A Conceptual Paper For Human Capital In The Logistics Industry In Malaysia Khazizul Maulod Pahim 1 Malaysia Institute of Transports (MITRANS) Universiti Teknologi MARA Khazizul384@salam.uitm.edu.my Assoc. Prof. Dr. Hjh. Sabariah Jemali 2 Faculty of Business Management Universiti Teknologi MARA Shah Alam, Malaysia Sabariah719@salam.uitm.edu.my Assoc. Prof Dr. Syed Jamal Abdul Nasir Syed Mohamad 3 Faculty of Business Management Universiti Teknologi MARA Shah Alam, Malaysia syedjamal145@salam.uitm.edu.my Abstract— Globally, logistics is an important economic activity valued at about USD 320 billion a year and growing at an annual rate of 3 to 10 percent. Malaysia has recognized the industry as the main key towards enhancing Malaysia’s progress on becoming a globally competitive fully developed nation. It was predicted that the logistics industry would grow at 8.6% during the year 2006 – 2020 plan period and contribute 12.1% to Growth Domestic Product (GDP) by 2020. Therefore, the development of the human capital or human resource for the logistics industry in Malaysia becomes important in confirming the nation’s competitiveness. Accordingly, the aim of this study is to produce a feasible framework of human-resource development for the logistics industry in Malaysia. Keywords- Human Resource Development; Human Resource Development Framework; Human Capital; Logistics, Supply Chain; I. INTRODUCTION Currently, there are many public and private higher learning institutions in Malaysia offering programs on transport and logistics. However, it is noted that these programs are not streamlined and do not meet the requirements of the industry [1][2][3][4]. Employment in this sector is not a preferred choice among the Malaysian workforce due to poor perception of the industry and thus, does not attract the best brains [2][3]. Presently, there is a lack of interest among the workforce to be employed in the industry and graduates in transport and logistics fields lack practical skills and abilities required by the industry. It then, requires employers in the logistics industry to provide special programs to fill the skills gap [2][4]. The logistics industry requires a strong, competent and experienced workforce along the entire logistics supply chain, which is able to undertake the activities in accordance with international best practices. Despite the remarkable expansion of the industry, particularly in Malaysia there has been very little published research in the area of the logistics and supply chain resulting in a very limited dissemination of information for the purpose coordination, learning, advancement and technology. The [4] has acknowledged the lack of qualified workforce in the logistics industry. A recent report [5] highlighted that Malaysia has the opportunity to create an additional value of about RM9-11 billion over the next decade, which contributes approximately 12.1% to the GDP, if the supply-chain competitiveness is improved through more efficient transport and logistics services. They emphasized that by reducing the supply-chain cost will ultimately stimulate further national growth as the World Bank has estimated that a 10% reduction in transportation costs can increase trade by 20%. Similarly, McKinsey Global Institute [6] who is working on the productivity improvements in industry sectors across globes indicates that such efficiency improvements are likely to translate into a GDP growth effect in a similar order. This creates a virtuous and perpetuating effect on the economy. Thus, improving industry supply chains is a very substantial opportunity that could significantly stimulate economic growth and thus enhance Malaysia’s competitiveness globally. We can achieve all of this figures by implementing the HR functions such as the implementation of new technologies, understand the nature of logistics / supply chain works and improve the logistics practitioner skills and education. Reference [7] state that lack of career path and succession planning are the most commonly cited in human resources challenges, and there is increasing need for succession and career meeting. In summary, there may be appearing to be a shortage of sources of skills, education and professional development opportunities. The current attraction challenges and the low awareness levels of the supply-chain sector and its career opportunities, there is a need to better educate and promote the sector in target marketplace segment with particular emphasis on those making career and education 2011 IEEE Symposium on Business, Engineering and Industrial Applications (ISBEIA), Langkawi, Malaysia 978-1-4577-1549-5/11/$26.00 ©2011 IEEE 357