Malaysia plans to abolish some regulations intended to curb smuggling but are hindering competitiveness with ports in other countries, especially Singapore.
The regulations relate to import permits to make ports in the country more competitive in the transshipment sector, says Transport Minister Anthony Loke Siew Fook.
The Minister says his ministry will abolish import permits and other regulations which prevented ports from competing.
Loke says he understood some regulations were to curb smuggling, but not supposed to hinder the ports’ competitiveness.
“Transshipped goods are not for the local market but only for storage and repacking here before being shipped out to other countries, so there is no need for us to enforce import permits on them,” he told a media conference after officiating C Steinweg Logistics (Malaysia) Sdn Bhd’s warehouse at Port Klang Free Trade Zone (PKFZ).
He says the country needs new and better methods to monitor the products entering and leaving the country.
Beginning April 1 this year, the government has exempted import permits on vehicles transshipped through local ports.
Meanwhile, C Steinweg group Chief Executive Officer Ulf Boll says the company had invested about USD40 million (RM165.6 million) to set up the Natural Resources and Commodities Hub at PKFZ.
The group decided to further invest in the country because Malaysia offers advantages such as a qualified workforce, good water and land connectivity and complete infrastructure to support its business.
C. Steinweg Logistics (Malaysia) Sdn. Bhd., a fully owned subsidiary of C. Steinweg Warehousing (F.E.) Pte Ltd and a member of C. Steinweg Group, yesterday announced the Grand Opening of its Port Klang Natural Resources & Commodities Hub. Port Klang will be Steinweg’s second owned-and-operated London Metal Exchange (LME) Delivery Point in Malaysia, after Johor Port Terminal 2, and the country’s first European-Standard Chemical Warehouse in the Klang valley.
On the LME, the world’s premier non-ferrous metals market which handles more than 80% of the base metals transacted globally, C. Steinweg is a leading player, running close to 200 warehouses in 17 regional hubs. Known as the industry pioneer, Steinweg has a track record of being the first operator in many important trading hubs around the world.
In Malaysia, C. Steinweg was one of the first LME operators to operate in Johor Port Terminal 1 (since 2004) and Port Klang Free Zone (since 2009). In November 2018, Steinweg was again the first LME operator to list its own built-and-operated warehouse in Johor Port Terminal 2.
Present at the event were Netherlands Ambassador to Malaysia Karin Mossenlechner and Malaysia Investment Development Authority Deputy Chief Executive Officer Arham Abdul Rahman.
The latter says the expansion by Steinweg Group speaks volumes about the existing strengths and future potential of Malaysia from a market demand perspective and the ease of doing business.