Analyzing Transport and Logistics Management in Malaysia

This report analyzes the critical transport and logistics challenges faced by Malaysia, focusing on regulatory issues and logistics management. The study highlights the absence of effective regulations in the transport industry, which undermines order, accountability, and trust within the supply chain. Furthermore, it addresses the reliance on outsourcing logistics activities, which hinders the development of local expertise and knowledge in managing the transport sector. The report proposes two key strategies to address these issues: implementing robust regulations to guide the transport industry, and fostering local talent and professionals in logistics management. It emphasizes the importance of legal advisors in establishing policies and the benefits of reducing outsourcing to encourage local expertise and improve supply chain efficiency. The analysis uses academic journals, books, and relevant news sources to support its arguments and recommendations.

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TRANSPORT AND LOGISTICS MANAGEMENT
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Malaysia Supply Chain Issues
Malaysia is one of the nations that have been doing well as far as the aspect of doing
business globally is concerned. However, the nation has been facing different issues when it
comes to transporting goods from the manufacturers to the consumers. The two issues that will
be focused on in this case are the regulatory issues in the transport industry and the management
of logistics. In any given market, there is a dire need for the regulations to be implemented with
the main aim of maintaining order. Policies come in place to make sure that the stakeholders
follow a certain trend in performing different tasks (Ariffin and Zahari, 2013). The aspect of
regulations is absent in Malaysia’s transport, and that has affected the supply chain by a
significant percentage. When there are no regulations, effectiveness, and accountability are not
promoted, and that affects the trust between transporting agents and the customers who might be
in need of their services.
The second issue that is affecting transport in Malaysia is the lack of effective
management in the transport industry. It is essential to note that Malaysia has been outsourcing
most of the logistic activities. Logistics and transport go hand in hand and therefore it is evident
that most of the organizations and agents that help in transporting goods from one point to
another do not come from the country. When a nation focuses more on outsourcing essential
activities, it misses the chance to learn more about the fundamentals of managing its transport
industry (Khalid, Bachok, Osman, and Ibrahim, 2014). Management of transport is promoted
when an organization takes care of all its activities. For example, if a manufacturing company
internally deals with its transport, it means that the manufacturing company must put more effort
into learning how to manage the movement of goods from the company to customers. However,
if the company hires another logistics company to take care of its transport services, it loses the

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chance to learn more about supply chain management. As a result, the organization lives to
depend on other organizations, and that is an issue. The same case applies to Malaysia, and this
is because instead of Malaysia learning how to transport its goods to customers, it depends on
other organizations, and that increases its dependency rate as far as the supply chain is
concerned.
Malaysia can work on the two issues by implementing different strategies. The first
strategy is to come up with regulations that are supposed to guide the transport industry. In this
case, the intervention of the legal advisors is prominent, and this is for the aim of advising the
transport stakeholders on the essentiality of having policies in place. Irrespective of the nature of
activities and operations that take place in a nation or an organization, law, and order must be
promoted (Almselati, Rahmat, and Jaafar, 2011). Law and order can only be promoted if there
are policies in place that guides the stakeholders on what they should do and what they should
not do. The lack of policies that restrict and govern operations promote the intrusion of conmen
and women in the industry, and this is because there are no consequences for failing to deliver in
line with the agreement and the expectations of the consumers (Khoo and Ong, 2015). Therefore,
coming up with protective and strict policies will restore the trust of the Malaysian supply chain.
The second solution is to concentrate on local talents and professionals when it comes to
managing logistics. Malaysia is a nation that has the ability to train and to afford the services of
their local talents (Shariff, 2012). The country outsources some of the essential operations such
as logistics and manufacturing. Manufacturing and logistics are two vital components that
promote the knowledge of transport. When a nation manufactures its products internally, it is
challenged to come up with the most strategic ways of making sure that the goods get to the
customers at their convenient time. At the same time, when a nation depends more on its local

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logistics companies, it motivates the companies (Ali, Jaafar, and Mohamad, 2008). As a result,
the companies train their employees on how to be effective transport managers. In this context, if
Malaysia reduced the rate of outsourcing services and goods, it would encourage the local
professionals to gain more knowledge on the best ways of transport.

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References
Ali, R.M., Jaafar, H.S. and Mohamad, S., 2008, August. Logistics and supply chain in Malaysia:
issues and challenges. In EASTS International Symposium on Sustainable Transportation
incorporating Malaysian Universities Transport Research Forum Conference, Johor (pp. 12-13).
Almselati, A.S.I., Rahmat, R.A.O.K. and Jaafar, O., 2011. An overview of urban transport in
Malaysia. Social Sci, 6(1), pp.24-33.
Ariffin, R.N.R. and Zahari, R.K., 2013. The challenges of implementing urban transport policy
in the Klang Valley, Malaysia. Procedia Environmental Sciences, 17, pp.469-477.
Khalid, U.A., Bachok, S., Osman, M.M. and Ibrahim, M., 2014. User perceptions of rail public
transport services in Kuala Lumpur, Malaysia: KTM Komuter. Procedia-Social and Behavioral
Sciences, 153, pp.566-573.
Khoo, H.L. and Ong, G.P., 2015. Understanding sustainable transport acceptance behavior: A
case study of Klang valley, Malaysia. International Journal of Sustainable Transportation, 9(3),
pp.227-239.
Shariff, N.M., 2012. Private vehicle ownership and transportation planning in Malaysia.
In International Conference on Traffic and Transportation Engineering (Vol. 64, p. 68).