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NTP 2019-2030: Malaysia´s new direction in transport industry

18 October 2019

The National Transport Policy (NTP) 2019-2030 is Malaysia’s new direction in developing efficient, integrated and secure transport towards a sustainable transport sector that accelerates economic growth and supports the well-being of the rakyat in line with an advanced nation status.

The policy, launched by Prime Minister Tun Dr Mahathir Mohamad today, consists of five thrusts and 23 specific strategies in providing smart, connectivity, easy and safe transportation system that meet the need of the people.

The NTP 2019-2030 would be able to propel the nation in its logistic endeavours with enhancements in the road, rail, air and maritime sectors as well as their interconnectivity to help Malaysia realise its target as a Regional Distribution Hub.

Taking into account the transport sector which is the backbone of the country’s economic growth, the policy can also contribute to the economy and make Malaysia business-friendly and globally competitive in the transport industry.

In his foreword in the policy’s book, Dr Mahathir said the NTP 2019-2030 was developed to lay the policy thrusts and strategies to enhance Malaysia’s economic competitiveness, provide strong social impact particularly with respect to inclusivity and accessibility while reducing the negative impact of the transport system on the environment.

He said the NTP 2019-2030 aimed taking advantage of the rapid advancement in technology as well as embracing the upcoming Fourth Industrial Revolution (IR 4.0) to promote the modal shift from private vehicle to public transport.

“Through strategic planning, smart cooperation and commitment from all sides in implementing the NTP 2019-2030, I believe that Malaysia will be able to provide a sustainable transportation system that will drive economic growth and support the well-being of the rakyat,” he said.

Following are the five policy thrusts of NTP 2019-2030:

  • Strengthen governance to create a conducive environment for the transport sector.
  • Optimise, build and maintain the use of transport infrastructure, services and networks to maximise efficiency.
  • Enhance safety, integration, connectivity and accessibility for seamless journey.
  • Advance toward green transport ecosystem.
  • Expand global footprint and promote internationalisation of transport services.


Govt outlines six strategies, 30 action to maximise transport efficiency

Plans to build new infrastructure, and to provide services and connectivity in the country must be based on demand and assessed thoroughly to determine the actual need and feasibility.

Therefore, the government has outlined six strategies and 30 action plans to strengthen these aspirations in the National Transportation Policy Report 2019-2030: Policy Thrust 2.

Based on the report, the government would optimise existing infrastructure and assets, as well as accelerate usage of automation through the adoption of technology and digitalisation in transport such as accelerating usage of automation and digitalisation to increase the efficiency of port and vessel operation.

“Additional utilisation of technology has the potential to address some of the issues faced, as well as providing sufficient data to allow more accurate mapping of future demand to allow optimal infrastructure build-out,” it said.

The report said the current movement of goods by rail is only 30 per cent of total railway track capacity, and less than 5.0 per cent of land freight is transported by rail.

Thus, there is an untapped potential for using rail to transport goods, especially for dangerous and hazardous materials and at the same time, there is additional capacity on the existing KTM Komuter and intercity rail services which have the potential to be utilised.

Hence, it said among the actions that will be undertaken by the government include upgrading rail facilities to and within ports to ease freight movement.

Based on the report, the government would improve, integrate and expand rail and road links to airports, seaports and inland ports, industrial areas, and the hinterland.

This is due to some of the challenges include the imbalanced modal split which is highly dependent on road, traffic congestion and limitations in inland facilities (such as warehouses and depots).

It said the maintenance regime for all assets and infrastructure need to be strengthened to ensure seamless, safe and efficient operations.

“The majority of delays and costs associated can be attributed to inadequate maintenance of transport infrastructure.

“This calls for better coordination between agencies and more efficient management of resources. Furthermore, the focus has been on corrective maintenance instead of preventive maintenance,” said the report.

Meanwhile, emerging global trends on air cargo are about to bring massive impact to the transport sector, thus ensuring appropriate infrastructure in place while maintaining safety has become an increasingly difficult task, it added.

As such, it said the current regulatory framework needs to be further scrutinised as the effect of increased regulations may dramatically increase the cost of doing business in addition to impacting transit times, damaging the value proposition of air cargo as a quick way to transport goods.

Among the actions would be: facilitating handling transhipment cargo using the multi-modal mode of transport by improving facilities, accessibility and affordability.

It said with the proliferation of technologies such as cloud-based services, miniaturised sensors and online purchasing there is strong demand for integrated logistics as the foundation of the transport industry.

“There is an urgent need to move towards web-based platforms for better utilisation of warehouse, goods vehicle and containers space through sharing approach to improve efficiency.

“Thus, the action will be, among others, encouraging the development of urban logistics distribution to cope with urbanisation; facilitating e-commerce activities; and improving the accessibility and affordability of delivering goods to the rural and remote areas,” it added.

Among the strategies under the thrusts are to improve efficiency of clearance process by agencies for logistics; enhance competitiveness in air cargo operation to support Malaysia in becoming a regional distribution centre; accelerate implementation of low carbon mobility initiatives; reinforce the maintenance regime of transport infrastructure; and increase the utilisation of rail service for passengers and goods.

Source: Malaysia Automotive Robotics and IoT Institute; http://marii.my/ntp-2019-2030-malaysias-new-direction-in-transport-industry/.


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