Transport, logistics and supply chain education

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

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

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.

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

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.

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"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"