Search
Close this search box.

Sabah Must Recast Logistics As Strategic Growth Engine, Says Industry Expert

Kota kinabalu: Logistics must be repositioned from a background cost centre into a strategic economic engine if Sabah is to enhance its competitiveness and marketability in regional and global trade, said the Chartered Institute of Logistics and Transport (CILT) trainer Datuk Ramli Amir. He stated that the state is at a critical juncture where its geographical advantage and resource base can only translate into sustainable growth if supported by efficient, integrated, and well-governed logistics systems.

According to BERNAMA News Agency, Ramli emphasized that logistics is no longer just about moving goods, but about creating value across the entire supply chain-from production, processing, and packaging to marketing and financing. He shared his perspective on Sabah's logistics landscape, pointing out the need for the state to leverage logistics to transform raw materials into higher-value, differentiated products that meet international standards.

Ramli, who is CILT Malaysia's former president and CILT International for Southeast Asia vice-president, highlighted the necessity for efficient transport and cold chain systems to aggregate output from fragmented rural producers into processing hubs. These hubs can ensure quality, traceability, and consistency, positioning Sabah to supply processed, graded, and certified products targeted at niche markets, rather than exporting bulk and undifferentiated goods.

He also stressed the importance of aligning product design with logistics realities, integrating factors such as container specifications, handling requirements, and transit times into product development. Ramli suggested that packaging should be treated as a strategic industry, with value-adding activities like labelling, certification, and customisation taking place near key logistics nodes to improve responsiveness to global demand.

Regarding market positioning, Ramli noted that logistics performance forms part of Sabah's brand equity. A transparent, reliable, and efficient system with minimal delays and strong documentation will build trust and enable Sabah products to command better prices in the global market. Furthermore, strengthening logistics could unlock financing opportunities through supply chain and trade finance mechanisms where goods in transit and inventory can be monetised as bankable assets.

However, Ramli pointed out that Sabah's current logistics ecosystem remains fragmented, with key components such as ports, roads, air cargo, warehousing, and regulatory systems operating in silos. He identified the lack of a single institutional home for logistics as a core issue, emphasizing the need for deeper technical expertise and coordination to manage logistics as a holistic system.

As a solution, Ramli urged the positioning of the Institute for Development Studies (IDS) Sabah as a central coordinating and knowledge hub to drive integrated logistics planning. He proposed the establishment of an IDS-CILTM logistics and trade facilitation centre of excellence to provide the professional structure needed for developing a comprehensive logistics roadmap for the state.

Ramli concluded by asserting that logistics must be treated as a strategic pillar of Sabah's economy. He argued that only through proper institutional anchoring and coordination can the state fully leverage its geography, resources, and infrastructure, enabling a transition from a commodity-based economy to a more sophisticated player in regional and global value chains.

Recent News

ADVERTISMENT