Assalamualaikum, Good Morning and Salam 1Malaysia.
Yang Berusaha Tuan Haji Abi Sofian,
Group Managing Director, NCB Holdings Bhd;
Yang Berusaha Tuan Haji Rubani bin Dikon,
CEO of Northport (M) Bhd;
Northport Senior Management Team,
Members of the Media;
Ladies and Gentlemen
1. All of us are indeed privileged and absolutely delighted to be here, at the auspicious Northport Productivity Day in the presence of the Group Managing Director of NCB Holding, CEO and management team of Northport (Malaysia) Berhad.
2. MPC is happy to have Northport as a partner in promoting higher value creation, productivity and competitiveness. I am sure it is going to be an exciting day for all of us.
3. I was informed that there are more than 50 companies around Port Klang and Shah Alam joining us for the event today. Thank you for your presence. We encourage your participation in more programmes that can enhance coordination and collaboration as we believe, ‘in productivity, everyone counts’.
Ladies and Gentlemen,
4. I also would like to quote another familiar phrase, “What gets measured gets done.” Let me share with you some data from report published by the World Bank, entitled Doing Business 2015. There are 10 areas being analysed in the report, and one of them is Trading Across Borders. In this report, Trading Across Borders in Malaysia is ranked 11th out of 189 economies (last year we were at 10th position).
5. How is this being measured? Doing Business measures the time and cost (excluding tariffs) associated with exporting and importing a standardized cargo of goods by sea transport. The time and cost necessary to complete 4 predefined stages (document preparation; customs clearance and inspections; inland transport and handling; and port and terminal handling) for exporting and importing the goods are recorded; however, the time and cost for sea transport are not included.
All documents needed by the traders to export or import the goods across the border are also recorded. The process of exporting goods ranges from packing the goods into the container at the warehouse to their departure from the port of exit. Local freight forwarders, shipping lines, customs brokers, port officials and banks provide information on required documents, cost and time to export and import. So let me underscore our ranking is currently at 11th position among 189 countries.
Ladies and Gentlemen,
6. Our concerned is not just about ranking in this report. What is more important is how we can improve productivity or efficiency of the processes towards better governance. This requires all parties, be it private sector and public sector to work together for a common goal. In this regard, I would like to share with you some initiatives on Reducing Unnecessary Regulatory Burden (RURB) implemented by MPC together with various partner agencies concerning logistic issues.
7. Baker Hughes (M) Sdn. Bhd., a top-tier oil and gas service provider company based in the Port Klang Free Zone (PKFZ) had been facing difficulties moving dutiable goods to outsourced manufacturers in Johor Bahru due to current regulatory requirements. Raw materials imported from Singapore had to first be transported to the PKFZ in Selangor before being trucked down to Johor Bahru for processing and then transported back to Baker Hughes in PKFZ. This inefficient model reduced the company’s ability to serve its customers. This RURB initiative by the MPC in collaboration with the Royal Malaysian Customs Department (RMCD), Malaysian Investment Development Authority (MIDA) and Baker Hughes had resulted in a proposal to ship dutiable goods from Singapore straight to Baker Hughes’ contract manufacturers in Johor Bahru where they will be processed and then transported up to the PKFZ.
The new model is expected to improve the efficiency of cargo transportation in the PKFZ, save the company RM1.5 million per year in compliance costs and reduce turnaround time by up to 90%. It is hoped that the successful implementation of this pilot project will enable other companies to enjoy the same conveniences in the future.
8. Another RURB initiatives had also helped Schlumberger’s Asia Pacific MRO hub at the PKFZ reduce processing time and red tape for customs processes. Schlumberger choose Malaysia’s PKFZ as its main MRO hub after consolidating its support centres throughout Asia Pacific. The company has committed to deliver oil and gas equipment to its clients’ operation sites within three days from the time it receives an order, sometimes from as far away as New Zealand.
A focus group formed of the Royal Malaysia Customs Department, PKFZ Authority, Schlumberger, MITI and MPC found that the average clearance process time for a single cargo clearance application was 330 minutes. After exploring the possibility of removing non value-added processes and eliminating wastage, the focus group designed an improved process that reduced average cargo clearance time to 45 minutes. The success of the pilot implementation has led the focus group to extend the new K8 cargo clearance process to other oil and gas MRO operators within the PKFZ as well as to other special economies zones in Malaysia.
Here, I would like to urge all companies to come on board, together with MPC and partner agencies in collaborative engagement for logistics productivity and efficiency.
Ladies and Gentlemen,
9. I am also delighted to present the Lean Recognition Certificate to Northport for their leadership and support in promoting Lean Management and would also recognize their willingness to share their knowledge and experiences with the industries.
10. This event is indeed a good platform for the business community in an innovation circuit to share results and outcomes of multi-faceted Lean project implementations. Believe me, our competitiveness largely lies in the excellence of execution or implementation.
11. In this respect, Lean Management has proven to be a powerful structured and systematic innovation management systems that combined two improvement initiatives that are required by the industries which are: “making work better and making work faster”.
12. This remarkable quality enhancing innovation method in Lean Management provides us with the multitude of tools to identify and eliminate waste and quality problems in our work area. In this way we could also increase employee and workplace productivity on continuous basis.
13. MPC is currently spearheading the activities and initiatives on Lean Management Practices as a continuation to the previously established national movement of Quality Environment using 5S and the Innovative Creative Circles (ICC). Among the strategies initiated by MPC is to enhance knowledge and skills on Lean Practices between MPC, associates and practitioners.
14. Today, we will also have Productivity Business Clinics or business consultation in various area such as Lean, Business Excellence, and Customer Satisfaction and Reducing Unnecessary Regulatory Burden (RURB). To all participants, please fell free to visit our booth and discuss with MPC staff on how we can assist you.
Ladies and Gentlemen,
15. Productivity together with innovation is the way to gain transforming the resources of an enterprise through the creativity of people into new creation of wealth. It does not relate just to a new product that would come into the marketplace. Both productivity and innovation can occur in processes and approaches to the marketplace in a circuit or ecosystem that empower people.
16. Once again I would like to record my appreciation to Northport and to all of you for your presence and participation, wish you all the best and have pleasant, interesting and productive program.
Last updated on : 2015-05-08 16:15:54