Sabah Must Recast Logistics As Strategic Growth Engine, Says Industry Expert

By Jailani Hasan

LABUAN, April 21 (Bernama) -- Logistics must be repositioned from a background cost centre into a strategic economic engine if Sabah is to enhance its competitiveness and marketability in regional and global trade, said the Chartered Institute of Logistics and Transport (CILT) trainer Datuk Ramli Amir.

He said the state is at a critical juncture where its geographical advantage and resource base can only translate into sustainable growth if supported by efficient, integrated and well-governed logistics systems.

“Logistics is no longer just about moving goods. It is about creating value across the entire supply chain -- from production, processing and packaging to marketing and financing,” he said when sharing his perspective on Sabah’s logistics landscape with Bernama today.

Ramli, who is CILT Malaysia’s former president and CILT International for Southeast Asia vice-president, said the state must move beyond being a price taker in commodities by leveraging logistics to transform raw materials into higher-value, differentiated products that meet international standards.

He said efficient transport and cold chain systems are essential for aggregating output from fragmented rural producers into processing hubs that can ensure quality, traceability, and consistency.

“Instead of exporting bulk and undifferentiated goods, Sabah must position itself to supply processed, graded and certified products targeted at niche markets. Logistics is the bridge that enables this transition,” he said.

He also highlighted the importance of aligning product design with logistics realities, noting that factors such as container specifications, handling requirements and transit times must be integrated into product development.

According to Ramli, packaging should also be treated as a strategic industry, with value-adding activities such as labelling, certification and customisation taking place near key logistics nodes to improve responsiveness to global demand.

As for market positioning, he said logistics performance itself forms part of Sabah’s brand equity.

“A system that is transparent, reliable and efficient, with minimal delays, strong documentation and cold chain integrity, will build trust and allow Sabah products to command better prices in the global market,” he said.

He said that strengthening logistics would also unlock financing opportunities, particularly via supply chain and trade finance mechanisms where goods in transit and inventory can be monetised as bankable assets. 

However, Ramli noted that Sabah’s current logistics ecosystem remains fragmented, with key components such as ports, roads, air cargo, warehousing and regulatory systems operating in silos.

“The core issue is that logistics has no single institutional home. There is no dedicated platform with the mandate to integrate planning and execution across sectors,” he said.

He said deeper technical expertise and coordination are still needed to manage logistics as a holistic system.

As a solution, Ramli urged that the Institute for Development Studies (IDS) Sabah be positioned as a central coordinating and knowledge hub to drive integrated logistics planning.

He said the establishment of an IDS-CILTM logistics and trade facilitation centre of excellence would provide the professional structure needed to develop a comprehensive logistics roadmap for the state.

“Logistics must be treated as a strategic pillar of Sabah’s economy. Only through proper institutional anchoring and coordination can the state fully leverage its geography, resources and infrastructure,” he said.

Ramli added that strengthening logistics governance would enable the state to transition from a commodity-based economy into a more sophisticated player in regional and global value chains. 

-- BERNAMA