SAMUDERA (Strategic Alliances for Marine, Undersea, Defence, Engineering Researches and Academies): - FEASIBILITY DESIGN STUDY FOR MARINE TECHNOLOGY UNIVERSITY MALAYSIA

SAMUDERA (Strategic Alliances for Marine, Undersea, Defence, Engineering Researches and Academies):




Feasibility and Design Study

for MARINE TECHNOLOGY 2001

by Ismail Aby. Jamal,

Executive Director

PSC-Marine Technology Academy

30 September, 2001

























































This Feasibility and Design Study paper of SAMUDERA Concept

is submitted to Marine Technology 2001 Seminar by Ismail Aby. Jamal, the Executive Director of PSC-Marine Technology Academy in association with Universiti Teknoloji Malaysia, Fakulti Kejuruteraan Mekanikal (Teknoloji Marin)



CONCEPT PROPOSAL

on the Transformation of Marine Academies to “SAMUDERA” :



“The Emerging Needs and Challenges for Academies in Maritime, Undersea and Defence Engineering Researches in Malaysia”



The Rationale of “SAMUDERA”



What is the rationale of SAMUDERA?



•SAMUDERA is the alignment and integration of the strategy, activities and outputs of the academy’s resources function with the strategic and operating objectives of the business and the Nation.



•When successful, SAMUDERA is an organization that will exhibit best-in-class practices and performance, adding value to the overall business and Country’s needs.



This collaboration is a people-based horizontal transformation where we are reinventing “the Marine Academy.”



Why is this needed for

the Collaboration of Marine Academies (SAMUDERA)?



There is a need for long-term transformation rather than short-term incremental change for the existing marine academies to adopt the SAMUDERA concept, because:

–They are undergoing a major long-term business transformation too

–They need to be proactive and aligned with the business objectives and goals

–The marine academies today lack a group focus, plan and structure

–Today’s marine academies impede the business with their current systems, processes and structure

–The current marine academies lack a clear focus of roles/responsibilities on an integrated approach to their respective business needs.

Executive Summary and Recommendations

Introduction

The establishment of SAMUDERA as a consortium for fully-fledged marine training providers to collaborate is both technically feasible and economically viable. There are significant opportunities in the niche area of marine and defence related training for the Malaysian maritime education industries but some other market segments are high risk and not viable business alliances for opportunities if they undertaken as stand-alone ventures.



The Approach

This paper recommends a modest and incremental approach to the strategic development of SAMUDERA. A further Needs Analysis of the market segments currently being considered should be conducted as soon as possible. A strategic plan developed should then be analyzed to identify achievable goals in the short and medium term.

Market Assessment

The viability of SAMUDERA is contingent on the potential of the specific market segments from which it will derive income. These markets have been identified in the SAMUDERA business plan but this paper recommends that a more thorough assessment is required to validate various assumptions that have been put forward.

Patrol Vessel Project

The PV Project by PSC which is currently the biggest undertaking by a local company in shipbuilding should take the highest priority for SAMUDERA. The internal and external stakeholders must maintain their focus on meeting the needs of the RMN under this contract. A thorough assessment of all aspects of this multi-billion ringgit project – Training Budget, Human Resource Development, OEM On-Job-Training, Training Needs Analysis, prerequisite training for RMN and PSC ND staff, Transfer of Technology and Delivery Mechanisms needs to be undertaken as soon as possible. A formal Monitoring and Evaluation framework for the Transfer of Technology should also be developed to validate claims for GoM grants under this part of the project.



Simulator Training

The Market Segment for Simulator Training in Malaysia is HIGH RISK. The initial investment is very large for each marine training academy to do on its own way. The demand is huge but uncertain if the respective marine academies to go on its own way as there are many established competitors in Malaysia. This paper recommends that marine academies in Malaysia to go back to the needs of the industries as a whole and scope the outputs related to Simulator training and assess the initial needs of the STC on that basis. The demand for simulator training from other sectors – merchant, ports and institution of higher learning should be assessed on the number of courses that Star Cruises Ship Simulator Centre at Port Klang, RMN, Politeknik Ungku Omar and Singapore Ports Authority are currently servicing.

Royal Malaysian Navy

The market segment of Royal Malaysian Navy is HIGH priority and MEDIUM to LOW RISK. Short term PV training and equipment applications provide opportunities and immediate avenues for SAMUDERA to establish its creditability as a reliable and effective trainer provider.

Such credibility offers a springboard for SAMUDERA to offer long-term training to RMN in a variety of other technical (and even non-technical) areas. Once it has an established reputation then its location immediately adjacent to a major client will act to SAMUDERA’s advantage and long term viability as a supplier of training to RMN and other overseas navies. There is an immediate need to further develop the strategic plan for this market segment.

Academic Programs

The academic market is MEDIUM RISK. In the short term, the full university model is not feasible but a strategic development plan needs to be initiated by SAMUDERA being the proposed consortium for marine academies in Malaysia. SAMUDERA should focus on incremental development and forge links with other local and offshore institutions to offer courses and joint programs in the niche of marine engineering and manufacturing sector. All local marine academies through joint collaborations under SAMUDERA concept should conduct a full assessment of the impact of the proposed multi-million ringgit MIMET (MARA Institute for Marine and Engineering Technolofy) at Lumut. The recent announcement by the Minister of Education on the MARA Vocational University includes the courses and infrastructure facilities in marine technology where the first intake of students is scheduled in July 2003.

Skillsf Development Programs

The market segment of Skills Development Programs is Medium priority and LOW RISK. It has a unlimited potential to provide income if SAMUDERA can develop IP (Intellectual Property) and sell places in local marine industries. These SDP programs (essentially) it should be seen as a cost recovery segment. The greater value of this segment is the contribution to the strategic human resource development of SAMUDERA where it has already demonstrated some success. The issues around accreditation (LAN) and qualification for GoM HR subsidies (HRDF) need to clarified. Furthermore a documented policy needs to be developed to spell out the internal relationships of SAMUDERA with other marine industries’ entities and the payment basis for SAMUDERA’s SDP services.

Operating models

SAMUDERA should operate as a proposed stand-alone company or private institution with an Academic Advisory Board and begin developing management systems to achieve that goal within twelve months. The Academic Advisory Board should be industry focussed and have representation from the existing marine academies in Malaysia, RMN, GoM, local and regional marine industries, and the Malaysian Maritime Engineering Industry.

Administration

Before it can enter the market SAMUDERA must develop the fundamentals of its cost models to establish the baseline costs for its training services. A consistent cost model and proper reporting of expenditure will enable SAMUDERA to evaluate its own capacity to profit from the various activities under consideration. A basic computerised accounting system will assist this process in the short term until it is brought online with the corporate accounting system of the marine industries as a stand-alone company. Furthermore, internal policy regarding support and service arrangements within the industries must be agreed and documented before the strategic alliances can take place.

Human Resources

SAMUDERA will require human resources encompassing a skill set of academic and industry-based experience educational administration and business development. In the short term part-time trainers and lecturers within the local marine academies should be used as long as a base level of service and quality standards are established and monitored by the full-time staff of SAMUDERA.





“SAMUDERA” shall have Strong and Visionary Leadership and Credibility to ready the Academy for challenges and to institutionalize continuous change.



•Communicating the uncountable tangible and intangible benefits already provided by colleges and universities to society in a credible and accountable manner.

•Listening to public opinion and criticism, correcting it when it is misinformed and pleading mea culpa when it is on the mark.

•Acting on the problems and concerns by bringing about appropriate, constructive institutional change.

•Leading to the extent possible, their institution by crafting a vision that links the institution and its faculty to current and future social needs.



Evaluation Criteria

Finally, consensus must be reached by all marine education industries on the Evaluation Criteria for SAMUDERA in relation to how its performance will be measured and what value it adds to the said industries. A “bottom line” approach in the short term will not empower the process owners of SAMUDERA to take some considered risks to capitalise on potential opportunities. This paper recommends an investment period of 5 years from the date it actually begins for SAMUDERA to function as a separate “conglomerate of academies” offering marine education programs.

Terms of Reference for Study

The terms of reference for the SAMUDERA study prior to implementation are:

• • • Clarify the stakeholder requirements of the proposed SAMUDERA.

• • • Identify feasibility of the proposed SAMUDERA in Malaysia including the identification of current and future needs and key market segments for marine academies.

• • • Propose initial business priorities for the project including resource allocation, quality assurance, performance and risk management and related policy and business issues.

• • • Suggest course options to the identified market segments and detail the models of linkage and support from the foreign partners.

• • • Produce a Project Design Document to outline the steps to implementation.

Methodology:

The methodology used for preparation of this concept paper was proposed in submission to the Marine Technology 2001 Seminar’s organizer and consistent with current approaches to project design studies:

• • • The Feasibility/Design Study

was undertaken by the Head of PSC-MTA by getting feedback and data that were drawn from the existing higher institutions of learning, marine academies in Malaysia and the stakeholders in the marine education industry.



Component one involved the production of an Issues Paper outlining the major challenges that currently influence the approaches, risks and constraints of the proposed project.

Component two involved the actual detailed research. Activities for this component included:

• • • Interviews/focus groups with key stakeholders

• • • Strategic Analysis

• • • Market Analysis

• • • Curriculum evaluation

• • • On-site inspection of proposed premises

• • • Assessment of resource implication of project

• • • Initial financial analysis and projections

• • • Draft report preparation



Component three involved the finalising the Project Design Document (PDD).

The recommendations contained in the Draft report were also subject to a peer review by an Expert Advisory Group drawn from PSC-MTA and feedback from other marine academies in Malaysia plus the opinions of employees from the marine industries.

The final version of PDD will contain the following information:

• • • Executive Summary

• • • Market assessment and recommendations on the preferred operating model for the proposed Marine Academy

• • • Financial projection of student numbers required to reach and sustain break even

• • • A work-plan detailing the steps required to implement the SAMUDERA project (in Gantt schedule)

• • • A Human Resource Schedule with Position Descriptions of key personnel that will be required to staff the Institute.

• • • An outline of the models for dual accredited courses, staffing and ongoing support by Australian partners and pathways to overseas study.

• • • A procurement schedule detailing the required plant and equipment

• • • A Risk Assessment and Management matrix



SAMUDERA VISION & MISSION



•VISION

–We will enhance SAMUDERA’s ability to become a customer focused organization while being an Academy of Choice.

•MISSION

–We will proactively deliver consistent best-in-class services using technology driven solutions, and partner with the business to:

•Achieve overall SAMUDERA success

•Attract and retain the best TRAINERS

•Empower FACULTY members to direct and develop their careers

•Create and environment where trainers, trainees, employees and customers are valued and respected



The Environment

Malaysia Maritime Industry

Malaysian merchant shipping currently consists of 477 ships of 300 grt and over, making it the 26th largest flag on the basis of dead-weight tonnage. The fleet consists of tankers (oil, chemical and gas), bulk carriers, container ships, general cargo ships and passenger ships.

There has been a sharp increase in demand for seafarers and shore based personnel brought about by the expansion of the Malaysian merchant fleet. Although there are about 40,000 seafarers on the Malaysian register of seafarers, there is a severe shortfall since a large number of seafarers serve on foreign vessels while an equal number take up shore-based employment.

Major Malaysian ports and terminals are experiencing increased activity and growth particularly in the container sector. There has been a quantum leap in the number of transhipment boxes re-directed from Singapore, existing shipping lines are making more calls, and the world’s biggest shipping line Maersk-Sealand has moved its base to Johore. Even fringe ports are expected to see an increase in container volume due to the expected increase in gross domestic product10. By the year 2005, it is likely that two Malaysian ports will be among the top 15 container ports in the world. In light of the recent expansion of the maritime industry, there is a strong growth in the demand for shore-based personnel.



There are approximately 20 shipyards in Malaysia. This sector of the industry is relatively small in comparison to larger regional players such as Japan, South Korea and Taiwan. Most of the industry still concentrates on ships below 30,000 DWT while there are four major shipyards that have the capacity to build ships up to 400,000 dwt. The Malaysian ship building and repair industry is well positioned for growth and has some competitive advantage in proximity to major shipping lanes and relative currency value. There is also significant domestic demand for ship repair and ocean engineering from Petronas.

PORT OPERATORS

Bintulu Port Sdn Bhd

Seaport Terminal (Johore) Sdn Bhd

Johor Port Berhad

Kelang Container Terminal

Kelang Multi Terminal

Kelang Port Management Sdn Bhd

Kertih Port Sdn Bhd

Lumut Maritime Terminal Sdn Bhd

Pelabuhan Tanjung Pelepas

Penang Port Sdn Bhd

Sg Udang Port Sdn Bhd

Sykt. Perkhidmatan Pelabuhan Gabungan Sdn Bhd

Westport Malaysia



ALAM – Akademi Laut Malaysia (Maritime Academy of Malaysia) located in Malacca, is the major training provider for seafarers in Malaysia. The Academy offers a wide range of maritime related courses in compliance with the STCW95 convention as well as courses in shipping business and management. The Academy is recording all-time high student enrolments and plans to build/acquire new training facilities and equipment such as a ship-handling simulator. The Academy is concluding an agreement to embark on a degree program with UTM in Marine Engineering.

The Star Cruises Ship Simulator Centre (SCSS) at the Star Cruises’ headquarters in Port Klang, provides training to sea-going personnel of the Star Cruises’ fleet. Around half the operational capacity is available to other regional fleet operators and research institutes. SCSS is managed and operated by the Danish Maritime Institute (DMI) and offers the same courses and ship models that can be provided at DMI in Lynby/Copenhagen. The full mission simulator at SCSS can also be used for port and ship design studies.

Other maritime training providers in Malaysia include the Politeknik Ungku Omar that offers a 4 year full time Marine Engineering Diploma with SES facilities available for the students.

Stakeholder Analysis

Key stakeholders in this SAMUDERA project include Government of Malaysia, Royal Malaysian Navy and all local marine academies and industries in Malaysia.

STAKEHOLDER The Malaysian Government

The Eighth Malaysian Plan and OPP 3 perceive the private sector in general, and individual industry leaders in particular, as playing a key role in the human resource development required to meet the long-term objectives of the plan.

The Government has identified and clearly articulated the national demand for engineers and engineering assistants and fully supports the private sector’s participation in meeting the needs of an economy more focussed on capital intensity.

Bumiputera companies are actively encouraged to establish strategic partnerships with foreign industry counterparts to facilitate the transfer of technology. The Government has also established guidelines and off-set incentives in support of such knowledge transfers in key industries, complemented by designated contracts and related business development activities.

The Malaysian government clearly wishes to position itself as a regional and international leader in key industries by 2020 and is effectively supporting the private sector in the realisation of those goals.

This is an attractive and supportive context in which both SAMUDERA

and other local marine academies can achieve their respective strategic goals within the broad marine environment.

Education and Industrial Context

During the last five years, the Malaysian Government has actively pursued a policy which focuses on the strategic development of tertiary education in support of national planning goals, and the greater involvement of the private sector in that provision. This initiative reflects the general movement in the Malaysian economy towards capital intensive development and knowledge-based workers, and the broad acceptance of the notion of lifelong learning.

Globalisation of the world economy is promoting the need to secure a distinct competitive edge and the Malaysian Government recognises the need to invest in education as the means of ensuring the country’s ability to respond to the challenges and demands of a highly competitive global market.

These developments have occurred in a general environment of diminishing popularity of offshore tertiary twinning programs, a broad move to corporatise universities and reduce their dependence on public sector funding, and the increasing participation of private education institutions in the identification and delivery of programs to meet specific industry needs.

The key issues these institutions are dealing with revolve around the development of sophisticated technical skills, which require English language and IT competencies. This emphasis, while meeting local industry needs, also makes the programs potentially attractive to international students within the region, particularly from Indonesia and China.

There is a significant opportunity for the local marine industries, through SAMUDERA, to capitalise on these trends and evolve a model for academic development that not only delivers the graduates required by the marine industry but also takes a leadership role in strategically positioning the industry both locally and internationally.

STAKEHOLDER Royal Malaysian Navy

The Royal Malaysian Navy (RMN) – like many other navies around the world – is in the process of privatising many of its support activities.

As this privatisation agenda is progressed the RMN has an on-going and vital need to maintain the quality and standards of its training, not only for existing equipments but also for new equipments as it is procured. At the same time the RMN clearly seeks better value for its training investment than it used to achieve in its own right.

To achieve the two aims of value for its training investment and maintenance of training standards, the RMN requires a training provider (or providers) who not only understand its special niche needs, but who can demonstrate an obvious ability to immediately meet many of them.

One other particular need, from the RMN’s viewpoint, is that the training services it requires will be delivered at/in/closely adjacent to its major base at Lumut. This, of course, not only minimises trainee travel costs, but also minimises the time trainees are unavailable “doing a training course”. Clearly, with its present location in Lumut Naval Base, PSC MTA has a major advantage over many of its rivals (the other marine academies) in this regard for spearheading the SAMUDERA concept.

The shift to outsourcing core functions such as training will require a cultural change in the way the RMN sees its operations. There is a natural disposition to resist such fundamental organisational change and this may manifest itself in a reluctance to deal with private companies. As the privatisation of services to the RMN increases two consequences are likely. Firstly, the RMN will slowly develop a group or range of “preferred suppliers” and secondly there are likely to be ongoing pressures, especially from the treasury and other government departments, for the RMN to achieve more with less money. While it would be advantageous for PSC MTA to be a “preferred supplier” for spearheading the training services through SAMUDERA concept, care needs to be taken that PSC MTA does not lock itself so firmly to the RMN that it is vulnerable to the vagaries of the Naval Budgeting Process.









MARINE ASSOCIATIONS



•Malaysia Shipowners Association (MASA)



•Association of Freight Forwarders Port Klang



•Maritime Institute of Malaysia



•Association of Marine Industries of Malaysia (AMIM)



STAKEHOLDER THE MARINE and/or MARITIME INDUSTRIES IN MALAYSIA

There is a critical issue of what “value” should be placed on SAMUDERA by the marine industries. If the marine industries adopt a economic rationalist approach to measuring the worth of SAMUDERA then a clear bottom line and a time limit must be set. Marine industries will have to invest and nurture SAMUDERA in the medium term to gain a return on its investment. However if the value is seen beyond the “bottom line” then the other marine academies must send a clear message to all internal stakeholders and particularly SAMUDERA proposed management staff how they will demonstrate that value and how it will be reported to the management lines. This paper noted that there is a clear difference in perception between the marine education industries on this issue.







MISC

(A Subsidiary of PETRONAS)



•Leading national shipping line of Malaysia

•It is listed on the Main Board of the Kuala Lumpur Stock Exchange with the largest shareholder being Petroliam Nasional Berhad (PETRONAS), the national oil conglomerate of Malaysia with 62.08 % equity. The principal business of the Corporation consist of ship-operating and other activities related to shipping.

•With a modern and well-diversified fleet of 124 vessels and a combined tonnage of more than 4.6 million DWT, MISC provides reliable, efficient and competitive shipping services both locally and internationally. Its vessels are manned by experienced shipping professionals using the latest information and logistics systems.





As a large multi-national enterprise, there is a clear need for the marine industries to continually develop its staff to meet the new challenges of business in the globalised age. SAMUDERA can be key component of the marine industries’ HRD strategy by coordinating the training for special projects e.g. PV, STC, Submarine Traning and Maintenance, etc. SAMUDERA can also arrange accreditation for on-site training where appropriate and validate all training.

The SAMUDERA concept is particularly well placed in the marine industries to benefit from such strategic alliances through offering training on-site to dockyards’ staff and sub-contractors. SAMUDERA may also assist in developing an R&D capacity. However, each marine academy’s work in SAMUDERA should not interfere with core activities and certainly not become a drain on resources and personnel of each academy.

The Role of Stakeholders for “SAMUDERA”

•To embrace a wider and deeper understanding of the unique character and multiplicity of factors affecting the human resources development in the maritime and defense technology industries.

•To mobilize and make accessible academic resources relating to marine engineering and and defense technology.

•To invest intellectually and financially in the development and transfer of marine engineering and defense technology.







Market Assessment of SAMUDERA

SWOT Analysis

Strengths

• • • Has the backing of the dominant players in Malaysia’s Marine Engineering Industry.

• • • SAMUDERA can draw on a pool of experienced staff from the existing main academies and industries.

• • • SAMUDERA has functional facilities at various shipyards close to key clients.

• • • SAMUDERA has training contracts in hand with the marine industries such as PSC’s PV project.

• • • Is well placed to exploit the marine related Defence training niche.

• • • Is part of a larger corporate group requiring identified HR development initiatives.

Weaknesses

• • • Lack of a shared understanding of the strategic planning process and imperatives in relation to SAMUDERA.

• • • SAMUDERA currently lacks academic leadership to optimise opportunities, position the academy internally and externally as well as drive program development for the Country and the region.

• • • There is confusion of the role and operating model for the existing marine academies in marine industries or in the Country.

• • • There is a lack of clear policy guidelines as to how the proposed SAMUDERA operates within the local marine training industries.

• • • The current financial projection for future marine education business appears optimistic and in some cases unrealistic. There is no clear identification of the source of establishment capital.

• • • Private education institutions have rarely delivered high-end technical education on a profitable basis.

• • • The temptation to rely on the local marine industries and RMN as the dominant clients within the defence niche.

Opportunities

• • • SAMUDERA is in an excellent position, both strategically and physically to win future RMN and other marine authorities (local and overseas contracts).

• • • If properly utilised, SAMUDERA can contribute to the strategic HRD of the local marine industries.

• • • SAMUDERA may be able to assist the local marine industries to develop a cost-effective R&D capability.

• • • SAMUDERA may be able to build on its close working relationship with other foreign training providers to establish “branch campuses” and other partnerships.

• • • SAMUDERA may be able to attract students from other countries in the region due to quality problems faced by many maritime training schools in Philippines, Bangladesh and India.

• • • Due to high cost of a student going to university in UK, USA or Canada, SAMUDERA may be able to offer an effective alternative.



Threats

• • • MARA plans to establish a Maritime Training College called MIMET (Mara Institute for Marine Engineering and Technology) in Lumut that will offer Certificates to Bachelor programs.

• • • Politeknik Ungku Omar in IPOH that already provides quality Vocational training in Marine Engineering.

• • • ALAM has the capacity to do STCW to Bachelor level and has functional simulator training.

• • • The Danish Maritime Institute (DMI) operates a full mission simulator at the Star Cruises Ship Simulator Centre (SCSS) which has spare capacity.



Market Segments

Market Segment – PV Training

This is a “captured market” and has provided the major impetus for the establishment of SAMUDERA. The RMN training for this project is very complex and would challenge the capacity of any training consultant. It will require a large start up and ongoing investment to establish a capability. It is a high profile project and will establish or destroy the credibility of PSC-MTA as the organization that is responsible to spearhead the RMN Training for PV Project. The engagement of consultants in the initial phases to assist PSC to develop its capacity to deliver this project would seem to be a sound management decision especially in ensuring the transfer of technology and acquiring the intellectual property rights to create spin-offs in the country and region.

Once the initial courses have been developed SAMUDERA will have a major asset of intellectual property which can be used to service the RMN crew training for new vessels and also ongoing training for replacement crews.

The industrial training of PSC ND workers in Hamburg and the assessment of transfer of technology are related issues that require immediate attention by senior management. SAMUDERA has a clear potential role to coordinate, monitor and evaluate the training/offset component of the project. The training resources associated with the hundreds of

OEM components have to be catalogued and held in a library or resource centre managed by PSC MTA as the focal point of reference for SAMUDERA.



The well designed training materials, while well designed, must clearly articulated contingency planning in relation to job roles and functional tasks.

Although there is a stated intention to build 27 patrol vessels in RMN planning, this may not be a reliable assumption and based on the current supply rate of skilled manpower in marine disciplines, it is not feasible unless the concept of SAMUDERA is established.



Market Segment –

Simulator Training

The proposed equipment for SHS is at the high end of specifications and is more than adequate for training to international standards. The proposed facilities are a significant investment and will be a major asset. However the capacity to provide a return on this capital investment will require a long term view of at least 20 years by which time the equipment would be obsolete. Using a basic cost model to assess income based on course numbers indicates that the STC project will record a loss if the market is not aggressively opened to national and regional demands.

In addition to the actual hardware/software the STC will also require curriculum development, qualified instructors and approval from the Malaysian regulatory authority. Even then, the simulation training will only provide part of the total training required by seafarers to obtain certificates of competency.

Demand for simulator training is critical but uncertain in terms of profitability. SCSS (Port Klang) has similar capability to provide courses to merchant seamen and ALAM are already offering SHS training to STCW 95 accreditation.

If we understand the facts to be correct then PSC MTA or any other marine academies may be duplicating the RMN STC facility or it is possible that another group could take over the RMN STC and set up in competition to PSC MTA or other existing STCs at other marine academies.

Market Segment – Academic

The academic sector is complex and competitive in Malaysia and the market has a range of both local and foreign/twinned institutions. The examples of industry based universities such as Petronas, Telecom and Tenaga are relevant to PSC MTA or other marine academies but the size and profile of the sponsoring industries are much larger than the Maritime sector.

The establishment of SAMUDERA and other marine academies as a fully-fledged Academic institutions would bring profile and credibility to the respective marine industries’ sector and may be used to foster R&D links. However actual student numbers are very thin in Degree strands and relatively low margin in vocational strands. There are established providers such as UTM, Politeknik Ungku Omar and ALAM. It was confirmed in discussion with UTM that they had not been able to meet their student enrolment target of 60 students per year for some years despite offering subsidised tuition fees and having excellent laboratory facilities. It was also inferred in discussions with some relevant authorities that a few local marine academies were having some financial difficulties.

The issue of low student numbers in Marine Engineering is not confined to Malaysia; established institutions such as the University of New South Wales, the Australian Maritime College and UK based colleges have all struggled to maintain sustainable enrolments in Naval Architecture and Marine Engineering.

Another major concern is the intention of MARA to build a new Maritime College in Lumut called MIMET (MARA Institute for Marine and Engineering Technology). MARA will offer Vocational and Degree programs that will duplicate a major part of the academic program of a marine academy such as PSC MTA. This will also effect Politeknik Ungku Omar with the potential to crowd the market and make all three of the institution’s academic programs unsustainable.

Education institutions are resource intensive and rarely profitable for engineering based courses which is why these types of courses are most often provided by public institutions. They require significant investment in information systems to manage student records, reporting and timetabling as well as auxiliary services such as counselling, housing, canteen and social programs. In addition a marine academy will require staff with the basic skills of educationalists in course design, and matching market needs to program development.

The aesthetics of a campus are also important factors in determining the overall image of an institution and attracting students. The current PSC MTA buildings at Lumut, while appropriate and functional, lack the showpiece facilities that one would normally associate with a university and assist in cultivating an academic image for the student market. This factor needs to be taken into account in PSC MTA’s future marketing plan. However, the yard is still seen as the best campus for the in-situ training and education programs.

The academic model for R&D would be difficult to implement without the full formal university structure. For this purpose, SAMUDERA may want to consider “piggy-riding” MIMET who has been awarded a University status under the consortium of vocational and technical institutes under MARA. University based research is normally conducted using full time PhD students under the supervision of senior academics who also have a teach undergraduates to provide a reliable income stream. The research reputation of senior academics is a major factor in attracting research students. It would take some time to develop such a core of academic staff and often universities employ expatriate academics to mentor local staff during the development phase. One way to develop R&D is through complementary strategic partnerships or alliances with UTM and other local academic groups or alternative formation of SAMUDERA.

The are opportunities in post graduate niches related to defence engineering, logistics and project management for middle and senior level managers. It is conceivable that SAMUDERA could offer a post graduate course targeted to the Marine Defence and Engineering Industries. In the short term SAMUDERA could work with another accredited university (local or foreign) to test the market and share the risk for these courses. This model is similar to the Business Advance Technology Centre at UTM or the Penang Skills Development Centre, which have achieved some level of success.

There was some discussion regarding a long term goal of some marine academies to merge with or takeover some of the other marine educational providers. This issue needs serious study and further examination. Our findings so far indicate that the three existing institutions UTM, ALAM and Ungku Omar Polytechnic are all well established with purpose built facilities suited to their course offerings. Even if these institutions were brought together under one banner it is difficult to see a them coming together on a single campus location. Therefore the concept of a “Super Maritime College” under the name of SAMUDERA assumes a multi-campus institution with all the associated problems pertaining to that model. This issue needs serious consideration and should also address the plans of MARA to open a campus in Lumut.

Market Segment – General Naval

The Lumut location of PSC-MTA is obviously a major competitive advantage as “campus in the yard” and making this an area of major opportunity, which combined with the PV project, is the most immediate and relevant sector to develop in the short term.

The number of ex-RMN personnel who are now staff at PSC means that there is a core of potential trainers who have intimate knowledge and experience of RMN technical systems and training culture.

Utilising this group, PSC MTA is in a position to know the training needs of RMN and can plan for future needs based on the PV project. It was evident that much effort has been put in to developing close client relationships with RMN counterparts and this should be continued with close monitoring of relationships and heirarchies within the units responsible for training. For example the Weapons and Communications Divisions of PSC should establish and nurture relationships with their RMN counterparts. PSC MTA can position itself to undertake a calendar of regular courses as well as respond flexibly to ad hoc requests and be seen as the natural “provider of solutions” to specific RMN technical training needs. A long term goal should be to secure a “Managing Contractor” status to manage all outsourced RMN training and subcontract to third parties where necessary.

The constraints to this sector are the limitations that may be posed by the RMN training budget and an ad hoc implementation process ( short lead times etc) In addition, in order to service RMN training PSC MTA may have to tie technology and practice to RMN systems which may involve capital expenditures that are uneconomic.



Market Segment - Skills Development Programs for PSCI

PSC MTA is potentially an excellent resource for the strategic HRD of PSCI and the whole BFG Group. This paper identified a prime need in PSCI as an organisation that has grown quickly, for strategic planning skills.

The UTM S.P.A.C.E. Bachelor Degree program currently being undertaken by 30 odd workers at PSC ND is an excellent example of how PSC MTA can facilitate initiatives in HRD. When surveyed, the individual workers commented that without this type of assistance they would not have been able to undertake further study and were very grateful for the opportunity. The study and project work they undertake in the program will be customised to PSC ND needs and those that complete the program will have demonstrated the commitment and maturity required for promotion.

Professional development has traditionally been a responsibility of Human Resource Departments. However it must sit alongside the many other priorities that are evident in managing a large workforce such as exists at PSC ND. To develop and implement innovative training programs require people who understand education and training and can develop programs to meet identified needs. This type of skill set should be central to PSC MTA while it is only one aspect of a HR department. However PSC MTA may be more qualified to manage this part of the HRM portfolio and develop new and more innovative programs which could potentially be on-sold to third parties within the marine industry.

The availability of GoM funds and grants to underpin the training and offset costs up to 100% provides a major incentive to develop programs for this segment.

At the moment PSC MTA is the most “fertile” ground to develop SAMUDERA conceptual initiatives as PSC has a visible profile and seem to have quickly developed a close working relationship with the other marine industrial sector through AMIM. Developing SAMUDERA in other parts of the marine industry will be a far greater challenge and rely on developing close communication with marine academies at the other locations within the country.



The Model and the Priorities -

Operating Model

SAMUDERA should operate as a stand-alone organization or institution with an Academic Advisory Board (AAB). It should have a clear leadership position in the form of an Academic Director who will oversee the development of SAMUDERA. This position is critical, as SAMUDERA will require a “champion” with enough status to promote SAMUDERA within the marine industries and in the open market. The marine industries major players and their stakeholders must give a clear delegation to the appointed Academic Director of SAMUDERA to take the initiative without interference from other unrelated authorities or having to seek constant clarification regarding new opportunities.

Academic Advisory Board

The Academic Advisory Board should be marine industry focussed and have representation from the RMN, GoM, the local marine industries and the Malaysian Maritime Engineering Industry. The primary focus of the AAB is to ensure that SAMUDERA’s programs are tailored to meet the real needs of marine industry and thus Malaysia’s economic development. Its composition should be small and it must be accountable for validating the training programs offered by SAMUDERA. The management of the AAB must ensure its members engage with the detail of how SAMUDERA develops and use their respective positions to support the academic development of SAMUDERA. The lessons learned from similar boards indicate that they must meet regularly and the members must be chosen on their ability to produce results rather than a perceived status in the industry.

Staffing

This proposed paper recommends a staffing schedule that is not dissimilar to the current staffing levels of the existing local marine academies. At the core of SAMUDERA organizational structure is a small administrative team led by a Registrar appointed by AAB. In the initial stages this team will not be working at full capacity but can utilise this time to put the student administration and accounting systems in place to precede the expected rise in training activity and the move to a separate corporate organization or company status.

Management lines

The management educational team will be structured around the markets that SAMUDERA will try and develop business. Each “Training Manager” from the respective marine academies should be delegated a single portfolio to work on and report to the appointed Academic Director on educational matters and work in consultation with the Registrar for the administrative aspects implementation of training programs.

Financial administration

To actually function as stand-alone company, SAMUDERA must further develop its management systems. SAMUDERA must develop the fundamentals of its cost-benefit models to establish the baseline costs and benefits for its training services. A consistent cost model and proper reporting of expenditure will enable SAMUDERA to evaluate its own capacity to profit from the various activities under consideration. Expenditure and income should be tracked and reported by portfolio. This will enable SAMUDERA to measure the profitably of distinct activities and assess new opportunities based on this information.

Internal policy

How SAMUDERA operates within the marine industries must be clarified. This relates to the services it currently draws gratis from the marine industries and the training services that SAMUDERA will subsequently offer to internal clients. The internal policy regarding these arrangements within the related industries must be agreed and documented in a directive from the Board of Management. The process of reaching this consensus is important and this proposed paper supports the current proposal to hold an intensive strategic workshop program to ensure all parties are consulted. At this stage this paper recommends that the local marine industries’ entities should be encouraged to draw on SAMUDERA for their marine training, development and education so that SAMUDERA can have an opportunity to demonstrate how it can value the “right of first refusal” policy to manage training initiatives within the group that may assist this process.



Steps to ensure an Academy Culture of “SAMUDERA” to be characterized by:

•Highly visible institutionalized and programmatic approaches to outreach and service.

•Persons and academic departments within the Academy that have a flexible view of knowledge and acknowledge the variable sources of relevant expertise inside and outside the Academy who are involved in these initiatives.

•A desire to learn from non-academic sources as well as teach them.

•A genuine commitment to collaboration expressed through broadly representative founding boards and governing committees who set program priorities and formats and identify appropriate sources of expertise.

•A commitment to social dynamics characterized by exchanges, interaction and networking and thus an acknowledgement that programs must support informal as well as formal activities and a belief that a community needs to be developed.





Priorities

Short term

• • • Put key staff, systems and policies in place with a view to separating from the existing local marine academies and becoming a separate organization within twelve months. This includes development of a costing model for training and an accounting system to record and acquit projects plus other activities.

• • • Conduct a strategic workshop among the marine industries stakeholders to reach consensus on the internal operating model.

• • • Each training manager from the respective marine academies to conduct a full Training Needs Analysis of their respective market segments and report a conservative projection of student numbers and potential income. A plan for the RMN market and other marine industries’ segment should be a priority.

• • • Scope the internal and external training requirements regarding the multi-billion ringgit PV project and articulate a comprehensive plan to meet these needs within the marine industries. This includes:

• • • Dockyard industrial training for PV project stakeholders.

• • • Developing a monitoring and evaluation framework for successful activities under transfer of technology (TOT) training.

• • • Developing a library /resource management capacity to capture all intellectual property pertaining to PV, OEMs and RMN training





Medium Term

• • • Appoint the SAMUDERA Academic Director (Champion) from the existing marine academies fraternity and form the Academic Advisory Board (AAB).

• • • Complete the Strategic Planning process.

• • • Develop a marketing plan for all SAMUDERA services and set achievable targets - Navy needs assessment, other possible clients, explore partnerships - industry, port authorities, GoM entities

• • • Complete administrative systems to become a stand-alone functional organization within the marine training and education industries.

• • • Offer a limited academic and professional program with another tertiary provider based on a small initial intake of students.

• • • Commission and set the work for the STC on joint-venture approach with the other marine academies or authorities.

• • • Commission a library and management information system.

• • • Investigate the feasibility of offering post graduate level courses.

Long Term

• • • Assist the marine industries to establish a Center of Excellence for marine R&D in at least one aspect of SAMUDERA’s activities.

• • • Have Monitoring & Evaluation frameworks in place for all ToT aspects of training components of SAMUDERA projects.

• • • Offer formal full-time Diploma, Bachelor and Master programs in partnership with another institutions.



Academic Linkages

At SAMUDERA’s current conceptual stage of development it is not feasible to suggest or detail specific linkages for academic courses and programs. However in broad terms this paper would recommend SAMUDERA concentrating on Marine Engineering rather than Maritime Operations as the primary niche area for academic programs.

The PV project has the most potential for spin-offs to the academic market through the development of resource persons, intellectual property and course material associated with the OEM industrial training. There will be a direct need for Malaysian based training to support the manufacturing and maintenance of the components for the project. The proposed courses that SAMUDERA develops (and has exclusive rights to) could be embedded in a more engineering or manufacturing qualification as electives and project work. The courses can then directly match industry needs and lead to direct employment.

By working in partnership with local marine academies and training providers, SAMUDERA may avoid duplicating the basic training that students normally are required to undertake in the first three years of a course. SAMUDERA can offer sandwich and “add on“ programs in the latter stages of a course. The entry should be made as open as possible to ensure a wide base to draw students from within the Country or the Region. The final qualification would have dual or even triple accreditation from the local provider, SAMUDERA and the offshore OEMs.

A ship is a self-contained entity - it must operate for extended periods in a very hostile environment (storm tossed seas, submerged, corrosion).

• A ship has a human crew, it is self-propelled, and carries those systems {electrical generation and distribution, water and sewage, HVAC, habitability (staterooms, galley, heads, etc.), cargo handling, weapons, propulsion, maneuvering, and many others} which are essential to economically and effectively accomplish its mission or missions.

• A ship can have a very long service life.

• A ship has to be able to protect itself (navigational aids, mobility, maneuverability, weapons systems) and, if necessary, to absorb punishment (watertight subdivision, double hulls, pumps, and fire fighting).

• A ship is very complex . To design a ship is an extremely challenging but immensely interesting task. An undergraduate education in naval architecture will provide you the tools to begin to pursue this engineering challenge.

Example 1 – Diploma – 4 years

Polytechnic Program

• • • Year 1 – Foundation skills in physics, chemistry, mathematics, technical drawing and English language

• • • Year 2 – Foundation skills in mechanical engineering, thermodynamics, materials science etc

• • • Year 3 – Marine engineering subjects, naval architecture, propulsion and fire control systems etc

PSC MTA program

• • • Year 4 – applied subjects, calibration of artillery platforms (Bofors), ship class (corvette) cyclical maintenance, industry training practical module



Example 2 – Bachelor – 5 years

University Program

• • • Year 1 – Foundation skills in physics, chemistry, mathematics, technical drawing and English language

• • • Year 2 – Foundation skills in mechanical engineering, thermodynamics, materials science and English for academic study etc

• • • Year 3 – Marine engineering subjects, naval architecture, propulsion and fire control systems etc

• • • PSC MTA program

• • • Year 4 – applied subjects, sheet metal fabrication techniques, structural testing, harmonics, ship class cyclical maintenance

• • • Year 5 – major project – advanced manufacturing project management, industry training project module



Example 3 - Masters in Marine Technology (2 years)

(To adapt the syllabus approved by UTM Senate)





Using this model the most obvious partners are local institutions such as ALAM, MIMET, UTM and Ungku Omar Polytechnic. They could provide a pipeline of students as well as lecturers and facilities.

Regional foreign educational partners such as the University of New South Wales and the Australian Maritime College may well provide articulation paths for students wishing to study further for an external post graduate qualification such as Master of Business Technology (UNSW) or Master of Business Administration – Maritime Management (AMC). Other regional poreign partners may provide customised short courses or extra resource persons to support the applied modules in the defence engineering courses. These new linkages will not come into play until well into the future and are beyond the feasible scope of this study.

“SAMUDERA” CHALLENGES



•How do we recruit new qualified faculty?

•How do we balance our time between managing a business and pursuing an academic excellence?

•How do we allocate the resources?

•How do we get the budget approved?

•How to assist the efforts in transferring of marine and defense technology with or without a view toward commercialization?





A Profile of the “SAMUDERA” Engineering Graduate of the 21st

Century…………

The emerging needs for Reorientation in Technical and Engineering Education in Malaysia:



–Good knowledge of broad technical fundamentals and engineering concepts of the chosen and related disciplines, as well as, knowledge in some depth in at least one technical specialty.

–Well developed learning skills.

–Good communication, interpersonal and teamwork skills.

–Ability to deal with open-ended multi-disciplinary problems.

–Understanding of the principles and responsibility of leadership.

–Exposure to the design and implementation requirements of integrated interdisciplinary projects.

–Basic knowledge of principles of management, economics, finance, business, sustainable development and environmental protection.

–Knowledge of the basic principles of project, human resource and time management.

–Understanding of the requirement to maintain continued competence and to keep abreast of up-to-date tools, techniques and practices.

–Exposure to concepts of ethical practice, responsibility as related to the practice of engineering.

–Exposure to issues of social and environmental responsibility as related to the practice of engineering.

–Exposure to the concepts of change management.

–Exposure to the issues of cultural and business practice differences and their impacts on professional engineering practices.



Conclusion

“SAMUDERA” being a proposed Technical and Engineering Marine Institution of Higher Learning shall have an increasingly significant role to play in national and regional economic development if it does three things:

•Embrace a wider and deeper understanding of the unique character and multiplicity of factors affecting economic development in a knowledge society in marine industry.

•See their role in society as mobilizing and making accessible campus wide academic resources – from the sciences to the humanities – relevant to the knowledge problems confronting advanced economies like Malaysia.

•Invest politically and financially in the development of marine institutional mechanisms whose central role is to facilitate, act as a broker, and develop knowledge across the internal boundaries of academic disciplines and across the boundaries currently separating the highly valuable traditional research and teaching programs from the concerns and challenges confronting practitioners and decision makers in the larger society.



THE END.