ISSUES AND CHALLENGES FOR MALAYSIA TO BECOME ‘SMART PORT’

0
 TABLE OF CONTENTS

CHAPTER 1: ABSRACT…………………………………………………………………..2
1.0 INTRODUCTION…………………………………………………………………….2-3
1.1 BACKGROUND OF STUDY………………………………………………………..3-4
1.2PROBLEM STATEMENT……………………………………………………………4-5
1.3 RESEARCH QUESTIONS……………………………………………………………..5
1.4 RESEARCH OBJECTIVE……………………………………………………………...6
1.5 SCOPE OF STUDY…………………………………………………………………….6
1.6 SIGNIFICANT OF STUDY ...........................................................................................6
1.7 DEFINITION OF OPERATION……………………………………………………….7
CHAPTER 2: LITERATURE REVIEW…………………………………………………...7
2.0 DEFINITION SMART PORT………………………………………………………..7-8
2.2 THE CURRENT STATUS OF MALAYSIA PORT………………………………….8-9
2.3THE CHALLENGES ISSUES THAT FACES TO IMPLEMENT SMART PORT.9-10
2.4 TH CURRENT APPROACH TO IMPROVE THE PERFORMANCE OF PORT TO
BECOMES ‘SMART PORT’……………………………………………………………...11
2.5 FRAMEWORK………………………………………………………………………..13
2.6 HYPOTHESES………………………………………………………………………..14
CHAPTER 3: RESEARCH METHODOLOGY………………………………………….14
3.0 INTRODUCTION…………………………………………………………………….14
3.1 RESEARCH DESIGN………………………………………………………………...15
3.2 RESEARCH METHOD……………………………………………………………….16
3.3 DATA COLLECTION………………………………………………………………..16
3.3.1 SECONDARY SOURCE DATA………………………………………………16
3.3.2 LIBABRY STUDY (READING)........................................................................17
3.3.3 WEBSITE AND INTERNET EXPLORATION METHODS…………………17
3.3.4 PRIMARY SOURCE DATA..............................................................................17
3.3.5 INTERVIEW METHODS……………………………………………………..18
3.3.6 METHODS OF USING DIGITAL SUCH AS CAMERA FOR PHOTO TAKING
AND VIDEO RECORDING AS WELL AS LAPTOPS………………………………….18
REFERENCES…………………………………………………………………………19-25

1
 Chapter 1

ABSRACT
In the maritime transport sector, digital technology is gaining increasing attention. Large
ports like the USA and China have already been heavily investing in digital database
technology and continue to rely on the continuous development of this advanced technology
which guarantees safety, optimization of processes and sustainability. On the other hand,
smaller ports have little or no insight into the nature and the potential of Industry 4.0, IoT and
Blockchain. Yet innovative ideas for intelligent port development remain unattainable
without including small and medium sized ports. There is a lack of concepts and models to
measure the performance of digital ports. Without such a tool, the digital status of ports
cannot be audited and the ports cannot be transformed in a concrete strategy roadmap.
Therefore, research issues will be explored in this study, how the digital performance of ports
can be evaluated and the challenges that ports face in terms of sustainable growth towards
intelligent ports. A digital readiness index for ports has been used on the basis of qualitative
data gathered from online surveys and IT based expert interviews.

Keywords: Port, Port Service, Smart Port, Port Performance, Digitalisation, Shipping.

1.0 INTRODUCTION
Port maintenance and other port functions are related to port maintenance in order to
support the smooth, safe and tidy running of ships (Maritime world , 2011). This area is used
to stop ships before their journey is anchored or continued. Ships will be loaded or unloaded
at ports or will usually be referred to as the central port for ship, import and export. Ports are
also the global supply chains' regional multimodal crossroads. Worldwide, port services are
used by exports of the goods to the rest of the world to operate economic sectors

Ports, in particular for the export and import of goods, play an important role in
international trade. The freight terminal services, including jetty services, stacking and
loading and unloading services, are also available with pier equipment, warehouses and
stacking systems (Pelabuhan : pengertian dan fungsi , 2020). There is also a gateway in the
port which is the anchor door for a ship. The interface serves as a link for carrying out freight
transfers. Next, the connection serves as chain link which means the transport transportation
of cargo to the recipient or consumer area from the area of producer origin of goods.

2
Moreover, as the industry (state/zone) the objective is to develop the provision of various port
facilities, including industry facilities, in particular the shipping and other maritime transport
industries, because change is a dynamic working environment (Maritime world , 2011).

1.1 BACKGROUND OF STUDY

A port is a place consisting of land and surrounding waters with certain borders as a
site for public activities and economic activities used for the rest, anchoring, boarding and
unloading of passengers fitted with maritime security and port support activities, as well as
for the transportation of partners and for transport purposes (Maritime world , 2011).

Ports in Malaysia are divided into 3 types of ports, namely land ports, sea ports and
fishing ports. There are 22 ports in Malaysia, 18 small ports and 5 container ports. In
addition, ports in Malaysia Currently, there are 8 federal ports which are each Port Klang,
Port Tanjung Pelepas, Port Johor, Port Penang, Port Bintulu, Port Melaka, Port Kuantan and
Port Kemaman (Kingdom of the netherlands). In addition, there are ports administered by the
state governments in Sabah and Sarawak and several privately owned port and jetty facilities
throughout the country, including in Port Dickson and Lumut, especially for the benefit of the
mining and oil and gas industries.

The Port of Tanjung Pelepas (PTP) was the first port in the country to receive the
world's most large container ship, the Mediterranean Shipping Company (MSC), Gulsun in
South East Asia to be part of the shipping industry's history (Idham, 2019). PTP is also
connecting to the national railway network that passes through Malaysia from Singapore to
southern Thailand, in addition to intermodal links between the road, sea and air. There are
several ports in Malaysia that are import and export trade centers.

First, Port Klang is Malaysia's largest port. Pulau Penang is the third busiest container
port of Malaysia to be found north on the western coast of Malaysia, on the west coast of the
island. It is located on the peninsular Klang River in Melaka Straits. It is the country's oldest
port and provides access to Malaysia and Thailand's southern states. In the meantime, Bintulu
Port is the main port of entry to Borneo and has a yearly turnover of 44 million tonnes, with
the country's third largest revenue.

Next, Sabah, the northern state of Borneo, has 8 ports, which have an annual revenue
of nearly 35 million tonnes and some 370,000 TEUs. Next is Kuantan Port, the main port

3
facing South China Sea on the east coast of the Malaysian Peninsula. There are currently
600,000 TUEs per year in management capacity. In addition, the Melaka port is located on a
halfway route from Kuala Lumpur to Johor, a small port still growing in the historical city of
Melaka.

Kuching is home to Bintulu's second busiest port in Sarawak as the state capital and
commercial centre. The port is owned by the State Port Authority Kuching (KPA) and in
2018 has an annual payload of 9 million tonnes, of which 246 000 TEUs is included. In the
meantime, Miri, Sarawak, with multinational companies holding posiations, has a fast-
growing oil and gas industry. The port was operated and started in 1983 by the Miri Port
Authority (MPA).

In addition, Private port is a heavy oil and gas industry, as well as mining -related
activities producing cargo that often require specialized port facilities. Some private ports
operated in Malaysia, including Port Dickson Lumut. In Sabah and Sarawak, where there are
many sources of potential load in the form of palm oil, timber and agricultural products, the
potential demand for the development of private ports is expected.

1.2 PROBLEM STATEMENT

In the country's export and import trade, Malaysian ports play an important role.
Malaysian Ports operate seaports operated by the Government of Malaysia (Seair Malaysia
Ports). The Malaysian port authority provides a safe and effective transportation system,
ensures safe transportation in ports and enhances the country's economic prosperity. Based on
data from UNCTAD, Malaysian port container capacity averaged between 2008 and 2019 at
21.7 billion TEUs. In 2019 alone, 26.2 billion TEUs were administered in Malaysia. The
Malaysian Marine Department, along with local ports, reported 11,099 vessels in Malaysian
ports in the second quarter of 2020 (Majid, 2021).

In this era of globalization, growth increases the growth rate of international trade,
and the development of technology in the industry 4.0 paradigm. Today’s technological and
business innovation models can be a driver for Smart Ports. Moreover, the problem of smart
ports is an emerging new technology, whether hardware, software, or related innovative

4
approaches, and prompts researchers to think deeply about how these technologies make port
operations more efficient and sustainable (What is a Smart Port?, 2021).

Digital changes to the global supply chain can be blocked by container ports.
Artificial intelligence, blockchain, industrial IoT technologies (Blackman, 2019) provide a
wide range of opportunities to the shipping industry, including goods owners, shipping
companies and terminal operators. There are several countries that use technological
advances in the shipping sector or in other words have improved their technological systems
in managing ports. Advances in shipping technology are also recognized as smart ports. The
country that makes smart ports is like the port of shanghai (china) - c. 40m teus (1st in 2017),
singapore port (singapore) - c. 34m teus (2nd in 2017), port of rotterdam (netherlands) - c.
13.6m teus (11th in 2017) and beyond.

The challenge of creating a smart port is also to make that port a smart port.
Operational excellence is one of the key challenges for IoT in ports. The key value drivers
proposed by customers are in terms of delivery, i.e. port power, capacity, efficiency,
reliability, support and cost (e.g. terminal operators). Migratory activity is the second
challenge for IoT in seaports. The challenging external market environment also drives the
need for intelligence. The third challenge for IoT in ports is the development of new business
models (based on data). In addition to updating existing frameworks and simplifying business
models, ioT applications have more added value (Merk, 2017).

1.3 RESEARCH QUESTIONS

A research question is a statement of question that allows the researcher to identify the
problem in a problem to be studied. The research questions will focus on the issues and
challenges faced by smart ports. There are three research questions that need to be studied:

1) What are the challenges for Malaysian port in order to become smart port?

2) What are the challenges for Malaysian port to become smart port?

3) How the current approach may help to improve the performance of the current port to
become smart port?

5
1.4 RESEARCH OBJECTIVE

1) To determine the current status of Malaysia Port.

2) To evaluate the challenges issues of Penang Port.

3) To assess the current approach of Penang Port.

1.5 SCOPE OF STUDY

A study will be conducted to study the status of the port of Penang in an effort to
make the Port a Smart Port (Reuters. Jun 28, 2021). This study focuses on the Penang Port
area located in northern Malaysia. The respondents of this study are the community in the
Port of Penang area. It covers a wide range of genders, races and ages between 20-35 years
old randomly selected by the researchers. Employees who work in the Penang Port area to be
the scope because they have experience and knowledge related to the port and also the scope
of work done there.

Researchers choose the port of Penang because the port is a developed country that
has sustainable economic growth and offers a conducive living environment as a smart
country, it will continue to move brilliantly in governance, mobility, environmental control,
prosperity society and achievable economic society through the development of human
capital, social understanding, and a used and comprehensive ICT infrastructure. Researchers
also look at some of the challenges or problems faced by the port of Penang to become a
smart port such as sufficient manpower, sufficient finances, more sophisticated machine tools
and meet adequate requirements and so on.

1.6 SIGNIFICANT OF STUDY

This study is to examine the problems and challenges faced by smart ports in Penang
Port. This study was conducted in a more detailed scope, namely to find out the current status
of Penang ports and assess the challenges of smart ports in Penang Port. In addition, to
evaluate the current approach in the port of Penang.

6
1.7 DEFINITION OF OPERATION

Operations derive from the word "working" in Latin and can be based on a variety of
activities and practical activities. Operations means actions and decision-making by
participants and members of companies, which have an impact on the production,
distribution, service, management, etc. required for an organisation to work that requires the
use of resources and assets while the definition of operations is a research aspect that offers
researchers data to measure or evaluate variables in terms of methods.

LITERATURE REVIEW

This study aims to investigate to find out the status of the latest smart ports in Malaysia. This
study is made to look at some of the challenges (Coraline) faced by a port to become a smart
port in Malaysian nowadays. There are several factors that drive ports in Malaysia to become
smart ports such as assessing the challenges of becoming a smart port in Malaysian.

2.0 Definition of Smart Port

The definition of a smart port means an intelligent port that equips staff with relevant
skills and technologies to solve the unique internal and external challenges of the
organisation and facilitate the smooth movement of goods. The advancement of digital
technology (Verge. Jul 5) in the maritime transportation sector is driven by IoT and
Blockchain in the industry 4.0 (Philipp, 2020). Smart Ports achieve results through a holistic
approach without posing new challenges within the ecosystem of the supply chain or
anywhere else.

The Smart Ports concept already represents a direct benefit to all port terminal users
and customers, as well as other advantages. Enhanced commercial returns will have an effect
on final prices for products and services, on the efficiency of maritime transport and its
management in ports. These factors reflect the current spatial constraints, productivity
pressure, tax constraints, and the need to be green. Technology and innovation (Technology

7
for ports , n.d.) can help, but smartness is also a way of thinking. For example, an intelligent
port policy could maximise local value instead of maximising load flows.

In the late 1950s, a new paradigm shift began in the maritime industry around the
world at the beginning of the container revolution. The main reason for port systems (What is
a Smart Port, 14) to achieve physical capacity, space availability, multi-modalism, transport
linkage, regionalisation, has been this new paradigm. The introduction in early 2010, in an
era of deep digitalisation, of an industrial revolution 4.0, which led to port systems being
ready to face widespread patterns of instability in dynamic shipping. This paper therefore
analyses the key components needed to comply with key IR4.0 requirements of the
Malaysian port system (seair, n.d.). To ensure that Malaysia's port system is in line with ports
in developed countries such as China, the United States, Korea and others.

2.1 The Current Status of Malaysia Port

Ports are the most important part of a country's development. The large number of
cargo ships, shipping containers or steel rails is an amazing symbol of a country's industrial
progress. Among the list of largest ports in the world based on TUE is the first Shanghai port
is the largest port in the world. Malaysia is categorized as one of the 5 largest and busiest
ports in Southeast Asia (The 5 biggest ports in Southeast Asia, 2020). The port of Tanjung
Pelepas is the third largest port. Furthermore, the port of Klang is the second largest and
busiest port in Southeast Asia. In fact, Port Klang is recognized as one of the 12 of the 20
busiest ports in the world, while Port Tajung Pelepas moved up to 15th place following the
proactive measures of the Ministry of Transport. During the second quarter of 2020, 11,099
ships were docked at the port by the Malaysian Marine Department and local ports (The 5
biggest ports in Southeast Asia, 2020) Malaysia.

With a total of 12.32 million TEUs in Port Klang, the Klang Valley is the country's
economic and industrial centre. However, 55 percent (2.39 million TEUs) of Malaysia's sea
container imports enter the country through ports, and 53 percent (2.35 million TEUs) of all
exports are transported containers. PTP, on the other hand, is a multi-purpose port. The
world's first port to handle ships with more than 19,000 TUE in this circumstance
(Transportation statistic, 2017). PTP had a net profit of MYR 135 million in the 2018

8
financial year. The North Butterworth Container Terminal (NBCT) is a key container
handling location. In 2018, the company's net operating profit grow to MYR 197 million.

According to the United Nations Conference on Trade and Development (UNCTAD),

Malaysia is the world's fifth best link in terms of transmission line connectivity (UNCTAD,
2021), ahead of the Netherlands and the United State. Over the past ten years, Malaysian
ports have recorded an average growth of 3% per year compound cargo results. Following a
decline in 2017 due to changes in the shipping line market and the overall low of global
maritime trade, cargo revenue recovered in 2018 amounted to 568 million tons and water
transport accounts for more than 80% of global trade. From 2008 to 2019, Malaysian ports
handled an average of 21.7 billion 20 equivalent units (TEUs). Malaysian ports handled 26.2
billion TEUs in 2019 (The 5 biggest ports in Southeast Asia, 2020). These figures illustrate
that Malaysia's shipping industry is expanding at a rapid pace each year.

2.2 The Challenges Issues That Face to Implement Smart Port

Vision 2020 has made Malaysia a developed and developing country in the economic,
political and social sectors. The country's progress in the economic sector helps to increase
the country's income as well as expand the country's trade sector to the international level.
Malaysia is an open economy supported by a diversified export base and highly integrated in
regional and global supply chains. Malaysia's exports and imports were supported mainly by
electrical and electronics products and the mining sector, which was dominated by the
manufacturing sector. This port is also a collection point for export and import goods and at
the same time it will make Malaysia's port sector grow.

Nowadays, the advancement of technology and information is growing rapidly, this

pushes the port to become a smart port but there are some challenges that drive to make the
port as a smart port. As in any industry, ports are required to apply advanced technology,
digitize processes and adopt innovative working methods to increase efficiency, reduce costs
and thus stay ahead of competitors. The port of the future is a smart, fully automated port
with an integrated port community system. Cyber security and safety issues as well as the
impact on the employment of port workers lead to a reluctance to use full scale automation.
Even so, to keep up with the most developed ports, Malaysia is aware of the urgency of
modernization, automation and digitization of port operations in the country.

9
 In an era of pandemics like this, meet the requirements, as well as ensuring efficient
logistical flow, is one of the most important factors to ensuring daily activities run smoothly.
Shipping activities, as well as the role of ports, play an important role in the logistics process
on the road. The port on Penang Island faces challenges to make the port a smart port, among
the challenges faced are financial problems. The financial problems plaguing the port sector
are due to insufficient funds to cover expenditure in the port sector. Fund contributors in
Malaysia are from foreign and domestic investments. Since Malaysia was hit by the Covid-19
pandemic, there was a decrease in the amount of Malaysian currency on the international
stage which resulted in the number of foreign investors in the country decreasing as well as
making the country's income also decrease. In addition, financial problems also occur when
import export flows decrease. This is because the demand and production of materials which
is a priority is declining.

In addition, the shortage of manpower is a challenge faced by the Port of Penang to

become a smart port. Shipping and ports sector must address immediately shortage of about
50 percent of skilled workers in the field to avoid a slowdown in port operations. The
manpower shortage caused by the Covid-19 case increased dramatically until the onset of
clusters in the workplace. Therefore, the government took the initiative to reduce the spread
of Covid-19 infection by limiting the number of workers in the sector involved. Port
operations could be affected if the shortage of skilled manpower is not addressed
immediately because so far most of the experts in the field are from foreign countries. The
country is forced to import foreign workers because of the expensive wage costs compared to
local workers.

Furthermore, inadequate equipment such as machines are among the challenges faced
by the Smart Port Implementation. High-tech machines require expertise from foreign
countries such as the United States, Japan, China and developed countries. The production of
high -tech machines requires high costs. However, the main problem of the port to get high -
tech machines is in terms of insufficient finances. The covid-19 pandemic situation made
financial integrity very weak as it had to restrict the movement of import and export services.

10
2.3 The Current Approach to Improve The Performance of Port to Becomes Smart
Port.

Figure 2

A smart port provides employees with the necessary skills and technology (VergeJul
5, 2021) to address the organization's specific internal and external difficulties, as well as to
allow the efficient movement of commodities, service delivery, and information flow.
Thousands of organisations and individuals rely on rules, plans, and actions to make the best
business decisions and run their operations (New York TimesJul 3, 2021) successfully in ports

11
and supply chains. Smart ports leverage digital data streams to increase collaboration,
coordination, and decision making throughout their operations. For example, sensors that
provide real-time data on operating conditions are deployed along wharf walls, highways,
railroads, and bridges. This also allows the port to anticipate the need for maintenance or
repairs, avoiding unforeseen downtime. In addition, cargo scanners are used to identify cargo
ships as well as make inspections of goods entering the country can be done in more detail. If
this machine is not used it will lead to cases of smuggling in our country.

In addition, before 1980, mainly government funding was provided for service ports
(Orbiting Jupiter) and tool ports. The government and the port administration traditionally
subsidised the general infrastructure of landlord ports, while private operators financed the
terminal superstructure and equipment. The exception was fully privatised ports. If a
government does not have funds for expensive port infrastructure, either port development is
stopped or money is acquired from an IFI such as the World Bank at preferential rates. In
order to compete successfully, ports require expensive infrastructure. Until recently, port
authorities relied mainly upon national governments' contributions and subsidies for the
construction or enhancement of basic port infrastructure. Such contributions were usually
excluded and thus contributed to positive financial positions in ports. The allocation given by
the government to the shipping and port sectors plays a role in strengthening the finances of
the sector. The government also has a role to play in ensuring that the allocation provided
will be sufficient to prevent a financial crisis in Malaysia.

Smart port improvements in the area, as well as strategic alliances and initiatives
between UN ESCAP and the International Maritime Organization (IMO). During the
COVID-19 epidemic, the transition to a smart port has also developed as a strategy to
safeguard the marine and port ecosystems' safety. Penang's founders envisioned it as a hub.
The organisers of the Penang event hope that the island will become a tin trading hub. Early
Penang officials actively advocated for the northern expansion triangle to offset Singapore's
rapid rise in the south of the peninsula, with northern Sumatra and southern Thailand as
crucial components in Penang's entre-port status. Penang and Southern Thailand continue to
be one of the state's most valuable assets. Penang became the new economic centre of
Thailand's south west coast in the last decade of the twentieth century, with new buildings
and shifts in trading patterns. Penang is thought to be at the core of a development zone that
connects the Thai east coast states. Penang's new strategic partners are projected to include

12
Songkhla, Patani, Narathiwat, and Yala. Penang Port's strategic location allows it to promote
the area's shipping and port sectors, as well as enhance port technology development and
upgrading to become a smart port.

2.5 Framework
The research framework that will be completed for this study represents the overall flow of
the research. Furthermore, developing a research framework will ensure that the study is able
to answer the research questions by collecting data using the appropriate instruments and
analysing it using the appropriate procedures. The research framework is shown as below :-

Identifying Previous Research Problems

Qualitative Methods Primary Sources and

Secondary Sources

Field Study Data Collection

Data Processing

Data Analysis

Research Findings

Figure 2 : Shows the Research Framework or Research Flowchart

This study was conducted to understand the issues and challenges faced by the port
sector in the effort to make the smart port. Because this study focuses on issues and
challenges, it is classified as a qualitative case study.

13
2.6 Hypotheses
Hypothesis is the initial solution to the problem. Research studies are planned to verify
hypothesis. Besides, hypothesis is the composition of some variables that have certain
specific positions or roles and need to be verified empirically. To conduct this study, few
hypotheses as below have been created and tested through this study.

H1: The relationship between current status of port in Malaysia and status smart port in
Malaysia.

H2: There are a lot of challenges that have to face to implement smart port.

H3: The relationship between the current approach may help to improve the performance of
the current port to become smart port.

RESEARCH METHODOLOGY

3.0 Introduction
In this chapter 3, methodology is one of the most important chapters in preparing a
study to ensure that the objectives of the study can be achieved. This study uses a set of
questionnaires based on research questions. The selection of an appropriate and appropriate
methodology should be taken into account with reference to the purpose of the study to
ensure that the results obtained have high validity and reliability. Therefore, the work steps
need to be well planned and organized to ensure that the research conducted is systematic.

Research is defined as the organised analysis and study of tools and sources as a step
to form a fact and reach new conclusions by the Oxford Compact English Dictionary. Other
than that, research also is well-defined as an organized search for data as well as a research
development (Graziano, 2020).

Methodology is a factor that must be considered in order to produce good and

dependable research results. Its purpose is to guarantee that the researcher's method in this
study is appropriate for the variables being researched as well as the hypotheses being tested.

14
Research methodology provides direction on how to conduct research as well as how to
conduct research.

3.1 Research Design

According to Sekaran and Bougie (2011), research design can be defined as plans and
procedures for the research that length the decisions from wide assumptions to detailed ways
of data collection and analysis. Moreover, the selection of research design is based on the
style of the research issue or problem that has being directed, personal experiences of the
researchers and the target group of the study. Creswell (2009) also stated that research design
as the plan or proposal to carry out the research that involves specific ways. Moreover,
according to Akhtar (2016), research design is considered as the structure of the study
because it is like a glue that holds the elements in a study together. It is also a master plan
that specifying the way and procedures in collecting and analyzing the information needed
for the research. Research design not only a plans and procedures for the research but it also a
clear statement of research problem and through defining the research design, the researchers
may identify the population and sample size to be studied (Akhtar, 2016).

On top of that, research design is categorized by two designs which are quantitative
research method and qualitative research method. Firstly, according to Creswell (2009), the
quantitative research method is using closed-ended questions or known as questionnaires.
The quantitative research method is used to test the objective theories by examining the
association among the variables. Those variables can be measured on instruments and it can
be analyze using statistical way. Moreover, Creswell (2009) also mentioned that the final
report has a set structure which it consisting on the introduction, literature, methods, results
and also discussion. The quantitative research method also used to build a protection against
bias in analyzing the data.

Secondly, the qualitative research method. According to Creswell (2009), qualitative

research method is a way to explore and understand the meaning of individuals or groups
attribute to social or human conflicts. This kind of research method is usually involved the
process emerging questions and procedures which is through interview with the respondents
to collect the data. In addition, Creswell (2009) also explained that the researchers will make
the interpretations of the meaning of the data and the final writer report has a flexible
structure.

15
3.2 Research Method
Research Methods are the tools and techniques for doing research. Research is a term
used liberally for any kind of investigation that is intended to uncover interesting or new
facts. Besides that, Research methods are techniques used to conduct research. Research
methods use a variety of ways to gather, organize and analyze information to draw
conclusions. Using the right method for the research will convince others with the
conclusions of the study because of the new knowledge generated by its essence (Malliman,
2011).

According to Adi Bhat (2020) quantitative research is defined as a systematic

investigation of phenomena by gathering quantifiable data and performing statistical,
mathematical, or computational techniques. Quantitative research collects information from
existing and potential customers using sampling methods and sending out online surveys,
online polls, questionnaires, etc., the results of which can be depicted in the form of
numerical (Bhat, 2020). For this study, qualitative research was conducted using the
questionnaire form method. This is because, this quantitative method can prove a strong
validity by using numerical results from the analysis.

3.3 DATA COLLECTION

Data or information collection is the procedure of gaining data and evaluating information
about variables to be able to respond to research questions and evaluate the results. As a
result, the data in this study is based on information gained by the researcher from first-hand
sources through the use of survey and interview methodologies.

3.3.1 Secondary Source Data

Secondary data refers to data obtained through other sources. Among them
are through references from books, journals, reports, newspapers and sources from the
internet. This means that the secondary source data is different from the primary
source data. Where the researcher does not go alone to get the information studied.

16
Researchers use only available resources to conduct research. The library method is
an information collection technique that has been recorded for a long time as a
reference and guide to researchers. Through this method, collection secondary
information can be obtained from well-documented sources. Among the sources of
documentation used such as texts from journals, website exploration, through reading
from scholarly books and so on. Library source data is used to find information or
resources to support the data that has been studied. This method is taken from
scholarly books, articles related to the topic studied as a result of studies that have
been done by other researchers. The researcher conduct an interview by doing the
online interview using a laptop due to the pandemic covid-19 that currently happens
in Malaysia.

3.3.2 Library Study (Reading)

This study was conducted using University Utara Malaysia (UUM) library
website to some resources that can be used to complete this research. In this study, the
book is also the main reference material and is the main thrust for the researcher.
Through the use of reference materials such as books, theses, pamphlets, magazines,
newspapers and journals will help researchers to obtain information in the preparation
of research data by collected and studied to be presented in this study. References
from books are an important thing that every researcher does.

3.3.3 Website and Internet Exploration Methods

To obtain additional information, researchers also used the internet to find

solar -related resources in Malaysia. This method will facilitate researchers through
access only at the fingertips, relevant information to the entire information on port
development and smart ports that can be obtained quickly and easily. Several port -
related websites such as the MARITIME website were also browsed by the
researchers to get more information. Therefore, the information available on the
internet can help complete this study. In addition, researchers also downloaded books
in the form of documents from websites related to port development to help
researchers get more information.

3.3.4 Primary Source Data

17
 Primary data refers to data or information obtained by the researcher himself
by going to the study location to obtain valid information or reference sources from
experts or people who are knowledgeable about a subject. Data collected directly
from primary sources are referred to as primary source data through the process of
observation, observation and participatory observation as well as through the method
of interviews with respondents.

3.3.5. Interview Method

The interview is an interaction between the investigator and the informant.

The purpose of the researcher conducting the interview method study was to interact
directly with the informants. Through the interview method, the informant can
provide answers and provide explanations directly. Answers are not assumptions and
interpretations. This interview method is also very important in conducting this study
because the researcher will be able to get a lot of information about the study
conducted. Accurate, correct and authentic information from the interview results can
provide additional information to the researcher. By using this interview method,
researchers can learn more about the issues and challenges faced to become a smart
port. Then the researcher has constructed questions related to the study to be
conducted. The researcher will also indirectly conduct an interview session by
recording and taking photographs as evidence of carrying out the task.

3.3.6. Methods of Using Digital such as Cameras for Photo Taking and Video
Recording as well as Laptops

In this study, researchers have used cameras. Researchers also used research
methods using digital cameras and the use of smartphones. This method aims to make
it easier for researchers to take pictures of research results related to port and shipping
issues. The use of cameras is important as evidence of researchers conducting
research. The photos taken are intended to be used as attachments for future reference.
In this study, researchers presented a research method using laptops to conduct online
interviews because of the covid-19 pandemic. This method aims to facilitate the
researcher to conduct an interview session to achieve the objectives of the researcher.
The use of laptops is important as evidence of researchers conducting research.
Recording also plays an important role as all conversations between the respondent
and the respondent will be recorded for future reference. With the use of laptops or

18
 computers, researchers can complete the study and also make slide presentations and
power points. It is easier to produce better presentations with the help of modern
computers (Robson, 1993).

References
Adams, J. D. (1985). Primary Prevention and the Family: Part II. Journal of Primary
Prevention.
Anthony M. Graziano, M. L. (2013). Research Methods: A Process of Inquiry, 8th Edition.
State University of New York at Buffalo: Pearson.
Ashok, S. (2020, June 1). Solar energy. Retrieved from 2021 Encyclopædia Britannica, Inc.:
https://www.britannica.com/science/solar-energy
Bertolli, M. (2008). Solar Cell Materials. Course: Solid State II. . Department of Physics,
University of Tennessee, Knoxville.
Bhubaneswari Parida, S. I. (2011). A review of solar photovoltaic technologies . Renewable
and Sustainable Energy Review.
Blackman, J. (2019, January 4). Smart Port In world. Retrieved from fundamentals/five-
smartest-ports-in-the-world:
https://enterpriseiotinsights.com/20190104/channels/fundamentals/five-smartest-
ports-in-the-world
ceicdata. (n.d.). Retrieved from Malaysia Container Port Throughput:
https://www.ceicdata.com/id/indicator/malaysia/container-port-throughput
Chopra, K. P. (2004). Thin-Film Solar Cells: An Overview. Progress in Photovoltaics,. 69-
92.
Creswell, J. W. (1994). Research Design: Qualitative and Quantitative Approaches.
Thousand Oaks.
D. Ton, G. P. (2008). Solar Energy Grid Integration Systems – Energy Storage (SEGIS-ES).
Sandia National Laboratories.
Daniel Goh, P. S. (2014, February 3). Trans-Regional and -National Studies of Southeast
Asia. Retrieved from Post-Colonialism,Globalisation, and the Remaking of Malacca,
Penang, and Singapore: https://profile.nus.edu.sg/fass/socgohd/trans_2.1.pdf
DOSM, D. o. (2018). Overview Electricity Sector in Malaysia. Retrieved from
www.dosm.gov.my:

19
 https://www.dosm.gov.my/v1/uploads/files/6_Newsletter/newsletter%202018/Series
%2010_Electricity%20Sector.pdf
energypedia. (2019, June 4). Solar Energy. Retrieved from energypedia:
https://energypedia.info/wiki/Solar_Energy
Georgopoulou E, L. D. (1997). A multi-criteria decision aid approach for energy planning
problems: the case of renewable energy option. European Journal of Operation
Research.
Graziano, A. M. (2020). Research Methods: A Process of Inquiry, 9th Edition. State
University of New York Buffalo: Pearson.
Idham, M. A. (2019, July 30). PTP terima kunjungan kapal kontena terbesar dunia.
Retrieved from PTP-terima-kunjungan-kapal-kontena-terbesar-dunia:
https://www.sinarharian.com.my/article/40596/EDISI/Johor/PTP-terima-kunjungan-
kapal-kontena-terbesar-dunia
IRENA. (2017, March). Renewable Capacity Statistics 2017. Retrieved from IRENA
International Renewable Energy Agency:
https://www.irena.org/publications/2017/Mar/Renewable-Capacity-Statistics-2017
Jayakumar, P. (2009). Renewable Energy Corporation Network for the Asia Pacific. Solar
Energy Resource Assessment Handbook.
Kingdom of the netherlands. (n.d.). Port Development In Malaysia. An Introduction to the
country's evolving port and landscape, 25.
Lawrence, N. W. (2000). Social Research Methods: Qualitative and Quantitative
Approaches. Allyn and Bacon.
Liu, F. a. (1997). Research Methods for Construction. %.
Majid, M. A. (2021, March 19). Perkemas industri perkapalan, pelabuhan negara. Retrieved
from perkemas-industri-perkapalan-pelabuhan-negara:
https://www.msn.com/en-my/news/berita/perkemas-industri-perkapalan-pelabuhan-
negara/ar-BB1eJShz
Malaysia Major Ports and Data List. (n.d.). Retrieved from Seair Country In Malaysia:
https://www.seair.co.in/foreign-country/malaysia-ports.aspx#
Malaysia major ports list d. (n.d.).
Maritime world . (2011, April 04). Retrieved from maksud perlabuhan :
https://www.maritimeworld.web.id/2011/04/apakah-yng-dimaksud-dengan-
pelabuhan.html
Marsh, J. (2019, January 19). What is solar energy? Retrieved from energysage:
https://news.energysage.com/what-is-solar-energy/
Mekhilef, S. a. (2012). Solar energy in Malaysia: current state and prospects.
Merk, p. d. (2017). Smart ports are the only ports that will. Retrieved from
content/dam/Deloitte:

20
 https://www2.deloitte.com/content/dam/Deloitte/nl/Documents/energy-resources/
deloitte-nl-er-port-services-smart-ports.pdf
OpenEI. (2012, July 1). Definition: Solar energy. Retrieved from OpenEI:
https://openei.org/wiki/Definition:Solar_energy
Pearce, J. (2002). Photovoltaics - a path to sustainable futures. Futures.
Pelabuhan : pengertian dan fungsi . (2020, December 17). Retrieved from Indomaritime:
https://indomaritim.id/pelabuhan-pengertian-dan-fungsinya/
Philipp, R. (2020, May 26). Digital readliness index assessment towards smart port
development. Retrieved from springer:
https://link.springer.com/content/pdf/10.1007/s00550-020-00501-5.pdf
Robson, C. (1993). Real World Research. Oxford: Blackwell.
Saga, T. (2010). Advances in Crystalline Silicon Solar Cell Technology for Industrial Mass
Production. NPG Asia Materials, 96-102. Retrieved from NPG Asia Materials.
seair. (n.d.). Major port list of malaysia, malaysia exports and import port data . Retrieved
from seair.co: https://www.seair.co.in/foreign-country/malaysia-ports.aspx
Seair Malaysia Ports. (n.d.). Retrieved from Major Malaysia Ports List & Data Export and
Import : https://www.seair.co.in/foreign-country/malaysia-ports.aspx#
SEIA. (2021). Solar energy. Retrieved from Solar Energy Industries Association:
https://www.seia.org/initiatives/about-solar-energy
Shinn, L. (2018, June 15). Renewable Energy: The Clean Facts. Retrieved from NRDC:
https://www.nrdc.org/stories/renewable-energy-clean-facts
Solar, M. (2017, January 2). What is On- Grid Solar. Retrieved from Amplus Solar:
https://amplussolar.com/blogs/what-is-on-grid-solar
Srinivas, B. B. (2015). Review on Present and Advance Materials for Solar Cells.
International Journal of Engineering Research-Online. 178-182.
Technology for ports . (n.d.). Retrieved from Smart Ports Alliance:
https://www.smartportsalliance.org/
TECHNOLOGY FOR PORTS AND TERMINALS. (n.d.). Retrieved from smart ports alliance:
https://www.smartportsalliance.org/
The 5 biggest ports in Southeast Asia. (2020, January 22). Retrieved from port technology:
https://www.porttechnology.org/news/the-5-biggest-ports-in-southeast-asia/
TheStar. (2015). How electricity is generated in Malaysia. TheStar.
Transportation statistic. (2017, February 2). Retrieved from United Stated Department
Transportation:
https://www.bts.gov/archive/publications/port_performance_freight_statistics_annual
_report/2016/ch3

21
UNCTAD. (2021, October 07). Retrieved from United Nations Conference on Trade and
Development: https://unctad.org/meeting/fifteenth-session-united-nations-conference-
trade-and-development-unctad-15
V.C. Akubude, K. N. (2019). Production of biodiesel from microalgae via nanocatalyzed
transesterification process: a review. ScienceDirect.
Wei, L. (2016, August 26). What are the limitations and disadvantages of solar energy?
Retrieved from Quora: https://www.quora.com/What-are-the-limitations-and-
disadvantages-of-solar-energy
What is a Smart Port. (14, April 2021). Retrieved from porttechnology:
https://www.porttechnology.org/news/what-is-a-smart-port/
What is a Smart Port. (2021, April 14). Retrieved from Maritime Made Easy:
https://www.porttechnology.org/news/what-is-a-smart-port/
Zenergy. (2020, February 17). 5 Advantages of Solar Energy on the Environment. Retrieved
from ZENERGY: https://www.zenenergy.com.au/blog/five-advantages-of-solar-
energy-on-the-environment/

Adams, J. D. (1985). Primary Prevention and the Family: Part II. Journal of Primary
Prevention.
Anthony M. Graziano, M. L. (2013). Research Methods: A Process of Inquiry, 8th Edition.
State University of New York at Buffalo: Pearson.
Ashok, S. (2020, June 1). Solar energy. Retrieved from 2021 Encyclopædia Britannica, Inc.:
https://www.britannica.com/science/solar-energy
Bertolli, M. (2008). Solar Cell Materials. Course: Solid State II. . Department of Physics,
University of Tennessee, Knoxville.
Bhubaneswari Parida, S. I. (2011). A review of solar photovoltaic technologies . Renewable
and Sustainable Energy Review.
Blackman, J. (2019, January 4). Smart Port In world. Retrieved from fundamentals/five-
smartest-ports-in-the-world:
https://enterpriseiotinsights.com/20190104/channels/fundamentals/five-smartest-
ports-in-the-world
ceicdata. (n.d.). Retrieved from Malaysia Container Port Throughput:
https://www.ceicdata.com/id/indicator/malaysia/container-port-throughput
Chopra, K. P. (2004). Thin-Film Solar Cells: An Overview. Progress in Photovoltaics,. 69-
92.
Creswell, J. W. (1994). Research Design: Qualitative and Quantitative Approaches.
Thousand Oaks.
D. Ton, G. P. (2008). Solar Energy Grid Integration Systems – Energy Storage (SEGIS-ES).
Sandia National Laboratories.

22
Daniel Goh, P. S. (2014, February 3). Trans-Regional and -National Studies of Southeast
Asia. Retrieved from Post-Colonialism,Globalisation, and the Remaking of Malacca,
Penang, and Singapore: https://profile.nus.edu.sg/fass/socgohd/trans_2.1.pdf
DOSM, D. o. (2018). Overview Electricity Sector in Malaysia. Retrieved from
www.dosm.gov.my:
https://www.dosm.gov.my/v1/uploads/files/6_Newsletter/newsletter%202018/Series
%2010_Electricity%20Sector.pdf
energypedia. (2019, June 4). Solar Energy. Retrieved from energypedia:
https://energypedia.info/wiki/Solar_Energy
Georgopoulou E, L. D. (1997). A multi-criteria decision aid approach for energy planning
problems: the case of renewable energy option. European Journal of Operation
Research.
Graziano, A. M. (2020). Research Methods: A Process of Inquiry, 9th Edition. State
University of New York Buffalo: Pearson.
Idham, M. A. (2019, July 30). PTP terima kunjungan kapal kontena terbesar dunia.
Retrieved from PTP-terima-kunjungan-kapal-kontena-terbesar-dunia:
https://www.sinarharian.com.my/article/40596/EDISI/Johor/PTP-terima-kunjungan-
kapal-kontena-terbesar-dunia
IRENA. (2017, March). Renewable Capacity Statistics 2017. Retrieved from IRENA
International Renewable Energy Agency:
https://www.irena.org/publications/2017/Mar/Renewable-Capacity-Statistics-2017
Jayakumar, P. (2009). Renewable Energy Corporation Network for the Asia Pacific. Solar
Energy Resource Assessment Handbook.
Kingdom of the netherlands. (n.d.). Port Development In Malaysia. An Introduction to the
country's evolving port and landscape, 25.
Lawrence, N. W. (2000). Social Research Methods: Qualitative and Quantitative
Approaches. Allyn and Bacon.
Liu, F. a. (1997). Research Methods for Construction. %.
Majid, M. A. (2021, March 19). Perkemas industri perkapalan, pelabuhan negara. Retrieved
from perkemas-industri-perkapalan-pelabuhan-negara:
https://www.msn.com/en-my/news/berita/perkemas-industri-perkapalan-pelabuhan-
negara/ar-BB1eJShz
Malaysia Major Ports and Data List. (n.d.). Retrieved from Seair Country In Malaysia:
https://www.seair.co.in/foreign-country/malaysia-ports.aspx#
Malaysia major ports list d. (n.d.).
Maritime world . (2011, April 04). Retrieved from maksud perlabuhan :
https://www.maritimeworld.web.id/2011/04/apakah-yng-dimaksud-dengan-
pelabuhan.html

23
Marsh, J. (2019, January 19). What is solar energy? Retrieved from energysage:
https://news.energysage.com/what-is-solar-energy/
Mekhilef, S. a. (2012). Solar energy in Malaysia: current state and prospects.
Merk, p. d. (2017). Smart ports are the only ports that will. Retrieved from
content/dam/Deloitte:
https://www2.deloitte.com/content/dam/Deloitte/nl/Documents/energy-resources/
deloitte-nl-er-port-services-smart-ports.pdf
OpenEI. (2012, July 1). Definition: Solar energy. Retrieved from OpenEI:
https://openei.org/wiki/Definition:Solar_energy
Pearce, J. (2002). Photovoltaics - a path to sustainable futures. Futures.
Pelabuhan : pengertian dan fungsi . (2020, December 17). Retrieved from Indomaritime:
https://indomaritim.id/pelabuhan-pengertian-dan-fungsinya/
Philipp, R. (2020, May 26). Digital readliness index assessment towards smart port
development. Retrieved from springer:
https://link.springer.com/content/pdf/10.1007/s00550-020-00501-5.pdf
Robson, C. (1993). Real World Research. Oxford: Blackwell.
Saga, T. (2010). Advances in Crystalline Silicon Solar Cell Technology for Industrial Mass
Production. NPG Asia Materials, 96-102. Retrieved from NPG Asia Materials.
seair. (n.d.). Major port list of malaysia, malaysia exports and import port data . Retrieved
from seair.co: https://www.seair.co.in/foreign-country/malaysia-ports.aspx
Seair Malaysia Ports. (n.d.). Retrieved from Major Malaysia Ports List & Data Export and
Import : https://www.seair.co.in/foreign-country/malaysia-ports.aspx#
SEIA. (2021). Solar energy. Retrieved from Solar Energy Industries Association:
https://www.seia.org/initiatives/about-solar-energy
Shinn, L. (2018, June 15). Renewable Energy: The Clean Facts. Retrieved from NRDC:
https://www.nrdc.org/stories/renewable-energy-clean-facts
Solar, M. (2017, January 2). What is On- Grid Solar. Retrieved from Amplus Solar:
https://amplussolar.com/blogs/what-is-on-grid-solar
Srinivas, B. B. (2015). Review on Present and Advance Materials for Solar Cells.
International Journal of Engineering Research-Online. 178-182.
Technology for ports . (n.d.). Retrieved from Smart Ports Alliance:
https://www.smartportsalliance.org/
TECHNOLOGY FOR PORTS AND TERMINALS. (n.d.). Retrieved from smart ports alliance:
https://www.smartportsalliance.org/
The 5 biggest ports in Southeast Asia. (2020, January 22). Retrieved from port technology:
https://www.porttechnology.org/news/the-5-biggest-ports-in-southeast-asia/
TheStar. (2015). How electricity is generated in Malaysia. TheStar.

24
Transportation statistic. (2017, February 2). Retrieved from United Stated Department
Transportation:
https://www.bts.gov/archive/publications/port_performance_freight_statistics_annual
_report/2016/ch3
UNCTAD. (2021, October 07). Retrieved from United Nations Conference on Trade and
Development: https://unctad.org/meeting/fifteenth-session-united-nations-conference-
trade-and-development-unctad-15
V.C. Akubude, K. N. (2019). Production of biodiesel from microalgae via nanocatalyzed
transesterification process: a review. ScienceDirect.
Wei, L. (2016, August 26). What are the limitations and disadvantages of solar energy?
Retrieved from Quora: https://www.quora.com/What-are-the-limitations-and-
disadvantages-of-solar-energy
What is a Smart Port. (14, April 2021). Retrieved from porttechnology:
https://www.porttechnology.org/news/what-is-a-smart-port/
What is a Smart Port. (2021, April 14). Retrieved from Maritime Made Easy:
https://www.porttechnology.org/news/what-is-a-smart-port/
Zenergy. (2020, February 17). 5 Advantages of Solar Energy on the Environment. Retrieved
from ZENERGY: https://www.zenenergy.com.au/blog/five-advantages-of-solar-
energy-on-the-environment/

25