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A Project Report

On
Visit to
“Port Klang, Malaysia"

SUBJECT: INTERNATIONAL TRADE LOGISTICS & SOURCING

Submitted by:

Mazumdar Manisha Upalal 26A


Suyash Gupta 47C

Under the guidance of


Dr. Sanjay Rastogi
1
Company Master In Business Administration
Logotype Indian Port Visit
Institute Malaysia
of Foreign Trade, Delhi
Batch: 2021-2023
TABLE OF CONTENTS
1. DAY 1: MPOC VISIT
1.1. About Company
1.2. Objectives
1.3. Global Presence
1.4. Palm Oil contribution
1.5. Issues & Challenges
1.6. Marketing & Promotional Activities
2. DAY 1: MAICCI VISIT
2.1. About Company
2.2. Mission
2.3. Vision
2.4. Core Values
3. DAY 2: KLSICCI VISIT
3.1. About Company
3.2. KLSICCI Team
3.3. Events
3.4. Membership
3.5. Organization
3.6. Objectives & Activities
4. DAY 3: PORT KLANG VISIT
4.1. Evolution of Port Klang
4.2. Port Facilities
4.3. Strengths
4.4. Achievements
5. DAY 3: MATRADE VISIT
5.1. About MATRADE
5.2. Vision
5.3. Mission
5.4. Roles & Functions
5.5. Reasons to Trade with Malaysia
5.6. High Commission of India, Kuala Lumpur
6. LEARNINGS

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1. MPOC VISIT
1.1. About Company 1.3. Global Presence
The main aim of MPOC is to promote the market The Headquarter of MPOC is located in Jaya,
expansion of Malaysian palm oil and its products Selangor, Malaysia. Apart from this MPOC is
by enhancing the image of palm oil and creating present in Saudi Arabia, USA, Europe, Sub
Saharan Africa, Pakistan, India, Moscow, Turkey,
China and Egypt.

1.4. Palm Oil Contribution


Out of the total 204 mil tonnes of oils and fats
produced, palm oil commands a share of 29
percent, followed by soybean, rapeseed and
sunflower oils. In 2020, Malaysia accounted for
better acceptance of palm oil through awareness 25.8% and 34.3% of world’s palm oil production
of various technological and economic and exports, respectively. If taken into account of
advantages (techno-economic advantages) and other oils & fats produced in the country,
environmental sustainability. Malaysia accounted for 9.1% and 19.7% of the
world’s total production and exports of oils and

1.2 Objectives

• To enhance trade opportunities in the market


place by identifying and meeting the latest
opportunities in the market.
• To encourage product diversification by
using Malaysian palm oil as the key
ingredient, thus gaining a prominent role in
new and reformulated products.
• To improve understanding of palm oil,
enhancing its application and elucidating its
fats in the same year.
numerous strengths and benefits.
• To uphold the good name of Malaysian palm The refining of crude palm oil commenced in the
oil by closing the gap between the issues of early 70s in response to Government’s call for
perception, allegations and the realities of increased industrialization. The emergence of
palm oil. refineries marked the introduction of a wide
• To safeguard Malaysian palm oil as the most range of processed palm oil products.
dominant vegetable oil in terms of market
coverage, nutritional benefits, environmental
sustainability and commercial success.

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The Malaysian oil palm industry Unpredictable Scenarios
experienced mixed performance during Jan-July
2021 as compared to that of in 2020. During the Unpredictable scenarios such as covid-19,
reference period, the industry experienced political uncertainties, policy changes, trade
slowdown in CPO production. The CPO wars, etc., have an immediate impact on all
production declined by 8.9% to 9.89 million related commodities’ prices. The year 2020 saw
tonnes as against 10.86 million tonnes in Jan-July multiple such scenarios where palm oil prices
2020. took a tumble in the first quarter due to the price
war between Saudi Arabia and Russia, which
TOP 10 MALAYSIAN PALM OIL EXPORT crashed the crude oil market. That was followed
DESTINATION by demand disruption caused by the global
outbreak of COVID-19. A political spat between
Malaysia and its largest buyer India also severely
impacted the export of palm oil to India in the
first half of 2020.

Supply & Demand of Oils

Supply & Demand (S&D) of palm oil within the


region, competing oils, and stock levels
maintained in exporting and importing countries
has a direct and immediate impact on the price of
this commodity. Palm oil is the largest produced
and traded edible oil globally. It is always
exposed to the price volatility caused by the
unpredictable S&D scenarios in the edible oil
and oilseed market.
1.5. Issues and Challenges
Despite being a key agricultural product of the Mechanization & Advancement
tropical region, the palm oil sector faces many
challenges, both short and long term. These The Malaysian palm oil industry faces an uphill
challenges have a direct impact on the struggle with increasing dependence on foreign
performance of this sector. If not addressed labour and a slow pace of mechanization. This
promptly, they can adversely and permanently situation will continue to hinder the overall
affect the livelihood of millions of people productivity and growth of the sector.
associated with this industry in the region.
European Union’s Protectionist Policies
Following are some of the challenges which the
Malaysian palm oil industry is facing currently: The European Union, which considers itself the
guardian of free trade, has adopted various
protectionist policies directly targeting palm oil
suppliers in developing countries. Following are
the five key issues that affect Malaysian palm oil

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trade in the EU, which are the direct result of • The EU initiative on mandatary corporate
such policies: due diligence

• EU Renewable Energy Sources Directive • Process contaminants 3-MCPD


(RED)
• No Palm Oil & Front of Pack Labelling
• EU Policy on Forests and Deforestation

1.6. Marketing and Promotional Activities


The Malaysian palm oil industry wants the world to recognise that palm oil from Malaysia represents
sturdy features such as quality, sustainable practices, speed of delivery, and research and development.
And this will be supported by a brand name – Malaysia Palm. MPOC chairman Datuk Lee Yeow Chor
says the council aims to develop the branding and image of Malaysian palm oil as a strategy to
differentiate the oil from other commodities in the global edible oils and fats market.
Keeping this in Mind they organize a lot of events and marketing seminars such as Ministerial Missions,
Palm Oil trade fair, Seminars, Texpo, MPOC 2022 Gulf Food-Palm Oil conference. They also host several
technical programmes such as MSPO promotions.

Palm Oil Trade Fair and Seminar 2021

The Palm Oil Trade Fair and Seminar (POTS Digital) 2021 is an international virtual conference bringing
together world-renowned oils and fats industry leaders and experts to deliberate on the latest market
developments and opportunities. The conference also includes technical papers and debates on hot topics
such as sustainability, biodiversity, health/nutrition, and wildlife conservation. With POTS Digital 2021,
consumers all around the globe will be able to enjoy engaging content such as celebrity chef cooking
demonstrations, informative videos, recipes, and much more.

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2. MAICCI VISIT
2.1 About Company
In 1950, the Indian Chamber of Commerce (ICC) states in Malaysia and various other Indian trade
Singapore, represented by its then President, Mr organizations in Malaysia. MAICCI activities are
R. Jumabhoy, played a vital role in catalysing the tailored towards the betterment of the Indian
early beginnings of The Associated Indian business, such as matters concerning trade,
Chambers of Commerce, Malaya. Under the policies, assisting entrepreneurs, business
distinctive leadership of Mr S.O.K Ubaidulla, counselling, and various other aspects of interest.
The Associated Indian Chambers of Commerce, Among the many strengths of MAICCI is its
Malaya flourished with the membership of some rapport with relevant ministries and government
of its early constituents, such as the ICC of agencies in the country as The Government’s
Selangor, Ipoh, Seremban, Johor and Kelantan. Official Dialogue Partner. This relationship
which has been built over a solid historical
foundation clearly indicates MAICCI’s strong
stand in advocating matters and conducting
constructive negotiations that affect the
economic interests and business goals of its
members and the Malaysian Indian Business
community at large. MAICCI has been and will
always be a remarkable institution that selflessly
pushes forward in identifying levels of
opportunities for its members to grow and
expand economically, MAICCI has a string of
prominent and notable achievements. On 27
April 2014 onwards, MAICCI has moved to a
Today, the Malaysian Associated Indian
new secretariat known, as ‘MAICCI House’
Chambers of Commerce & Industry (MAICCI) is
located in Jalan Ledang, Kuala Lumpur. With a
proudly represented both domestically and
bigger secretariat office, we expand our role for
internationally and is one of the founding
the continuous development of the Indian
members of the National Chambers of
business community. Presently, MAICCI is fast
Commerce and Industry of Malaysia (NCCIM).
expanding and quickly adopting key messages to
Serving as a voice for the Malaysian Indian
ride the waves of this new era of global trade
business community and as the agent for the
liberalization. With its incredibly dynamic and
implementation of Government policies MAICCI
strong team of management and members alike,
plays a pivotal role in the promotion, protection
it is without a doubt that MAICCI will continue
and advancement of all economic interests of the
to move forward and sustain its role and position
Malaysian Indians. MAICCI strives to
in service, as the voice of Malaysia’s Indian
continuously represent and assist Indian
business. MAICCI is and will continue as the
merchants, traders and manufacturers in the
paramount focal point for the ethnic Indian
States of Malaysia in all aspects that concern
Malaysian business community.
their businesses. MAICCI proudly represents 14

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2.2 Mission
To be the voice of the Constituent State Chambers, and members in Malaysia and strive to advocate
policies, stimulate trade and investment, connect businesses, sustain economic growth and expand
member opportunities. Our aim is to contribute to a stable and sustainable economic and social
environment in Malaysia where businesses can prosper.

2.3. Vision
Enhance wellbeing of State Chambers, increase opportunities to achieve success, grow beyond national
borders, strengthen our economy and improve quality of life among State Chambers and members. We
envision a better standard of living – to be enjoyed by every member of the Chamber, regardless of the
size or nature of business.

2.4. Core Values

• INNOVATION
The Chamber is a cutting-edge institution focused on a bold future – pursuing innovation and
collaboration to facilitate the growth and vitality of our community.

• INTEGRITY
The Chamber is an organisation centred on integrity – conducting business with honesty, fairness and
respect.

• COLLABORATION
The Chamber promotes a culture of teamwork, where support and encouragement is given to
accomplish goals and objectives.

• EXCELLENCE
The Chamber will be the leading business organisation, providing first-rate quality and value.

• PASSION
The Chamber is an organisation in which the passion to enhance the well-being our members and
community drives every endeavour.

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3. KLSICCI VISIT
3.1 About Company

Kuala Lumpur & Indian Chamber of Commerce (KLSICCI) safeguards the Malaysian Indian
community’s varied business needs and matters of urgent concern. KLSICCI is ever cognizant of and pro-
active regarding the nation’s fat-paced economic development and hence functions as an all-important
Government-Private Sector link. KLSICCI strives for the equitable implementation of Malaysia’
economic, trade and fiscal policies and apportionments whilst playing the increasingly needful role of
being an ever-vigilant mouthpiece for the trade and commerce needs of our Malaysian Indian Business
Community (MIBC). KLSICCI’s stellar role and dynamic performance in furthering trade and commerce
activities has officially gained recognition from the Malaysian Government, the trade and commerce
sectors (both local and global) and also from KLSICCI’s bona-fide entrepreneurs. We also extend our
hand of win-win business collaborations and smart partnerships with a view to fostering mutually
benefiting business joint-ventures – both on the local front and in the international business arena
.
3.2. KLSICCI Team

3.3. Events

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To promote the activities of the Chamber,
various committees like General Affairs,
Financial Planning, Industry, Commerce, Legal,
Welfare, Culture & Education, Small and
Medium Enterprises & Human Resource
Development, Digital Economy, Agriculture &
Primary Industries, FinTech & Capital Market,
Young Entrepreneurs, Construction & Property
Committee, Women Entrepreneurs, Public
Relations & Tourism Industry, Malaysia-China
Economic, Trade and Investment Promotion,
National Unity and Membership Drive
Committee as well as other ad-hoc committees
are formed.

3.4. Membership

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The membership of the Chamber comprises the deemed necessary, appoint not more than 4
following categories: (a) Trade Association; (b) members as additional Council Members. To
Firm / Company; (c) Individual and (d) Associate promote the activities of the Chamber, various
Member. Its total direct membership as at committees like General Affairs, Financial
24th November 2021 is 2,834, currently there are Planning, Industry, Commerce, Legal, Welfare,
82 trade association members, 201 individual Culture & Education, Small and Medium
members, 2,397 firm / company members and Enterprises & Human Resource Development,
154 associate members. Each and every trade Digital Economy, Agriculture & Primary
association has its own membership and their Industries, FinTech & Capital Market, Young
members are indirect members of the Chamber Entrepreneurs, Construction & Property
which if taken into account are well exceeding Committee, Women Entrepreneurs, Public
30,000 in number. Relations & Tourism Industry, Malaysia-China
Economic, Trade and Investment Promotion,
National Unity and Membership Drive
Committee as well as other ad-hoc committees
are formed.

3.6. Objectives & Activities

• To promote and enhance economic


activities of Malaysia
• To act as channel of communication
between government and private sector
• To promote social welfare, cultural and
educational activities
• To promote human resource training
• Publication

3.5. Organization

The General Meeting of members of the


Chamber shall constitute the supreme authority
of the Chamber. The Council which consists of
35 members elected from among the individual
and / or firm members, and 10 members elected

from among trade association members are


formed to manage the affairs of the Chamber
after the General Meeting. The Council may, if

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4. PORT KLANG VISIT
4.1. Evolution of Port Klang

1900 – Malayan Railway Administration


1963 – Port Swettenham Authority Pre- Privatization
1972 – Renamed to Port Klang Authority
1986 – KCT
1992 – KPM Privatization
1994 – Westports
2000 – KCT +KPM (Northport)
Post - Privatization
2013 – Northport

SOUTHPORT NORTHPORT WESTPORTS


Started 1964 Started 1973 Started 1994
-For Conventional Cargo -For Container Cargo - For Container &
(Rubber & Tin) (Indigenous Cargo) Conventional Cargo

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4.2. Port Facilities

CRUISE
CONTAINER TERMINAL
Berth: 33 LIQUID BULK DRY BULK BREAD BULK CT BERTH 1
Length: 9.0 km Berth: 10 Berth: 8 Berth: 11 L: 350 D: 14
Draft: 11-17.5 m Length: 2.5 km Length: 1.8 km Length: 2.1 Km CT BERTH 2
Annual Capacity: Draft: 9-16.5 m Draft: 11.5-15.0 m Draft: 5.5 -15.0 m L: 250 D: 10
20.6 Million TEUs CT BERTH 3
L: 250 D :10

4.2. Roles & Functions

1. Regulatory

OVERSIGHT OF
NAVIGATIONAL PERFORMANCE
FREE ZONE STANDARDS
01 AUTHORITY 03 SAFETY 05 SAFETY &
ENVIRONMENTAL
ISSUES

PORT ISSUANCE OF
02 SECURITY & 04 LICENSE
FIRE SERVICES

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2. Port Planning

• Sustainable development and expansion of Port


• Enhance digitalization of Port and Logistics processes
• Analysis of Global trends and forecast to ensure supply driven facilities
• Maintain Competitiveness among regional Ports
• Port Klang Development Master Plan 2010-2030
➢ Westport Phase 2(WP 2)
➢ Carey Island Integrated Port City (3rd Terminal)
• Carey Island Port Feasibility Study

3. Trade Facilitation

• Port Promotion
• One Stop Centre
• Business development

4. Asset Management

To ensure that the assets of the Port Authority are maintained at optimum level

• Land
• Building
• Berths
• Channel

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4.3. Strengths

PERFECTLY COMPETITIVE STATE-OF-ART


CONNECTIVITY
POSITIONED TARIFF FACILITIES

4.4. Achievements

1. Throughput (TEUs)

In Million Twenty-Foot Equivalent Unit (TEUs)


16

14 13.5 13.7
13.1 13.2
12.3
11.9 12
12
10.9
10.4
10
10 9.6

0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Series 1

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2. Vessel Calls

0.6

25.1 CONTAINERISED (8,704


CALLS)
CONVENTIONAL (2,942
VESSEL CALLS)
OTHERS (71 VESSEL CALLS)

74.3

2020 2021

Conventional 2,836 21.3% 2,942 25.1%

Containerized 10,214 76.8% 8,704 74.3%

Others 244 1.8% 71 0.6%

Total 13,294 11,717

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3. World container port ranking 2021

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5. MATRADE VISIT

5.1. About MATRADE

MATRADE is the National Trade Promotion Organization in Malaysia, under the Ministry of
International Trade and Industry (MITI), tasked to promote Malaysian products and services overseas.

5.2. Vision

“Malaysia A Globally Competitive Trading Nation”

5.3. Mission

“Promoting Malaysia’s Enterprises to the World”

5.4. Roles & Functions

• Link overseas buyers with Malaysian suppliers


• Facilitate Malaysian companies to access global market
• Assist Malaysian companies to invest abroad for Market access

CORE FUNCTIONS

EXPORT EXPORTERS
PROMOTION DEVELOPMENT

TRADE & MARKET TRADE ADVISORY


INFORMATION SERVICES

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5.5 Reasons to Trade with Malaysia

• Diverse Range of high-quality products and services


• Compliance to international Standard
• Friendly business environment
• Good Manufacturing Practices
• Transparent and Fair-Trade regulations
• Pro- Business Government Policies
• Excellent track record as a trading Nation
• Reliable Suppliers
• Professional Business culture
• Well-developed trade support facilities

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6. LEARNINGS
Malaysia is one of the reigning powers in shipping and maritime trade today, with 95% of its trade being
carried out via waterways. This advancement is largely due to the thoughtful and well-planned
development of seaports, which is critical for smooth travel.

Today, seaports in Malaysia are not merely places for ships to offload or pick-up cargo. They are
independent entities, connecting the all modes of transport for seamless trading,equipped with all the
requisite amenities for seafarers. Improved connectivity and frictionless operation of all transport
networks are the characteristics of Malaysian seaports.

The progression from a universal port to a niche port, catering to an exclusive dimension of sea trade, has
further spurred the adoption of advanced technology to ensure that all requirements are adequately met.
This has driven Malaysia’s rise as a global maritime power to a great extent.
However, some issues such as piracy on the open seas and ship security are a recurring problem that
hinder domestic and international trade. Several restrictive administrative, logistic, legal, financial, and
customs-related regulations create a secondary barrier for trade in Malaysia.

In the recent years though, there is an increasingly progressive outlook towards overcoming these hurdles
so as to facilitate trans-boundary trade with ease. Numerous strategies implemented by the government
and the local corporations are expected to play a crucial role in further development of maritime trade and
shipping in Malaysia.

The future for shipping in Malaysia certainly seems to have an upward trajectory. Improved support
services and provisions to ensure maximum efficiency are expected to boost trade opportunities manifold.
In addition, the government has implemented substantial measures to create a free economy for trade.
The International Maritime Expo is an excellent platform for all aspects of the maritime industry to come
together and interact. MIMEX 2017 is an initiative undertaken in conjunction with the support of the
Malaysian Ministry of Transport and offers great scope for the stakeholders in the shipping and related
industries. The exhibition forges new paths and discovers coherent solutions for the challenges the marine
world currently faces.

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THANK YOU!

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