Friday 6 September 2013

The Important of Shipping Industry in Malaysia

Port and vessel

Malaysia is a strategic country in term of location and geographic area since we are surrounding by sea, our country can be consider as the island. Thailand under Prime Minister Takshin Shinawat have the plan to make the canal on Segenting Kra in south of the Thailand. Based on the plan by the Thailand government show the important of the port and shipping industry to the country. If the Segenting Kra canal becomes the real project and construct, it will change the economy circumstance in future. The canal will reduce the distance from China to India. The shipping company might use this canal to reduce their time of delivery and cut cost of fuel. This will give the big impact to Singapore’s economy since their main economy factor is their port. Even the port of transit (PTP) in Tanjung Pelepas, Johor give the impact on sale for Singapore port.
Segenting Kra


Shipping industry clearly relate to port area. Without the good facilities in port, it will affect the decision of shipping company to harbor their ship or vessel in that port. So, the development of shipping company gives the influence to government to increase the accessibility and facility on the port area. The constructions of highway smooth the shipment of goods through the road mode of transport. So, the customer can enjoy door to door service and satisfy with on time delivery provide by the carrier.


The development of shipping industry gives the job and business opportunity to local community. For local businessman, they can expand their product and target market to others country since it easy to access. Besides that, our country also involve with global sourcing, the unlimited world. The electronic company in our country might get the component part from Japan, which mean the supplier is from Japan, the production is in Malaysia, but the customer is in Thailand. That is the example of global sourcing. Nowadays, this kind of operation and business is available to practices all around the world since every country have the rule and regulation which not allow certain type of product to produce in their country.

The expended of shipping industry make the Malaysia government privatize the port since the cost to maintain and provided the facilities are expensive. The port management under privatize system is better than under government since government have many priority on other matter of the country.
The development or construction of highway gives the impact around the region nearby. Even though the facilities is to smooth the movement of motor carrier for cargo in land, the facilities directly use by the people or community on the country to move from one place to other easily. The people have the accessibility to move and upgrade their standard of live.
Highways and facilities

Since the port area needs the labor in large quantity to operate the operation on the port, they need good human resources. This gives the opportunity to the people to work which also increases the migration of people to that port area.         


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