1. Yang Berusaha Tuan Ma. Sivanesan
Deputy Secretary General (Digital Development),Ministry of Digital
2. Yang Berbahagia Datuk Haji Ahmad Zaki Zahid
Chief Strategy Officer, Digital Nasional Berhad
3. Mr Adrian Marcellus Chief Executive Officer, MyDIGITAL Corporation
4. Datuk Ruben Emir Gnanalingam
Executive Chairman and Group MD, Westports
5. Mr Chan Weng Yew General Manager Finance, Kuantan Port
6. Mr Merrick Wang General Manager, China Mobile International
DNB Board Members
Leaders and representatives from the seaports, telecommunications and technology industries, solutions developers
Distinguished guests
Ladies and gentlemen
Good morning and Salam Malaysia Madani.
1. I’d like to thank Digital Nasional Berhad (DNB) for inviting me to participate in today’s Connected Seaports Executive Roundtable session.
2. I would also like to welcome the participants of today’s discussions - from representatives of the marine terminal and logistics industries to those in the 5G and digital solutions space. I was told that some of you came all the way from China and Japan, to share your experience and insights with us. Thank you!
3. With the accumulated wealth of experience and expertise we have in this room, I am certain that the discussions this morning have been fruitful. Such conversations will lead to new ideas, collaborations and solutions that will transform the Malaysian seaport and maritime sectors, which serve a fundamental role in maintaining the country’s economic wellbeing. Ladies and gentlemen,
4. Seaports are a national critical infrastructure. They are gateways for international trade, handling a significant portion of our country’s imports and exports. According to the Malaysian Investment Development Authority (MIDA), the maritime industry in Malaysia contributes about 40% of the country’s gross domestic product (GDP). For the record, over 90% of Malaysia’s exports are transported by sea.
5. Efficient ports also reduce the cost of trade, making a nation’s goods more competitive in the global market.
6. Indeed, there is a real need for a radical transformation of the seaport and maritime logistics sectors, when we consider how fast the tech world evolves.
7. We live in an increasingly volatile, complex and ambiguous world. The global maritime industry was thrown into chaos in 2021, when the Suez Canal was blocked for six days by the Ever Given, a 224,000-tonne container ship that had run aground in the canal. According to a BBC report, that blockage held up some 9.6 billion US dollars in global trade each day. Shipping companies and port operators had to scramble to reroute cargoes and minimise the impact.
8. And who could forget the disruption we experienced at the height of the COVID-19 pandemic? The industry experienced widespread cancellations of sailings, port delays, and manpower shortages, in addition to the implementation of necessary but costly safety and health measures.
9. Even under normal circumstances, shipping is having to keep up with demands in consumer and industrial trade as a result of increasing populations and economic development. This growth places greater pressure on ports to be more efficient, and sustainable, while offering more competitive pricing to continue attracting major shipping lines.
10. Connectivity is the bedrock of the seamless and secure delivery of goods around the world, from streamlining shipping schedules to forecasting demand and usage of vessels and equipment. This process depends on the availability of telemetry data, payload data, route information, and fuel data from ships.
11. Innovative solutions powered by 5G connectivity, such as AI-enabled autonomous vehicles, video container inspection, predictive equipment maintenance and drone surveillance, can help Malaysia ports achieve faster turnaround time, better response to changes and ultimately, stay competitive. Ladies and gentlemen,
12. More and more maritime industry players are adopting Industry 4.0 solutions and technologies to enhance their efficiency and productivity to become more cost-competitive.
13. With global ports either planning or actively implementing 5G networks, it is crucial for Malaysian ports to keep up. 5G is used in many ways at seaports – from container terminal operations to warehouse management, and transport and logistics.
14. Since 2015, the Port of Livorno in Italy has pursued a strategy focused on digitalisation and innovation to enhance the port's competitiveness and growth. Tests using 5G and IoT were introduced a year later and by now, Livorno has become one of the most progressive ports in the Mediterranean. Its 5G experience shows there can be an 8.2% reduction in associated CO2 emissions per terminal operation, and that optimising vessel berthing can lead to a 20% average cost reduction per year for the said port, which is approximately 2.5 million euros.
15. The Port of Barcelona, in collaboration with an economic consultancy firm, had quantified the impact generated by digitalisation in the port and its community. The report, made public last year, showed how the digital dimension generates social, economic and environmental value. According to the data obtained, digitalisation significantly improves productivity in port management and operations processes. This improvement translates into direct annual savings of 450 million euros per year for the Port Community. The report added that digitalisation "saves work" but in the long term, it generates an increase in commercial activity and sales volumes. This has led to an increase in employment estimated at 2,564 jobs, which represents 16% of the direct employment of the port.
16. China is at the forefront of integrating 5G technology into various industries, including seaports. At its Port of Qingdao, 5G is being used to enhance operational efficiency and safety, with key use cases including Automated Ship-to-Shore Cranes that allow for precise and efficient container handling, as well as Smart Inventory Management, which enables real-time tracking and management of cargo, improving logistics and reducing delays.
17. Closer to home, the Port of Singapore is deploying full maritime 5G coverage in its major anchorages, fairways, terminals, and boarding grounds, to unlock new maritime solutions to improve safety, effectiveness and efficiencies in maritime operations. Ladies and gentlemen,
18. Malaysian seaport operators need to invest in digital and 5G technologies, to stay competitive. At the opening ceremony of the Malaysia Maritime Week 2024 last month, our Prime Minister YAB Dato’ Seri Anwar Ibrahim called for the maritime industry to enhance its resilience and shared his aspiration for Malaysia’s sea ports to be amongst the top 10 in the world.
19. Port Klang, comprising Northport and Westports, climbed two spots to 11th in the rankings of the world's top 100 busiest container ports for 2023, according to the Lloyd’s List’s One Hundred Ports 2024 Report. I would like to congratulate you for that achievement, but at the same time, urge everyone to keep striving and climb even higher.
20. The digitalisation of sea ports also creates added value to the logistics and supply chain ecosystem. One clear example is that more players can move up the value chain in Party Logistics with the integration of digital solutions. The digitalisation of sea ports will lower the entry barriers for Malaysians to trade online and across borders. This will make it easier not just to business owners but also home makers who contribute to the family's household income by participating in e-Commerce.
21. Just like the other sectors critical to the nation’s economy and wellbeing, the port, shipping and marine transport industry must take advantage of the world-class connectivity that is already available in the country.
22. Malaysia’s 5G network deployed by DNB, which now covers 81.9% of populated areas as at end-July, has been globally recognised as one of the best in the world.
23. I am pleased to see a growing number of Malaysian enterprises recognising how 5G can enable a range of digital solutions to boost productivity and operational efficiency and safety across key production processes.
24. DNB, an agency under my ministry, continues to actively promote the adoption of 5G technology among enterprises through partnerships with industry associations like the Federation of Malaysian Manufacturers (FMM) and international technology and telecommunications companies.
25. At the same time, the Government is ensuring the resilience of Malaysia’s 5G network and assets through cybersecurity and data protection policy developments, as well as strategic collaborations between organisations in the digital sphere. The new Cyber Security Act will also address the management of cyber security threats and incidents related to National Critical Information Infrastructure (NCII) and NCII Sector Leads. This is why the Cyber Security Act is equally important to seaports as they are an NCII.
Ladies & gentlemen,
26. I hope to see more operators leverage 5G technology to not only future-proof their businesses, but to ensure they remain competitive, and continue spurring the nation’s economic growth.
27. I applaud DNB for organising this roundtable discussion, and would like to thank everyone here for participating. I hope the insights gained today will help accelerate the transformation of the seaports sector.
Thank you.
