Room for Improvement

NOVEMBER 15 - NOVEMBER 28, 2014 32 SME News Room for improvement By Kenneth Joseph [email protected] Logistics industry need to collaborate, ensure effi ciency and reach regionally alaysia emerged as the top performing nation among the world’s upper-mid- Mdle income nations in the World Bank’s 2014 Logistics Performance Index. This is an outstanding achievement; however, more is needed to breach the world’s top ranks. The logistics industry in Malaysia is a highly competitive one with over 4,000 logistics services providers operating in Malaysia. Col- laboration among these logistics service providers is paramount in pushing the nation forward into the next level. Thambiah Logistics Executive chief oper- Judd ating offi cer Darryl Judd shared with MALAYSIA SME®, “Though practical insights into the industry, laysia. If local players are able to do Malaysia, it could prove to be a labour costs,” Thambiah said. we are all competing in the same which they otherwise would not this, they will gain a huge strategic huge win-win situation for every- However, Malaysia does pos- space, collaboration and learning is have been able to gain. It also helps advantage after the implementa- body,” he added. sess some inherent streng ths that fundamental in helping players in newer employees improve their tion of the AEC in terms of logistics MHE-Demag Malaysia Sdn Bhd stand to benefit logistics provid- the industry overcome issues which skills very quickly.” services,” Judd said. regional product manager Andrew ers, as Judd pointed out, “The fact are essentially common issues that Although the outlook of the in- “In order for this to be successful, Thambiah shared with MALAYSIA that we have neighbours such all players are facing.” dustry is generally positive, it is not industry–government collaboration SME®, “In the coming years ahead, as Thailand and Indonesia with Recognising this, MiceVision all bright skies ahead, as there are is necessary. Malaysia could take a increased labour and land cost will huge land masses prove to be an recently organised the 3rd Global issues in the industry that players cue from Singapore whereby they also prove to be a huge issue for opportunity for Malaysian logis- Logistics and Cargo Symposium need to address sooner than later. have Productivity Innovation Cred- logistics players, so utilising the tics providers to expand opera- which brought together various With the upcoming ASEAN Eco- its (PICs). Companies are given tax right methods immediately can help tions there.” players from the logistics industry. nomic Community (AEC) coming cuts on expenses such as infrastruc- them mitigate this trend.” “Malaysian logistics providers Topics from warehouse handling, into effect soon, regional issues are ture improvement and training,” “Currently in Malaysia, the aver- should take full advantage of this recruitment and future trends were suddenly on the front burner and Judd opined. age logistics provider is using about as this proves to be the best case covered in various sessions at the in the top minds of the Malaysian “Additionally, the government four to six workers to load a single scenario for the future. In logistics, symposium. logistics players. also shares 40% of the pay increase container. This will not prove to we have a specifi c term that is called Judd said, “A conference such as “It is now or never for these lo- of employees based on the training be feasible in the near future. In near-shoring, which means keep this proves to be a great opportunity cal players to convince the bigger that they have attended. Thus, if countries such as Indonesia where your operations as close as possible, for smaller players in the indus- international players to set up their the Malaysian government could labour cost is lower, it is possible, and local logistics providers should try. SMEs [could] gain useful and regional hub of operations in Ma- implement a similar initiative in but not here in Malaysia with rising utilise this.” MSME Bridging a community of socially responsible business leaders SME One Asia Awards 2014 focuses on companies with respectable values usiness practices that that fulfi l the qualifying criteria: an Other industries include informa- entrepreneurship as well as respon- they would fall under the Notable contribute to the devel- annual sales turnover of more than tion technology with 4.6% of the sible leadership were the important Awards Companies that have been opment of people, society SGD1 million (RM2.6 million) and companies, entertainment and tour- characteristics for companies to be in operation for more than a year but and environment were less than SGD100 (RM258 million) ism (1.5%), agriculture (1.5%), electron- shortlisted. Additionally, entrepre- less than four years wi ll be slotted Bthe standards that were consid- million as at the last fi nancial year, ics and engineering (4.6%), manufac- neurial spirit makes up 30% of the under the Emerging Awards. ered for an organisation to be or employees of less than 200; and turing (6.1%), FnB (6.1%), logistics and matrix, while profi t margin, brand Foreign companies with a local nominated for the SME One Asia registered as a business entity in transport (3%), and real estate (10.6%). value and responsible leadership presence were also recognised for Awards 2014. Asia. The nominees were judged make up 20% respectively and sales their outstanding contribution to In it’s fourth year, the awards More than a 100 submissions were through a stringent three-step pro- turnover is 10%. the domestic business community aims to bridge an active commu- judged, which include nominations cess and the fi rst process was the The award comprises six cat- in the Foreign Enterprise Award nity of socially responsible business from China, Cambodia, Philip- allocation of points according to the egories namely The Distinguished category. The Overseas Enterprise leaders. The SME One Asia also pines, Malaysia and Indonesia, of criteria followed by the tabulation Awards, which are for companies Award were given to enterprises highlights companies that incor- which 66 companies were selected of points, and ranking according that have been in operation for more from Asian countries with excep- porate respectable values into their as winners across the six award to the points. than 15 years. tional business performance and business operations. This year’s categories. The second judging process was Meanwhile, defi ned by the num- responsible leadership. awards was held on 12 November In 2013, the SME One Asia the allocation of points based on ber of years the participating com- One Asia SME Awards stands at Marina Bay Sands, Singapore. Awards involved companies from the corporate social responsibility pany has been in operation, The as one of the most anticipated cer- The awards focused on sustain- 11 industries, with 27.3% of the com- (CSR) values and entrepreneurial Prominent Awards are for compa- emony for business owners in the able businesses that differentiate panies coming from the service in- spirit. Finally, the top fi ve nominees nies that have been in operation for region, as it does not only provide themselves from their competitors. dustry, 18.2% from the distribution were interviewed for the selection more than nine years. a lift to the business entities, but the Known regionally, the Singapore- and wholesale sector, and 16.7% of the overall winners. For companies that have been gala dinner is also an opportunity based event looks into companies from the construction industry. Matrices of revenue, brand value, operating for more than fi ve years, to widen their network. MSME .

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