20130218 MILS Interview

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    Rubin

    Our topic is issues and challenges in Halal supply chain management um a study of Malaysian Logistics

    companies.

    Tan

    Oh, okay.

    Rubin

    Okay uh

    Syazwan

    Okay proceed.

    Rubin

    So um Ill just um read out the whatyou say the itinerary for today um. Its the, the theme for today is

    uh, issues and challenges like what Ive mentioned just now uh theres going to be six sub-themes. Um

    the general information and background of MILS. Then the MILS and Malaysia Halal Logistics industry,

    um issues and countermeasures on Halal transportation or uh container haulier, then theres the issues

    and countermeasures on Halal warehousing, issues and countermeasures on Halal packaging and uh,

    the last one is the conclusion.

    Tan

    Okay

    RubinOkay, so um all this conversation will be recorded then uh, but the information will be strictly

    confidential between UCSI University and also MILS and uh

    Tan

    MILS lah. You can mention as MILS (laughter)

    Rubin

    Its done solely for academic purposes and Its a platform for more academic research in the future.

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    Tan

    Okay so as far as from our side here representing MILS uh, for what you call, um.. to be involve or

    participate in your studies, uh our inputs will be uh, purely on the logistics view. Alright? Uh, of course

    supply chain cover a bigger scope. Alright? So as far as our side here uh, our input will be more towards

    logistics. Okay, of course supply chain you can have like products, factories, you know, manufacturing

    side. That (xxx) is not our, sort of, core business, yeah? Uh, of course of customers they are all from the

    food industries. Theyre from retails, um, and also uh, what you call, uh food manufacturing companies.

    Alright. And as much as the info of our client, we will not disclose. Okay? And uh, inputs like I say is only

    purely for the business that MILS has been involved on logistics where its covering (xxx) to warehouse,

    transportation, haulage, freight forwarding and all those. Those are actually are our pure um, or the

    services that we provide uh you know, which we involve in the Halal is only covering this facility. Alright.

    Um, under MILS we have a um, numbers of facilities which is covering within the region, which is the

    northern, southern, eastern and also the central. But uh, only this facility is Halal. Okay? So it has to be

    clear in your academic paper.

    Syazwan

    Um, yeah.

    Tan

    Uh, because we do not want to be misinterpreted because Halal-certified it can be um, when it comes to

    public awareness it can be misinterpreted because that people thought MILS, that means that is total

    (MILS???). But what Im going to say that is only this facility where we handle only purely for food

    product. Yeah?

    Next door we have also warehouse. But theyre all on the uh, dry goods and not covering food products.

    So theyre not within the Halal-certified facility.

    Rubin

    Um, so were going to continue with the question first. Um, what are the uniqueness of MILS if

    compared to other companies.

    Tan

    Uniqueness. Uh, okay. You can say that we are the only one which is certified for Halal. And the um, the

    only one that which is operated within the compliances. Alright? We have uh, competitors or the other

    industry players which is certified, but they are not uh, they dont own the facilities. They dont operate

    themselves. They outsource to third party, okay? And uh, and looking at the compliances I think we are

    pretty much very strict.

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    Syazwan

    Uh huh.

    Tan

    Compared to this others. Yeah? And then also, lets say for MILS um, because we cover all range of

    logistics services ourselves, alright? So its easier for us to implement all those uh, what do you call uh,

    the guidelines, the standards, and you know, whether our clients or our vendors to comply to.

    Rubin

    Um, just for the record lah, how does MILS perform for the past um, last five years?

    Tan

    Um MILS in total, I think uh, were coming out very strong in terms of uh, to be the domestic logisticservice provider. Okay? We have been nominated uh, three years in a row kan? By Frost and Sullivan uh,

    to be the best do, domestic logistics service provider. Yeah.

    Rubin

    So um, what is expected of MILS for the coming five years?

    TanExpected ah? To grow (laughter) its actually to um, you see we have been always within Malaysia. We

    have not venture to the overseas yet. So our networking has not been provided all the way to uh, from

    the home-home ground. Alright? Uh, of course in five years time, we have to look at our business. The

    current customers that we have for MILS, we have it for uh, oil and gas industry.

    Syazwan

    Yup.

    Tan

    And we have uh, what you call, consumer goods. Alright? So when you talk about Halal it will always

    confine to consumer goods. The oil and gas it will be a different balldim??? Alright? But to MILS as total,

    we are actually looking at uh, what you call, the expansion for both sector, okay? Where were gonna go

    for the oil and gas, looking at how the projects and also the industry growth. Um, Malaysia for oil and

    gas, it may be coming to what you call, limitation. Then you have to um, what you call, uh you have to

    uh, build the capabilities to suit for the uh, your expansion in overseas. Okay so we have, we are actually

    doing that now. But for the consumer products, for MILS we believe that theres still a lot of potential.

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    Here. For MILS. Uh, especially you know to be the one of the pioneer in Halal uh, logistics players. So

    theres a lot more um, room for us to play. Alright and for five years, hopefully we will be um, one of the

    role model for the halal logistics in Malaysia lah. Yeah? So that is what uh, we would like because that,

    that is actually go.. um, accordingly with Malaysia to be the Halal hub, global halal hub. So, so call we

    would like to be uh, the logistics player okay, um in this uh, what you call, in in this particular segment in

    the supply chain for the halal yeah?

    VincentOkay, so for the second part will be MILS and the halal logistics industry. So were talking mostly in

    Malaysia scenario. So as we know that uh, logistic industry especially in Halal is growing now because

    like foreign, as you said just now, foreign companies will tend to uh,

    Tan

    Come in

    Vincent

    Import, I mean export their uh,

    Tan

    Products

    VincentProducts. So like which, a halal-certified logistics will be like a, another niche for them.

    Tan

    Yeah

    VincentSo um, first question will be in your opinion what is the current uh, scenario of Malaysian halal logistic

    industry.

    Tan

    Uh you can say we have been um, in the mood (laughter) the mood is always there to you know, to

    promote this okay? Um I think way back in 2005 right?

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    Manager

    2004, 2005

    Tan

    When they started uh, one uh, what you call this um, they started to build up uh,

    Manager

    Two zero zero six (something something something) 2007

    TanYa, 2007 was the first year of the world halal forum. And 2006 was the time the uh, establish Halal

    development corporation kan?

    Manager

    HDC

    Tan

    Yeah, so during the time it was already been uh, what do you call, in, in the directions that MILS uh,

    what do you call, Malaysia would like to be the global halal hub, okay player within the region and to be

    the um, sort of uh, uh what do you call that ah? A transit for this Halal products to come in, repacking

    and every export by getting or leverage on the Halal um, Malaysias halal status. Okay? Um, if youre

    looking at since 2006 until today, I believe you dont have the studies. Have you seen any?

    Vincent

    Err

    TanExactly. The mood is always there to you know, promote this thing. But then uh, unfortunately there is

    no success story to tell. Okay? Um, we have, when you look at the supply chain you have um, um,

    resources. You have um, what do you call, productions and you have like logistics okay? And you have

    the retail. So when you put, look at all these thing its actually um, the thing is not joined. Alright? The,

    the integration is not there. Alright? From stage to stage, its still weak because um, uh the agenda that

    has been?? Promoted has not been integrated and it has not been enforced by authorities. Alright? So

    each of, each of the players is actually um, you know just trying to uh, I mean have their own agendas to

    you know, to groom or to develop their own business. Um, so its a bit

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    Vincent

    Tough.

    Tan

    Tough in a way that because we dont have um, one pure uh, what do you call, enforcers, enforcers to

    actually put this all together. Alright? So they tried to actually use the uh, private company like us you

    know, on the logistics side you know? Yes, we have the facilities. We have halal status. Okay? We have a

    what do you call, a free commercial zone status where the products can come in without duty and go

    out. But we do not have uh, what do you call, a case study to do that. Why? Because that, like each HDC

    ah they have been promoting marketing, but theres not able to actually bring one pure example to

    come in, lets do it and see our test the whole process. That is still not happening. Yeah, so it is still uh

    what do you call, its the biggest challenge lah that one.

    VincentStandardization

    Tan

    Um..

    Syazwan

    So you can say that uh, the current scenario is that its lack of integration between all the ..

    Tan

    All the su, supply chain parties

    Syazwan

    And also there is lack of enforcement (something) standardized halal process.

    Tan

    Yeah.

    Syazwan

    Okay. Next question.

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    Vincent

    The second question will be uh, in general what are the contributing for the success and failure of halal

    logistic industry in Malaysia?

    TanUh, okay. If youre talking about theres a success story I think easily you can actually uh, leverage on the

    growth of the total halal market which is how many billion? Trillion kan?

    Manager

    The total market is (cant make out)

    Tan

    So if lets say we, we have a success story I think we can leverage on that, and that would actuallybenefit a lot within the country. The ports, you know, the employments um, transportation, technology

    can be boost up. So um, if there is a success story. Alright? Um, at the moment like I said is the

    challenges is still very tough and (cant make out) comparing ourselves with like uh, Thailand. Their

    moving very, very fast.

    Syazwan

    In terms of?

    Tan

    For the halal total supply chain where they have government fully support okay? Which is working

    together with the local player alright? and they uh, they managed to have overseas investors to come in

    and invest and make sure the products is uh repacked or manufactured or value-added for re-export

    market. Yeah? Where else our Malaysias halal logo is one of the reputable one but were not able to sell

    on that. Yeah? Long way lah.

    Manager

    Something something export I think they export quite a number of halal product also growing right?

    Somethingsomething smething by HDC. Maknanya dari segi production, the halal product is, there is a

    growth from there tapi dari segi big picturenya tidak Nampak lagi lah something something macam kita

    kata macam di Malaysia weve been talking and talking and talking but action wise we have not seen yet

    lah. so it has been quite some time that what we see. Kalau dari segi statistik tu uh, HDC has uh some

    kind of a library something so the numbers that I see is growing and but maknanya dari segi SME, mostly

    SMEs lah. Orang kata Malaysia from outside people punya perception something Halal punya tu not

    really making significant something something.

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    Vincent

    Okay um, third question. Uh what are the MILS role in uh Halal logistics industry? To MILS. Their role in

    this industry.

    TanUh MILS?

    Vincent

    Yeah.

    TanUm, okay. For us, because we are within the logistics okay, and we have this facilities. So um, for us is

    that of course you have to ensure theres actually profitable. Okay? Profitability. Thats number one. Sofor us is that we have to make sure the right customers that we engage. And then, with the what do you

    call the halal certification and also our ISO status. Um, theres actually put us a niche market and also uh,

    a differentiation from the other players. Yeah, so um as far as ourselves is that we will continue to be

    the logistics players. Thats our business. We will not be able to venture into like manufacturing or you

    know, uh food product procurements those kind of things but its purely on the services.

    Vincent

    Okay. So the next question will be what are the services provided by MILS to any customer who wanted

    to use the halal logistic industry.

    Tan

    Uh the total spectrum for the uh logistics. That means right from what you call, the uh, freight which is

    from the ports to the warehouse. Okay? Haulage, forwarding which is the custom brokerage and then

    also transportations to the retail. So its actually uh, A to Z, anything that from um, what to do with the

    logistics.

    Rubin

    Total logistics?

    Tan

    Yes.

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    Vincent

    Um, do, does MILS encounter any issues um in providing halal logistics services?

    Tan

    Uh, initially yes. Uh initially when we try to get halal, this facility to be certified. Um it was actually, we

    struggling for since 2006, we managed to get in 2009

    Manager

    Two zero zero nine

    TanYeah, so it was three years. But what we have done is that we did not wait for the authorities to you

    know, to come out with all these standards or guideline to uh, audit our facilities for the halal but we goahead to build the facilities. Meaning that an investment was made. Alright? and um, then later only we

    pursue for this. Yeah so the, the tough call was actually to get uh again the authorities to come in

    together to have a proper standards for them to come in to do the audit. When they did the first

    audition uh here, it was without any guidelines. It was using our pure SOP which is not right lah

    (laughter) reason because uh we are the first one. Ah it was audited in what? Two thousand

    Manager

    2008. 2008 kan?

    tan

    2008. so 2008 during that time um, there is no halal certification for this kind of facilities all throughout

    logistics. Yeah?

    Manager

    Something premise. Kalau macam restoran punya guideline

    TanBut the logistic like warehousing they do not have. They did not have. So um, the auditors from like

    JAKIM or during that time it was HDC. They were new, very new to this kind of environment. So they did

    not know what to audit. Alright? so they were using the SOP. But after that (fingers snapped) uh along

    the way they start to, to realize that logistics is one of the, one part of the supply chain. And they tried

    to come since with very strong you know, studies and all these. Yeah. So we have been part of their uh,

    sort of study group lah.

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    Vincent

    So the authorities that come and inspect is are local JAKIM or any foreign?

    Tan

    Uh the first one was HDC. HDC is supposed to took over the JAKIM role for the audit. Then the second

    one was last year since, last year by JAKIM. Yeah. Our cert was the, has been renewed twice lah. Yeah.

    Weve just been renewed because theres a lot of people claim that theyre the pioneer. Yeah, alright?

    so we can show the date of the certification when it was issued (laughter)

    Rubin

    Uh then the third uh.. topic were gonna cover is uh, halal transportation and container haulier. Uh so

    the first question is um how does the transportation uh, is deemed halal?

    Tan

    It only can be halal when you actually dedicate um, the fleet, okay? Of the trucks to carry only halal

    products and it has to comply and meet the standards of your what do you call uh, halal requirements

    where you need, you have to make sure clean, you know, hygiene and also you uh, have to have proper

    inspection right? Not only on the vehicle but also drivers.

    Rubin

    Okay.

    Tan

    Yeah? Um so you have to actually set the what do you call, the uh the guidelines. And what to check its

    just, checklist where its actually done daily. Yeah, then you can be deemed but when youre talking

    about uhm, reefer truck which is carrying the food products. Uhmm smaller players maybe they can

    have their own trucks, one or two. But the moment you grow big, you do not want to own all the trucks

    yourself then you start to acquire from third party. Now, when you talk about third party trucking uhm,

    if you actually have uh, contract where you contracted uh, number of trucks monthly whether I use it or

    not that trucks belong to me. Then you can control hundred percent. But if youre talking about lets say

    load by load basis you cant. Because today you may have load, tomorrow you may , you do not have

    load. Then this truck (cough) its, its everybodys uh what do you call, focus is that you have to make

    money. Alright? so I cannot have my trucks waiting for just halal products. Then I have to carry other

    products. Now when they carry other products, we do not know whether it is halal or non-halal.

    Syazwan

    Okay.

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    Tan

    So its very difficult to enforce. Thats why until today theres no certification for halal transport.

    Syazwan

    Uh hum yeah.

    Tan

    Takde kan?

    20.16

    Syazwan

    Something something MS2009

    Tan

    2004. MS?

    Syazwan

    MS2009

    ManagerTransport tu is MS

    Syazwan

    MS2009:1400 right?

    Vincent

    1400, two thousand.

    Manager

    Something something something something

    20:48

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    Tan

    Because halallan toyibban under the MS2004

    Manager

    2400.

    Tan2400 kan? They have warehousing. They have transport. They have retail. But none of this has been uh,

    what do you call rolled out yet. Yeah. So the loaded, the transportation side is a bit more challenging

    compared to warehousing.

    Syazwan

    Warehousing

    Vincent

    So that uh, if like MILS the transport also from third party or?

    TanUm, yes. Yeah, we have uh, we have to use third party because number of fleets that actually we, we

    load here is about thirty to forty trucks, everyday. Yeah. and we cannot own all the trucks so we have to

    uh, use third party. Alright? so the moment the, the only thing that what we can do is that to make sure

    the products when it loaded into the trucks, the temperature is right.

    Syazwan

    Uh-huh.

    TanOkay? So that you uh, we only ahhh what do you call? The em-emphasize is actually on the food safety

    where there is no abuse in temperature so that it-it would not cost any deterioration in the quality of

    the products. Okay? So the products would not contaminate. Alright? and oh, also the er physical

    inspection of the cleanliness of the truck.

    Syazwan

    Uh-huh.

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    Tan

    The drivers to be complied, okay? But the moment they move on to the route, whats happening you

    cant

    SyazwanOut of your control?

    TanYeah. You can have GPS to track the speed and all these but you cant check on the drivers attitude, ya.

    So that is the, that is the biggest challenge lah. For the transport. And even theyre talking about haulage

    which is carrying the containers is a bit more straightforward. Because containers you dont open

    containers.

    Syazwan

    Uh-huh

    Tan

    Its sealed. When they come from the port to the facility or from facility to the port. Those are already

    been sealed. So the drivers cannot open close. So that is a bit more straightforward. But container itself

    uhh, again. Umm, you do not do the SAMA cleansing. Okay? Unless its uh customers requirement, then

    you do. If not then nobody would do it. They only do uh, uh what do you call, chemical wash on the

    containers to make sure it is clean. Theres no smell.

    Syazwan

    Uh-huh.

    Tan

    Yeah, thats all.

    RubinUm is there any other challenges? Um other than this?

    Tan

    Hmm transportation ah?

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    Rubin

    Yup.

    Tan

    Thats the biggest lah, because you-you, its beyond your control. Yeah and drivers and all these, you

    know?

    RubinUm, what kind of guideline do you have for the drivers? Like is it like the three, the one that weve seen

    outside um, no pork, no..

    Tan

    Yes. Thats when they enter here. To make sure that they do not have those kind of uh, what do you c all?Uh, non-halal products or non-halal food and all these things. You know, and of course we do not allow

    them to smoke.

    Syazwan

    Okay.

    Tan

    Yeah. um then the proper uhh

    Manager

    Attire.

    Tan

    Attire. Okay? For the safety side lah. Okay but whenever they go out from here, theyre let loose already.

    SyazwanSomething something

    Tan

    Yeah, you cant control (laughter) you know some of the drivers, all those transport in Malaysia is they

    have to do rounding. Is, it can be like whole day job from you know, in, from here going to northern

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    going to southern. So these people have to keep awake. Yeah. so that-that behavior is a bit difficult to

    track. Ya but the-the-the, the important thing is that the product. Because once the product is loaded in

    the truck we have to (cough) make sure that once something loaded, then well do a seal. But they will

    do uh, many drop. Many drop points. Because they dont go into one restaurant. They have many

    restaurant. So they will open up the seal. The moment they open up the seal whats happen next

    Syazwan

    Something something

    Tan

    Yeah then you have to trust the drivers. So the only is that you have to keep on giving them briefing,

    training you know? Whenever they are here then we do a track. Yeah.

    Rubin

    Um is there any other um strategies? For MIL-MILS to come uh, overcome this?

    Tan

    Umm

    Rubin

    Challenges.

    Tan

    The only one is of course like uh dedicated trucks lah. If we can have our own dedicated trucks you know,

    with our drivers. Then we can actually in, enforce more uhhh standards and guidelines. Yeah.

    VincentOkay the number four part will be uh, involving the warehousing. So the first question is how does the

    warehouse deemed as halal certified?

    Tan

    Uh by JAKIM lah (laughter)

    Vincent

    I mean uh, the-the guideline and how its different from others warehouse.

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    Tan

    Um okay. You only deem to be halal-certified when you are actually audited by JAKIM and they have

    their guidelines. You know so the guidelines come from documentations, up to your physical uh what

    you call, operations. Alright? and uh documentations side they would track how you keep the products,

    where, what temperature, how your people been trained to check the products, segregation of damage,

    damages. Uh the reports that you give it to the customers you know. And also the um, the tracking of

    the temperature, the pest control.

    Manager

    The cleaning programme.

    TanYeah. your inspection, cleaning programme. So those will be documentation side and physical side they

    would do uh-uh what you call uh?

    Manager

    Site visit.

    Vincent

    Inspection?

    Tan

    Site visit. Yes. So they have their own guidelines to, to do that, to carry out that kind of audit.

    Vincent

    So how often they come and inspect?

    Tan

    JAKIM? Its suppose to be what? Every?

    ManagerEvery two years renewal of the certificate but we are subject to audit anytime. They can come like just

    unannounced visit ya, they can come. For renewal its every two years cos the cert expires every two

    years.

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    Tan

    Yeah but internally under MILS we set up our own halal audit team alright. so this audit team will do

    every quarterly kan? Eh every half yearly.

    ManagerEvery half yearly.

    TanYeah and then uh, because we are also uh ISO-certified, yeah for the food safety managements uh food

    safety management system.

    Manager

    Food safety management system.

    TanYeah so were also have our own audit team. And that audit also carry out every six months. Okay? And

    on top of that we have been audited by our client almost every month. And our client is uh, they have

    their standard guideline, okay? Which is complied to the food safety at international level. Umm so that

    is also ISO standard. So they actually using ISO standard to audit us. So basically were, you know we-we

    we have been audited every month. Okay? Just without JA-JAKIM is here but we have been audited. So

    all these guideline whether its for halal or food safety, theyre quite similar. Okay? Documentation used,

    physical, site visit uh site inspection, theyre pretty much quite the same. Alright? so um we are not wait,just waiting for JAKIM. So if JAKIM has to be here anytime then we are almost prepared lah. Yeah. that is

    one of the thing to keep us at toe. Uh because of the, all these inspections and all these by our

    customers which is a bit more stringent compared to JAKIM ah (laughter)

    VincentOkay, next one will be uhh what are the issue and challenges faced by MILS in uh, warehousing.

    Providing warehousing. In this halal condition.

    TanChallenging ah? Its peoples mind set lah. Uh because you, we have to use ah manpower. We cannot be

    purely on machines. Alright? so its people mind set where it has to make sure personal hygiene, alright?

    uhh How do what you call, care for the products? Where to keep you know, right temperature and then

    uh-uh the handling process. Yeah? when you look at the product its been damaged, then you have to

    do segregation. So that kind of training, yeah? it has to be given uh on and off. Uh it will come back to

    human, human factors lah. That is the most challenging.

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    Vincent

    Because

    Tan

    Because you can have systems you know, to-to guide you through on the process to make sure that the-

    the track and trace is there. But again its still, the staff something. The manpower side is the most

    challenging because in this environment um, its not normal, ambient temperature. Yeah, we have uh

    freezer, we have uh chiller. So at that freezer temperature -25 is too cold. So sometimes because of the

    uh intense environment, you-you know, people-people start to, you know try to do way short cut. Try to

    get out of the en-environment as fast as possible. So when you do a short cut that could be something

    that you bypass in the process. For example, like umm, uhh what do you call? Product which is uh

    supposed to be damaged. Its supposed to be segregated. Because this I want to bypass some, some

    process to cut it short, I just stuff the products together with the good stocks. And if this good stock is

    sent out to the retail, to the restaurant, then it can be uhh issues. Yeah? because of the food quality and

    safety yeah.

    Vincent

    So um other than providing training uh to the staff or manpower to handle the halal um items, so what

    are the strategies, other strategies to overcome their issues?

    Tan

    Umm, neh she does the spot checks (points to someone)

    (laughter)

    Vincent

    So like constantly spot check?

    Tan

    Uh yeah. we do the spot check what do you call, on and off. Right. Its actually weekly, right? Were

    looking at the attire, okay? Of course that is on personal hygiene side. Then, we also look at the

    documentation. When the products is actually uhh, checked for every temperature, okay? Umm we take

    three samples from each load of the products received. So those kind of things is actually , to be guide

    or to be trained to the staff, alright? uhh because if youre looking at lets say human, of course training

    is one of the key. You have to constantly, you know instilled, into their-their-their mind. Then the other

    one is the systems, yeah? our system is able to trace um, if lets say the products has been delivered out

    is not meeting the FIFO or expired stocks has been issued then we know which lot has been uh delivered

    and we have to do the recall. So we have to use that technology side to assist us. I cant put chips in the

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    plane (laughter) something something stuff (laughter) cannot. (laughter) then its deem not halal already.

    (laughter)

    Rubin

    Um so is there anymore issues uhh challenges that you would like to highlight that you know you missedout?

    Syazwan

    In terms of warehousing.

    Rubin

    Yeah.

    Tan

    In terms of warehousing ah?

    Rubin

    Yeah, custom procedures?

    32:20 32:24 not clear

    Tan

    Challenges in the warehouse?

    Rubin

    Um or maybe packaging? Custom procedures?

    Vincent

    Do MILS provide packaging services?

    TanWe do sometimes um to help customers to repack. But that is actually as secondary packaging. Um

    primary is all done within the factory so uh as much as here, we do not have direct contact on the food

    surface. So there will be already a primary. The only thing what we do is the secondary. Primary is not

    allowed and that is actually in our guideline. So it has to be secondary packaging. Alright, uh so uh we do

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    that. We have uh sometimes the customers, equally the same customers, uhh having like some products

    come in which is you know, they have uhh a small group of new product which is has not been certified

    as halal. That is, that is quite difficult for us because the client has been using our facilities and suddenly

    they have uh, small you know, new SKU, or new product which is trying to test the market and it has not

    been given the halal uh, logo. So we have to reject that, ya. Because of this kind of facilities is a bit um,

    limited with in terms of lets say like uhh, the what you call, the players to provide the cold room. So its

    a bit hard for them to segregate two location. Alright? so for us here um, all our rooms and within our

    whole facilities is purely halal certified and dedicated for halal food product. So we cannot have like one

    small area of non-certified halal, Ya. So uh, of course that we have uh, we have turned down customers

    couple of times when they have non-halal products. You know and-and our site here also we act as the

    what you call, uhh we do uhh, check before the-the new products come in. then we would request the

    customers to give us halal cert. alright sometimes their halal, in their halal cert, they have the expiry

    date. So we will something to the client and say that you know, this products, your expire date is coming

    up or already expired please give us a new cert and all these things. So we act as uh-uh a checker for the

    client.

    Vincent

    So is there any uh, growing capacity of MILS to accommodate the growing halal logistic?

    TanUhh we would like to grow (laughter) but it is very expensive to invest for this kind of facilities. And the

    operate uh what do you call? The operatering expenses is very high because you have to run you know,

    the systems to cool down the room. So you have half full room and hundred percent full room, Im

    actually running the same electricity consumption. So its very difficult to invest uhh but were alwaysopen. I mean uh in fact with our client, we are trying to look at what sort of partnership that we can

    grow you know, to uh to expand and to cater more for their products. Yeah so there are actually

    strategies we have already uh working together with our customers. To grow then, and in fact we are,

    our proposal to HDC is that why not HDC uh build a facilities like that. you know for Malaysia to be a

    showcase, right? And you can have like, is become a research centre at the same time so you can have

    overseas clients to bring in the products, repack everything, JAKIM come and audit. It can be also a

    training centre for JAKIM. Alright? the only thing is that you have to work with uh-uh what you call? The-

    the experts to manage that kind of facilities. You know we can be like logistics expert and then you can

    have client from the manufacturing end, you know to be part of their uh-uh what do you call clients to

    store the products and overseas client. So and then you can actually put in like IT systems to do the

    tracking and all these. So you, it become a, its uh what you call, uhh research centre at the same time

    also it can cater to the business. Something like that lah. Because for-for private sectors to actually build

    and waiting for that kind of business is very costly. That is actually why uhh Malaysia until today is not

    able to move to the first step, to the next step because private sectors is not incapable to come out

    another you know, uhh big capital just to do this investment.

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    Syazwan

    What about custom procedures? Is there any ..

    Tan

    Customs procedures so far nothing to do with halal.

    Syazwan

    Okay but does it interfere with MILS halal logistics processes?

    Tan

    No.

    Syazwan

    No?

    Rubin

    So um do you believe that all the issues and challenges itll-itll be ultimately solved? For this uhh

    Tan

    It will, I think the solution is there. Its just that um, who wants to initiate that and enforce it? You know

    uhh like I said because of um each players um like MILS, we have to make sure profitability, alright? the

    other manufacturing clients they have the markets to expand. So we cannot be waiting for enforcer to

    come in and eh, why not you do this do this? Solution is all there. Its just that to link it up. I uh , that is

    actually taking time and I do not know, we do not know why it took them so long. If Thailand can do it,

    why not we cant? alright? uhh it is, it is not difficult to implement. Its piece MILS I mean the puzzle is all

    there. Its just putting it together to form a picture. Yeah and youre talking about Malaysia I think uh

    halal logo is one of it. You ah, when you open up the kind of market you know, with the proper process

    is in place, documentation in place from your authorities, from meanings that from like uhh Ministry of

    Health, for the import permits to be issued. You know, veterinaries, your customs. Uh what you call, the

    local authority lah. Its there to support, overseas customers can come in anytime. I think you have done,

    youre looking at the studies also importation of lets say meat products coming in to Malaysia. And just

    to repack and go out to Indonesia. Why is not happening? Because it is been keep on talking about hand,

    foot and mouth disease in Malaysia. They cannot do, but what have they done to take that action? If

    you can curb that action, you know you can actually overcome that-that, that problem. Anytime you will

    have a lot of uh what you call, all these meat importers come in. because for them its that I only want

    the halal certificate, eh halal logo for me to expand my products to middle east, to you know to Europe

    market. Yeah. that is actually the biggest challenge. But nobody is looking into it (laughter) and still

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    talking about it lah (laughter) thats why halal forum, world halal forum this year has been dissolved

    (laughter) takde lagi.

    Manager

    Cant make out!!

    Tan

    Have you all interview any other uhh logistics player?

    Syazwan

    We will but this is the first.

    Tan

    Oh , this is the first. Any other, other what do you call supply chain player? Manufacturing side.

    Syazwan

    Yeah, no. for if can disclose the names, we uhh this Friday right?

    Vincent

    Yeah.

    Syazwan

    Well interview northport.

    Tan

    Oh, okay.

    Syazwan

    Okay and next coming Friday, we will interview

    Rubin

    Monday.

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    Syazwan

    Monday, on the 25th we are going to interview KN

    Tan

    Oh

    SyazwanKontena nasional. So far that is, these are the only three companies that have give-given us the

    response. but were still waiting for more players to actually give us the response

    Tan

    You are focus on only on the logistic players ah?

    Syazwan

    Yes. Not manufacturing, not pro-producers.

    Tan

    Okay.

    Syazwan

    Just in terms of the logistics

    Tan

    HDC? You should interview HDC.

    Syazwan

    Yeah.

    TanThats on the authorities, I mean the enforcer side. Just get their view. Our view and their view could be

    different. (laughter) they may not agree to what ah private sector talk (laughter) because we always talk

    bad about them. (laughter)

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    Syazwan

    (laughter) alright

    Vincent

    Conclusion already?

    Rubin

    Yeah.

    Tan

    Any other things?

    Vincent

    Sir do you have any other?

    Syazwan

    No I do not have any other something something

    Tan

    So sufficient for your paper huh?

    Vincent

    Yeah, questions is all answered.

    Syazwan

    Questions are all answered. We get more than what weve expected actually.

    TanOkay

    Syazwan

    Which is good.

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    Tan

    Yeah.

    Vincent

    Alright. so this is the end of the interview?

    Syazwan

    Thank you for your time.

    Vincent

    Thank you.

    Tan

    Alright. hopefully is

    Syazwan

    So is it something? Err can we disclose your name in the paper? Or you want to make it discreet?

    Tan

    This is only between your university right?

    Syazwan

    Yes, this is within our university but its potential to be published.

    Manager

    (cough)

    TanPublished in what?

    Vincent

    Journal.

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    Syazwan

    Published in academic journals.

    Tan

    Oh, okay.

    Manager

    The distribution of the journal?

    SyazwanDistribution of the journals? Err among logistics practitioners, among academicians, among scholars

    everywhere in the world.

    Tan

    Okay, um perhaps uh what you can help us is that before you finalize,

    Syazwan

    Uh-huh

    Tan

    If you can just forward that portion for us to review.

    Syazwan

    Okay. Alright.

    TanAgain, because this is um, a corporate (something) we have to run through with uh, with our corporate

    affair when it comes to any of this public media, (something) have to be a bit cautious. So if you can, just

    forward to us, uhh we will review. Alright? if need to, then we may just do some amendment, okay? Andah if everything okay then we will revert to you then you can do the (something). Its just to get approval

    from our corporate affairs.

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