Answer for Oral Question PL289

QUESTION

Yang Berhormat Awang Lawi bin Haji Lamat

Yang Berhormat Awang Lawi bin Haji Lamat asked the Yang Berhormat Menteri Pengangkutan dan Infokomunikasi to state the Ministry’s strategic measures to ensure that the fast shipment service initiative, which is currently being actively strengthened, is capable of generating repeat orders and expanding the penetration of local products into international markets. What are the concrete action plans to reduce cross-border logistics costs for local MSMEs?

ANSWER

Yang Berhormat Menteri Pengangkutan dan Infokomunikasi

Fundamentally, to enable local products to compete in international markets, not only must the products be of high quality, but their delivery must also be fast, consistent and cost-competitive.

In this regard, the role of the Ministry of Transport and Infocommunications is to facilitate the development of a national transport and logistics ecosystem that can support trade, including exports and e-commerce.

To achieve this objective, the Ministry’s approach is based on three main areas:

First, expediting the movement of goods. In the land transport sector, the Land Transport Department is implementing the digitalisation of the Cross Border Permit for commercial vehicles transporting goods across borders, which is targeted for completion by January 2027.

With this digitalisation, the permit application and approval processes will become easier and faster, while reducing manual processes and waiting times. This is particularly important for MSMEs that require more frequent and consistent deliveries.

For last-mile delivery, services are currently provided by PosBru Sdn Bhd and fifteen (15) Courier, Express and Parcel (CEP) service providers licensed by AITI. The diversity of providers gives consumers and businesses the option of selecting services that suit their respective needs and costs.

Second, reducing the cost of each shipment. For MSMEs that make deliveries in small quantities, one approach that could help is shipment consolidation, which involves combining several shipments into a single consignment through freight forwarders. This can optimise delivery space and capacity, thereby potentially reducing the unit cost for exporters.

In addition, the Ministry is examining logistics costs as a whole, rather than only the delivery charges imposed on customers. This includes streamlining processes, documentation and cargo handling in order to reduce delays and additional costs throughout the supply chain.

For the maritime sector, the Ministry is also examining measures to enhance the cost competitiveness of the national logistics sector, including a study of the costs of vessel navigation services or pilotage, as well as appropriate port charges.

Third, expanding transport options and connectivity. In the aviation sector, the Civil Aviation Department has received several applications from foreign airlines to operate services to Negara Brunei Darussalam.

If realised, the addition of these services will increase air transport options and capacity, including for cargo, and potentially create healthier competition and more competitive transport rates.

In the maritime sector, the addition of shipping services by companies such as SITC and Waisan Shipping Line has provided more connectivity options with major ports in the region.

For MSMEs, having more route and service options means greater opportunities to select delivery methods that are suitable in terms of cost, duration and volume of goods.

All these efforts will be coordinated through the Brunei Logistics and Transshipment Task Force (BLTTF) and the development of the National Multimodal Logistics Master Plan, in collaboration with the Ministry of Economy, Trade and Industry (METI), the Ministry of Finance and Economy (MOFE), the Brunei Darussalam Maritime and Port Authority (MPABD), as well as industry stakeholders.

The focus is on integrating air, land and maritime transport, digitising processes and documentation, streamlining operations, and improving coordination throughout the supply chain.

It should also be clarified that, with regard to delivery service rates, particularly CEP services, pricing is fundamentally a commercial consideration for service providers, based, among other things, on the destination, weight and size of the package, as well as the type of service.

AITI’s role is to ensure compliance with licensing requirements and monitor the rates submitted by service providers. AITI does not set prices, as prices are influenced by market mechanisms and competition.

The Ministry’s objective is not merely to ensure that goods can be delivered quickly. More importantly, it is to ensure that local products can be delivered quickly, reliably and at more competitive costs. When delivery times can be shortened, processes simplified, route options increased and costs optimised, MSMEs will be better able to offer good services to international customers.

This, in turn, can increase customer confidence, encourage repeat purchases and create more opportunities for Brunei products to penetrate regional and international markets.

God willing, through the comprehensive strengthening of the logistics ecosystem and close cooperation with industry stakeholders, the Ministry will continue its efforts to ensure that the national logistics system becomes more efficient and competitive, while supporting the growth of MSMEs and exports of local products.