The NSW for Trade Facilitation system was introduced in Malaysia back in 2009 to simplify the clearance procedures. How has this system contributed to the ease of doing business, improved its competitiveness in the global trade arena?
Trade processes involve a lot of document exchange, and previously, the passing of documents was done in a tedious physical manner. In a manual process, duplication of documents is required by different authorities and agencies for approval. Too often, this slows down operations within the trading community. With the introduction of e-Services, the exchange of trade documents among businesses and approving authorities and agencies is done electronically.
In Malaysia, the backbone of such an electronic-based trade ecosystem is the National Single Window (NSW) for Trade Facilitation – a one-stop Trade Facilitation system linking the trading community with relevant Government agencies and various other trade and logistics parties through one single window, allowing a seamless and transparent process.
An initiative of the Government of Malaysia and led by the Ministry of Finance, Malaysia’s NSW for Trade Facilitation system was launched in 2009 to simplify clearance procedures, facilitate the electronic exchange of trade-related data, reduce the cost of doing business, and enhance trade efficiency and national competitiveness. The trading community in Malaysia is vibrant, comprising traders, manufacturers, importers, exporters, forwarders, shipping agents, warehouse and depot operators, transport and logistics players, and banking as well as insurance agencies.
This network is further linked across the region and globally, making it necessary to have smooth communications for this community to run business efficiently. When the exchange of trade documents is done electronically, the trading community can benefit from:
Data reusability, which also reduces the risk of data error
Single connectivity to many approving authorities and agencies
Convenience of ubiquitous trade document processing
The trading community can save time and cost, gain a competitive edge, and improve efficiency and productivity, thus improving its bottom line. On a larger scale, benefits experienced by the trading community can contribute positively to the ease of doing business for the country and reinforce its competitiveness as a trading nation and, ultimately, the whole economy.
Kale and Dagang Net are collaborating to develop and implement the MMSW platform, connecting Malaysia’s ports to create the largest network of technology-driven ports in a single country. This joint effort is expected to enhance trade and positively impact the region. How exactly will it benefit the trade, and what will its consequential effects be on the region?
The Malaysia Maritime Single Window (MMSW) solutions provide a comprehensive and streamlined approach to Maritime trade operations, enhancing efficiency and transparency. Each module serves a specific purpose in facilitating smoother processes within the Maritime supply chain:
Ship Registration Module: The purpose of the system is to register vessel profiles and assign a unique ID to each vessel, which can be used by all stakeholders involved in Maritime trade. This enables seamless communication and collaboration among the stakeholders, facilitating the standardisation of identification and streamlining trade operations. Furthermore, the application of unique vessel ID to schedule a port call with relevant port operators and authorities allows for efficient coordination and planning of port activities, thus optimising vessel schedules and resourcing allocation for improved port management.
Pre-Arrival Notification: Notification will be generated before the vessel arrives, containing important information such as the number of passengers and crew, as well as the security level of the ship. This will help the port authorities to prepare in advance by planning for necessary resources, security measures, and regulatory compliance, ultimately enhancing preparedness and efficiency.
Ship Clearance Module: Shipping agents are required to submit FAL (Facilitation of Maritime Traffic) forms for inward and outward clearance, as mandated by the International Maritime Organisation (IMO). These forms are necessary to obtain multiple clearances from various government agencies such as customs, police, port health, immigration, and chemistry departments. This process aims to streamline the clearance process by consolidating documentation and approvals from multiple government agencies. This, in turn, reduces paperwork and expedites the vessel clearance process, while saving time and effort for everyone involved.
Malaysia is set to implement a Maritime Single Window System by the end of this year, putting the country ahead of the curve in terms of readiness for the IMO verdict. With its implementation, what changes are you expecting?
The Malaysia Maritime Single Window platform will have several consequential effects on trade and the region, including efficiency gains, cost reduction, improved compliance, enhanced data accuracy, and global competitiveness.
The platform will simplify administrative processes by reducing bureaucratic hurdles and paperwork, leading to faster vessel clearances and port activities processing times. Streamlining processes and reducing delays will also lower operational costs for shipping agents, importers, and exporters. Adherence to International Maritime Organization (IMO) regulations and standardised procedures will enhance regulatory compliance, thus fostering a more secure and reliable Maritime trade environment. Using a centralised system will also improve data accuracy to reduce errors and ensure stakeholders have access to reliable and real-time information.
A technologically advanced maritime infrastructure will make Malaysia an attractive partner for international trade, potentially boosting global trade partnerships and economic growth. Overall, with its modular solutions, the Malaysia Maritime Single Window platform will not only simplify administrative processes but also contribute to the overall efficiency, transparency, and attractiveness of Malaysia’s maritime trade, with potential positive repercussions for the entire region.
In light of the increasing prevalence of digitalisation, there has been a corresponding rise in data breaches, which have become a major concern for many. Consequently, cyber security has emerged as a top priority for organisations across various industries, including ports. How can ports effectively safeguard their operations against potential threats?
The protection of the ecosystem against both insider and outsider threats that could disrupt operations is of utmost importance. The following areas should be given strict attention to ensure a robust security system:
A managed security service that operates round the clock every day of the year should be implemented. This service should be equipped with the necessary tools to monitor the automation systems and identify potential threats. Immediate action should be taken to neutralise the threats, including implementing remedial measures.
All IoT equipment, such as CCTV, scanners, and access systems, should be kept up to date and maintained appropriately to ensure no disruptions. This will help ensure the system operates smoothly, and no vulnerabilities are exposed.
Security monitoring and pattern-capturing software should be deployed to detect insider threats. Employee task patterns can be monitored, and any anomalies can be identified and reported before posing a threat. This will help maintain a healthy work environment and prevent potential risks.
A state-of-the-art risk management system should be implemented to track the activities of ports, personnel, and movement of goods. This system should be equipped with early warning, targeting, and profiling features to enable proactive controls and actions. This will help prevent potential risks or threats and ensure a safe and secure environment.
Access control on all systems should be monitored and revised periodically. This will help to ensure that only valid and approved employees are granted access to specific areas of operations in accordance with their job scope. Admin access or access with unlimited scope should be limited to prevent potential risks or threats.
Information sharing with like-minded parties such as port authorities, terminal operator and trade entities on potential cyber security threats which will enable early action to be taken and prevent major disruption.
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