PKT Logistics Group has reached its golden jubilee milestone but the group’s chief executive officer and managing director still has big dreams.

Datuk Seri Dr Michael Tio has a grand vision to triple his company’s revenue to RM3bil by 2030. He believes his work ethics and philosophy will make that a reality.

“Dream of it, talk about it, plan for it, work on it and get it. If we do that, we can realise that vision,” he told StarMetro, when asked about the future plans of PKT.

He said investing in the company’s workforce was key to unlocking its potential and tackling challenges.

“Even in the digital age, human capital development continues to pose a challenge, which is why we are investing in upskilling and reskilling.

“My management team and I also held retreat sessions, during which we came up with visions to achieve, updated every 10 years,” he said.

A gala dinner was held to commemorate PKT’s long journey from a homegrown company based in Klang, Selangor, into a giant in the logistics industry.

The dinner at a Petaling Jaya hotel was attended by over 800 guests comprising the company’s business partners and clients as well as government officials and academicians.

The event saw the cutting of a 100kg cake which was witnessed by the company’s board of directors and guest of honour Yang di-Pertua Negeri of Penang Tun Ahmad Fuzi Abdul Razak, accompanied by his wife Toh Puan Khadijah Mohd Nor.

Bernama chairman and Star Media Group advisor Datuk Seri Wong Chun Wai as well as Star Media Group chief content officer Datin Paduka Esther Ng were also present.

Tio expressed pride in the company which he said had transformed into a diversified and socially responsible organisation.

“We have grown in tandem with the nation, steadfastly focusing on our grand visions and staying committed to our culture of excellence,” he said.

“We aim to continuously improve and champion sustainable practices.

“This gala dinner is meant to thank our invaluable stakeholders, who have grown with us and helped us became who we are today.”

At the event, PKT announced a donation of RM2mil to seven higher learning institutions as part of its corporate social responsibility.

The recipients were Politeknik Sultan Haji Ahmad Shah, Politeknik Nilai, Politeknik Sultan Mizan Zainal Abidin, Politeknik Kota Kinabalu, Politeknik Seberang Perai, Politeknik Balik Pulau and Kolej Komuniti Kuala Langat.

The company also gave away specially curated gold plaques resembling PKT’s logo to attendees as a token of appreciation.

Tio also said PKT remained committed towards achieving United Nations Sustainable Development Goals to achieve net zero carbon by 2039.

The company aimed to achieve this via several action plans, including a vehicle electrification programme, tree replanting and paper recycling.

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.

AFTER a year’s worth of hard work, it cannot be denied that a company’s year-end bonus will uplift and inspire employees to continue to work hard.

However, the Covid-19 pandemic prompted employees, particularly the younger cohorts who are seeking to gain a healthier work-life balance, to rethink their careers, work conditions and long-term goals.

The talent revolution is in full swing as employees want fulfilment from work and life.

Today, the stakes on employee satisfaction have risen and companies are under new pressure to deliver a better experience in new ways.

Unlocking power of intrinsic benefits

PKT Logistics group chief executive and managing director Datuk Seri Dr Michael Tio looks far ahead from a higher position, poised towards a new direction — he does so by starting a trend for a new generation of employees.

From his perspective, monetary benefits no longer motivate new talents.

“In today’s talent war, it is essential that employees feel valued and appreciated”, Tio said.

“What attracts them? It’s the quality of the job and working environment, money and bonus is not everything to them.

“As an employer, we need to mix and match them so that we get to retain the new generation,” he added.

Serving the employees

Tio made himself the first CEO in the country who planned company retreats and turned himself into a tour guide.

He mapped out the travel routes and flight hours, pre- ordered meals at recommended restaurants, hotel bookings and even wrote a packing list before the trip.

When a leader serves his team with passion and purpose, they will serve the organisation well and, most importantly, its customers with even more enthusiasm.

“Many people came to me and asked what is my secret to retain my employees, I told them about the company retreats,” Tio generously shared where his success stems from.

“When you use money to buy rewards, they don’t treasure it. They think this is part and parcel of their entitlement,” he added.

Tio planned the retreat with his employees to strike that perfect balance of work and fun.

There is no hierarchy, rank or title in PKT’s retreat and each employee will be engaged every step of the way.

Keeping an employee engaged directly impacts their results and performance at work.

Tio cannot deny that managing people is hard work.

However, he strongly believes that doing so effectively starts with putting employee development and needs first, then business results will follow.

He said the approach ensures that your company will have long-term business success, while also improving the lives of the people you work with.

Tio said PKT revived the annual retreat immediately after the travel restrictions eased in 2022.

“Corporate retreats encourage close bonding, which increases trust and communication between employees,” he stressed.

“Jam-packed work days reduce the chances to communicate with the employees and the engagement during a retreat will be greatly beneficial in making the workforce feel connected, involved and valued,” he added.

He spent 30% of his time thinking about how to motivate his management and the 17-day trip to Iceland and Norway (#norlandlight2023) was PKT’s 17th management retreat.

Tio, who held the title of “Best CEO”, assumed the tour guide role for the biggest management retreat to date with 38 top management employees.

Throughout the trip, they faced challenges and overcame them together with positive solutions, proving teamwork can do wonders.

The team was also blessed to witness the phenomenally beautiful aurora borealis in Iceland and on the final day during its Norway trip.

“Many lessons learned, many life-long memories created, many bucket lists ticked. I’m not just talking, all actions, and this is the real succession plan,” he said.

“They get to travel, eat and sleep with me during the retreat. You will never know a person well unless you have travelled, eaten and slept with them.

“And during our daily sharing sessions is how we realign ourselves and chart our goals,” he added.

In February he served a 80-pax workforce from the mid-tier management during the trip to Danang and Hoian, Vietnam.

PKT retreats have now covered every continent except Antarctica.

Succession plan in place

Tio added that nobody, including himself, is indispensable in PKT.

The mid-tier management will take over the top management during the retreat and vice versa.

“No phone calls come to me, no messages”, he said.

“The whole company manages itself automatically.”

Tio who has over a million followers on Facebook opined that many companies decided to cut positions due to financial realities following the previous lockdown.

Although seeming like a quick fix, such cuts can also be impulsive and misaligned with the company’s purpose and values, he said.

Strong company culture

Tio constantly propagates that the company’s policies are always rooted in its 5H working culture, which stood for being healthy, happy, honest, hardworking and humble.

Given this, PKT decided to roll out the Voluntary Salary Deferment Programme (VSDP), whereby employees defer part of their salary and earn a 5% interest per annum instead of launching mass layoffs and cost-cutting measures.

Tio added that a people-centric culture will bring growth, learning and a sense of purpose into the employee experience.

“PKT is a socially responsible company.

“We believe that VSDP can keep the company afloat. Instead of cutting employees, we paid hardship allowances to those who came back to work,” he added.

He stressed that a company should focus more on internal corporate social responsibility rather than external.

He said that the governance pillar in a company’s environmental, social and governance (ESG) refers not only to a focus on productivity, but also the need to ensure the employees’ health is taken care of.

Many have experienced the domino effect of the Covid-19 pandemic – from slashed salaries, to increased workload no thanks to reduced manpower, while some even struggled with poor mental health.As we move into an endemic phase and with relaxed restrictions, many are taking this as an opportunity to seek greener pastures, causing the market to experience a wave of a movement dubbed The Great Resignation.

This begs the question employers should ask: How can businesses weather a crisis without losing their talents?

PKT Logistics group chief executive and managing director Datuk Seri Dr Michael Tio who took over the family business in 1996 has managed to ride the rocky waves of several economic crises while expanding its operations.

The secret to his success stems from his people-centric management style and taking his employees on trips.

One standout anecdote

PKT Logistics Group employees often speak of is the “epic” management retreat.

PKT employees were able to make fun memories of snoring roommates and jokes on car rides to hiking challenging trails and co-workers bonding through the shared experience of adventure.

Tio said that PKT’s annual retreat was on hiatus for two years due to the travel ban.

So as soon as word got out that restrictions will be relaxed, he and his top management team took a leap of faith to plan a 10-day trip to Tasmania and Melbourne.

“Even during the pandemic, the team expanded as we embark on three big projects. I see an urgency to bond the old and new blood to get ready for market recovery.”

CEO turn tour guide: His turn to serve employees

As a logistician himself, Tio has a knack for making detailed and extensive travel plans.

He mapped out the driving routes and flight hours, pre-ordered meals at recommended restaurants, wrote a packing list and even prepared a zip lock bag filled with vitamins, face masks and hiking gloves for everyone – all before the trip.

“My staff worked hard for the company, so it’s my turn to serve them on this holiday,”he said,

In PKT’s retreat, there is no hierarchy, rank or title.

As Tio steers 35 people around a foreign country in six SUVs, the team gradually moves in sync throughout the journey.

“Mobilising this many people requires teamwork and discipline. After a few days of travelling together, you’ll notice the gradual alignment among them as people begin to build an understanding with one another,” he shared.

The team learned to work together on daily tasks such as loading the luggage, following the convoy, communicating on walkie-talkies, getting organised in small teams to hike and even getting in position for group pictures.

He added that road trips have plenty of informal moments for everyone to form connections.

“This is why we reshuffle the people who share the same car and their rooms daily. Each day every car will also have different drivers and navigators in charge. There’s always a chance to showcase their leadership based on their strengths.”

Making core memories as a team

Tio likes to throw in activities in the management retreat that many are unlikely to attempt if they are travelling with family.

“All my trips include a challenging hike. Nothing beats the feeling of making it up to the top with my team and they feel energised after achieving such a milestone.

“Working for PKT doesn’t just help you to make a living, but also helps you tick off life experiences from your bucket list.”

In Tasmania, Tio led the team up Freycinet’s Wineglass Bay Lookout and Cradle Mountain’s Marion Lookout – two spots with breathtaking views of the terrain.

He said planning a hike for a group with various fitness levels and age ranges is not as straightforward as it seems.

There will be instances where fitter individuals must step up and lend a hand to the physically weaker ones, so, they too have a chance to reach the peak.

“This process truly humanises and puts us in a different light outside of the office. It fosters empathy for each other which is extremely important in the workplace.”

Keeping the culture tangible

Tio highlighted that the company’s policies are always rooted in its 5H culture – healthy, happy, honest, hardworking and humble.

Like any other business, PKT too had to manage their finances when the lockdown was announced.

Instead of launching a frenzy of cost-cutting measures and layoffs, it decided to roll out the Voluntary Salary Deferment Programme (VSDP) whereby employees defer part of their salary and earn a 5% interest per annum.

“VSDP was an effective way to keep the company afloat during emergencies yet shows that the company values our staff, rather than abandon them at first sight of trouble.”

In addition, PKT also gave out a hardship allowance for those who came back to work during the lockdown to help families cope with the sudden rise in household expenses.

“Such crisis calls for more compassion for our staff at every level,” he said.

Similarly, when travel restriction eased, Tio immediately revived the annual retreat to renew its top management’s passion to grow the company.

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.

The Ship Campus located in Batu Kawan Industrial Park (BKIP) in Penang is setting sail on its mission to train talents for the industrial park.

PKT Group chief executive officer and managing director Datuk Seri Michael Tio said The Ship campus was built to support BKIP’s growth in line with state and national agendas.

“Our vision includes enhancing Technical and Vocational Education and Training (TVET) education, boosting youth employment and nurturing talents.

“Having top-notch hardware is only the first step. Next, we have to build a robust ecosystem to help create synergies among all stakeholders consisting of students, businesses, state government and community leaders.

“The unique campus-in-industry model exposes youths to real working environments while they are still completing their studies.

“This is the key to bridge the gap between the theory and practical elements, giving students hands-on experience to stand out in the competitive job market,” he said during the launch of The Ship campus on Tuesday (May 24).

Costing RM160mil, the 306,419sq ft nautical-themed building is set to become a hub for talent development and entrepreneurship while at the same time, provide food and beverage, and lifestyle facilities in the rapidly developing BKIP.

“The campus is fitted with state-of-the-art facilities to provide students, tenants and the BKIP community at large an exciting space for education, business and TVET upskilling.

“It will also host events and leisure activities.

“Boasting a capacity of 4,000 students across its nine decks, PKT’s education arm – Peninsula College Malaysia – is now headquartered at the site.

“Two other satellite campuses are in the Klang Valley,” he said.

During the launch, Yayasan PKT gave out scholarships worth RM2mil to outstanding students to study at Peninsula College and also to students of local polytechnics.

Yayasan PKT also pledged to contribute RM1mil to the state’s education fund.

The launch was witnessed by Penang Yang di-Pertua Negri Tun Ahmad Fuzi Abdul Razak who said this campus would play an important role in the educational and economic development of Penang, particularly in logistics

Meanwhile, Penang Chief Minister II Prof Dr P. Ramasamy commended PKT Logistics Group for braving the pandemic storm and investing RM160mil to construct The Ship Campus.

“Penang is seeing a continuous inflow of investment from medical device companies, including players in disposable and electronics- based products.

“BKIP itself houses over 160 companies comprising foreign multinational firms and big local companies.

“It is evident that industries are hungry for talent.

“The addition of The Ship campus as a talent hub in the Batu Kawan community is a boon for business as well as the emerging townships in the area,” he said.

GEORGE TOWN: The Ship Campus, located in Batu Kawan Industrial Park (BKIP), Penang, is set to sail by training talents for the industrial park on its grounds in a unique campus-in-industry model.

PKT Logistics Group chief executive officer and managing director Datuk Seri Michael Tio said The Ship campus is built to support BKIP’s growth with several state and national agendas in mind.

“It includes enhancing Technical and Vocational Education and Training (TVET), boosting youth employment and talent development.

“The Ship campus is believed to be the first campus where we train talents for the industry in an industrial park.

“Having top-notch hardware is only the first step, the next is to build a robust ecosystem to help create synergies among all stakeholders – students, businesses, government and community leaders.

“The campus-in-industry model exposes students to real working environments while they study.

“This is the key to bridging the gap between theory and practical, giving students a practical education to stand out in a competitive job market,” he said during the official launching of the The Ship campus on Tuesday (May 24).

Built at a cost of RM160mil, the 306,419sq ft nautical-themed building aims to become a hub for talent development and entrepreneurship, while at the same time providing food and beverage as well as lifestyle facilities in the rapidly-developing BKIP.

“The campus is fitted with a variety of state-of-the-art facilities to provide students, tenants and the BKIP community at large with an exciting space for education, business, TVET upskilling, events and leisure activities.

“Boasting a capacity of 4,000 students across its nine decks, PKT’s education arm Peninsula College Malaysia is now headquartered here while maintaining two satellite campuses in the Klang Valley,” Tio said.

During the ceremony, Yayasan PKT gave out scholarships worth around RM2mil in total to outstanding local students to study in Peninsula College as well as local polytechnics.

Yayasan PKT also pledged to contribute RM1mil to the state government for its plans to establish an education fund to nurture young Penangites.

The ceremony was witnessed by Penang Governor Tan Sri Ahmad Fuzi Abdul Razak, who described The Ship campus as 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, Deputy Chief Minister II Prof Dr P. Ramasamy noted that in the last two years, the business community had suffered a great deal from the Covid-19 pandemic.

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

“Penang is seeing a continuous flow of investment from medical device companies, including players in disposable and electronics-based products.

“BKIP itself houses over 160 companies, a mix of multinational corporations and large local companies.

“As factories and plants are being built, it is evident that the industry is hungry for talent.

“The addition of The Ship campus as a talent hub to the Batu Kawan community is a boon for business, as well as the emerging townships surrounding the area.

“The state government is delighted to welcome The Ship campus as an ally from the private sector and aligning its aspirations to enhance Penang’s TVET efforts and accelerate the industry’s IR 4.0 adoption rate,” he said.

Two business administration graduates have been chosen to be groomed for management roles at a major Japanese logistics company.

The two graduates from Peninsula College Malaysia in Shah Alam – Malisa Ai Muak, who graduated with BA (Hons) in Business & Management Studies, and Lee Xin Teng with BA (Hons) in Logistics Management – will take part in a two-year management trainee programme by Daisei Every24, one of Japan’s largest cold chain logistics solution providers.

They will leave for Nagoya this month.

Although their departure was delayed by travel restrictions due to the Covid-19 pandemic, they continued working under the college’s parent company, PKT Logistics Group, to serve Daisei Every24.

The graduates had also completed a six-month Japanese language course sponsored by Daisei.

Through Peninsula College’s “Jom! Berkerja Sambil Belajar” (JBSB) programme, students are encouraged to work part-time while studying, to bridge theory with real-world experience.

Through JBSB, Lee and Malisa had the opportunity to explore different parts of the logistics industry and interact with PKT’s clients.

In 2016, PKT and Daisei Every24 entered into a joint venture to form PKT Every24, making its first foray into the food and beverage logistics arena to service the Family Mart chain of convenience stores.

In 2018, its Japanese partners recruited the first batch of Peninsula College graduates.

Both have since returned to Malaysia and are currently employed as assistant managers at PKT Every24.

Group chief executive and managing director Datuk Seri Dr Michael Tio believes in the calibre of local talents and says the second round of recruitment is a testament to the success of Peninsula College’s education methodology.

“Our company believes in Japanese work ethics and culture. We hope our graduates will take this chance to deep-dive into the logistics sector and create an amazing career path for themselves.”

Lee credits the JBSB programme for helping her build a strong foundation at work.

“I’m very grateful for the opportunities provided to me by the college, the company and my family.

“I will work hard and hopefully contribute to the company’s future when I return,” she said.

Malisa, who is half-Thai, also spoke highly of the programme.

“JBSB has been such an important element in my tertiary education. It has pushed me and built my confidence to pursue greater opportunities,” she said.

After completing the management trainee programme, both of them will not be bound by any employment restrictions and may freely chart their careers.

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.