemicals Sdn Bhd chairman Datuk Ong Soon Ho, whose company was the only gold winner in the Global Market category, said his company did not win last year.
“Maybe we were in the wrong category last year but this time around, we are in the right category as our business is very strong in the export market,” Ong noted.
Celebrating the platinum winners: (from left) Nehemiah managing director Dr Nehemiah Lee Chee Hai, Westports director Datuk Rahim Bakar, Thumbprints Utd managing director Tam Wah Fiong, Hextar chairman Datuk Ong Soon Ho, BMW Group Malaysia managing director Geoffrey Briscoe, EXIM Bank managing director/CEO Adissadikin Ali, Transport Minister Datuk Seri Kong Cho Ha, Vista Laser CEO Lim Boon Siong, KK Supermart chairman Datuk Dr Douglas KK Chai, City-Link Express founder and CEO David Tan, and Star Publications group MD and CEO Ho Kay Tat at the SOBA 2011 on Tuesday.
The platinum awards for Environment and Rising Star categories were won by Thumbprints Utd Sdn Bhd and KK Supermart & Superstore Sdn Bhd respectively, while Westports Malaysia Sdn Bhd clinched platinum awards for the Technology/ICT and Community categories.
Thumbprints Utd managing director Tam Wah Fiong said it was making the environment a priority in its business practices, adding that it had plans to expand into other countries, especially India and Indochina.
KK Supermart & Superstore Sdn Bhd chairman Datuk Dr Douglas KK Chai said: “Winning this award carries a lot of weight. In terms of expansion, the sky is the limit in terms of how far we want to go,” adding that the company aimed to expand locally and overseas.
For the Entrepreneur of the Year category, Nehemiah Reinforced Soil Sdn Bhd won the platinum. Its managing director Dr Nehemiah Lee Chee Hai said: “I am humbled and honoured with this win. I will like to thank my management team as this proves that our hard work has paid off. It's because of them that I have won this award.
“Currently, we have set up businesses in India, Bangladesh and Singapore. We have just ventured into Indonesia and hope to take our business to Australia next year,” he added.
SOBA 2011, which is into its second year, is organised by The Star with Exim Bank as presenter and BMW Malaysia as gold sponsor. It is supported by Bursa Malaysia and audited by BDO.
The Royale Chulan Kuala Lumpur is the official hotel partner and Bernama TV the official TV news partner. Shang Hai is the official business magazine while 988FM is the official radio station.
Wednesday, November 2, 2011
Logistics Costs Rising
Wednesday November 2, 2011
Rising services cost a bane for businesses
By EUGENE MAHALINGAM
eugenicz@thestar.com.my
KUALA LUMPUR: Malaysian businesses expect rising services cost and fluctuating exchange rates to be among the top barriers to imports and exports in the next six months, according to findings of the latest HSBC Trade Confidence Index.
In the survey, 52% of Malaysian businesses found the cost of essential services such as shipping, logistics and storage would be the biggest barrier to international trade, followed by fluctuating exchange rates, at 35% and insufficient margins or profitability, at 29%.
Other concerns for Malaysian businesses included government trade regulations, rising interest rates and lack of product demand.
HSBC Bank Malaysia Bhd trade and supply chain director Ng Wei Weisaid that confidence had risen to a positive 106 points in the latest HSBC Trade Confidence Index from negative 97 points in the previous survey. Countries that recorded index points of over 100 are considered “positive,” while those below 100 points are “negative.”
Business concerns: Andrew Grisdale and Ng Wei Wei speaking to the media on the findings of the HSBC Trade Confidence Index.
She said 83% of Malaysian businesses expected trade volume to rise or at least remain unchanged in the next six months.
“In the next six months, 92% of the businesses expect their need for trade finance to rise or remain unchanged and 91% expect their capacity to access to trade to rise and remain unchanged,” she said at a briefing yesterday.
“Despite the rise in confidence in trade, 57% of Malaysian businesses expect the global economy to decline in the next six months,” Ng added.
HSBC managing director for commercial banking Andrew Grisdale said the implementation of key initiatives under the Economic Transformation Programme, combined with the Government’s pro-growth initiatives and regulator’s liberalisation measures would continue to fuel an “optimistic business environment.”
“At HSBC, we see positive growth in trade volumes and we expect growth to be supported by public sector expenditure and domestic private consumption.”
The HSBC Trade Confidence Index covers 21 markets and is the largest trade confidence survey globally.
Of the countries surveyed in Asia, businesses in Indonesia were the most bullish about trade prospects in the next six months with a score of 144 points. This was followed by India and Vietnam with 129 and 115 respectively. Malaysia was the fourth most confident country on the index. The survey comprises the views of 6,390 exporters, importers and businesses from small and mid-market enterprises on trade volume, buyer and supplier risks, the need for trade finance, access to trade finance and the impact of foreign exchange on their businesses.
On another note, Ng said HSBC expected Asian trade to grow 4.8% year-on-year until 2025 versus 3.8% globally.
“Asia trade volumes will grow 96% to nearly US$14 trillion (RM43 trillion) by 2025 and will be the key driver of world trade growth, which is expected to increase by 73% in the same period.
“India, Vietnam, Indonesia and China are among the top five international power houses which will drive world trade growth until 2025,” she said.
OIL & GAS - Oil to generate other economics activities
| Consultant: Let oil gains benefit other sectors | |||
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By Goh De No
BRUNEI'S oil and gas sector needs
Sasha Lennon, director of SGS Economics & Planning, said that Brunei lacks linkages between the oil and gas and the other industries, leading to a small multiplier effect.
SGS Economics, appointed by the Centre for Strategic and Policy Studies (CSPS) for the Land Optimisation Strategy for Industrial and Commercial Growth, said that Brunei fares poorly when compared to neighbouring countries.
In Malaysia, on the other hand, one per cent is contained within the oil and gas industry, while the other 99 per cent goes out to other sectors of the economy, while in Australia, around 88 per cent goes out to other sectors.
"When there isn't many activities to other industries in the country, it leads to Brunei having a small multiplier," Lennon explained.
He said that what SGS is suggesting is to identify seven clusters in line with its strategy on how the optimisation of land can facilitate foreign direct investment, and ultimately, economic diversification.
He added: "We made a point the oil and gas sector needs to be diversified. By promoting other activities in the services industry or mining, that wealth can be captured locally."
Some of these sectors would be advance business services like financial, technical or scientific services, and other possibilities like surveying or mining.
"Another obvious sector is the transport, communication and logistics. We should see how that sector can be focused on so that it can potentially serve the oil and gas industries, and other activities," he said, adding that Brunei needs to embrace its geographical location.
Lennon said that if Brunei builds on its petrochemicals sector first, the development of new business and opportunities will emerge in other areas, like transportation, logistics and so on.
"When you develop those multipliers and the income is retained in domestic economy, it will then develop more creative industries and so on," he said.
The SGS land optimising strategy identified seven future industry clusters, namely: petrochemicals & energy; transport, communications & logistics; creative industries; advanced business services and financial services; tourism; education; and biodiversity, food & pharmaceuticals.
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LOGISTICS - Malaysia's Roadmap
Monday August 22, 2011
Logistics roadmap will benefit the region
“With the roadmap, the transportation networks will be connected within the Asean and PBG countries. This will further develop investment, trade and economic cooperation in the region and form cluster of industries, accelerate economic growth in the PBGEC.” – Bernama
Jelaing attended the 6th PBGEC Forum, which concluded here on Friday.
He said Malaysia would play its role in transportation infrastructure to improve the connectivity between Asean and China.
“We are doing everything that we can to speed up the connection, such as the Singapore-Kunming Rail Link.”
The roadmap for the Development of the Logistics Services Industry is an Asean economic blueprint signed by all Asean leader at the Asean Summit, which was attended by former prime minister Tun Abdullah Ahmad Badawi in 2007.
Meanwhile, Jelaing said the Transport Ministry would evaluate and implement relevant strategic initiatives under the roadmap which whould envision the development of world class freight logistics system, including strengthening the role of ports and shipping to support the country’s economic growth and development.
“We will liaise and consult with various stakeholders in the industry through the focus in moving the agenda on freight logistics forward,” he said.
On maritime cooperation, Jelaing said China-Asean Maritime Consultation Mechanism is in the midst of exploring cooperative opportunities.
Under the mechanism, he said both countries conducted numerous activities, including the meeting on Tide, Current, and Wind Measurement Project of Malacca and Singapore Straits (March and April) and the Workshop on Port Facility Security in July. BERNAMA
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