Custom's Digitalisation Efforts Enhance Efficiency, Integrity, Says Industry Expert

KUALA LUMPUR, Feb 22 (Bernama) -- The Royal Malaysian Customs Department (JKDM) has been lauded for its efforts in enhancing efficiency and integrity through the digitalisation of customs processes, particularly with the implementation of the Import Export Support Document System (SDSIE).

Industry expert Gary Foong, a former officer with Singapore’s Customs & Excise Department, commended JKDM’s transition to SDSIE in Port Klang, noting that it aligns with global best practices in customs modernisation.

Drawing from his experience with Singapore’s TradeNet system in the 1990s, Foong highlighted the transformative impact of digitalisation on customs operations, reducing manual interventions while improving compliance, efficiency, and governance.

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While acknowledging that implementing a complex system presents challenges, he stressed that continuous refinement and feedback-driven improvements are key to long-term success.

Foong noted that SDSIE has enhanced integrity within JKDM by minimising direct interactions between customs officers and forwarding agents, reducing opportunities for corruption.

“The transition from a manual system to SDSIE has streamlined import and export processes, ensuring greater transparency in declarations and compliance with regulations,” he said in a statement made available to Bernama. 

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Since its full implementation in August last year, SDSIE has expedited and simplified import-export assessments.

JKDM director-general Datuk Anis Rizana Mohd Zainudin said Port Klang was chosen for the system’s rollout as it handles nearly 70 per cent of Malaysia’s cargo. To date, 937 companies and 3,065 forwarding agents have registered with SDSIE.

Foong stressed that customs officers must undergo enhanced training and develop a deeper understanding of tariff classifications to effectively manage the transition from manual processing.

“Officers traditionally relied on forwarding agents for product classification, but SDSIE requires them to be more independent and diligent in carrying out their duties,” he said.

Foong also supported JKDM’s realignment of manpower, allowing more officers to focus on cargo inspections, compliance monitoring, and risk management.

He urged government agencies such as JKDM, MAQIS, and other regulatory bodies to move towards a shared platform or interoperable systems for seamless data exchange and efficiency.

“I was part of Singapore’s Integrated TradeNet system in the 1990s, and I firmly believe that with strong and ethical leadership, Malaysia can achieve similar success,” he said.

On border security, Foong commended JKDM’s adoption of AI-powered cargo scanning machines, stating that the technology will enhance operational efficiency, expedite clearance times, and prevent revenue leakages.

He cited Abu Dhabi Customs’ upgrade of sea customs control in 2023, where AI-powered scanners at Khalifa Port and Zayed Port enabled the inspection of up to 120 trucks per hour, significantly improving trade flow. 

Foong, originally from Ipoh, Perak, left Singapore Customs in 1997 to care for his ailing mother. He later joined a Japanese manufacturing firm in Selangor, where he led Logistics, Customs Affairs, and Procurement Control for over a decade.

Now an advocate for good governance, transparency, and ethical leadership, he continues to share insights on public administration and corporate responsibility, promoting reforms that strengthen governance and compliance.

-- BERNAMA