Port infrastructure is one of fundamental infrastructure for the operation of MOS Burger in Malaysia the ports in Malaysia should be able to cater to different type of cargo storage as well as to load and unload goods as fast as possible. There are 4 main ports in Malaysia. We are planning to set up MOS Burger in Kuala Lumpur(KL). The nearest port to KL is Port Klang. It is the biggest port in Malaysia according to TODAY newspaper. They provide a long list of services as written in (Figure 1). They have the most number of berths for containers with the longest length in Malaysia and variety of equipment which means that the process of loading and unloading will be made faster for MOS Burger even if there are more ships in line to load goods. Moreover, they have the greatest storage capacity leaving room for goods necessary for MOS Burger to be stored in the port in proper condition if they do not need the goods for their service. The Port Klang has a Vessel Traffic Management system (VTMS)whereby they have the Area Control Centre radar which covers a radius of 26 nautical miles offshore. This system provides information about the whereabouts of the different vessels to prevent any possible collisions between them. Moreover, it also enhances the passage planning of who to move into the port to unload or load goods. Therefore, MOS Burger can be assured that their goods are not lost while entering the port where there might be more vessels as compared to in the ocean. There is still a possibility for collision to occur to MOS Burger’s goods when they are not near the port.
Road Infrastructure is necessary for transportation of the goods from the port and to suppliers to send it to other subsidiaries of MOS Burger. It is also one of the cheaper alternatives. There are 3 main factors which we have to look at in order to gauge whether road infrastructure is good or bad. The first one is quality. The government allocated RM46.8 billion for road development. The road quality in Malaysia is constantly being improved whereby the latest repairing works was announced in 2010. According to the Director-General in the Public Works Department came up with a report whereby 96% of the country’s economic activities occur through road. This means that there are possibilities for traffic to occur hence delaying the arrival of goods. Next is high-speed links. They do have quality expressways from one state to another in Malaysia which ensures smooth travel of goods. Both the Federal highways and expressways are owned by the Malaysian Government and all have toll booths that collect money for the usage of the expressway based on the duration. The Federal Roads is a connecting expressway from Kuala Lumpur to Selangor.Lastly, for congestion, the expressways are known to cause frequent traffic jams either due to accidents or peak hours mainly since it is a long stretch of road. As for the toll roads, there is a total of 29 expressways in operation which also requires toll fee. The trucks should be refrigerated so as to prevent any wastage of the goods as food will most probably come in frozen packages.
As for the telecommunication infrastructure, the Mobile-cellular telephone subscriptions according to the Global Competitiveness report is 141.2 which slightly above the median (Figure ). This means that more people are using mobile data to carry out different activities using their technological devices. The telecommunication companies are coming up with modern technology such as fibre optics. In Malaysia, more people fall under the mobile segment which has led to the fall of the usage of landlines which is predicted to decile by 2023. Therefore, the telecommunication services in Malaysia can easily help MOS Burger in digitalizing their services. They can have an online delivery platform to get orders and deliver the customer’s orders to their customers. Another alternative is to partner with food delivery companies such as Grab Food to make MOS Burger more accessible to its consumers. Not only that, the availability of internet allows MOS Burger to interact with its customers to know what their feedbacks are about their product and service, enabling them to further improve themselves.
Electricity in Malaysia is derived from its primary source of burning fossil fuels to generate electricity. One main electricity supplier is Tenaga Nasional. They are one of the main suppliers of electricity in Malaysia. Since they are a monopoly, they are able to set high prices in the future, but as of now, they have relatively reasonable prices depending on the peak and non-peak hours of the business (Figure). The electricity is transported through electricity towers which are connected by wirings. Therefore, the government has only given license to only one company hence making them the monopoly. According to the Paris Climate Agreement, which Malaysia is part of, have pledged to reduce greenhouse gas intensity by 45% in 2030. Moreover, they have taken the necessary actions to produce electricity in a more natural way and they have invested in the necessary technology as well. This would mean that, in the future, electricity costs will increase as now most of Tenaga Nasional’s electricity supply production is from coal, therefore, enabling them to provide lower cost as of now. MOS Burger face this likely cost increase in the future which will increase cost for them.
Loans are essential in starting multiple branches in Malaysia for MOS Burger. One main component to look at would be the interest rate fluctuations. From the Figure , we can tell that the interest rates in Malaysia are rather increasing in the 3-year trend. This would mean that Malaysia is experiencing inflation. This would mean that the Central Bank in Malaysia is selling securities at high discount rates to the private banks which increases the banks cost therefore implementing higher interest rates to the consumers and businesses. Therefore, MOS Burger might be prone to high-interest rates which will affect their profit margin as expenses increases. This is a key problem as loans are taken in huge amounts for businesses especially for MOS Burger whereby both the manufacturing and the selling of the goods will be done in Malaysia.
Logistics Support infrastructure
Logistics Support is necessary for the MOS Burger to import their goods from Japan or in the future from other countries. MOS Burger might need a Freight Forwarder or Third-party logistics providers to ensuring goods are transported from other countries to Malaysia on behalf of the company. MOS Burger may adopt the supplier optimization system whereby they can select one or two main.They might need to also need to take into considerations the quantity that must be produced every day as well as to have a backup inventory in the event of excess demand. Therefore, the logistics providers/suppliers should be able to provide technological advantages of being able to update the required amount of food products for that day in order to cut on unwanted labor cost and food production. Some of the key logistics providers in Malaysia includes Tiong Nam and TASCO. When transporting equipment from Japan, they can use foreign companies such as Maersk as the carrier. Therefore, for Logistics Support, MOS Burger will be able to find good and reliable logistics companies in Malaysia.
Legal & Regulatory Infrastructure
MOS Burger is required to have a food safety plan (Figure ) .Moreover, they need to meet GFSI, AIB and BRC food standards. One main food standard would be that it should Halal as majority of the population in Malaysia are Muslims who consume only Halal certified food which should be obtained through the Halal Malaysia Official Portal whereby the necessary procedures will be conducted. The food prepared must be of good hygiene.Both the supplier’s area and the different MOS Burger Branches must be free from insects or rats. If any of these are not followed, consumers coming to eat at MOS Burger will not have the satisfaction of the food quality and eventually, it will tarnish the brand image not only in Malaysia but in other countries as well.
Recommendations for the Problems
For the loss of goods when being transported, goods can be insured by Marine Cargo Insurance whereby it provides they provide the cost for the loss and damage of good during transit for all types of goods which can be transported from any one of the countries to the other. This will, therefore, prevent MOS Burger from baring excess cost due to the damage of the goods. As for the future likely changes in the prices of electricity bills, MOS Burger can be innovative and have become few of the fast food chains to have solar panels to provide electricity to them. This will promote MOS Burger ’s brand image and ensure sustainability through Life Cycle Assessment. Lastly for the high-interest cost would mean that it will further increase their cost. Therefore, we recommend that they choose the Joint-Venture entry method whereby another business involved will bare part of the cost.