Universiti Malaysia Terengganu (UMT) and PKT Logistics Group Sdn Bhd inked a Memorandum of Understanding (MOU) symbolising a significant step toward aligning academia and industry.

It was signed by UMT vice-chancellor Prof Datuk Dr Mazlan Abd Ghaffar and PKT Logistics Group chief executive officer and managing director Datuk Seri Dr Michael Tio, in May.

The partnership included commitment to various collaborative efforts including student and staff training, research, academic collaborations, knowledge transfer and sharing industry insights.

Estimated to be worth more than RM700,000, the collaboration involved 100 students under the 2023 Penjana “Smart Logistician” Programme, supported by RM460,000 in funding from the Higher Education Ministry.

The “Smart Logistician” ran for 15 days this month and zoomed in on areas including logistics and transportation, warehouse operations, safety regulations and freight transport.

A unique module called Fundamental of IoT in Production was also introduced with RM90,000 in funding from PKT Logistics Group, endorsed by Rexroth Bosch – a pioneering leader in IoT technology.

Held at The Ship Campus in Penang, the programme saw participants receive full sponsorship for lodging and meals at the Peninsula Student Resident and access to The Ship Campus facilities and amenities including accommodation, lecture halls and libraries during the programme.

Crucial to the programme’s success were the participation of the Industry Centre of Excellence (Maritime Cluster) and Entrepreneurship and Career Centre at UMT.

The primary goal was to enhance participants’ skills through hands-on learning and work-based experience, equipping them with practical knowledge relevant to logistics and transportation, aimed at achieving an 80% or higher job placement rate.

UMT, on the other hand, leveraged its expertise to conduct research enhancing management efficiency and operational practices within Malaysia’s logistics firms.

Upon completion of the programme, students who engage in comprehensive work-based learning experience with PKT Logistics Group will receive a monthly salary of at least RM2,300 over a six-month period.

PKT Logistics Group also introduced the PKT Excellence Award, offering RM5,000 annually and employment opportunities within the company to three outstanding UMT students.

The award scheme also included academic programmes within UMT’s Maritime Studies Faculty.

KUALA LUMPUR: Tokyo-based real estate group Mutsui Fudosan Co Ltd will be participating in the Kulim Logistics Hub logistics facility project in Kedah via a joint venture with PKT Logistics Group Sdn Bhd.

In a statement, Mitsui Fudosan said the JV between the two parties, called Kulim Logistics Hub Sdn Bhd, will promote the Tokyo group's first-ever logistics facility project in Malaysia.

"Malaysia has a highly promising market for Mitsui Fudosan’s logistics business given prospects of mounting demand for logistics facilities going forward, which is due to factors that include ongoing growth in the nation’s population and economy, as well as a high trade volume level comparable to that of Thailand," said the group in a statement.

It added that it aims to achieve further overseas business expansion by continuing to promote its logistics business in Malaysia going forward.

According to Mitsui Fudosan, the logistics facility project is located along the Butterworth-Kulim Expressway (BKE), which offers convenient access to Penang Port and Penang International Airport.

It is also situated in proximity to Kulim Hi-Tech Park (KHTP), which serves as a hub for electrical and electronic industry factories centered around semiconductors, as well as automotive-related factories.

KUALA LUMPUR: PKT Logistics Group Sdn Bhd has announced its collaboration with Tesla to support the electric vehicle brand's logistics service in Malaysia.

Tesla Sdn Bhd, the Malaysian arm of the American electric vehicle (EV) manufacturer Tesla Inc, officially began operations in Malaysia earlier this month with the launch of its Model Y for the local market.

PKT managing director and CEO Datuk Seri Michael Tio made the announcement of the partnership today via a post on his personal Facebook account, accompanied with pictures of the signing of the agreement between the two parties.

When contacted by StarBiz, Tio said the logistics provider has accumulated decades of experience and strength in the automotive logistics arena with several notable brands.

In addition, he said PKT is also committed to the sustainability agenda and its ESG-centric business.

According to Tio, the the company focuses on sustainable CSR, green warehouses and built the first Green Building Index (GBI) Gold-certified warehouse in Malaysia.

"PKT strongly supports SDG 4 in providing quality education via their Education arm, Peninsula College – housed at The Ship Campus in Batu Kawan Penang, a Campus-in-Industry offering tertiary programmes and a chance for students to gain working experience while studying at the same time via the Jom! Bekerja Sambil Belajar (JBSB Programme).

"PKT also offers scholarships and bursaries via Yayasan PKT," he added.

GEORGE TOWN: The Ship Campus, which cost RM160mil to build, overawed visitors with its majestic ship design and triggered the VIPs’ curiosity about its presence in the Batu Kawan Industrial Park (BKIP).

PKT Logistics Group chief executive and managing director Datuk Seri Dr Michael Tio had anticipated the question and immediately addressed it in his keynote speech.

“You have seen universities built in rural areas and sometimes even near jungles. You wonder what the students are going to do when they graduate. They serve the industries nearby.

“Similarly, The Ship campus serves the needs of the manufacturing and logistic companies in BKIP.

“If we can train doctors in hospitals, why can’t we train logisticians and engineers in an industrial park?” Tio asked.

According to Tio, Malaysia is already facing a shortage of logisticians.

He said the logistics industry would expand in the next few years to become Asean’s next logistics hub.

“That’s why PKT is actively building warehouses. But to ensure the sustainability of the sector, talent development is crucial.

“Hence, we do not only focus on hardware but also software,” Tio said.

The Ship campus will produce talents for the BKIP.

Strategically located in the BKIP, The Ship campus trains students under its Technical and Vocational Education and Training (TVET) education to multiply graduates and youth employment opportunities.

Tio said the campus would grow in tandem with the BKIP and support other states and national agendas.

“We are the first campus to coach students for the needs of industries in an industrial park. The Ship campus already has prime hardware.

“Subsequently, we will generate a milieu conducive to supporting the synergistic endeavours of students, businesses, government and community leaders.

“Our bespoke campus-in-industry model enables students to acquire veritable working experience while studying.

“The campus reconciles theory and practice, bestowing them with the education and experience to compete in the job market,” Tio said during the official launching of The Ship campus on May 24.

Located on a 306,419-sq-ft site, The Ship campus, with a nautical-themed design, will groom skilled workers and entrepreneurs while also serving as a hub for providing food and beverage and lifestyle facilities in the BKIP.

“The campus has state-of-the-art facilities to accommodate students, tenants and their businesses, the BKIP community, TVET upskilling, events and leisure activities.

“PKT’s education arm – the 4,000 capacity Peninsula College Malaysia – is based here while maintaining its two other satellite campuses in the Klang Valley,” he said.

At the ceremony, Yayasan PKT presented scholarships of nearly RM2mil for local students to attend Peninsula College and support local polytechnics.

Yayasan PKT also vowed to donate RM1mil to the state government for its proposed education fund to nurture young Penangites.

Yang Di-Pertua Negri Tun Ahmad Fuzi Abdul Razak witnessed the event.

Ahmad Fuzi said The Ship campus was an impressive iconic building with a unique design.

“I am confident that this campus will play an important role in the educational and economic development of Penang, particularly in the field of logistics,” he said.

Meanwhile, Penang Chief Minister II Prof Dr P. Ramasamy said the pandemic dealt a severe blow to the business community over the past two years.

He said while many halted their expansion plans, PKT Logistics Group decided to brave the storm and invested RM160mil to construct The Ship campus.

“Penang sees a continuous investment inflow from medical device companies for disposable and electronics-based products.

“The BKIP houses over 160 companies, comprising foreign multinational corporations and large local companies requiring skilled workers.

“The advent of The Ship campus as a talent hub in the Batu Kawan community is timely and a boon for business and the area’s emerging townships.

“We are delighted to welcome The Ship campus as an ally from the private sector to enhance Penang’s TVET education and accelerate the industry’s IR 4.0 adoption rate,” he said.

The VIPs witnessed a water salute ceremony to kick off the launch.

Fire engines from the Malaysia Volunteers Corps Department expelled plumes of water on the campus to commemorate the special occasion.

Containers, trucks and warehouses may be standard set components in a logistics company, but for home-grown PKT Logistics Group, you’ll find facilities like a comfortable truckers’ lounge, food court and green spaces a staple in all its logistics hub.

“For us, moving goods accurately to their destination is only a baseline requirement,” said group chief executive officer and managing director Datuk Seri Dr Michael Tio.

“Our ultimate mission is to be a socially responsible company. That means creating an enjoyable work place for our staff, taking care of the environment and sharing our success with the community.”

Based in Shah Alam, PKT was a humble family business founded nearly 50 years ago. Since Tio took over the business from his father, he has transformed the operations from merely transporting goods to the present model – building sustainable logistics hubs that bring together logistics solutions, education, food and beverage, lifestyle and a talent ecosystem.

Take its newly completed One Auto Hub in Penang for example.

Located in the heart of Batu Kawan Industrial Park (BKIP), the hub consists of FIABCI Award winning warehouse The 12 Waves, The Ship Campus where its education subsidiary Peninsula College Malaysia is headquartered, and a student residence.

Tio’s out-of-the-box approach towards a traditional sector has turned the company into a sought-after catalyst in new developments. “PKT is usually the first to enter a new development and others follow. Our concept hubs boost investors’ confidence in the location,” he said.

Human touch among machines

Tio said that BKIP is brimming with potential as local and foreign investors are flocking there to set up their plants.

While the obvious demand is in warehouse spaces, that is just a small part of the investors’ checklist when deciding where to put their money, he said.

“After all, factories and machines are manned by humans,” he highlighted.

For investors, ensuring a steady talent pipeline is key to keeping businesses up and running – and that means being able attract, train and upskill their employees.

Similarly, high-quality talents demand for career advancement and a comfortable living environment.

“Our hubs bring a human touch to industrial parks. Employees are not robots. People want a nice place to dine, work out at the gym, socialise or learn a skill, but if all these amenities are not in the vicinity, living conditions become less attractive.

“How then would everyone in the industrial park keep their talents?” he pointed out.

Therefore, the group is not stopping at running a logistics business, but is also determined to create a talent eco-system as part of its efforts to make BKIP a vibrant place for work and study.

“We already have an established college. Now we are building a skills training centre equipped to deliver the IR4.0 solution syllabus certified by Bosch Rexroth.”

Spurring economic growth up north

Meanwhile, up north in Bukit Kayu Hitam, Kedah, the group has invested RM200mil to build One Northern Hub, slated for completion in the first half of 2023.

This hub consists of the Blackwood Complex, Blackwood Forest and an inland port that aims to receive business from southern Thailand.

Blackwood House’s architecture is modelled after the climatic feature of a Malay kampung house or Rumah Tiang 12 to be exact.

The entire complex provides parking spaces for Thai-bound visitors, a rest and relaxation centre, logistics and maritime institute as well as office spaces and residences.

Blackwood Forest is a logistics hub that provides warehousing services.

“We could have just used the land to build only warehouses,” said Tio.

“But with a concept hub, we add value to the plot of land by creating business, employment and education opportunities.

“This spurs economic activities in the area and improves the community’s income level. The projected GDP impact is up to RM843mil per annum.”

The group also took in public feedback and added two multi-storey carparks for people to commute between the Malaysian-Thai border.

Since the announcement of this project, rubber glove giant Hartalega has also invested RM7bil to build 16 manufacturing facilities next to One Northern Hub, a move that can transform the Kota Perdana Special Border Economic Zone (SBEZ) into a vibrant industrial and commercial hub.

Asean’s next logistics hub

While PKT has made it big in the country, it is vying for more prominence in the regional logistics market.

“If Malaysian players can raise its standards in terms of infrastructure, skilled labour, sustainability awareness and become more IR4.0 ready, we are capable of becoming Asean’s next logistics hub,” said Tio

Using Singapore as a benchmark, Tio pointed out that logisticians in the island state earn five times more than those in Malaysia as they manage higher value logistics.

“For Malaysia to move beyond 3PL, we need to professionalise the industry and move up the value chain by doing 4PL, 5PL, 6PL and even 7PL.”

With the vision to expand, Tio is leading the way in changing public perception towards the logistics sector in hopes that more young people see it as a prospective career choice.

KUALA LUMPUR: The logistics sector in Malaysia needs to urgently move forward against the backdrop of greater competitive landscapes as Thailand and Vietnam have recently overtaken the country in key industry rankings.

This is necessary given that Malaysia had fallen behind in the World Bank’s Logistics Performance Index (LPI), where the country saw its position drop to 41 out of 160 countries – compared with its ranking of 25 in 2014 and 32 in 2016.

“The LPI is a key indicator for investors when they do their evaluation on whether Malaysia is capable of doing logistics for them or not. This data must be used (in their evaluations).

“The investors want their goods to be distributed in a cheap and efficient way. If the government knows this, then they would know what to do,” PKT Logistics Group Sdn Bhd managing director Dato' Seri Micheal Tio said.

He was speaking at the Malaysia Competition Commission panel discussion on Takeaways from The Market Review and the OECD Reports on Malaysia’s Transportation Sector.

The recent LPI 2018 report saw three Asean countries being ahead of Malaysia – Singapore (2), Thailand (32) and Vietnam (39) – while Indonesia (46) is fast catching up.

“There is a lot of inefficiencies, that’s why we are low in the rankings. For example, we were supposed to be fully computerised through electronic data interchange for customs brokerage without the need for face-to-face meeting with customs officers.

“This is already happening in other neighbouring countries such as Singapore – it is so easy. But we still have this inefficiency and because of this, we are ranked quite poorly,” Tio said.

He pointed out that while this is lacking, Malaysia still had an advantage in its infrastructure as it is among the best in the Asean region.

“We are ranked quite well in terms of infrastructure in Asean with amazing connectivity. Our ports reach all over the world and the airports, with companies like AirAsia for example, we already have the reach in the region.

“If the government can pay more attention by giving a ministry the (task) to restore our rankings, I’m sure we can achieve this. It is a matter of focus and implementation,” Tio said.

“At the moment, we have to deal with five ministries when we talk about customs. So how we can do this is, perhaps, by creating one-stop centres. Choose someone who is responsible to report directly to the Prime Minister,” he suggested.

In the panel discussion, which was moderated by Star Media Group Bhd’s group adviser Datuk Seri Wong Chun Wai, Tio said he believes Vietnam had overtaken Malaysia in the rankings as it had implemented a one-stop centre for investors.

“In Vietnam, all of the investments that goes into that country is solved by this one-stop centre. I believe they had learnt from the Malaysian government how we implemented this sometime ago.

“We need to re-create this one-stop centre so that if there are any issues by investors, they would only need to talk to one centre and not many government ministries,” he said.

Meanwhile, Tio said Malaysia is still protecting the local industry and this is a hindrance for further growth.

“This is not necessary since we are already in a position to become the next logistics hub to take over from Singapore and we are not doing anything to ensure this happens.

“What we are seeing here is that our infrastructure is good but we are still being held back by other factors. If we can address these issues, to move up our rankings to maybe 10th eventually, I’m sure Malaysia will become the Asean logistics hub,” he said.

Pertaining to this matter, MyCC’s member of commission Datuk Mohd Jamal Sulaiman said there were six criteria that had been highlighted in the LPI report and the government has to pay attention to these in order to move up in the rankings.

“This is a cause for concern for us actually and the criteria can be addressed even without the one-stop centre. I would think that something needs to be done to improve the LPI rankings,” Jamal said.

According to the report, Malaysia lost out in the criteria of efficiency (or clearance processes), quality of trade, ease of arranging competitively priced shipments, competence and quality of logistic services, ability to track and trace consignments and punctuality of arriving shipments.

“I believe the major threat comes from Vietnam for the next 10 years. We need to be competitive and focused, and the government needs to quickly make a decision to open up in order for us to compete with Singapore,” Tio said.

“If there are no barriers to entry there, then it should be the same here. Also, Malaysian logistics players must not forget to move up the value chain as third-party logistics (3PL) is low value to the international players. We are talking about the whole spectrum of logistics, of up to 7PL.

“Malaysia is only 3PL while Singapore is already 7PL. We are very far behind despite land prices in Singapore being much higher than Malaysia while the cost of living is higher there,” Tio added.

He said the reason why Singapore was able to possess such high rankings is because it focused on higher value-added logistics business.

“If a company doesn’t know how to do it, then they should go for joint ventures by finding foreign partners. This is how knowledge is transferred.

“The government should allow for joint ventures, which will help local companies gain more knowledge in the face of strong competition,” Tio said.