KUALA LUMPUR: Northport (Malaysia) Bhd chief executive officer Datuk Azman Shah Mohd Yusof said a process overhaul alone is not enough to combat smuggling.
In response to queries from Business Times, he said efforts to combat smuggling must be carried out throughout the supply chain, and not only at ports but also the authorities procedures to combat smuggling.
Azman Shah said this a day after the authorities busted a smuggling syndicate which, according to sources, ran for 10 years at Port Klang, costing the country RM3.5 billion in revenue tax loss.
"Process overhaul alone is not enough. Improvement measures should be taken periodically or whenever a new way of smuggling is detected, to ensure that we stay ahead of emerging threats and continue to safeguard our nation's interests effectively," Azman Shah said.
"All parties must play their respective roles and responsibilities with integrity," he said.
According to Azman Shah, since MMC Port Holdings Sdn Bhd took over Northport in 2016, the operator has implemented the "Reinventing Northport" program to enhance safety, sustainability, and efficiency.
"Security controls have been tightened through the Gate Access Card System (GACS), integrated drone-CCTV surveillance system, a designated area for container detention by Customs, and the tightening of policies and procedures in line with our ISO37001 certification and anti corruption efforts," he added.
Azman Shah said Northport's efforts and close cooperation with the Royal Malaysian Police (PDRM) and Jabatan Kastam Diraja Malaysia, have led to many smuggling cases being uncovered and intercepted.
"Northport is always looking for ways to improve our safety and security by learning from other ports and adopting best practices, while also working closely with various authorities and enforcement agencies to enhance our process and procedures through digitalisation," he added.
Maritime commentator Nazery Khalid said one measure to reduce smuggling activities is leveraging technologies such as artificial intelligence (AI), Internet of Things (IoT), sensors, scanners, remotely operated vehicles (ROVs), and predictive analysis.
These technologies can be used to establish databases, monitor cargo movement, and enhance security along increasingly complex supply chains.
"Using Industry 4.0 application and software solutions would help identify items subject to tax accurately and companies are legitimately registered and qualified to export and import cargos through Port Klang," he said.
"Technologies can also be used to full effect to monitor ship calls and the loading and unloading of cargoes, signing off of manifests and trade documents and release of ships and cargo to ensure those subject to tax do not get away scot-free," he added.
Nazery suggested overhauling the cargo monitoring processes and procedures to streamline operations, eliminate redundant functions, and improve transparency and accountability among the stakeholders and authorities involved in moving cargo out of Port Klang.
"This should be done with the ultimate objective of ensuring all trade transactions and cargo movements at the port are carried out by legitimate, properly registered parties, using authentic documents, preventing false declaration and subjected to exhaustive inspections and checks before leaving the port premise," he said.