Malaysian Government Transformation Towards Effective Supply Chain Management: The Case of IT-Based Trade Facilitation

Trade facilitation is an important integral part of the supply chain. Facilitating the trade processes especially in automating the traders’ submission of regulatory documents is therefore very crucial for enhancing the management of the supply chain, especially with increased volumes of international trade. Hence, information and communication technologies are applied and they play a very pivotal role in reducing the complexity of international trade and minimizing the transaction and purchasing costs. Similar to other countries, Malaysia has taken initiatives to transform the trade facilitation processes of the supply chain via a single window system. Although the general approach to implementing the IT-based trade facilitation system may be similar across countries, several unique strategies and transformation plans have been adopted by the Malaysian government to spearhead the use of ICTs in creating paperless, electronic Customs-related services for improving the transparency and predictability in international trade transactions and supply. Based on an interview and selected reports, the study seeks to explore vital motivations behind the Malaysian transformation towards a National Single Window for effective supply chains, identify the core functions and services that simplify the business trading activities across borders and discuss the alignment strategies of government agencies in meeting the business and supply chain strategies within the national and international setting. Via the Malaysian National Single Window, the trade facilitation services have been able to reduce non-tariff trade barriers and deliver many benefits to the trading community, including improving transparency, enhancing predictability and advancing on the management of uncertainties and risks.