Answer for Oral Question PL263, PL210 & PL262

QUESTIONS

Yang Berhormat Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abd. Rahman bin Haji Ibrahim

YANG BERHORMAT PEHIN ORANG KAYA LAILA SETIA DATO SERI SETIA AWANG HAJI ABDUL RAHMAN BIN HAJI IBRAHIM asked MENTERI PENGANGKUTAN DAN INFOKOMUNIKASI to state the implementation of the digitalisation process for businesses, such as that implemented by MPABD, and whether there has been a reduction in logistics costs and increased uptake by international shipping operators of the use of the national port as a modern and competitive maritime gateway in the Borneo region. Have local businesses benefited from the spin-off from this initiative?

Yang Berhormat Awang Haji Salleh Bostaman bin Haji Zainal Abidin

YANG BERHORMAT AWANG HAJI SALLEH BOSTAMAN BIN HAJI ZAINAL ABIDIN asked MENTERI PENGANGKUTAN DAN INFOKOMUNIKASI to state how MPABD is ensuring the comprehensive integration of the Maritime Single Window and Port Community System across key border agencies so that users can experience improvements in trade time and costs, and to what extent the proposed national dashboard would assess the performance of the maritime supply chain.

Yang Berhormat Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abd. Rahman bin Haji Ibrahim

YANG BERHORMAT PEHIN ORANG KAYA LAILA SETIA DATO SERI SETIA AWANG HAJI ABDUL RAHMAN BIN HAJI IBRAHIM asked MENTERI PENGANGKUTAN DAN INFOKOMUNIKASI to state the measures being taken to address the issue of still-high shipping costs in order to help reduce the cost of doing business and imported goods, which affects the cost of living. Although initiatives have been implemented, such as the establishment of new shipping services and the streamlining of transshipment operations, there are still complaints that transportation costs remain high and affect competitiveness.

ANSWER

Yang Berhormat Menteri Pengangkutan dan Infokomunikasi

The Government's direction is clear: it does not merely seek to digitise existing processes, but also to integrate them so that trade processes become easier, faster and more predictable.

MPABD is moving towards the phased implementation of the Port Community System (PCS) beginning this year. PCS will connect stakeholders in the port ecosystem, including Government agencies, port operators, shipping companies, shipping agents and logistics service providers, through more integrated information sharing.

Within this framework, the Maritime Single Window (MSW) will serve as a digital single point of access for maritime regulatory matters, while PCS will connect information and processes between the parties involved in the logistics chain.

This approach will help reduce repeated data entry, manual processes, document duplication and the need to deal with multiple systems separately.

The measure of success is not how many digital systems are created, but how much time, how many processes and how much cost can be reduced for users.

Alongside the development of PCS, MPABD is also developing the National Maritime Data Hub Dashboard. This dashboard will enable the performance of the maritime ecosystem to be monitored more comprehensively and on a data-driven basis, including vessel clearance times, cargo processing times, cargo movements and volumes, as well as the performance of port operations and the logistics chain.

More importantly, the data will help the Government identify where delays, congestion or inefficiencies occur, and subsequently determine appropriate interventions. Thus, we will not only see how many vessels enter, but also how quickly, at what cost and how efficiently goods can be moved through Negara Brunei Darussalam.

Digitalisation does not mean that shipping fares will automatically decrease. However, it can reduce costs and time arising from process inefficiencies, including waiting times, document duplication, manual processes and delays in exchanging information.

In international trade, time is also a cost. The faster cargo is processed and released, the lower the costs associated with storage, delays and handling.

At the same time, digitalisation improves predictability, providing importers, exporters, shipping companies and logistics providers with greater certainty regarding the processes and time required.

This approach is also in line with the requirements of the International Maritime Organization (IMO) Facilitation Convention, which encourages the use of electronic systems for exchanging information on vessels, cargo and passengers.

Regarding the issue of shipping costs, it must be understood that the costs borne by importers and businesses do not come from a single source. They involve various components, such as authority charges, marine and port services, terminal handling, storage, shipping agents and sea freight.

Some of these costs fall under different parties, while others are influenced by market factors and the commercial decisions of shipping companies. Therefore, the solution cannot depend on a single measure either. The Ministry's policy in addressing this matter is based on three complementary approaches:

1. Improving port efficiency;
2. Increasing the choice and competitiveness of shipping services; and
3. Increasing the volume and value of maritime activities carried out in Negara Brunei Darussalam.

In terms of efficiency, the implementation of MSW and PCS is among the key measures to reduce friction in the logistics chain.

In terms of connectivity, the introduction of new shipping services such as Shandong International Transportation Corporation (SITC) and Warisan Shipping Line (WSL) has expanded the choice of routes from Muara Port to several regional markets, including China, Vietnam, Malaysia, Thailand and Singapore. Greater choice and cargo volumes are important for increasing economies of scale and the competitiveness of the port.

In building the maritime ecosystem and generating local spin-off, the Ministry is also viewing this matter from a broader perspective. We do not want Muara Port to merely be a place where vessels come and go. We want more maritime economic activities to take place in Negara Brunei Darussalam.

Among the matters currently being examined are incentive mechanisms, empty container stations, container manufacturing, maintenance and repair activities, as well as opportunities for strategic cooperation to attract and retain shipping operators.

The proposed development of a Free Trade Zone and Port Trade Zone through the Port–Industry–Park approach will also support cargo consolidation, storage, repackaging and re-export activities.

In addition, the development of a Ship-to-Ship and Lay-Up Designated Area, as well as the Marine Maintenance Yard and Decommissioning Yard projects at Pulau Muara Besar, has the potential to create downstream activities and economic opportunities for local MSMEs.

The Ministry views the objective as being not merely to increase the number of vessels or the volume of cargo, but also to increase the amount of economic value retained within the country.

As maritime activities increase, opportunities must also be opened to local companies and MSMEs in the fields of ship supplies, logistics, land transportation, fabrication, maintenance, waste management and other support services.

In this regard, MPABD will continue to serve as a facilitator, while private-sector participation and the capabilities of local companies are important to realising these opportunities.

It can be concluded that maritime competitiveness cannot be built merely through the reduction of a single charge or the development of a single system. It requires an ecosystem that is more efficient, connected, transparent and competitive, encompassing regulatory processes, port management and shipping services, as well as logistics and downstream activities. Therefore, MSW, PCS and the National Maritime Data Hub Dashboard form part of a broader effort to build this ecosystem.

The Ministry understands that logistics costs ultimately affect business costs and the prices of goods for consumers. Therefore, this issue will continue to receive attention and be addressed across agencies together with stakeholders in the industry.