2019 Joint International Conference UiTM-SSRU

E-PROCEEDING
2019 JOINT INTERNATIONAL CONFERENCE UiTM- SSR UNIVERSITY

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EDITORIAL

Conference Committee

Patron
Associate Professor Dr Shaiful Annuar Khalid

Advisor
Associate Professor Dr Roshima Hj Said
Assoc. Prof. Dr. Luedech Girdwichai

Chair
Associate Professor Dr Mohd Rizaimy Shaharudin
Associate Professor Dr Nik Ramli Nik Abdul Rashid
Wing Commander Asst. Prof. Dr.Kiatkulchai
Asst. Prof. Dr Preecha Wararatchai

Co-Chair
Associate Professor Dr. Noor Zahirah Mohd Sidek

Conference Committees
Dr Azlyn Ahmad Zawawi
Nurul Mazrah Manshor
Farah Merican Isahak Merican
Roshidah Safeei
Puan Phaveena Primsuwan
Puan Junaida Ismail
Puan Etty Harniza Harun
Puan Musdiana Mohamad Salleh
Cik Leily Adja Radjeman
Dr Wan Nailah Abdullah
Asst. Prof. Dr Komson Sommanawat
Dr. Chattrarat Hotrawaisaya
Dr. Chanicha Moryadee
Asst. Prof. Dr. Bandit Pangnirand
Asst. Prof. Poramet Saengon
Asst. Prof. Dr. Cholpassorn Sitthiwarongchai
Dr. Sirinya Siriyanun
Dr. John S.F. Smith

Abstract Reviewers
Associate Professor Dr Mohd Rizaimy Shaharudin
Farah Merican Isahak Merican

Editing & Formatting
Farah Merican Isahak Merican

Designer
Nurul Atikah Adnan

eISBN:

Printed by: Perpustakaan Sultan Badlishah
Universiti Teknologi MARA (UiTM) Cawangan Kedah

2019 JOINT INTERNATIONAL CONFERENCE UITM- SSR UNIVERSITY

TABLE OF CONTENT

ACADEMIC LIBRARIES: SERVICE PERFORMANCE MODEL AT RESEARCH UNIVERSITY 1
(RUs) IN MALAYSIA
Aishah Musa, Junaida Ismail, Etty Harniza Harun, Sharunizam Shaari, & Mahadir Ladisma@Awis

MIGRANT WORKERS IN THE SPECIAL ECONOMIC ZONE TOWARDS ECONOMIC AND 3
ENVIRONMENTAL IMPACT USING ECONOMETRIC MODELLING

Azyyati binti Anuar, Nur Fakhzan binti Marwan, Sirinya Siriyanun, & John S.F. Smith

UNDERSTANDING THE SIGNIFICANCE ROLES OF ALTRUISM AND SOCIODEMOGRAPHIC 5
FACTORS ON VOLUNTEERING COMMITMENT

Mohd Nazir Rabun & Makmor Tumin

DIVERSITY OF BOARD OF DIRECTORS AND ENVIRONMENTAL SOCIAL GOVERNANCE: 8
EVIDENCE FROM MALAYSIAN LISTED COMPANIES

Roshidah Safeei, Salina Mad, Muhamad Ashaari Sukar, Syed Khusairi Tuan Azam, & Muhammad
Iqbal Mohamed Azhari

DETERMINANTS OF HALAL FOOD PURCHASE INTENTION: APPLYING THE THEORY OF 11
PLANNED BEHAVIOR(TPB) IN PREDICTING HALAL FOOD CONSUMPTION AMONG
MILLENNIAL GENERATION IN MALAYSIA

Musdiana Mohamad Salleh, Etty Harniza Harun & Siti Meriam Ali

COLLABORATIVE PLANNING FORECASTING AND REPLENISHMENT IN ORCHID SUPPLY 15
CHAIN

Chattrarat Hotrawaisaya, Supamit Srisawat, Mohd Rizaimy Shaharudin, & Nik Ramli Nik Abdul
Rashid

THE CONCEPT OF CIRCULAR SUPPLY CHAIN MANAGEMENT (CSCM) 17

Mohd Rizaimy Shaharudin, Siti Fairuza Hassam, Nur Diyana Nazihah Zainal, Ahmad Rais
Mohamad Mokhtar, Preecha Wararatchai, Wissawa Aunyawong, & Suwat Nuanklao

DETERMINANTS OF CONSUMERS’ PURCHASING INTENTION FOR NAKHOM PATHOM 19
COMMUNITY PRODUCTS
Nur Zainie Abd Hamid & Mohamed Samsudeen Sajahan

NAKHON PATHOM COMMUNITY DEVELOPMENT STRATEGIES: IMPLICATION ON BUILDING 22
COMMUNITY CAPABILITY FOR PRODUCT DEVELOPMENT AMONG SMALL AND MICRO
COMMUNITY ENTERPRISE

Mohamed Samsudeen Sajahan & Nur Zainie Abd Hamid

THE COMMUNITY CAPABILITY IN PRODUCT DEVELOPMENT FOR THE EXPORT OF 30
NAKHON PATHOM PROVINCE TO MALAYSIA

Hathaipun Soonthornpipit, Chattrarat Hotrawaisaya, Salisa Hemapan, & Peeranthon Saensook

ANALYZING THE COALITION FACTOR AMONG ACTORS IN NWRP FORMULATION ROCESS 32
Junaida Ismail & Siti Zuliha Razali

INLAND CROSS BORDER TRADE & LOGISTICS 35
Noor Zahirah Mohd Sidek

SUPPLY CHAIN MANAGEMENT SUSTAINABILITY INDEX (SCMSI): A COMPARATIVE STUDY 37
BETWEEN MALAYSIAN AND THAILAND COMPANIES

Roshima Said, Corina Joseph, Mariam Rahmat, Wan Nailah Abdullah, Leily Adja Radjeman, &
Phuttiwat Chattrarat

ACADEMIC LIBRARIES: SERVICE PERFORMANCE MODEL AT
RESEARCH UNIVERSITY (RUs) IN MALAYSIA

Aishah Musa1, Junaida Ismail2, Etty Harniza Harun3, Sharunizam Shaari4, Mahadir
Ladisma@Awis5

Universiti Teknologi MARA, Malaysia

[email protected]

INTRODUCTION

There are four (4) research universities in Malaysia namely, Universiti Sains Malaysia (USM),
Universiti Putra Malaysia (UPM), Universiti Malaya (UM) and Universiti Kebangsaan Malaysia
(UKM). As part of the entity of a Research University the academic library should play an utmost
role to achieve the goals in providing and sharing the up-to-date knowledge to the community of the
Research University. An academic library should play the greatest role and performs its task as the
centre of knowledge and parallel its performance with the research university status. With that it can
encourage the researchers in the world wide to come and get the services from the academic
libraries at the RUs.

The performance of an academic library can be measured based on several elements i.e. the
number of books on the shelf, the treatment given by their staff, the library collection is up-to-date,
accurate information that can be shared by their staff, accessibility to internet access, or access to
an online database. Previous researches exposed that the performance and worth of an academic
library in meeting the user’s needs were conventionally measured using several instruments like the
size of collection, budget, expenditure and staff (Nitecki & Franklin, 1999). According to Kasmarini
Baharuddin (2015), the basic idea for the academic library is it should have an organised collection
of books and other materials used to study, journal collections to help in doing a research and a
recreation place in a building that houses such a collection. The main purpose of having a library is
to provide information to its users (Rowley, 1996). Besides that, satisfying users’ needs in academic
libraries has been the primary objective of the libraries and librarians (Norliya, 2009).

PURPOSE/AIM & BACKGROUND

This study is conducted to examine the service quality performance of the academic library at the
four (4) research universities using five (5) dimensions of SERVQUAL such as the library as a place,
its collection, its access to information, reliability and empathy. The purpose of this study is to
examine the relationship between the SERVQUAL dimensions and the performance of academic
library at RUs in Malaysia.

METHODOLOGY

This research was conducted in four (4) Research Universities (UM, UKM, USM & UPM) and using
stratified random sampling, 385 library users of the academic library at the four (4) research
universities in Malaysia were involved in this study. Out of 385 respondents chosen, only 246
completed and returned the questionnaires. The data used in this study are primary data where the
participants answered a series of questions regarding the data needed to describe research libraries
in today’s environment. The SERVQUAL instrument is the questionnaire that was distributed to the
four RUs in Malaysia. It consists of 48 of statements. In addition, a set of demographic questions are
included. Statistical analysis such as descriptive analysis, cross-tabulation and correlation are
applied in the analysis in order to test the hypotheses developed for the research.

FINDINGS/RESULTS

The five SERVQUAL dimensions (as the library as a place, its collection, its access to information,
reliability and empathy) used in this study showed the significant positive relationship with the
performance of academic library and these results are in line with the previous research done by
Collen & Fred (2001), Junaida, Aishah, Mahadir, & Sharunizam (2009), Tammasat (2000) & Asok
Kumar (2007).

CONCLUSION

It is hoped that by highlighting these five (5) dimensions the academic libraries in Malaysia are able
to maintain their performance and retain the users to come and visit the academic library anytime
and every day without any doubt. Besides that, the academic libraries at the RUs also are able to
maintain their performance in giving the best service as the centre of knowledge for the community
of Research Universities. The utmost thing that all academic libraries in Malaysia can learn from this
study is the academic libraries should be encouraged to adapt the five dimensions of SERVQUAL in
their daily services to enhance their performance, to gain loyalty of users and thus increase the
satisfactions of their users.

Keywords: Academic Library, Malaysia, Performance, Research University, SERVQUAL

E-PROCEEDING 2019 JOINT INTERNATIONAL CONFERENCE UiTM- SSR UNIVERSITY 2

MIGRANT WORKERS IN THE SPECIAL ECONOMIC ZONE TOWARDS
ECONOMIC AND ENVIRONMENTAL IMPACT USING ECONOMETRIC

MODELLING

Azyyati binti Anuar1, Nur Fakhzan binti Marwan2, Sirinya Siriyanun,3 John S.F. Smith4
Universiti Teknologi MARA Kedah1, 2

Suan Sunandha Rajabhat University3, 4
[email protected]

INTRODUCTION

The Thai government has prioritized the development of border areas connecting with neighboring
countries in the ASEAN region. Songkhla Province has been designated as one such area. This
means that Sadao, Hat Yai, and other cities in Songkhla Province have the potential to be
economically important places. Songkhla’s border crossings with Malaysia are particularly important
as they are the only border crossings in Thailand with cross-border railroad access. Because of this,
the Thai government has designated a Special Economic Zone (SEZ) as well as Malaysian
government is also planning the development of Malaysia’s first Special Border Economic Zone
(SBEZ), labelled the Kota Perdana SBEZ. Since Thailand and Malaysia have relatively similar
economies and levels of development, the conditions in all three of these locations namely Sadao,
Bukit Kayu Hitam and Padang Besar will likely be comparable. Therefore, the lessons from one may
be applied to the others.

PURPOSE/AIM & BACKGROUND

The study will focus on the migrant workers on the SEZ development towards sustainability which
include economic and environmental impacts. Hence, research objectives of this study are:

• To investigate problems of migrant workers in the Special Economic Zone.
• To investigate the impact of migrants on economic and environment elements
• To produce guidelines for solving migrant workers problems in the Special Economic Zone.

LITERATURE REVIEW

Migrant Labor
“Alien” in Thai law refers to an individual who does not hold Thai nationality. The Alien Labor Act of
1978 states that aliens may only work in Thailand, whether by force or knowledge and for
compensation or without wages, with the permission of the Director-General of the Department of
Labor or an officer entrusted by the Director-General.

Economic Impact

Many scholars have discussed the importance of economic impact in the following ways.

Wanthanee Bumiphatrakhom, Somyot Awakiet, and Thapthim Wongprayun (1995, 11-2) emphasize

the importance of analyzing economic impact at every step of the production process, from the

acquisition of raw materials to the creation and distribution of products. They divide economic

impacts into two categories that consıst of ımpacts at the mıcro-economıc and macro-ecoonmic

level.

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Environmental impact
Environmental impact analysis aims to produce recommendations for policies and measures that
can be used to reduce or prevent environmental impacts in order to minimize damage. Therefore,
the process of impact assessment and assessment of the environment helps in the formulation of
prevention and mitigation programs, as well as impact monitoring programs.

Special Economic Zone (SEZ)
Thailand introduced the policy of SEZ development in 2015, as an integral part of its expansive
economic plan to promote trade and investment opportunities in border areas – connecting each
zone with the respective bordering country in terms of trade, economy, and investment. Closeness
to border areas enables businesses to benefit from low-cost, low-skilled cross-border migrant
workers, as well as take advantage of the proximity to natural resources. In addition, investors and
businesses can take advantage of the existing supply chain and new transport infrastructure to gain
easy access to a growing market in Asia.

METHODOLOGY

The quantitative approach using secondary data will be conducted of this study. This phase will
employ econometric modelling to analyze the impacts of migrants in the SEZ towards:

Economic Impact

Depending on the data availability, the proposed model of economic impact that apply Solow

Growth Model is as follows:

GDPt = f (CAPITAL, LOCAL LABOUR, IMMIGRATIONt, UNEMPLOYMENTt) (1)

Environmental Impact

Depending on the data availability, the proposed model environmental impact is as follows:

CO2t = f (GDPt, GDP2t, IMMIGRATIONt, RENEWABLE ENERGYt, GOVPOLICYt) (1)

FINDINGS/RESULTS

The expected findings of this study, will identify the problems among migrant workers in the SEZ
and perhaps more important that this study will provide a conclusive result about the migrant
workers and sustainability impact in the SEZ. Finally, to produce guidelines for solving migrant
workers problems in the SEZ.

CONCLUSIONS

This research builds on the notion that evidence using economic modelling to analyse the data. The
researchers hope the findings of this study provides strong support for the theoretical expectations
outlined above, assuming that the migrant workers contributes a huge environmental and economic
impact towards SEZ.

Keywords: migrants workers, environmental impact, economic impact, Special Economic Zone, econometrıc
modellıng

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UNDERSTANDING THE SIGNIFICANCE ROLES OF ALTRUISM AND
SOCIODEMOGRAPHIC FACTORS ON VOLUNTEERING COMMITMENT

Mohd Nazir Rabun1, Makmor Tumin2
Universiti Teknologi MARA (UiTM), Malaysia1

Universiti Malaya, Malaysia2

INTRODUCTION

The growing awareness of volunteerism has made volunteerism as an issue on the global scale. In
relation to this, the essential role of volunteerism in the modern society has been the subject of
increased attention by many leaders. It was well captured in the first 1988 presidential debate when
President Bush of the United States of America stressed on the prevalence of the voluntary sector in
helping the government to solve many of its domestic problems such as poverty, school dropouts,
crime and substance abuse (Turiman Suandi, 1991).

Based on the report by Independent Sector (2001) as cited in Mardhiyyah Shari et al. (2013), the
volunteering activities carried out through non-profit organisations in the US have been estimated to
be equivalent to 9 million full time jobs. It is perceived that volunteering activities are crucial within
America. Moreover, volunteerism has been evident to be an integral part of the social and economic
landscape of Australia. It is reported by the Australian Bureau of Statistics [ABS], (2007) that
approximately 713 million hours were spent on volunteering annually. Mardhiyyah Shari et al. (2013)
also found that a survey in the UK suggested that volunteering was worth up to 40 billion pounds per
annum, making it the third largest contributor to the nation's Gross Domestic Product.

All those reported cases of volunteering work all over the world are overviewed and discussed to
provide a better prospect and a deeper understanding on how those developed countries view and
perceive volunteerism.

PURPOSE/AIM & BACKGROUND

The present study aims to explore the socio-demographic background of university students who
participate in volunteering activities, to examine the effect of altruism on the level of students'
commitment towards volunteerism and lastly to examine the differences in terms of students’
commitment towards volunteerism across their gender, education level & ethnicity.

While the ongoing Eleventh Malaysia Plan (2016- 2020) is designed to anchor growth on people in
2020 and the final leg before we enter the arena of developed nations, thus the volunteering
activities and associations are identified as one of the key agenda incorporated in the plans. It is
highlighted under the first and third thrusts on inclusivity and human capital respectively which give
special emphases on youth volunteerism by implementing National Youth Policy (Official Website of
Economic Planning Unit (EPU), 2017).

In that respect, the Malaysian government is committed in its plans to nurture the young generations
as the targeted group of population that could spearhead this volunteering work and play their parts
effectively. Despite all the government effort as outlined above, the younger generations are still not
aware of this spirit. This is supported by Mercy Malaysia president Datuk Dr Ahmad Faizal Perdaus
said the low level of volunteerism among Malaysians could be due to the lack of focus on

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community service among the young in schools (The Star Online, October 15, 2017).The university
students are not an exception. For example, Aisyah et al, (2013) claimed that lack of interest in
volunteerism among youth, such as making the Voluntary Youth Anti-Drug Programme to be a
success has always been a problem. The programme should arouse students at various levels
ranging from secondary schools to the tertiary level in Higher Educational Institutions (HEI),
somehow it is not. It is interesting to find that, based on a study by Kauthar Mohamad Kamaludin et
al., (2013), gender, marital status and education are among the demographic variables that have
been identified as indicators of an inclination towards volunteerism.

This study further supports the studies done by Zweigenhattm et al., (1996) and Lindenmeir (2008),
which found that women are more likely to engage in voluntary work and are more dependable
compared to their male counterparts. Previous studies have also reported that volunteering
generally increases with educational attainment whereby those with higher levels of formal
education are more likely to volunteer than others and may contribute more hours in volunteering
(Hall et al., 2009; Claxton-Oldfield et al., 2011; Wilson & Newman, 2011).

On the other hand, one’s level of education has been found to be among the most consistent
predictors for voluntary engagement (McPherson and Rotolo 1996). On the other hand, with regard
to ethnic groups, the influence of ethnic groups on volunteering and the pattern of association vary
from study to study. A review of the literature reveals a number of studies of whom volunteers, but
they present inconsistently, even contradictory findings. One most possibly explanation on this
matter is that the nature of the sample and the measure of volunteerism (Wilson, 2012).

Findings in the United States (data from the U.S. Current Population Survey) have shown that there
are strong differences in volunteering work by ethnicity (Bey, 2008). This is confirmed by findings
from his study that Whites are much more likely than African America who was inclined to volunteer,
whereas Asians and Hispanics consistently appear to have low rates of volunteering work. They
also appear to be much less actively engaged in their communities as compared to either Whites or
Blacks.

METHODOLOGY

A quantitative approach with a cross sectional study was employed among students in University of
Malaya. The analysis of data was based on 375 collected and usable questionnaires. The sampling
methods applied was purposive and convenience sampling whereby the sample was based on
current students of the University of Malaya and the researcher’s convenience as well as the
availability of the sample (Creswell, 2014).

Data were obtained by conducting a survey using a self-administered questionnaire.The
questionnaire used in this study was adapted with some modifications from questionnaire used by
Turiman Suandi (1991) in the Malaysian context and Clary et al. (1996).

FINDINGS/RESULTS

The findings obtained in this study demonstrated the wide-ranging characteristics of the majority of
the volunteers in the University of Malaya. The present results revealed that the influence of altruism
was found to be significant on the level of students’ volunteerism. The results also indicated that

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only gender of respondents was found to be significantly different in terms of their volunteering
commitment. However, it was also discovered that no differences in terms of ethnicity and education
level of the students level of commitment towards volunteerism.

CONCLUSIONS

To pave the way for a successful implementation of volunteering work, the university itself must set
up efforts to integrate their students into the communities that surround them. One example is the
growth in community service and service-learning programs. It is envisaged that, the government
must see that student volunteering is a core part of developing an engaged and civil society. Thus, it
is safe to say that volunteering plays a vital role for the development and wellbeing of a community.
Students should perceive volunteering work as a value added things such as skill development or a
way to “test new careers in their future undertakings.

Keywords: Commitment towards Volunteerism, Altruisms, University Students, Demographic

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DIVERSITY OF BOARD OF DIRECTORS AND ENVIRONMENTAL SOCIAL
GOVERNANCE: EVIDENCE FROM MALAYSIAN LISTED COMPANIES

Roshidah Safeei1, Salina Mad2, Muhamad Ashaari Sukar3, Syed Khusairi Tuan Azam4, Muhammad
Iqbal Mohamed Azhari5

Universiti Teknologi MARA, Malaysia

[email protected]

INTRODUCTION

In globally, there is increasing demand for non-financial accounting information need to be disclosed
to the stakeholders. The corporate social responsibility disclosure is a one initiative in encouraging
voluntary disclosure non-financial information. Meanwhile, recently environmental, social and
governance (ESG) was introduced in improving the voluntary disclosure the non-monetary
information to the stakeholders. The ESG has cover a broad area which can broke down into five
categories: environment, workplace, community, marketplace and governance. The Environmental,
Social and Governance (ESG) have become more significant in decision making of businesses in a
few years ago. Bursa Malaysia has issued second edition of sustainability report guide 2018 in order
to provide guidance on how to embed sustainability in business organizations (Bursa Malaysia,
2018). The businesses should identify, evaluate and manage their risks and opportunities wisely
and how they can use sustainability to add value in their businesses (Bursa Malaysia, 2018).

Besides that, nowadays, regulators always find a way to improve financial reporting to satisfy the
needs and protect stakeholders’ interest especially investors and society. Thus, the Securities
Commission of Malaysia (SC) have issued the new Malaysian Code on Corporate Governance
(MCCG 2017) on 26 April 2017. This sets out best practices to strengthen corporate culture pillared
on accountability and transparency (MCGG, 2017). The new MCGG 2017 is hoped that can help
build an environment of trust, transparency and accountability for fostering long-term investment,
financial stability and business integrity (MCGG 2017). This new code of MCCG 2017 should
enhance the financial accounting reporting as well as sustainability statement. Hence, this paper will
examine the relationship between diversity of board of directors and environment, social and
governance disclosure in Malaysian Listed Companies.

PURPOSE/AIM & BACKGROUND

On 7 March 2019, Malaysia was shocked by Kim Kim River toxic pollution incident. It was caused by
illegal chemical waste dumping at the Kim Kim River in Pasir Gudang, Johor. The incident was
affected 6,000 people and 2,775 people have been hospitalizing (Remar, 2019). This proved that
the businesses still did not act responsibly towards society and environment protection. Due to the
incident, this paper will examine the relationship between diversity of board of directors and
environment, social and governance in Malaysian Listed Companies. In Malaysia, listed companies
are required to include the details of ESG activities in their annual report. In this paper, we explore
whether diversity board of directors influence the levels of environment, social and governance
(ESG) disclosure in the annual reports of Malaysian Public Listed companies. The diversity board of
directors in term of board size, women on board, CEO duality and independent director. The
diversity of board of directors should become as a player that can challenge top management to act

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of stakeholder interest. Previous study have examined relationship ESG with firm performance
(Taliento, Favino, and Netti, 2019). Purbawangsa, Solimun, Fernandes, and Mangesti Rahayu
(2019) examined the relationship of corporate governance and corporate profitability on corporate
value with corporate social responsibility (CSR) disclosure in Indonesia, China and India Stock.
They found that corporate governance and corporate profitability have positive effect on CSR
disclosure in Indonesia, China and India (Purbawangsa et al., 2019).

Some studies have examined the association between corporate governance and social
responsibility (Stuebs and Sun , 2015; Said, Joseph, and Sidek, 2017; Husted and Sousa-Filho,
2019; Cucari, Esposito De Falco, and Orlando, 2018). Whereas, Birindelli, Dell’Atti, Iannuzzi, and
Savioli (2018) suggested that the composition of a firm’s board of directors can influence its
environmental, social and governance (ESG) performance in banking industry. Hence, the purpose
of this paper is to investigate the association between diversity of the board of directors and
environmental, social, and governance (ESG) disclosure in Malaysia listed companies.

This paper will develop hypotheses related to four of the most widely studied aspects of corporate
governance, which are board size, women on the board, CEO duality, and independent directors
and their impact on ESG disclosure. This paper will test hypotheses about the influence of board
size, women on the board, CEO duality, and independent directors, on ESG disclosure using a
three-year panel collected data from Bursa Malaysia. Thus, this paper hypotheses are:

H1 Board size is positively associated with environmental, social, and governance (ESG)
H2 Women on board is positively associated with environmental, social, and governance (ESG)
H3 CEO duality is negatively associated with environmental, social, and governance (ESG)
H4 Independent director is positively associated with environmental, social, and governance (ESG)

METHODOLOGY

The sample of this study will include 63 observations, comprising 21 listed chemical companies in
Malaysia. This study will apply content analysis by going through the annual and sustainability
reports of listed chemical companies in the Main Market of Bursa Malaysia over a three year period
from 2016 to 2018. Neuendorf (2002) defined content analysis as a research technique for making a
valid inference from content of the document. The study will use secondary data. Content analysis
will perform on the annual and sustainability reports to measure the diversity of board of directors
and environment, social and governance disclosure among the 21 listed chemical companies.

This study focuses on listed chemical company because the companies will contribute to air and
water pollution if they cannot manage their chemical waste properly. They have commitment to
protect the environment for future generation. They should invest their money on waste
management.

FINDINGS/RESULTS

This paper will increase the understanding of the relationship between diversity of board of directors
and ESG disclosure. Diversity of BOD in terms of board size, women on board, CEO duality and
independent directors are examined as to their influence on voluntary ESG disclosure. Result of
this study will provide insight to stakeholder especially potential investor in considering ESG issues

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in their decision making. The stakeholders require more non-financial information in order to
evaluate social performance of a company. Cucari et al. (2018) found that board size and
independent directors give impact to ESG disclosure positively, but women on the board and CEO
duality impact ESG disclosure negatively.

CONCLUSIONS

This paper will posit that diversity of board of directors is positively associated with ESG. The
diversity of board of directors can influence the implementation of ESG disclosure. The board of
directors as a top management of the companies can give full support in term of monetary and non-
monetary in implementing ESC disclosure. The good corporate governance can lead to better ESG
disclosure in public listed companies in Malaysia.

Keywords: ESG Disclosure, Board of director, Listed companies, Malaysia.

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DETERMİNANTS OF HALAL FOOD PURCHASE INTENTİON: APPLYİNG
THE THEORY OF PLANNED BEHAVİOR(TPB) İN PREDİCTİNG HALAL
FOOD CONSUMPTİON AMONG MİLLENNİAL GENERATİON İN MALAYSİA

Musdiana Mohamad Salleh1, Etty Harniza Harun2, Siti Meriam Ali3
Universiti Teknologi MARA, Malaysia

[email protected]

INTRODUCTION

This study aims to examine the determinants of millennial generations in consuming halal food in
Malaysia. Ajzen’s Theory of Planned Behavior is used as a framework postulates three components
which are attitude, subjective norms and perceived behavioral control. The role of Islamic religiosity
regarding halal purchase is also investigated as one of the predictor in the research model. Data
were collected from 202 respondents through self-administrated questionnaires. The respondents
were between 19 to 39 years old. Finding of this study demonstrates that the intention of millennial
generation consumers in consuming halal food is predominantly influence by attitude, subjective
norms, perceived behavioral control and Islamic religiosity. This study extent the insights of the
Muslim consumers’ behaviors particularly on millennial generations. The result of this study is useful
to predict the future of the halal industry in Muslim-majority countries.

PURPOSE/AIM & BACKGROUND

The halal industry is considered as one of the fastest growing industries and is estimated to
accelerate further in the world market. Indeed, the demand of halal food in the world market is
escalated due to the growth of Muslim population and the increase of purchasing power among
Muslim consumers. As for Malaysia, since 1980s, the country has been the pioneer in establishing
halal laws and enforcing actively in matters relating to halal certification globally. Since 2000s, the
country has also taken an active action in developing the halal industry which resulted in export
amount to reach RM 43 billion in 2017. Looking at the outstanding figures and strong support from
the government to participate and increase the export amount of Malaysia halal products, it is
interesting as well to look at the underlying consumption pattern of Malaysian consumers towards
halal products. Purchase intention refers to the mental stage in the decision making procedure
where the customer has actually develop a willingness to act on the object or brand (Garg & Joshi,
2018) Nowadays, Muslim consumers are becoming more sensitive and aware of the halal
requirements. For Muslim, halal food is part of religious obligations. The Quran stated that Muslims
have to give important emphasis toward the use of halal product that do not contain forbidden
ingredients. The term halal explains any entity or action which is allowed, in contras the word haram
meaning forbidden. For example, Muslims are prohibited from eating the flesh of pork and its
derivatives, as it is a sin and immorality to do so This prohibition have been stated by the Islamic law
as guideline to all humankind for committing any wrongdoings. Shah Alam & Mohamed Sayuti
(2011) argue that knowledge about halal-related matters had an influence on purchase decision. In
addition, attitude of Muslim consumers will contribute towards the future progress of halal industry in
Malaysia. According to (Khalek, 2014; Khalek & Ismail, 2015), attitude towards halal food positively
influenced the intention to purchase halal food among students in Malaysia. In recent years,
generation Y or millennials played significant roles in many studies because they are heavily

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consumption oriented, savvy generation, trendsetters and establish brand conscious. Millennials are
individuals born between 1980 and 2000. They are called millennials because their birth years are
close to the new millennium period and were raised in a more digital area (Kaifi, Nafei, Khanfar, &
Kaifi, 2012). Research on millennial generation is significant mainly because this is the generation
which comprises the largest and most lucrative consumer base (Abraham & Harrington, 2015) and
specifically Muslim’s Millennials generation is important for the current and future progress of the
halal industry in Malaysia. However, it is observed that there is lack of empirical research in
explaining the halal consumption from millennial generation point of view.

This study aims to examine the determinants which influence Muslim’s Millennials generation
intentions in consuming halal food in Malaysia. The Theory of Planned Behavior (Ajzen, 1991) was
adopted in the study because the Theory of Planned Behavior (TPB) was among the prominent
frameworks used in explaining halal consumption. The significant influence of attitude, subjective
norms and perceived behavioral control were highlighted as the main predictors of halal
consumption. The TPB model explains if an individual’s performance of a certain behavior is
determined by his or her intent to perform that behavior. For TPB, attitude towards the target
behavior and subjective norms about engaging in the behavior are thought to influence intention
halal food purchasing behavior, and TPB includes perceived behavior control over engaging in the
behavior as a factor influencing intention and purchasing behavior (Ajzen, 1991). This study also
adds in the religiosity factor in search for understanding whether it does give effect to purchase
intention of halal food. This is in line with a study made by (Machali, Abdullah, & Razak, 2013;
Muslichah, Abdullah, & Abdul Razak, 2019) in which it explore the effects of religiosity as a
moderating variable on the relationship of halal food purchase. Results from the study reveals 78%
of the respondents who are Muslims aware in purchasing of halal food. This supports the findings of
Soesilowati(2010), who found that Muslim respondents consistently put a high priority on the issue
of halal whenever they purchase food, buy meat, or select a restaurant.

In conceptualizing the determinants influencing halal food consumption in this research, attitude
towards behavior is referred to the respondents’ favorable or unfavorable evaluation to consume
halal food. The subjective norm is perceived social pressure for young consumers in consuming
halal food. Perceived behavioral control referred to the respondents’ belief about opportunities and
availability of halal food. The Islamic religiosity is the important of religion on consumer’s behaviour
about consuming halal food. Hence, the framework yield the following hypothesis:

H1: There is a positive relationship between attitude of Millennials generation and their intentions in
consuming halal food.
H2: There is a positive relationship between subjective norms of Millennials generation and their
intentions in consuming halal food.
H3: There is a positive relationship between perceived behavioural control of Millennials generation
and their intentions in consuming halal food.
H4: There is a positive relationship between Islamic religiosity of Millennials generation and their
intentions in consuming halal food.

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METHODOLOGY

This research was conducted at UiTM Kedah branch campus and the respondents were 202
participants attended the Halal Certificate Workshop in the campus. The responses were analyzed
using Statistical Package for the Social Sciences (SPSS).The analyses included demographic
profile of respondents, reliability analysis, descriptive statistics, and correlation and regression
analysis. For measuring the dependent variable and independent variables, the study used the
items developed by Khan & Azam(2016).

FINDINGS/RESULTS

Demographic Analysis
Two hundred and two respondents participated in the survey. Majority were female (59.9%) and
male (40.1%). Marital status of the respondents was mostly single (59.4%) and mostly received
tertiary education until Bachelor’s Degree (35.6%)

Reliability Analysis
Results from the reliability analysis showed that the intention to purchase halal product among the
respondents were relatively high with Cronbach Alpha 0.83. Results of Cronbach Alpha for all the
independent variables were considered as acceptable and good with attitude (0.7), subjective norm
(0.83), perceived behavioral control (0.7) and religiosity (0.86).

Intercorrelations of the Study Variables
The value of Pearson’s correlation coefficient for each independent variables has been examined to
test the relationship with the dependent variable. The results obtained showed that a strong
relationship between independent and dependent variable is attitude 60.9%, followed by subjective
norm (59.1%), perceived behavioural control (57%) and religiosity (55.9%)

Summary of hypothesis testing
Four hypothesis were presented for this research. This calls for the use of regression with purchase
intention as the dependent variables and attitude, subjective norm, perceived behavioral control and
religiosity as the independent variables.The results of the examination of the R square (0.522)
implies that all the independent variables explain 52 percent of the variance of the dependent
variable. The model is significance and all the independent variable significantly contributed to the
prediction of purchase intention of halal product. Hence, all hypothesis were supported.

CONCLUSIONS

The result of this study showed that the TPB is an effective model that can be used to predict
intention in consuming halal food. It was demonstrated that the factors influencing Millennial
generation in halal food consumption mainly because of their positive attitude toward halal food,
social influence especially by family and friends, their perceived behavioral control to consume halal
food based on their viewed halal food in terms of good quality, safety and hygiene. The results
obtained is in line with previous applying the same model (Alam & Sayuti, 2012; Khan & Azam,
2016; Marmaya, Zakaria, & Mohd Desa, 2019; Shah Alam & Mohamed Sayuti, 2011) The results

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also shown that attitude depict the strongest relationship compared to other variables. Thus it shows
that a person’s action whether to buy or not to buy a product depends very much on how they view
the product. In this case, attitude towards purchasing halal food is positive and may result in good
acceptance from consumers. In this study, the result also shows that Islamic religiosity has a
positive and significant effect on halal food consumption, the result support the previous study by
(Ibrahim & Ismail, 2015; Machali et al., 2013; Muslichah et al., 2019; Muslichah, Abdulllah, & Razak,
2014).

This study extends the insights of the Muslim consumers’ behaviors particularly on Muslim Millennial
generation. The practical implication of this study contributes knowledge to the organization in
expanding their market and for governmental organizations to stimulate halal consumption in the
country. Therefore, this study suggest that government and marketers may incorporate the elements
of attitudes and social pressures in their halal food campaigns and advertisements. The availability,
variety and price of halal food also need to be given attention by Malaysian government. Future
research may broaden the population and expand the geographical locations to another states in
Malaysia.

Keywords: Halal food purchase intentions, attitude, subjective norms, perceived behavioral control, Islamic
religiosity.

E-PROCEEDING 2019 JOINT INTERNATIONAL CONFERENCE UiTM- SSR UNIVERSITY 14

COLLABORATIVE PLANNING FORECASTING AND REPLENISHMENT IN
ORCHID SUPPLY CHAIN

Chattrarat Hotrawaisaya1, Supamit Srisawat2, Mohd Rizaimy Shaharudin3, Nik Ramli Nik Abdul
Rashid4

Suan Sunandha Rajabhat University, Thailand1, 2
Universiti Teknologi MARA, Malaysia3, 4

[email protected]

INTRODUCTION

Thailand is a big ten exporters of orchid in the world. Currently, exporting orchid competition
situation become intense since the world value of orchid was high as this was to activate newcomer
sharing the orchid market also the economic had small purchasing power parity. However, high
technology and globalization, inaccurate demand planning, error forecasting, and poor
communication may be impacted to all value chain positions such as out-of-stock, lead time
fluctuation and high cost and expenditures. Moreover, violent competition is continuously growing
up, especially perishable goods that have import-export between many countries. Thus, it is
important to study the factors affecting the exporting orchid to improve Thai exporting orchid
processes to be number one of exporting orchid in the world. Collaborative planning, forecasting
and replenishment (CPFR) is a strategy that can increase efficiency and performance of business
such as accuracy data interchange, low costs and high profits, and reduce uncertainty along the
supply chain. As yet, the CPFR model has not been specified in a whole supply chain of agricultural
product such as orchid industry. Considering the biological nature, seasonality and perishable
characteristics of agricultural raw materials and products, the paper revises the CPFR reference
model. The study constructs a CPFR model by extending to a multi-echelon supply chain and
incorporating upstream suppliers in the supply chain.

PURPOSE/AIM & BACKGROUND

To develop the extended model of Collaborative Forecasting, Planning, Logistics and
Replenishment (CFPLR) for the orchid supply chain.

METHODOLOGY

The study investigates the CPFR of Thai orchid supply chain. The study utilized the recent works of
literature related to consumer/customer and shoppers’ behaviour to build the CFPLR model in the
orchid industry. A model was developed with all of the proposed variables were obtained from the
various journals published in several established databases.

FINDINGS/RESULTS

The CFPLR model is based on the CPFR in the retail sector with detailed modification from the
automotive industry to achieve great benefits in the supply chain. The CPFR processes include
planning, forecasting and replenishment. However, the past literature was inconsistency in
explaining the CPFR steps and processes. The model incorporates collaboration in supply chain
activities with information technology, which include data and information sharing such as order

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planning, inventory management, production, transportation and delivery. The previous study also
revealed that vast information sharing and cooperative decision-making in CPFR processes can
improve the visibility in the supply chain. Besides, this study considers the quantitative performance
measures, in which the measurement will be developed using the SCOR model. Improving supply
chain performance may require a multi-dimensional strategy that addresses how the organization
will serve diverse customer needs.

Figure 1: CFPLR Model

Supply Chain Collaboration
 Information Sharing

Supply Chain Visibility Supply Chain
 Visibility
 Reliability
CFPR Processes  Responsiveness
 Agility
 Planning Process  Costs
 Forecasting Process  Assets
 Replenishment

Process

As shown in Figure 1, the study proposed that supply chain collaboration and CFPLR process will
influence the supply chain visibility, which eventually affects the supply chain performance of the
orchid industry in Thailand. Based on the underlying principles of resource based-view theory
perspective, the study posited that supply chain visibility is the outcome of collaboration and CFPLR
processes and leads to an improvement in supply chain performance.

CONCLUSIONS

Orchid is a perishable good that the researcher focuses on procedures and supply chain because
orchid has value and high profit in Thailand. Although CPFR model can develop orchid supply
chain, however, perishable goods characteristics are difficult to match CPFR model. The CPFR
reference model is designed to fit many scenarios, but not in a context of logistics activities such as
transportation, warehouse, or material handling as a primary role. This study developed an
extended model of CFPLR in the orchid supply chain. Due to collaborative planning, forecasting and
replenishment amongst retailers or manufacturers and their supplier’s decreased inventory and
better visibility can be achieved within the supply chain. Since improving supply chain performance
require a multi-dimensional, this study incorporates performance measures using SCOR reference
model to identify, measure, reorganize and improve the orchids supply chain processes.

Keywords: CPFR, Orchid, Supply Chain, SCOR

E-PROCEEDING 2019 JOINT INTERNATIONAL CONFERENCE UiTM- SSR UNIVERSITY 16

THE CONCEPT OF CIRCULAR SUPPLY CHAIN MANAGEMENT (CSCM)

Mohd Rizaimy Shaharudin1, Siti Fairuza Hassam2, Nur Diyana Nazihah Zainal3, Ahmad Rais
Mohamad Mokhtar4, Preecha Wararatchai5, Wissawa Aunyawong6, Suwat Nuanklao7
Universiti Teknologi MARA, Malaysia1,2,3,4
Suan Sunandha Rajabhat University, Thailand5,6,7
[email protected]

INTRODUCTION

Seventeen Sustainable Development Goals (SDGs) of the 2030 Agenda for Sustainable
Development has been signed by the by world leaders in September 2015 and officially commenced
on 1st January 2016. It is expected that in the next fifteen years, each of the countries will intensify
their efforts to combat poverty, the battle for discriminations and tackle the environmental issues.
Concerning this, Goal 12 of SDGs clearly described the objective towards sustainable consumption
and manufacturing operations, to promote the efficiency in resource and energy usage,
infrastructure viability, accessibility to the vital services, environmental and productive employment
and well-being for the people. The adoption of SDGs enables a country to achieve development
targets, mitigate economic, ecological and social costs, enhance the financial performance and
lower the poverty. As such, there is a need to focus on supply chain effectiveness in manufacturing,
from producer to the final consumer. This requirement resonates the critical application of circular
supply chain management (CSCM) in manufacturing operations. Unlike the closed-loop supply
chain (CLSC) in the circular economy, firms collaborate with another firm in the same as well as
different industry to maximize the salvage value and zero waste. Nevertheless, it was discovered
that CSCM topic had been insufficiently discussed in the literature, as in principle, the field is still
new under the domain of circular economy. In Malaysia, there is no proactive effort to recover or
recycle end-of-life products and the returns in CSCM. On a similar extent, in Thailand, the
management of natural resources and the environment has been ineffective, exacerbated the
natural resources depletion and degradation of environmental quality. This circumstance will put the
countries in difficulties to achieve the SDG goals.

PURPOSE/AIM & BACKGROUND

To explore the concept of CSCM from the existing literature and study in the field.

METHODOLOGY

This study is mainly exploratory in nature. Given that CSCM is a new area of research and practice,
and little is known about it, the exploratory part of the study is necessary to explore and describe the
concept of CSCM adoption. This study also argues of the importance to pursue exploratory study in
CSCM for the significant reason of the scanty research, with the lack of theory development and
gaps in the previous study. For this reason, the study conducted an initial review of literature from
the extant study from various journals published under Elsevier and Emerald publishers, particularly
in the environmental science study.

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FINDINGS/RESULTS

Based on the review of literature, the initial concept of CSCM is different from the linear and closed-
loop supply chain model. Linear model does not implicate with the zero waste, whilst the closed-loop
supply chain is confined to the responsibility of the original producer. In this case, CSCM enhances
the green supply chain management and sustainability in the supply chain management concept by
its renew and exacerbate sustainable dimensions. In fact, CSCM advances the new understanding
and knowledge in the circular economy environments.

Figure 1: Flow of CSCM

Materials Recycling

Components Sales/ Refurbishin End
transfer to product
End Reusing
products similar/
other Re-
manufacturin
Customer
Repair

Legend:

Physical forward flow
Physical reverse flow

As shown in Figure 1, CSCM starts with a manufacturer’s supply chain. Materials supply to the
production and delivery of end products to the customer are moved through the forward flow. The
reverse flow involved the customer, distribution and manufacturing returns. These returns are later
sold/transferred to the similar/other industries for further recovery process. The recovery depends
on the usage and can be in the form of recycling, refurbishing, reusing, remanufacturing or repair,
which eventually produced the end products. The notion of CSCM is the integration of the whole
system to produce zero waste through recovery of the used materials/returns and turn into another
product for sales in the primary or secondary markets.

CONCLUSIONS

CSCM is a new concept and efforts are needed to explore for the benefits of researcher,
academician, practitioner and industry. With minimal information and scant literature available, the
present study attempts to provide a base for future researchers to examine any aspects of theory
building and verification in the field of CSCM. Implementation and success of CSCM will lead the
country to achieve the SDG Goal 12, as it minimizes the negative environmental, social, and
economic impacts.

Keywords: CSCM, SDG, Recovery, Goal 12, Zero Waste, Sustainability

E-PROCEEDING 2019 JOINT INTERNATIONAL CONFERENCE UiTM- SSR UNIVERSITY 18

DETERMINANTS OF CONSUMERS’ PURCHASING INTENTION FOR
NAKHOM PATHOM COMMUNITY PRODUCTS

Nur Zainie Abd Hamid1, Mohamed Samsudeen Sajahan2

Universiti Teknologi MARA, Malaysia
[email protected]

INTRODUCTION

The study of consumers will help businesses to improve their marketing strategies by understanding
issues such as how consumers think and feel, how the consumer is influenced by the environment
and the behaviour of consumers while making marketing decisions. However, identifying potential
consumers is a crucial element in the marketing process. Products can no longer be manufactured
and sold without taking into account consumer needs and wants.

Today, consumers decision-making has become more complex and complicated. This is due to the
rapid change of the competitive global business environment in which consumers are being
exposed to a range of products information and the increasing number and choices of goods. In this
case, understanding consumer decision-making is very important for marketers in coming up with
appropriate marketing strategies to suit their target groups. Many factors have been identified in the
literature on the theme of consumer shopping behaviour as a significant element in understanding
consumer purchase intention. The factors have become fundamental indicators for marketers to
meet their consumers’ needs and wants. Therefore, marketers should always strive to understand
the differences and similarities in consumers decision-making styles.

Nakhon Pathom community has targetted to export its products among Malaysian. Such
international business is one of the most crucial marketing elements for many businesses. In this
relation, understanding Malaysian consumer behaviours and purchase intention are important for
the Nakhon Pathom community to develop strategies to target Malaysian. This study, therefore,
intends to examine the determinants of consumers’ purchasing intention in Malaysia towards
Nakhon Pathom community products.

PURPOSE/AIM & BACKGROUND

The research aims to develop guidelines for managing community businesses in the development of
Nakhon Pathom community products for exporting to Malaysia by considering the consumers’
purchasing intention in Malaysia towards Nakhon Pathom community products.

This research has the following research objectives:
RO1: To examine the determinants of consumers’ purchasing intention in Malaysia towards the

Nakhon Pathom community products.
RO2: To determine the consumers’ purchase intention in Malaysia towards the Nakhon Pathom

community products.
RO3: To develop guidelines for managing community businesses in the development of Nakhon

Pathom community products for exporting to Malaysia.

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METHODOLOGY
This research will be carried out as per research aims and objectives to discover about the theories,
factors and ideas related to the consumer purchasing intention in Malaysia towards Nakhon Pathom
community products. This is quantitative research. The following figure 1 explains the flow of
research methodology that will be applied in this research.

Research Problems
(Research Questions and

Research Objectives)

Quantitative Data Collection
(Consumer Purchase Intention

Survey)

Quantitative Data Analysis

Possible solutions

Figure 1: Research Methodology

A cross-sectional study will be carried out to study factors influencing consumer intention towards
Nakhon Phantom community products. This quantitative research is based on consumer behaviour
theory. This theory explains variables specification for each individual, in which, the theory
assumed that every consumer has a model of consumer behaviour in mind. The dependent
variable in the quantitative instrument will be represented by the consumer purchase intention, while
the independent variable will be the determinants of consumers’ purchasing intentions towards
Nakhon Phatom community products including demographic characteristics and consumer
perceptions towards the products (Refer Figure 2). A set of the questionnaire will be created based
on the existing and established questionnaires and literature. The survey will be administered to the
potential Malaysian consumers of Nakhon Phatom community products. The data gathered from the
survey procedure will be analysed using descriptive and inferential statistics.

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Demographic Characteristics Consumers’ Purchase Intention
• Education towards Nakhon Pathom
• Age Community Products
• Gender
• Marital Status
• Ethnicity
• Household size
• Monthly household income
• Employment status

Perceptions (Beliefs)
• On price
• Environmental friendliness
• Food safety
• Smell
• Taste and quality
• Accessibility on the market
• Healthiness

Figure 2: Research Framework

FINDINGS/RESULTS

This quantitative research will provide general information about the determinants of consumers’
purchasing intention in Malaysia towards Nakhon Pathom community products. The findings are
expected to provide valuable information throughout the results section and discussed in terms of
the direction of having guidelines for managing Nakhon Pathom community businesses in the
development of products for exporting to Malaysia.

CONCLUSIONS

Marketers should work as a psychologist to procure consumers in order to have a successful
consumer-oriented market. It is advised that marketers incorporate the favourable match between
the country of origin with the various marketing activities undertaken to match the needs and wants
of the potential consumers targetted. It is vital for marketers to tailor different marketing strategies
for consumers from different countries, in which, this will help the marketers to craft meaningful
marketing strategies that will enable them to appropriately position their products.

The main limitation of this study is that it strictly concentrates on Malaysian consumers; therefore,
the findings cannot be generalized to consumers from other countries. It is recommended that, in
the future, the generalizability of the results can be applied in the new setting, where it has not been
studied yet. Besides, the current study will study the consumers’ purchase intention towards
Nakhon Pathom community products in general. It is recommended to the researchers to study the
consumers’ purchase intention by taking into account the specific product category in the future.

Keywords: Consumer Behaviors, Consumers’ Purchase Intention, Nakhon Pathom Community, Perceptions

E-PROCEEDING 2019 JOINT INTERNATIONAL CONFERENCE UiTM- SSR UNIVERSITY 21

NAKHON PATHOM COMMUNITY DEVELOPMENT STRATEGIES:
IMPLICATION ON BUILDING COMMUNITY CAPABILITY FOR PRODUCT
DEVELOPMENT AMONG SMALL AND MICRO COMMUNITY ENTERPRISE

Mohamed Samsudeen Sajahan1 & Nur Zainie Abd Hamid2
Universiti Teknologi MARA, Malaysia
[email protected]

INTRODUCTION

Cultivating capability is regarded as an important tool for successful execution and sustainability of
product development among local community (Laverack & Thangphet, 2009; Aref, Redzuan, & Gill,
2010; Laverack, 2006; Gibbon, Labonte, & Laverack, 2002). There is a considerable body of
literature that suggest the importance of identifying priorities and opportunities in building community
capabilities for development (Victurine, 2000) and as well discusses approaches for its
implementation and evaluation (Goodman et al., 1998; Hawe et al., 2000; Labonte and Laverack,
2001; Gibbon, Labonte and Laverack, 2002). Assessment of the implementation or evaluation on
building community capability is regarded as essential to serve a meant in scrutinising project a
achievement; lead to a better demonstration to policy maker about changes within their communities
and also to access future project funds.

BACKGROUND OF STUDY

Literature addressing how community capacity can be deliberately enhanced in a programme or
project unanimously stressed the importance of performing evaluation (Gibbon et al., 2002;
Laverack, 2006). The evaluation is observed as fundamental among practitioner (i.e. funder,
program planner and evaluator) to ensure the programme has a greater impact on constructing
community capabilities and eventually sustaining the programmes for longer term. In addition, the
“outcome” of the evaluation will also address how community capacity can be deliberately enhanced
in a programme or project context, regardless of content, and through relationships between
government or non-government organizations, community workers and community members.

However, common pitfalls encounter by the stakeholder in conducting the evaluation are as listed
below:

a) The need to differentiate between building community capabilities and community
empowerment in the process of community development (Laverack, 2006).

b) Lack of study in understanding community capacity building in the product development and
among small and micro enterprises (Aref et al., 2010).

c) Failure to include community participation in the evaluation of building community capabilities
(Gibbon et al., 2002).

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RESEARCH OBJECTIVE

Following the five (5) research questions, this study aims to explore five (5) research objectives,
which are:

1. To identify and discover the Nakhon Pathom Community Development Strategies in building
community capability.

2. To delve into the types of product development project undertaken within the Nakhon
Pathom Community Development Strategies among Small and Micro Community Enterprise
(SMCE).

3. To explore the impact of Nakhon Pathom Community Development Strategies on Building
Community Capability for Product Development.

4. To scrutinize the problem encountered by the Nakhon Pathom province Small and Micro
Community Enterprise (SMCE) in the product development process.

5. To construct a guideline for stakeholder on how to develop and execute in the upcoming
community development programmes to nurture community capability.

LITERATURE REVIEW

Building Community Capability
According to Laverack, (2006) community capacity, like community development, is describes a
process that increases the assets and attributes that a community is able to draw upon in order to
improve their lives. More specifically, Labonte and Laverack (2001, p. 114) define community
capacity building as the ‘increase in community groups’ abilities to define, evaluate, analyse and act
on health (or any other) concerns of importance to their members’. Meanwhile Aref et al. (2010)
defined community capabilities as the characteristics of a community that enable it to mobilize,
identify and solve problems. Chaskin et al. (2001) postulated that building community capability in a
process of how community capitals and existing organizational resources within a given community
are integrated and leveraged to solve collective problems and improve that community (Chaskin et
al., 2001). The bottom-line of building community is the development of skills and abilities that will
enable community members to take decisions and actions for themselves.

Dimension of community capacity building
Assessing dimensions of community capacity building is an important step in developing community
strategies for product development. Understanding the dimension will addresses the needs of the
stakeholder on how community capacity can be deliberately enhanced in a programme or project
context, regardless of content, and through relationships between government or non-government
organizations, community workers and community members.

According to Labonte & Laverack, (2001a) the dimensions of community capacity are understood as
the “qualities of a capable community”. Labonte & Laverack (2001b) argued that there is a broad
agreement concerning the dimensions of community capacity and previous attempts to
conceptualize CCB have involved identifying characteristics or qualities of a capable community
(Labonte & Laverack, 2001a). Listed below are the identification of the factors or ‘domains’ that
influence community capacity as a process in the early literature

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Author Number of Dimensions Details
Labonte & Laverack Dimension
(2001a, p. 117) Community capacity: participation, leadership, organizational
9 structure, problem assessment, resource mobilization, asking
Bopp et al. why, link with others, role of external agents and program
(2000) 7 management.
Laverack 9 Shared vision, sense of community, community participation,
(2005) community leadership, resources, skill and knowledge,
9 communication and ongoing learning
Maclellan et al. Participation, problem assessment capacities, equitable
(2007) relationship with external agents, organizational stature,
resource mobilization, links to other resources and people,
leadership, asking why, and control over program
management.
Community participation, community leadership, community
structures, asking why, resource mobilization, link with others,
external support, skill and knowledge, and sense of
community.

This research has identified nine essential dimensions of community capacity assessment that can
be fostered within local communities are suggested by Labonte & Laverack (2001a, p. 117). The
main concern is on improving stakeholder participation; increasing problem assessment capacities;
developing local leadership; empowerment of organisational structures; improving resource
mobilisation; strengthening link to other organisations and people; enhancement of stakeholder
ability to “ask why”; increase stakeholder control over programme management and creates an
equitable relationship with outside agents. The description of the dimensions is as listed below:

Domain Interpretation in the literature (Gibbon, Project interpretation
Labonte and Laverack, 2002) (Thangphet, 2006)

Participation Participation is fundamental. Only by The involvement of leaders and

participating in small groups or larger community members in managing

organizations can individual community _____________ activities. The

members better define, analyse and act on participation can be in small groups

issues of general concern to the broader or the whole community.

community.

Leadership Participation and leadership are closely The role plays in initiating and

connected. Leadership requires a strong leading activities related to

participant base just as participation community ______________.

requires the direction and structure of

strong leadership.

Organizational Organizational structures in a community The existence of organization in

Structure include small groups such as committees, managing community ________.

church and youth groups. These are the

organizational elements which represent

the ways in which people come together in

order to socialize and to address their

E-PROCEEDING 2019 JOINT INTERNATIONAL CONFERENCE UiTM- SSR UNIVERSITY 24

concerns and problem. The existence of

and the level at which these organizations

function is crucial.

Resource The ability of the community to mobilize The ability of the community to
mobilize resources from within and
mobilization resources both from within and the ability to outside the community.

negotiate resources from beyond itself is The link between the community
and external organizations related
an important factor in its ability to achieve to community _________.

successes in its efforts. The ability of the community in
problem solving related to
External Links with people and organizations, community ___________.

Linkages/Link including partnerships, coalitions and The involvement of community
members in planning, decision
with Others voluntary alliances between the community making, implementation and
evaluation activities related to
and others, can assist the community in community _____________.

addressing its issue. The ability of the community in
directing its own community
Problem The identification of problems, solutions to ___________ development.

Assessment the problems and actions to resolve the The equitable relationship between
the community and external agents
problems are to be carried out by the in ___________ development.

community. This process assists

communities to develop a sense of self-

determination and capacity.

Project Programme management includes the

Management control by the community over decisions on

planning, implementation, evaluation,

finances, administration, reporting and

conflict resolution. The first step is to have

clearly defined roles, responsibilities and

line management of all the stakeholders.

Critical The ability of the community to critically

Assessment/ assess the social, political, economic and

Asking Why other causes of inequalities is a crucial

stage towards broader capacity building.

Outside Outside agents are often an important link

Agents between communities and external

resources. Their role is especially important

to increasingly transform power

relationships between the agency and the

community, such that the community

assumes increasing authority

Source: (Laverack & Thangphet, 2009)

SMALL AND MICRO COMMUNITY ENTERPRISE (SMCE)

Small and micro community enterprise (SMCE) is a community business that deals with
manufacturing products and providing services or others, that is operated by a group of people who
have a common affiliation as well as a ways of life and gather together to carry out business,
whether in any form of juristic person or not, to generate incomes for self-reliance families in the
community and among communities. SMCE is an entrepreneurship for creative community capital
management for self-reliance. The community capital includes local resources, agricultural products,
knowledge, wisdom, traditions, and cultures in local areas (Department of Agricultural Extension,
2006). The government, in addition, is ready to provide modern knowledge and management to

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connect community products to the domestic and international markets so that communities are
strong and self-reliant. Moreover, people can participate in income generation by using local wisdom
resources to develop products and services with the quality, strengths, and value added that are
needed by both domestic and international markets (Chiang Mai Provincial Community
Development Office, 2013).

Community enterprises are enterprises in which members of a community are involved, such that
these members participate in the organization through production, selling products, sharing money
to set up enterprises, financial management, and using resources in the community for production
(Petprasert & Wongkul, 2002, p. 1-11). In addition, community enterprises work for sustainable
regeneration in their communities through a mix of environmental, economic, cultural, and social
activities (Development Trusts Association, 2000, p. 3). The community sector is made up of
thousands of charities, social enterprises, faith groups, and unconstituted community groups in
metropolitan, urban, and rural community areas (Bailey, 2012). Pongpit (2005, p. 40) explained
seven characteristics of community enterprises, as follows: ownership by a group of people in the
community; finished goods provided through a production process in the community; goods and
production that come from community’s creative work and innovations; goods and products based
on local wisdom, but combined with universal wisdom; local people working together using
participation and all activities are related through a network system, knowledge practice, and self-
sufficiency of the family and community inhibiting
Based on existing literature, listed below are some drawback faced by SMCE in Thailand province.

Author Industries/Location Factor Impeding Development

Promsaka Na Textile Industry Knowledge and personnel, recognition of value

Sakolnakorn (2009) added, supply chain, marketing management,

manufacturing management and technology, and

financial management.

Purateera et al. knowledge and skills of the entrepreneur, the

(2009) entrepreneur’s capability, technology, the

entrepreneur’s attitude, the motivation for engaging

in business, the source of investment funds, and

the entrepreneur’s creativity.

Suantan et al. Songkhla Lake Basin knowledge management and knowledge sharing

(2008) skills, and knowledge was not transferred to other

people, which prevented the community from

developing.

Nakhon Pathom” provincial/local development strategy, 2015- 2018

“Nakhon Pathom” province has a 4-year provincial/local development strategy, 2015- 2018, by
focusing on:

1. The development of agriculture and processing industries to add value to products with
safety, international standards, and environmental friendliness;

2. As well as increasing production and processing efficiency to increase value and develop
basic factors in order to reduce production costs;

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3. Promoting trade and investment;
4. Developing effective distribution channels, including improving the system, form, and method

of community development as follows:
a. Establishment of various levels of 976 women development committees, comprising 1

provincial women committee, 7 district women committees, 102 subdistrict women
committees, and 866 village women committees.
b. The 3,464 village development volunteers and 198 subdistrict development volunteers
are committed to operate 13 strong-level community organization coordinating centres,
58 moderate-level community organization coordinating centres, 32 need-improvement-
level community organization coordinating centres, 102 subdistrict organization
coordinating centres, 7 district organization coordinating centres, and 1 provincial
organization coordinating centre.
c. There were 66 leaders of the communities, groups, organizations, and community
networks, passing the community work standard evaluation in the year 2013, and 140
community leaders, participating in the development leadership course to strengthen
communities

(Source: Nakhon Pathom Provincial Community Development Office, 2016)

RESEARCH METHODOLOGY

This study proposed for a multi-method approach with the aims of using multiple method of data
collection to suit with the aim of this study. The idea of multi-method approach derives a
comprehensive finding of certain study to answer all objective of the study. Each method has its own
flawed. The imperfection in mono method allows the researchers to combine methods, not only to
gain their individual strengths but also to compensate for their faults and limitations (Loosen and
Schmidt, 2016). According to the authors, the multi method approach offers the distinct advantage
of quick, close coordination and comparison of different methods and their findings (Loosen and
Schmidt, 2016). As this study aims at understanding the impacts and problem encounter in Nakhon
Pathom Community Development Strategies on Building Community Capability for Product
Development; the multi-method approach is the most appropriate to gather information from many
perspectives: OTOP manufacturers and entrepreneurs; community; the relevant agencies; as well
as feedback from the key experts on this issue.

The application of multi-method in this study is divided into four main stages, which are:

STAGE 1: Information gathering, analysis and instrument development

The first stage is regarded as an initial research stage which involved actions including:
- Review relevant literature surrounding the community development, building community capacity;
evaluation of building community capacity
- Gather relevant information such as official reports, statistics, government documents and other
relevant sources of information.
- Developing research instruments (assessment model, approach, domain, guidelines and question
for interview & focus group discussion session).

STAGE 2: Data collection activities of this study.

There are three (3) phases of data collection involved in this study which are:

Phase 1: Analyse reports, statistics, government documents and other relevant sources of
information (content analysis). The first phase of data collection involved content analysis of relevant

documents related to this research. Among the important documents include:

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- Empirical research through journals, books and others.
- Government reports, policies, rules and regulations and other relevant documents.
- Information from the official website of government agencies, non-governmental organizations,
international agencies and others.

Phase 2: Conduct interviews with key respondents & key persons representing the relevant
agencies (qualitative)
In this phase, a preliminary data collection will be conducted with the aim to gain detailed
information and knowledge on community development programmes, who are involve, when the
programme was initiated, what are the strategies, what is the goal and objective, identify agencies
and organisation involved. This is considered as a preliminary data collection with the aim of
building a good rapport with key stakeholder and ensuring the accurate selection of the potential
respondents to participate in this study.

Phase 3: Data collection through survey among respondents of study (Focus Group & Interview)
For this reason, survey will be in the form of open-ended questions. At the end of the survey, the
respondents will be offered to be interview and join focus discussion for further feedback. The
participant in interview and focus group discussion is a voluntary basis and it is not compulsory for
the respondents to participate. If they are willing to participate, they may leave their contacts (mobile
phone, email, WhatsApp and others) for the researchers to contact. Respondents who are willing to
participate further will be called for an interview. The respondents will be reminded that they can
withdraw themselves at any time during the interview. The respondents also will be asked if they
want their interview to be conducted through face-to-face, through phone or through written
interview. They will be asked whether they allow their interviews to be recorded (voice).

STAGE 3: Findings and analysis
Once the data collection is completed, all data gathered from this research will be analysed and
send for expert validation.

STAGE 4: Preparing report and submission
The final stage is preparing report of this research for final submission. The report will be presented
in a form Two (2) publications in high impact journals (Scopus) & One (1) research book

POPULATION

The sample selection method was the purposive sampling as follows: Population in the study in
Nakhon Pathom:

a. The 559 registered OTOP manufacturers and entrepreneurs in 2012, comprising 199
community manufacturers, 325 single entrepreneurs, and 35 SME entrepreneurs.

b. The 1,034 registered OTOP products, consisting of 415 food products, 60 beverage
products, 88 fabric & apparel products, 246 apparatus, decoration, & souvenir products, and
225 non-food herbal products.

The following criteria were used to select The OTOP product community enterprise.

a. Farmer groups, housewife groups, occupational groups;
b. Suan Sunandha Rajabhat University students;
c. Persons with leadership and creativity;
d. Persons able to participate in the study area.

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SIGNIFICANT OF STUDY

This research aims to produce fundamental understanding community development programmes
and its linkage with building community capability for product development among Nakhon Pathom
province community. In addition, the findings are expected to provide valuable information on the
impact of Nakhon Pathom Community Development Strategies on Building Community Capability
for Product Development and also scrutinize the problem encountered by the Nakhon Pathom
province Small and Micro Community Enterprise (SMCE) in the product development process.
Eventually the findings will offer a platform for constructing a guideline for stakeholder on how to
develop and execute in the upcoming community development programmes to nurture community
capability to generate revenue for the country, strengthen local communities sustainably, and
building link into international trade businesses.

CONCLUSION

Understanding and building community capacity knowledge by using the approach outlined in this
paper, provided both an end in strengthening locally based provision and a means to consolidate
locally based organizations. This is hoped the study will help the responsible stakeholder to be more
aware of their strengths and weaknesses in building community capabilities, managing product
development and eventually improving strategic planning and collective action in the existing and
upcoming community development programmes.

Keywords: Nakhon Pathom Community Development Strategies, Community Capacity, Product
Development, Small and Micro Enterprise, Participatory Action Research (PAR), Domain
Approach

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The Community Capability in Product Development for the Export of
Nakhon Pathom Province to Malaysia

Hathaipun Soonthornpipit1, Chattrarat Hotrawaisaya2, Salisa Hemapan3, Peeranthon Saensook4
Suan Sunandha Rajabhat University Bangkok, Thailand
[email protected]

INTRODUCTION

At present, the ASEAN Economic Community has me a joint agreement to eliminate the
geographical boundaries between each other in ASEAN. Malaysia is a neighboring country among
ASEAN members and is an important importer of Thai products. Malaysia imports products from
many major countries and Thailand accounting for 5.8 percent (Source: Office of Overseas Market
Development 1, Department of International Trade Promotion). It is expected that in the future, the
value of trade between Thailand and Malaysia will continue to expand, in line with the good
expansion of the global economy. However, Thailand is a large exporter of goods and services to
Malaysia and is popular as a business opportunity to drive product and service development and to
expand the market continuously. Nakhon Pathom province has a 4-year provincial development
strategy, 2015-2018, by focusing on the development of agriculture and processing industries to add
value to products with safety, international standards, and environmental friendliness. the study
realizes the importance of Nakhon Pathom community potential in the development of products for
exporting to Malaysia.

PURPOSE/AIM & BACKGROUND

The main objectives of the study are: 1) to study the capability and problems of communities in the
development of Nakhon Pathom community products for exporting to Malaysia, 2) to study the
consumer behaviors in Malaysia towards the Nakhon Pathom community products for exporting, 3)
to develop guidelines for managing community businesses in the development of Nakhon Pathom
community products for exporting to Malaysia, and 4) to improve Nakhon Pathom community
products for exporting to Malaysia. The results of the study will display the knowledge on the
community business management system that has a potential to enhance the community product
development for exporting to Malaysia and strengthencommun communities sustainably, and link
international trade businesses.

METHODOLOGY

Local product development for export of Nakhon Pathom by conducting participatory research of the
samples in the area to analyze the capability and problems together will lead to the development of
their own products. The community business development bringing about the development of
potential product models of Nakhon Pathom for export to Malaysia is focused. The research
conceptual framework can be summarized as follows.

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FINDINGS/RESULTS

Study methods for achieving the objective 1, to study the capability and problems of communities in
the development of Nakhon Pathom community products for exporting to Malaysia, and objective 2,
to study consumer behaviors in Malaysia towards Nakhon Pathom community products for
exporting, have the following steps. Study Phase 1 – The Synthesis of past research paper. Step 1:
Studying documents and analyzing basic information, Step 2: Creating research conceptual
framework from literature revbas, Step 3: Designing tools for research instruments. Step 4:
Organizing brainstorming activities and workshops. Study methods for achieving the objective 3, to
develop guidelines for managing community businesses in the development of Nakhon Pathom
community products for exporting to Malaysia, and objective 4, to improve Nakhon Pathom
community products for exporting to Malaysia, are as follows: In evaluating the community business
management model for product development in exporting to Malaysia, it is based on the idea of
Stufflebeam, called the CIPP model, The products are classified into 2 levels: instant product and
the impact of community business management development to improve products for exporting to
Malaysia. For study methods for achieving the objective 4, to improve Nakhon Pathom community
products for exporting to Malaysia, marketing plan for improving Nakhon Pathom community
products for exporting to Malaysia is made. Morover, strategies to create a brand of safe products
leading to creating value added products in Nakhon Pathom are designed. The results from
business environment analysis using SWOT technique are used to consider the guidelines for
specifying the business plan, consisting of vision, mission, goals, and strategies.

Keywords: Community, Capability, Nakhon Pathom, Malaysia

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ANALYZING THE COALITION FACTOR AMONG ACTORS IN NWRP
FORMULATION ROCESS

Junaida Ismail1, Siti Zuliha Razali2
Universiti Teknologi MARA, Malaysia

Universiti Sains Malaysia
[email protected]

INTRODUCTION

Policy formulation refers to the process of formulating, or drafting, an acceptable course of action for
the selected policy agenda. Ideally, the objective of policy formulation is to resolve the problems of
society. The issue of water in Malaysia is considered as its own problem that needs to be assessed
by the government. Water is considered one of the most important national resources, but at the
same time, it is scarce. Therefore, water as a resource needs to be planned for, developed,
conserved and managed properly by both the Federal Government and State Government for the
usage and benefits of society. The Malaysian government needs to have its own policies for water
resources in order to secure the governance of water resources and to balance the existing and
future water policies under the jurisdiction of various government bodies.

In April 2010, the idea of having our own National Water Resource Policy was mentioned by the
deputy minister Tan Sri Joseph Kurup (http://borneopostonline, April 2010). With that, The NWRP
draft was first presented in the meeting of Mesyuarat Sumber Air Negara (MSAN) on 6 October
2011 and subsequently approved by the Member of Parliaments (MPs) on 22 February 2012. The
policy was then launched on 24 March 2012. The main purpose of NWRP is to clearly indicate the
obligations of the Federal and State governments in water resource management. This policy differs
from the existing enacted Acts under SPAN, namely Act 654 and Act 655, which exclusively focus
on water services in Malaysia. Unlike these previous Acts, NWRP focuses on water resource
management. Furthermore, the formulation of NWRP itself stresses on the significance of water
resources for this country and the need to manage water resources based on integrated water
resource management. As encapsulated in the Tenth Malaysian Plan (2011–2015), the
sustainability of water resources was highlighted as an important issue. The process of formulating
NWRP considered three main sustainable principles.

Principles of National Water Resources Policy

Principles of NWRP Description Water resources security water resources must be secured to
ensure its readiness to meet the needs and demands of both man and nature through utilizations of
its potential and minimization of its damaging impact.

Water resources sustainability

Water resources are the substance for the environment and development; therefore, water
resources should be sustained for the present and future uses. The Federal government and every
State government should minimize the wastage of water resources. The opportunities to discover
the use of alternative sources and aspects related to demand management should be identified.

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Collaborative governance, the comprehensiveness and alliance among actors are essential towards
confirming the security and sustainability of water resources as well as the achievement of common
goals towards addressing multiple water resources governance concerns. (Source: Ministry of
Natural Resources and Environment Malaysia. 2012: pp 30)

PURPOSE/AIM & BACKGROUND

As a basic human need, water is the most valuable asset for the society and nation. It is a global
challenge to properly manage water resources—and Malaysia is no exception. The efficiency in
administrating water resources and water supply is one of the perpetual problems. The Malaysian
government is aware of the significance of water resources management for the sustainability of the
society (Tan Sri Dato’ Hj. Muhyiddin Mohd Yassin, 2012: 6). Given its significance, it is fundamental
to ensure that the right actions are taken to manage water resources. However, the legislations for
water resource management in Malaysia are critically outdated. The main idea of this paper is to
understand how the coalition of actors formulate the the National Water Resources Policy. This
paper highlights the main objectives which are: (i) to determine the main factors for the selection of
actors for coalition and (ii) to introduce and adapt the theory of ACF Framework by Sabatier &
Jenkins-Smiths (1999) to the policymaking process in Malaysia.

METHODOLOGY

This paper applied the triangulation method with the aim to check and establish the validity in the
studies by scrutinizing the research question from multiple perspectives and check the consistency
of the results via the multiple methods used for the purpose of understanding the problem
statement. The purpose of using the triangulation method is to explore the state of coalition among
the relevant actors from the Federal and State governments in Malaysia (specifically for those
involved in the process of the formulation of NWRP) in terms of the need and urgency of the
coalition (in relation to the policy formulation of water resources).

The use of the triangulation method increases the confidence of research data; it serves as a tool of
innovation in research methods, provides unique findings, and challenges or integrates theories to
obtain a clearer understanding of the phenomena (Bryman, 2001). This study exclusively focused
on actors who were involved in the formulation of NWRP in Malaysia. In particular, the unit of
analysis for this study included the following individuals: (1) State EPU officers; (2) State Water
Agency officers; (3) Federal officers of NRE, DID, or KETTHA.

FINDINGS/RESULTS

This study proved the importance of exploring the role of actors during policy formulation,
considering that these actors exhibit influential power in forming a coalition to regulate policies. The
rise of the new governing coalition contributes to the strong alliance in forming the coalition
members. Hence the strong alliance gives them the ability to adapt to policy changes and thus
maintain their influence.

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CONCLUSIONS

It is hoped that this study can make a positive impact to encourage other researchers to apply the
ACF (Advocacy Coalition Framework) in studies related to any policy development in Malaysia. The
present study generally aimed to explore the occurrence of coalition among actors during the
formulation of NWRP from 2010 to 2011 by using the triangulation method.

Keywords: Advocacy Coalition Framework, Malaysia, National Water Resources Policy, State Economic
Planning Unit, Triangulation Methodology.

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INLAND CROSS BORDER TRADE & LOGISTICS

Noor Zahirah Mohd Sidek
Universiti Teknologi MARA, Malaysia

[email protected]

INTRODUCTION

The sustained positive growth of the world economy is accompanied by accelerated growth in global
trade where countries tend to have higher rates of growth in trade as a share of national output. A
host of studies have shown how trade liberalization policies have promoted firm-level productivity
and economic growth (see for example Frankel & Romer, 1999; Alcala & Cicone, 2004). Malaysia
and Thailand has been active trade partners and neighbours over the years. In 2018, trade
between Malaysia and Thailand had increased by 17 percent vis-à-vis 2017 to USD21.9 billion.
Exports from Malaysia to Thailand between January to May 2019 stood at RM25.41 billion or
USD6.17 billion which is equivalent to 6.3 per cent of total import. Import from Malaysia to Thailand
accounts for approximately RM19.32 billion (USD4.69 billion) or 5.5 per cent of total imports. In the
case of inland cross border trade, logistics play a core role in the transportation of cargo from one
node to another, supporting processing of economic transactions especially when dealing with
customs and immigration departments prior to benefiting from the trade in terms of economic growth
and development. Inland cross-border trade flow through the northern Malaysia-Thailand border is
estimated to be over 20 percent of the total Malaysia-Thailand trade. With growing trade over time,
both Malaysia and Thailand must ensure continuous improvements in implementable policies
especially on logistics, customs and immigration.

PROBLEM STATEMENT

Weakness and inefficiencies in inland cross border import-export logistics creates a bottleneck for
cargo movements which later, hamper the growth in trade between the two countries. A classic
example is the recent extended hours for cargo vehicles through Sadao-Bukit Kayu Hitam entry
points. Preliminary observations by the Malaysian Immigration Department shows less than 1 per
cent traffic uses the extended hours from 12 midnight to 6 a.m. This indicates lack of inter-
governmental coordination, lack of interest and participation of logistics companies, which prevented
Malaysia and Thailand from the achieving the intended benefits of extending the operating hours.
Hence, extending operation hours at the ICQS, Bukit Kayu Hitam may not increase bilateral trade
between Malaysia-Thailand unless both governments cooperate in delineating and overcoming the
supply chain related problems. Such institutional voids may hamper further trade and growth
prospects between the two countries.

PURPOSE

The focus of this study is to identify the factors driving the choice to trade via inland border and
examine the parochial impact and bottlenecks of inland trade through seven (7) designated entry
points at the Malaysia-Thailand border. The entry points are:
(i) Bukit Kayu Hitam (BKH)
(ii) Padang Besar
(iii) Wang Kelian
(iv) Rantau Panjang
(v) Bukit Bunga
(vi) Durian Burong
(vii) Pengkalan Hulu

Finding from this study would cast light on how and what should be done to facilitate cross border

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trade between Malaysia-Thailand. This study would serve as a basis for inland border trade for
neighbouring ASEAN countries, consideration of free movements amongst ASEAN community (akin
to EU), and free mobilization of labour between countries.

OBJECTIVES

(i) To identify main factors affecting the choice to trade via inland borders.
(ii) To identify bottlenecks emanating from governmental authorities and logistics companies.
(iii) To recommend policies based on the empirical results.

DESIGN/METHODOLOGY/APPROACH

This study will use a two-step analysis. First, we identify the factors affecting the choice of inland
cross border trade using geospatial based estimation techniques. We rely on spatial dynamic panel
using GMM to estimate SDM, SEM and SARAR models. Second, a Geographic Information System
and Cross-Border Trade View System (GIS-TVS) will be developed and used to identify bottlenecks
in cross border trade between Malaysia and Thailand. GIS-TVS would be able to identify hotspot
areas, occurrence of the locations, obtain the location’s ranking, visualize the cross border trade and
location information, retrieve cross border trade database, and perform statistical analysis on the
selected location.

PRACTICAL IMPLICATIONS

Findings from this study can be used for the following purposes:
a. Suggests ways to improve trade between two countries via border from the perspective of

logistics and institutional requirements.
b. Identifying which CIQ to be upgraded to ICQS.
c. Identifying which entry point should be opened 24 hours.
d. Identify which industries to be developed at the border.
e. SOP harmonization for Immigration and Customs Departments
f. Institutional and policy alignments needed to expedite cross border trade.

ORIGINALITY/VALUE

This paper contributes to the existing literature in the following manner. First, location specific
factors affecting the choice of cross-border trade is proposed using geospatial techniques. We
extend the existing theories and empirical finding by incorporating authorities, logistics variables and
institutional framework. Second, with using GIS-TVS, would enable relevant decision making
authorities to evaluate both trade impact and capture bottlenecks at the border. The information
would help later assist policy makers towards designing and implementing more effective policies.
The results would also logistic providers to choose the most efficient mode of transportation for
imports and exports with the help of systematic coordination and organization.

Keywords: Inland cross border trade, Logistics, Geospatial modelling, GIS-TVS

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SUPPLY CHAIN MANAGEMENT SUSTAINABILITY INDEX (SCMSI): A

COMPARATIVE STUDY BETWEEN MALAYSIAN AND THAILAND

COMPANIES

Roshima Said1, Corina Joseph2, Mariam Rahmat3, Wan Nailah Abdullah4, Leily Adja Radjeman5,
Chattrarat, Phuttiwat6

Universiti Teknologi MARA, Malaysia1,2,3,4,5
Suan Sunandha Rajabhat University Bangkok, Thailand6

[email protected]

INTRODUCTION

Malaysia, as a developing country has continued to emphasize the importance of environmental,
social and governance (ESG) matters among Malaysian public-listed companies. Datuk Seri
Abdullah Ahmad Badawi, Malaysia’s fifth Prime Minister in his 2007’s budget speech mentioned that
the Malaysian public-listed companies are required to furnish their corporate social responsibility
(CSR) initiatives in the annual reports. Companies must report on the reasons regarding the failure
to provide ESG information in the annual reports. Not only that, Malaysian government has shown
its supports on the 2030 Development Agenda and its SDG, whereby the main purpose of these 17
SDG are to sustain the preservation of planet and prosperity of society by emphasizing the
importance of good health and well-being, gender equality, quality education, as well as responsible
consumption and production. Therefore, it is necessary for corporations of a country to have a
reliable, relevant and standardized sustainability supply chain management (SSCM) reporting
practice. It is essential for a company to disclose its supply chain management information in a
proper way that will enable the stakeholders to evaluate the firm’s supply chain management
performance efficiently. Therefore, the development of supply chain management sustainability
index (SCMsi) is timely. The SSCM disclosure strategy is also important for companies in providing
information to stakeholders. Marshall et. al. (2016) highlighted that many companies have limited
visibility of their supply chain information, have a poor understanding of their capabilities for
capturing and reporting this information, and have not overtly considered their supply chain
information disclosure strategy. This would impede companies to disclose a comprehensive
information to stakeholders. It is advanced that a comprehensive SSCM disclosure checklist is
imperative for Malaysian public companies as most standards and guidelines on SSCM are from
western countries. It is hoped that the new SSCM specifically developed for Malaysia can become
a benchmark for reporting a more relevant and accurate SSCM by companies.

PURPOSE/AIM & BACKGROUND

This paper adds to the growing literature on the sustainability supply chain management SSCM and
sustainable development and fills the research gap between the two areas. The findings are
expected to provide a new benchmark of a comprehensive Supply Chain Management
Sustainability Index (SCMsi) as a new point of reference, as a tool, and as a monitoring mechanism
to measure the listed companies in advancing sustainable development agenda specifically in
realizing the Sustainable Development Goals (SDG) 12. This paper will be useful to an organization
to take into consideration in identifying of an ideal criteria of Supply Chain Management
Sustainability Index (SCMsi) that should be contributed towards the best practices of supply chain
management. The paper will contribute to an effective monitoring mechanism, as it is important to
improve the Supplier’s Code of Conduct, by the inclusion of the Supplier’s Code of Conduct and
Supply Chain Management in sustainability reporting. Therefore, the focus of this study is to develop

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a sustainability supply chain management index of listed companies in Malaysia. SSCM is required
to make sure principle of sustainability can be implemented well by integrating all the actors in the
industry. Besides that, SSCM can be used to address issues of socio-environmental and improve
the performance of community, helps in making important decisions in supply chain as well as
improving the organizational change. Supply chain sustainability has three principal benefits. Firstly,
it addresses internal business risk, secondly it adds value to the business itself and thirdly it has the
potential to benefit stakeholders (both individuals and companies) related to the supply chain

METHODOLOGY

The study will use “content analysis” method of data collection that has been widely used by past
researchers. A pilot test involving the observation of companies’ annual reports and companies’
sustainability reports will be conducted to find any items that are not relevant to the scope of study.
There steps that will be involved in developing the final version of SCMsi:-

1) Identification of the Supply Chain Management Sustainability Index (SCMsi) basic items
using GRIv4;

2) Removal of several items;

3) Reference to previous studies;

4) Modification of index by adding the ideal criterias;

5) Removal / Addition of Supply Chain Management Sustainability Index (SCMsi) items by
comparing basic SCMsi items and actual SCMsi disclosures available in annual reports and
sustainability reports and companies’ websites;

6) Validation of items by experienced scholars and industrial practitioners; and

7) Preparation of final version of SCMsi

CONCLUSIONS

SSCM is required to make sure principle of sustainability can be implemented well by integrating all
the key players in the industry. SSCM can be used to address issues of socio-environmental and
improve the performance of community, helps in making important decisions in supply chain as well
as improving the organizational change. It has advanced that a comprehensive SSCM disclosure
checklist is imperative for public listed companies to act as a benchmark for reporting of SSCM
items or indicators. Measuring, improving and communicating the sustainability related performance
of sustainable supply chain management (SSCM) an organization has become crucial for setting
objectives and determining future courses of actions.

Keywords: Sustainable Development Goals (SDG), sustainability reporting

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