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1 INTRODUCTION

The term “integrity” is a noun that refers to the quality

of being honest and holding firmly to moral values. It

can also refer to a state of wholeness, unity, or being

undamaged (Kevin, 2022). A person with integrity not

only builds public trust but also fosters good

relationships with all parties, becomes an inspiration,

and demonstrates excellent leadership (Perry, 2022).

Procedural integrity is crucial in cargo handling to

ensure all protocols and standards are consistently

followed. At major Malaysian ports, such as Port

Klang, Port of Tanjung Pelepas, and Penang Port,

maintaining procedural integrity is key to efficient,

safe, and transparent operations.

By strictly adhering to procedures, these ports can

prevent integrity breaches such as non-compliance and

abuse of power, which affect port security and investor

confidence. Ensuring procedural integrity also means

that every step from unloading to inspection is

completed accurately, minimizing errors and reducing

opportunities for corruption. This commitment

supports Malaysia’s competitiveness in global logistics

by fostering a trustworthy and secure port

environment, thereby attracting more investment and

strengthening the economy.

Many countries have laws addressing corruption

both domestically and internationally. With support

from the International Maritime Organisation (IMO)

and the Maritime Anti-Corruption Network (MACN),

specific legislation can help improve the security of

ports and companies. However, port authorities cannot

rely solely on external assistance. In the shipping

industry, employees may report unethical behaviour

or integrity violations through whistleblowing, and the

identity of the whistleblower is kept confidential until

the case is resolved. Whistleblowing refers to the act of

reporting illegal or unethical actions occurring in the

workplace. Whistleblowers typically come forward to

protect others or to prevent potential harm to the

Procedural Integrity and Its Impact on Cargo Handling

at Port Klang, Malaysia

M.D. Mohamad Noor, M.N. Rahmatdin, A.S. Kamis & N.M.A. Harom Junoh

University Malaysia Terengganu, Kuala Nerus, Terengganu, Malaysia

ABSTRACT: Port Klang is vital to the national economy, requiring strict procedural integrity to ensure security

and investor confidence. This study investigates integrity violations specifically corruption, non-compliance, and

abuse of power in Malaysian cargo handling and their impacts on port security. Semi-structured interviews were

conducted in this study; participants were selected through purposive snowball sampling, and the data were

analysed using thematic analysis. The findings reveal that time pressure and weak internal monitoring primarily

drive these violations. To address this, the study recommends enhanced training, better education, and stricter

enforcement to foster transparent and secure cargo operations. Ultimately, mitigating these integrity issues will

improve Malaysia’s Corruption Perceptions Index, boost foreign investment, and strengthen the national

economy.

http://www.transnav.eu

the International Journal

on Marine Navigation

and Safety of Sea Transportation

Volume 20

Number 3

September 2026

DOI: 10.12716/1001.20.03.15

676

organisation (Mela, 2025). Misconduct, as defined by

law, includes reporting criminal offenses (e.g., fraud),

health and safety risks, actual or potential

environmental damage, violation of legal obligations,

and covering up offenses (Howard, 2025).

Whistleblowing is particularly important in the

maritime sector as it helps prevent corruption and

fraud, potentially saving large amounts of money and

maintaining harmony in the shipping industry.

Despite the existence of whistleblowing systems,

integrity issues continue to rise annually, which

presents a serious problem for companies. This is

because individuals are often reluctant to get involved

in others' problems due to personal safety concerns.

Cargo handling refers to the provision of services or

arrangements for the facilitation, storage, and

management of various types of shipments (Negi,

2024). It also involves the transportation of goods via

air, water, or land, which requires careful handling to

prevent damage or container contamination (Wolf,

2025). Stakeholders may take advantage of certain

situations where corruption is widespread, including

within cargo handling operations. Multiple

stakeholders from various jurisdictions are involved

when ships and cargo enter ports, presenting

opportunities for illegal activities such as bribery, one

of the most significant issues faced by shipping

companies (Loh, 2022). “Shipping is a global business

that demonstrates how stakeholders can become

involved in any single shipment and are likely to

encounter traps from opportunists” (Deloitte, 2015).

Risks can arise at any stage of the product life cycle

from the procurement of raw materials to the delivery

of finished goods. If not properly managed, these risks

can disrupt operations, impact financial performance,

damage reputation, and reduce stakeholder confidence

(Park, 2025).

This study explores procedural integrity issues in

cargo handling at Malaysian ports, focusing on misuse

of procedures, dishonesty, and integrity breaches

among stakeholders. Key issues include abuse of

processes, non-compliance by shipping agents, and

actions by higher authorities that enable corruption

and smuggling. Such misconduct undermines cargo

handling processes and facilitates the release of

prohibited goods without proper oversight. In June

2024, the Malaysian Anti-Corruption Commission

(MACC) arrested 17 individuals including 11 customs

officers linked to a smuggling syndicate allegedly

causing revenue losses of around RM3.5 billion. The

group reportedly used tactics such as falsifying

declarations and allowing containers to bypass official

inspections. Authorities seized RM4.4 million in cash

along with luxury items suspected to be proceeds of

corruption (Bernama, 2024). Failure to uphold integrity

in these responsibilities threatens port reputations,

reduces client trust, and may weaken Malaysia’s

international competitiveness. According to

VnExpress, corruption in Malaysia has led to losses

amounting to RM277 billion over five years almost

equal to the combined GDP of Johor and Penang. These

financial losses have significantly impacted the

national economy and undermined investor

confidence (Vna, 2024). Without firm preventive

measures, such integrity violations could cause severe

economic losses and increase organized crime, such as

drug and contraband smuggling, ultimately

threatening national security. Malaysian ports must

strengthen integrity practices to avoid losing valuable

investment and trade opportunities crucial for national

development.

Malaysian ports have implemented various

measures to reduce procedural integrity violations,

including stricter controls and policies such as the “No

Gift Policy,” the Anti-Bribery Management System

(ISO 37001), the Whistleblower Policy, and others. The

“No Gift Policy” is a guideline that prohibits all staff

and executives from giving or receiving any form of

asset, gift, incentive, or benefit related to their official

duties, whether before, during, or after carrying out

their responsibilities. The aim of this policy is to

prevent corruption and promote ethical behaviour

(Chulalongkorn University, 2024). The Anti-Bribery

Management System aims to instil a culture of integrity

within organisations through effective preventive

measures. With this structured approach,

organisations can strengthen their ability to detect and

stop potential bribery incidents before they occur (ISO,

2025). Each of these policies is a vital component in

ensuring procedural integrity and protecting

organisations from risks of non-compliance and

reputational damage. Additionally, cargo shipping

and port security measures are part of a comprehensive

strategy to ensure high levels of integrity in port

operations in Malaysia, which not only ensures safety

but also enhances the country’s global

competitiveness.

This study differs from previous research by

examining procedural integrity in cargo handling at

Malaysian ports using a more holistic and updated

approach, incorporating perspectives from various

stakeholders. For example, a study by Faisal et al. in

2023 investigated the impact of procedural

implementation and supervisory functions on ship

safety at Nunukan Port, Indonesia. Their findings

revealed that effective procedures and supervision

positively influence port safety. While Faisal’s study

highlights similar elements such as procedures and

supervisory roles, it focused on the use of technology

to enhance safety and was conducted at an Indonesian

port. In another study, Razeen Rafiqi Bin Nordin (2022)

investigated the use of personal protective equipment

(PPE) at Malaysian ports, finding that many workers

failed to wear PPE properly, often due to hot weather

and discomfort. While this issue aligns somewhat with

this study’s findings, Razeen’s research focused solely

on PPE use without emphasizing cargo handling

specifically.

2 RESEARCH BACKGROUND

Malaysia currently has eight federally administered

ports, namely Bintulu Port, Johor Port, Port Klang,

Kemaman Port, Port of Tanjung Pelepas, Penang Port,

Melaka Port, and Kuantan Port. Port Klang is the

largest and busiest port in Malaysia. It is a federal

administrative port and is owned by the Malaysian

government due to its world-class facilities and

services. According to the Trade Corp website

(Mauludino, 2024), Port Klang is also ranked as the

tenth busiest port in the world. In 2020, Port Klang

handled more than 13.24 million TEUs. The port has 53

berths, consisting of 24 facilities for container handling,

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11 berths for handling heavy cargo, 9 berths for liquid

bulk, and 7 berths for dry cargo. In addition, it has four

container terminals with an annual handling capacity

of approximately 8.5 million TEUs and 220,000 square

meters of storage space. Port Klang also has two

passenger terminals, namely for ferries and cruise

ships (Raunek, 2022). The port handles all types of

cargo, including palm oil, rubber, timber, vehicles, fuel

oil, and petroleum-based products (Globaltracking,

2024). In this study, Port Klang represents the overall

case-study environment, while Port A and Port B refer

to the port organisations from which the respondents

were recruited. The respondents were selected based

on their direct involvement and relevant experience in

cargo-handling operations within the Port Klang

environment.

3 LITERATURE REVIEW

3.1 Rules

The Anti-Bribery Management System (ABMS)

regulations under ISO 37001 help organisations

prevent and detect bribery through policies and

controls tailored to specific risks. By adopting ABMS,

companies demonstrate a commitment to ethics and

integrity, which is especially important in high-risk

sectors such as logistics and cargo handling

(Transparency International Malaysia, 2020). In

Malaysia, the implementation of ABMS in ports has

enhanced transparency and the country’s reputation as

a reliable trading partner (Shah, 2021). The "no-gift

policy" is a proactive measure to prevent conflicts of

interest and unethical behaviour in business. In sectors

like logistics and cargo handling, this policy ensures

that transactions are conducted transparently. Its

implementation helps protect companies from conflicts

of interest and maintain stakeholder trust (Chambers,

2022). Supported by the Malaysian Anti-Corruption

Commission (MACC), this policy contributes to

improving integrity and reducing the risk of

corruption in critical industries, including ports.

3.2 Cargo Handling

The global shipping industry faces various challenges,

including geopolitical uncertainties, climate

disruptions, and economic pressures. According to a

UNCTAD report, these risks have increased

uncertainty in global supply chains, affecting transport

reliability and shipping capacity (Zheng, 2024). More

than 80% of global trade by volume is transported by

sea, making ports a critical component of the global

supply chain (UNCTAD, 2024).

Cargo handling refers to the provision of services or

arrangements for facilities, warehousing, storage, and

the handling of all types of shipments. It also involves

transporting goods by air, sea, or land, which requires

careful attention to avoid damage or contamination of

containers. Key processes in cargo handling include

planning, loading, storage, safety, unloading,

documentation, and communication (Handybulk,

2025). This indicates that cargo handling requires

proper and efficient measures to ensure the safety of

goods and that they are carefully managed.

Cargo handling also requires experts in various

roles such as shipmasters, chief officers, stevedores,

cargo surveyors, and port authorities, all of whom

must work together to ensure that the movement of

goods is safe and smooth (Handybulk, 2025).

In cargo handling, cargo operations are essential to

ensure the safety and smoothness of shipment and

handling. All parties involved in the supply chain

including vendors, transport contractors, logistics

service providers, vessel operators, and offshore

handlers — are responsible for ensuring that cargo is

handled safely throughout its journey. This includes

regular audits to ensure compliance with safety

guidelines (Oil & Gas UK, 2015).

For example, the 2023 annual report by the Bureau

of Transportation Statistics emphasises the need to

monitor safety systems to reduce the risk of

contamination and safety incidents (Bureau of

Transportation Statistics, 2023).

Firstly, it is important to be familiar with Incoterms,

which define insurance and accident responsibilities at

each stage of transportation, as well as the buyer’s or

seller’s obligations in case of delays or unforeseen

events (McKenzie, 2021). For instance, under the CIP

(Carriage and Insurance Paid To) term, the seller is

responsible for delivery and insurance up to the agreed

destination, with risk transferring to the buyer once the

goods are handed over to the first carrier (Trade

Finance Global, 2025).

Next is the customs process, whether for shipping

or collection, in which imported or exported cargo that

is imported or exported must go through paperwork

and licensing procedures before delivery (McKenzie,

2021). The handling of dangerous goods must comply

with the International Maritime Dangerous Goods

(IMDG) Code. This includes responsibilities for

loading and transferring hazardous materials from

offshore to onshore, and proper shipping of dangerous

goods such as radioactive materials (Oil & Gas UK,

2015).

All parties must remain vigilant, prioritizing safety

and minimizing risk during cargo delivery, especially

in the oil and gas sector, which involves shipping

between land and offshore platforms.

3.3 Ethics and Safety

Ethics is the foundation for understanding what is

right and wrong and acting morally. It serves as a

guideline for behaving and making decisions fairly and

with integrity, while considering the impact on others.

Ethics acts as a compass, guiding us to do what is right

and just. In the workplace, ethics is not just about

fulfilling personal needs but also involves good

conduct that aligns with religious teachings and

human responsibilities.

Examples of unethical behaviour include fraud,

bribery, abuse of power, and conflicts of interest.

Corruption cases frequently occur in society, and many

cases in our country involve this issue. “Violations of

ethics and procedures such as discrimination, safety

breaches, poor working conditions, and the release of

confidential information are other examples. Situations

like bribery, forgery, and theft, although clearly

unethical, become criminal activities and are often

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dealt with outside the company” (Amanda, 2023).

Trust and integrity are crucial foundations in an

organisation to ensure smooth operations and

processes.

Safety is essential in port operations, especially in

handling large and heavy cargo. Neglecting safety can

lead to loss of life, property damage, injuries, and

financial loss. Irresponsible behaviour, such as

disregarding safety procedures, increases risks for both

workers and others. In major Malaysian ports such as

Port Klang, Health, Safety, and Environment (HSE)

policies are implemented to ensure safe operations.

Non-compliance with HSE policies is not only against

the law but also leads to serious consequences.

3.4 Integrity Violation

Integrity violations are serious threats that affect

various industries in Malaysia, undermining the

economy and public confidence. Financial

misappropriation and corruption hinder economic

growth while damaging the country’s image and

public trust in institutions. The establishment of the

Malaysian Anti-Corruption Commission (MACC)

reflects the nation's strong commitment to fighting

corruption and advancing good governance. Malaysia

is determined to foster a culture of integrity and sound

governance as the foundation for economic success and

the well-being of its people.

Procedural violations refer to non-compliance with

rules established within an organisation. In Malaysia,

corruption cases have continued to rise since 2018, with

the MACC reporting that nearly 80 percent of

complaints involved bribery among officials and staff

(Malay Mail, 2019).

Integrity breaches at Port Klang have become a

serious issue, eroding public trust and impacting the

national economy. One of the biggest cases involved a

smuggling syndicate known as the “Flying Container,”

in which goods were smuggled without proper

customs inspections (Zoki, 2024). The case led to an

estimated RM3.5 billion in lost tax revenue over a 10-

year period (Team Container News, 2024). In response,

the Malaysian Anti-Corruption Commission arrested

17 individuals, including 11 customs officers and six

company directors, and seized RM4.4 million in cash

suspected to be bribe money (Basaruddin, 2024).

Such non-compliance not only undermines the

integrity of institutions but also weakens public

confidence in national governance, highlighting the

major challenge of strengthening transparency and

administrative accountability. Therefore, it is necessary

to follow a protocol to link them with the text clearly

and unequivocally.

Table 1. Number of arrests based on type of offense from

2018 to 2023

No.

Offence

2018

2019

2020

2021

2022

2023

Accepting Bribes

394

448

478

343

293

344

Taking Bribe

125

222

159

False Claim

231

315

241

192

271

374

Abuse Of Power

105

110

Money Laundering

Others

Total

894

1,101

998

828

820

1026

Source: MACC Annual Reports (2018, 2023)

Table 1, which includes data on MACC arrests from

2018 to 2023, clearly shows that corruption offences,

particularly accepting bribes, are the most frequently

committed offences. The number of arrests for this

offence remained high, with at least 293 arrests each

year throughout the period. Bribe-taking consistently

ranked as the most reported offence, with a rise in

arrests from 2018 to 2020, followed by a slight decline

in 2021 until 2022.

In addition, false claims and abuse of power were

also common offences, indicating that these integrity

issues span multiple aspects of organisational

operations. Although the number of specific cases may

fluctuate, the overall trend points to an increase in

reported cases, possibly due to factors such as

ineffective enforcement, insufficient awareness, or

societal behaviour that has yet to reach the desired

ethical standards.

This data highlights the urgent need for more

effective approaches in addressing integrity issues in

Malaysia, including stricter enforcement,

comprehensive public education, and reforms in anti-

corruption policies.

3.5 Awareness

Awareness of integrity violations in procedures in

Malaysia has been increasing due to active exposure

and education efforts by the authorities, particularly

the Malaysian Anti-Corruption Commission (MACC).

For example, MACC has implemented the Anti-

Corruption Heroes (Wira Anti Rasuah – WAR)

program to educate students about the dangers of

corruption and instill integrity values from an early

stage in schools (Media Madani, 2024). Educational

programs targeting various segments of society

including students, workers, and public servants have

successfully fostered awareness of the negative

impacts of dishonesty in official procedures (MACC,

2025). These harmful effects not only lead to the

country’s economic decline but also disrupt the social

and moral well-being of society (Harian, 2021).

Through broader exposure to the consequences of

integrity violations such as increased poverty,

inequality, and significant economic loss, society is

becoming more aware of their critical role in

preventing unethical practices (Malaysia Gazette,

2020). For instance, the Integrity and Anti-Corruption

Course (KIAR) has been made a compulsory subject for

all Technical and Vocational Education and Training

(TVET) institutions, as approved by the government

(Harian, 2024).

This awareness not only enhances understanding

but also lays the foundation for a society that values

integrity, honesty, and transparency in all actions.

Active participation from all parties is essential in

combating integrity violations and creating a more

ethical and responsible environment at every level.

At Malaysian ports, various efforts have been

undertaken to enhance integrity-focused policies, such

as whistleblower protection, a ban on receiving gifts,

and strict codes of ethics (Westport, 2022). For example,

Westports Holdings emphasises the core value of

"TANSRIG," which highlights Accountability and

Integrity as key principles in strengthening honesty

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and trust within the organisation. These steps prioritise

discipline and transparency, cultivating a positive and

constructive work environment.

In strengthening integrity, Malaysian ports can take

cues from the success of Singapore Port, which is

renowned for its strict regulatory framework and the

use of advanced technology to minimise risks such as

cargo mismanagement, theft, and delays (MPA, 2022).

Singapore has set high industry standards through the

implementation of automated tracking systems and

comprehensive staff training programs, which help

prevent integrity breaches in daily operations.

The lack of integrity among employees and top

management is highly concerning, as it has the

potential to damage a company’s reputation, reduce

productivity, and even lead to bankruptcy (Strategic

Leaders Consulting, 2024). The culture of corruption in

the cargo shipping industry must be completely

eliminated, as such integrity violations erode customer

and investor confidence (IDEAS, 2021). Pressure from

stakeholders that drives individuals to commit

integrity violations for personal gain must be curbed.

If integrity issues in Malaysia can be reduced, the

country will become more attractive to foreign

investors, as evaluated by Transparency International,

which ranks countries based on transparency and

integrity (Perozo, 2024).

Efforts to reinforce integrity, especially in the cargo

shipping sector, are crucial to ensuring the safety of

Malaysian ports, enhancing international confidence,

and strengthening the national economy.

This study focuses on integrity violations in cargo

handling procedures at at Port Klang, with Port A and

Port B as case studies. Integrity violations in cargo

handling involve various forms of abuse of power and

non-compliance with procedures, which can threaten

operational efficiency and port reputation.

To understand this issue more deeply, this study

integrates institutional theory and principal-agent

theory as the conceptual foundation. Institutional

theory focuses on the role of social, political, and

economic structures in shaping and regulating

stakeholder behaviour at ports (Scott, 2004).

Meanwhile, principal-agent theory explains how

conflicts of interest can arise when agents act for

personal gain, thereby compromising the interests of

the organisation or the principal they represent (Chen,

2022).

This research framework is designed to examine

and address integrity challenges at ports through an in-

depth analysis of cargo handling processes and

procedures, stakeholder roles, and the types and

frequency of integrity violations. The study also

proposes measures to address these issues, aiming to

strengthen integrity in cargo handling practices.

The main objectives of this research are to:

− describe the processes and procedures involved,

− assess the roles of stakeholders,

− identify the types and frequency of integrity

violations, and

− recommend solutions to improve integrity practices

at Malaysian ports.

4 METHODOLOGY

This study adopts a qualitative approach to

understand integrity issues in cargo handling

procedures at Port Klang. This approach aims to gain

in-depth insights into the behaviours and opinions of

respondents. The primary data were collected through

semi-structured interviews, allowing flexibility in the

arrangement of questions and enabling deeper

discussions. These interviews were conducted either

face-to-face or online, with each session lasting

approximately one hour. Each interview involved 25 to

30 questions, adapted based on institutional theory and

principal-agent theory. Audio and video recordings

were used to ensure that all data were accurately

documented.

Respondents were selected using purposive

sampling through the snowball sampling method,

involving port officers and cargo handling experts with

a minimum of five years of experience. Snowball

sampling is a non-probability technique where current

study participants identify and recruit future

participants from within their own networks. This

approach is particularly valuable when researching

hard-to-reach populations, such as marginalised

communities or individuals with specific attributes. As

referrals accumulate, the group of participants

gradually expands, resembling the growth of a

snowball (Hassan, 2024). Unlike probability sampling,

which relies on strict rules and random selection,

snowball sampling offers a more flexible approach.

Essentially, it begins with identifying willing

participants who can then refer additional potential

participants (Nikolopoulou, 2023). This study focuses

on key personnel at major ports, as well as those in

human resources and legal roles, to ensure that the

collected information is of high quality and credibility.

Content analysis is a qualitative research method

that reveals the complexity and challenges in collecting

data from primary sources such as interviews and

surveys. It is a technique used to identify specific

words, themes, or concepts within a set of qualitative

data. Researchers can measure and examine the

frequency, significance, and relevance of particular

words, themes, or concepts through content analysis

(Columbia University, 2023). In this study, the

researcher selected thematic analysis, which allows

data to be categorised according to emerging themes.

Thematic analysis is a systematic approach to

organising and analysing rich data from qualitative

research, helping to identify key themes by assigning

appropriate codes to each observation and quotation

(Rosala, 2022). The use of thematic analysis helps

obtain comprehensive and optimal data.

First, interviews were conducted at selected

locations Malaysian ports which recorded in both

video and audio formats. Next, all collected data from

primary sources such as tapes, videos, and the audio

were transcribed and converted into textual data. Then,

the recorded content was analysed and turned into

written documents for data interpretation and coding.

Coding is the process of assigning accurate codes to

text segments and serves as a summary of the text

content and a shortcut to more complex information.

Each code had a name, a definition of what it

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represents, and examples of text that do or do not fit

the code (Rosala, 2022).

For this study, the researchers used NVivo software

to analyse the data through coding procedures derived

from institutional theory and principal-agent theory,

which ensured data saturation. Finally, the results

were presented in the form of direct quotations, pie

charts, histograms, and other visual formats.

Figure 1. Flow Diagram of Content Analysis

Although this study has the potential to make a

significant contribution to understanding integrity

issues in Malaysia’s cargo handling sector, it may face

challenges in obtaining cooperation from port

authorities due to the sensitivity of integrity-related

issues and privacy concerns. The researcher will strive

to obtain non-confidential and relevant information

from the parties involved.

Table 2. Respondent Information by Organisation, Position

and Work Experience

Organisation

Respondent

Position

Work Experience

(Years)

Port A

Operations Manager

Assistant Manager

Integrity Officer

Port B

Terminal Planning

Manager

Container Operations

Manager

Ship Planning Manager

Government Relations

Manager

A total of seven respondents were selected for this

study using purposive sampling through the snowball

technique. The respondents consisted of senior officers

from Malaysia’s main ports, namely Port A and Port B,

who are directly involved in cargo handling

operations. All respondents have substantial work

experience in their respective fields, ranging from 12 to

29 years, making them relevant and credible sources in

providing insights into integrity issues in cargo

handling.

5 REPORT AND DISCUSSION

This study used the thematic analysis approach,

chosen for its ability to enable the researcher to

identify, analyse, and report patterns or themes that

emerge from the data with a high degree of flexibility.

The process involved two phases. In the first phase, the

researcher conducted interviews, asking questions

related to integrity violations at specific ports. The

researcher listened to each participant and took notes

during the data collection sessions. All interview

recordings were fully transcribed. In the second phase,

the researcher read the interview transcripts

repeatedly to understand not only the content of the

interviews but also to identify differing perspectives

among the participants. After gaining a comprehensive

understanding of the data, the researcher began

marking relevant text segments and assigning codes to

the data in relation to the research objectives. Data

saturation was assessed progressively during the

interview process. Saturation was considered to have

been reached when subsequent interviews generated

recurring information and did not produce

substantially new codes or themes relevant to the

research objectives.

5.1 Generate Initial Code

The process of generating initial codes began after all

interview transcripts were completed and read

multiple times to allow the researcher to gain a deep

understanding of the content. Initial coding is a crucial

step in thematic analysis, serving to identify

meaningful segments of data related to the research

objectives. These codes help organize the data

systematically before being grouped into broader

themes.

5.1.1 Professional Certificate

Table 3. Professional Certificate Key Codes

Key Codes

Total Codes

Training replacing certificate

Certificate Requirements for

Contractors

Rank Promotion System

Total

Each initial code was identified based on recurring

speech patterns from the interviewed respondents.

Within the theme of "Professional Certification," the

researcher identified seven key codes, such as training

as a substitute for certification, certification

requirements for contractors, and the promotion

system. This indicates that although cargo handlers are

not required to have professional certification, the port

provides internal training systems as a replacement.

“The person who operates that machinery was trained

at the port by the Training Division”, however, external

contractors are required to possess specific

certifications for cargo handling. This analysis shows

that professional certification is not a primary

requirement in cargo handling at Malaysian ports;

instead, internal training and work experience are

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given greater importance. Through this approach,

ports can ensure a competent workforce without

relying on external certification while maintaining

safety standards and operational efficiency. A study by

Mona et al. (2024) also noted that port organisational

structures are shaped to adapt to operational needs and

enhance competitiveness through internal strategies

such as self-training and sustainable practices.

5.1.2 Cargo Handling Training

Table 4. Cargo Handling Training Key Codes

Key Codes

Total codes

Training Hierarchy

Structured Training

Continuous Training

Total

Within the theme of "Cargo Handling Training,"

eight codes were identified, including training

hierarchy, structured training, and continuous

training. “There is indeed a training section. This

training section will train people who operate the

prime mover, people who handle RTG, people who

operate cranes. So when they pass, they will be given

one card, we call it a skills card. Kind of like a license.”

This indicates that the development of cargo handlers’

competencies in operating equipment such as RTGs

and cranes occurs progressively based on their

performance and experience. This finding aligns with

Lamine et al. (2023), who stated that operational

efficiency and service quality are top priorities at

container terminals. The analysis shows that training in

cargo handling at Malaysian ports is shaped by

industry norms that emphasize structured training,

promotion hierarchies, and continuous monitoring to

ensure worker competency.

5.1.3 Integrity Procedure

Table 5. Integrity Procedure Key Codes

Key Codes

Total codes

Anti-Corruption

Internal Guidelines

Media Social

Whistleblowing

Under the theme of “Integrity Procedures,” a total

of 16 codes were identified. These include key elements

such as anti-corruption, internal guidelines, social

media, and whistleblowing. These codes reflect the

port organisations’ efforts in establishing integrity

support systems that encompass internal policies,

awareness campaigns, and platforms for reporting

misconduct. This finding aligns with Noreha et al.

(2021), who emphasized the importance of maritime

governance in curbing corruption and integrity lapses.

The analysis shows that integrity procedures in cargo

handling at Malaysian ports rely on a combination of

strict policies, continuous monitoring, and the

cultivation of an integrity-based work culture.

Through this approach, organisations can maintain

high levels of integrity and minimise the risk of ethical

violations in cargo handling operations.

5.1.4 Causes of Non-Compliance

Table 6. Causes of Non-Compliance Key Codes

Key Codes

Total codes

Fatigue

Lack of Training

Disciplinary Problems

Attitude Problems

Dissatisfied with Management

Total

Under the theme “Causes of Non-Compliance with

Regulations,” a total of 14 initial codes were identified,

such as fatigue, lack of training, disciplinary issues,

attitude problems, and negative perceptions towards

management. These codes were derived from

respondents’ statements that addressed employee

behaviour and the organisational challenges in

ensuring compliance with operational and safety

regulations. This is supported by Ayuni et al. (2022),

who found that port workers experience high work

pressure due to heavy workloads, challenging working

environments, and an unsupportive organisational

culture. The analysis indicates that non-compliance

with directives in Malaysian ports stems from a

combination of factors including employee attitudes,

job dissatisfaction, insufficient training, fatigue,

disciplinary problems, and delayed management

action. “We do our best and the best for the worker. For

example, you must follow instructions, you must

comply with SOPs, and you must follow safety rules.

But they don’t. They the type to just go against them,

and we just take our actions.”. By addressing these

factors systematically, ports can improve employee

compliance and ensure smoother operations.

5.1.5 4.1.5 Integrity Case

Table 7. Integrity Case Key Codes

Key Codes

Total codes

Information Leakage

Corruption and Abuse of Power

Misuse of Facilities

Absent from Work or MC

Not Following the Rules

Total

Under the theme "Integrity Cases," the researcher

identified 33 main codes such as information leakage,

bribery and power abuse, misuse of facilities,

absenteeism or taking medical leave (MC), and non-

compliance with regulations. The most dominant code

was "Non-compliance with regulations," with 16

instances, reflecting various forms of misconduct

including failure to wear PPE, sleeping while on duty,

misuse of leave systems, and disobedience of work

instructions. In addition, the researcher identified

power-related codes such as manipulation of container

release processes and system tampering, which pose

significant risks to port security and logistics integrity.

The study by Emiliana Putri Said Limi (2023)

highlights the need for better coordination in the

implementation of security codes (ISPS) to address

issues such as smuggling and abuse of authority. The

analysis shows that integrity violations in Malaysian

ports encompass a wide range of issues, including

safety breaches, abuse of power, absenteeism, data

manipulation, misuse of company assets, and internal

information leaks. By addressing these factors

systematically, ports can enhance operational integrity

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and ensure stricter compliance among employees and

vendors.

5.1.6 Action Taken If Integrity Violated

Table 8. Actions Taken If Integrity Violated Key Codes

Key Codes

Total codes

Warnings and Penalties

Suspend and fired

Port Access Control

Internal Investigation

Demerit System

No Promotion

Total

Under the theme "Actions Taken for Integrity

Violations," a total of 30 codes were identified, such as

warnings and penalties, suspension and dismissal,

port access control, internal investigations, demerit

systems, and denial of promotion. The most frequently

occurring code was "Warnings and penalties,"

reflecting a reliance on disciplinary approaches such as

show-cause letters and written warnings as practiced

by the ports. Stricter actions include suspension and

termination, particularly for serious cases involving

corruption or significant losses to the company. “If it’s

a minor offense, the penalty might be suspension,

suspended up to the maximum, maybe 14 days. If it’s

a serious offense, there’s also suspension, and if it’s

even more serious, they’ll terminate.”. Respondents

also mentioned the use of security measures such as

revoking port passes as an enforcement mechanism for

repeat offenders. This aligns with the findings of

Razeen Rafiqi (2022), which highlight the need for

disciplinary action against employees who violate

safety regulations. The analysis shows that actions

taken against offenders in Malaysian ports include

internal investigations, penalty and warning systems,

suspension and dismissal, as well as restricted access

to the port. With strict control mechanisms in place,

organisations can maintain a high level of discipline

and uphold integrity in their port operations.

5.1.7 Programs

Table 9. Programs Key Codes

Key Codes

Total codes

Talks and Campaigns

Training And Seminars

Communication Medium

Internal Audit and Policy

Total

Under the theme "Programs," a total of 22 codes

were identified. These include key elements such as

talks and campaigns, training and seminars,

communication mediums, and internal policies and

audits. Respondents described the implementation of

various programs such as integrity campaigns in

conjunction with Anti-Corruption Day, roadshows by

the legal department, and briefing sessions delivered

through internal communication platforms such as

email, WhatsApp, and corporate magazines. In

addition, continuous training such as internal audits

for the anti-corruption management system is also

conducted to enhance awareness and compliance

among employees. This aligns with the study by

Wangloan et al. (2022), which highlights that

professional ethics and training have an impact on

organisational commitment and safety performance.

The analysis indicates that programs to enhance

integrity in Malaysian ports involve ongoing talks and

campaigns, regular training, internal policies and

audits, as well as diverse communication mediums.

Through the consistent implementation of these

strategies, ports can maintain an ethical work culture

and increase supervisory trust in their operations.

5.1.8 Ways to Overcome Issues

Table 10. Ways to Overcome Issues Key Codes

Key Codes

Total codes

Culture of Integrity

Monitoring And Reporting

Programs and Training

Technology

Decisive Action

Total

Under the theme "Ways to Overcome Issues," ten

initial codes were identified, such as integrity culture,

monitoring and reporting, programs and training,

technology, and strict actions. The ports demonstrate a

zero-tolerance approach toward serious violations

such as termination and internal investigations. At the

same time, they also set requirements for system

monitoring, the use of security technology, and

mandatory safety and integrity briefings that must be

attended before gaining port access. The study by

Ferhan Oral and Serim Paker (2023) emphasises the

importance of additional risk assessments to enhance

port security against threats. The analysis shows that

approaches to overcoming integrity issues in

Malaysian ports involve strict actions against

offenders, ongoing awareness programs, systematic

monitoring, the use of control technologies, and the

establishment of an integrity culture within the

organisation. With consistent implementation of these

measures, ports can maintain a high level of integrity

and strengthen supervisors' trust in their operations.

5.2 Finding Themes

After the initial coding process was completed, the

third phase of thematic analysis focused on identifying

and organizing the codes into broader and more

meaningful themes. This process was conducted

inductively by identifying patterns, relationships, and

connections among the initial codes based on the

research objectives and a deep understanding of the

interview data that had been analysed.

The first theme is Professional Practices and

Competency Development. This theme encompasses

the port’s efforts to ensure cargo handlers possess the

necessary skill levels through internal training,

without relying entirely on professional certification.

Codes such as certificate-replacement training,

certification requirements for contractors, promotion

systems, structured training, and training hierarchy

demonstrate the existence of a formal and systematic

training structure at the port. These elements reflect the

process of professional socialization guided by

industry norms and are supported by Institutional

Theory, which explains how organisations develop

internal structures in line with the operational

environment. Meanwhile, Principal-Agent Theory

highlights how control mechanisms such as training

and performance evaluations are used to ensure the

683

quality of workers, especially among contract

employees.

The second theme is Strengthening Integrity

Systems and Disciplinary Actions. This theme

combines all codes related to the implementation of

policies and enforcement mechanisms that support

compliance with organisational ethics and regulations.

Codes such as anti-corruption, feedback mechanisms,

internal guidelines, warnings and penalties, and

internal investigations indicate the port’s commitment

to building a strong integrity system. This theme

illustrates how the organisation employs structured

and formal approaches to prevent ethical breaches

through internal policies and disciplinary measures.

Institutional Theory supports this establishment as a

response to external pressures such as industry

regulations and market demands, while Principal-

Agent Theory provides an explanation for the reliance

on penalties and access controls as a form of behaviour

management.

Next, the third theme is Risk Factors for Non-

Compliance and Ethical Violations. This theme

includes codes that describe the reasons behind non-

compliance with procedures and breaches of integrity

among employees. Among the codes under this theme

are fatigue, lack of training, attitude issues, disciplinary

problems, and abuse of power. The study found that

these violations are not only due to individual factors

but are also influenced by weaknesses in training

systems and organisational management. Principal-

Agent Theory explains the gap between management

and workers, which can lead to conflicts of interest and

accountability. At the same time, Institutional Theory

helps to understand how organisational norms and

work culture influence employees' tendencies to

comply with or violate rules.

Finally, the fourth theme is Preventive Approaches

and the Development of an Integrity Culture. This

theme focuses on the organisation’s efforts to build a

culture of integrity through various preventive

strategies such as talks and campaigns, training and

seminars, system monitoring, and the use of

technology. The port is actively implementing

awareness programs and upholding integrity values

among employees. Actions such as internal audits,

access control, and safety monitoring reflect a long-

term and structured approach. Institutional Theory

explains the development of organisational culture

through adaptation to industry standards, while

Principal-Agent Theory demonstrates how education

and monitoring are used to ensure employees act

according to the prescribed integrity values.

5.3 Reviewing Themes

This review was conducted to ensure that each

identified theme is conceptually sound, well-

supported by data, and clearly linked to the research

questions and objectives. The process involved two

main stages: (i) reviewing the appropriateness of codes

and data extracts that form the themes; and (ii) re-

examining the overall thematic structure to assess

internal coherence and relationships between the

established themes.

In the first stage, each code grouped under the

initial themes was reviewed to determine its relevance

and consistency in meaning. Interview excerpts that

formed the basis of these codes were re-read and

matched against the themes to ensure they contributed

significantly to the meaning of the theme. Irrelevant,

overly general, or insignificant codes were removed or

merged with more appropriate ones. For instance,

codes such as lack of training and fatigue were

confirmed to be solidly placed under the theme Risk

Factors for Non-Compliance and Ethical Violations, as

both refer to internal worker-related causes that affect

adherence to operational procedures.

Following the code-level review, the next step

assessed each theme in terms of alignment, content

balance, and internal consistency. During this process,

no themes were entirely discarded, but some

underwent semantic refinement to better reflect their

intended meaning. For example, the theme Preventive

Approaches and the Development of an Integrity

Culture was validated to represent a combination of

long-term strategies, ethical education, and the use of

technology to establish a functional integrity system.

There was no significant overlap between this theme

and Strengthening Integrity Systems and Disciplinary

Actions, as the former focuses on prevention and

development, while the latter deals more directly with

reactive measures following violations.

Each theme was also evaluated for inclusiveness

and narrative clarity. The analysis found that the

emerging themes are complementary and reflect the

multifaceted aspects of cargo handling governance,

particularly in the context of integrity and regulatory

compliance at ports. All themes were retained,

reviewed in terms of their names and descriptions, and

are now ready to progress to the next phase of theme

refinement and in-depth analysis.

5.4 Naming and Defining Themes

The next step in thematic analysis is the process of

naming and defining the themes. This phase is

essential to ensure that each theme is not only clearly

identified but also has a specific narrative that explains

its true meaning, scope, and relevance to the research

questions. During this phase, each theme is given a

concise yet meaningful name and is elaborated with a

description that clarifies the conceptual boundaries

and how it contributes to understanding integrity

issues in cargo handling at ports.

The first theme is Professional Competency through

Internal Training. This theme refers to efforts in

developing employee competency without relying

solely on external professional certification. Instead, a

structured and hierarchical internal training system is

implemented as a mechanism for skill enhancement.

This theme highlights how ports institutionalize

training as part of workplace norms and control

employee performance through systematic promotion

and retraining processes. It demonstrates the ports’

internal strategy to ensure work quality without

external recognition.

The second theme is Integrity and Discipline

Systems Based on Organisational Policies. This theme

emphasises the formal integrity structures

implemented at ports through anti-corruption policies,

internal guidelines, and penalty systems. It includes

disciplinary actions for violations such as suspension,

684

dismissal, and revocation of port access. This theme

reflects the organisation’s serious approach to curbing

misconduct and fostering compliance through clear

and firm policy enforcement. It also illustrates the use

of managerial authority in building a culture of

adherence.

The third theme is Compliance Challenges Related

to Internal Factors and Work Behaviour. This theme

encompasses factors that contribute to employee non-

compliance with port regulations, such as lack of

training, disciplinary issues, and negative attitudes. It

also includes forms of ethical breaches like

absenteeism, misuse of facilities, and abuse of

authority. This theme is important as it provides

insights into the real pressures and challenges faced by

employees that may affect their ability to follow

guidelines. These factors also indicate internal

organisational weaknesses in terms of support and

human resource management.

Lastly, the fourth theme is Preventive Approaches

and Strengthening of Integrity Culture. This theme

refers to the port's proactive strategies to foster a

culture of integrity through various programs, training

sessions, awareness campaigns, and the use of

monitoring technology. It also includes educational

efforts such as talks, seminars, and continuous

communication with employees. This theme explains

how the organisation shapes shared norms and values

that support integrity and strives to prevent

misconduct through ongoing internal reinforcement.

Each of these themes carries its own narrative but

complements one another in providing a

comprehensive picture of integrity practices and

challenges in the port environment. These themes will

be actively used in the final phase to generate findings

and construct interpretations within the theoretical

framework which included the Institutional Theory

and Principal-Agent Theory).

5.5 Report

The final phase of this thematic analysis focuses on the

comprehensive and clear presentation of findings

based on the themes identified and named in the

previous stage. This report presents a narrative that

integrates interview transcript data with the theoretical

frameworks used—Institutional Theory and Principal-

Agent Theory providing deeper insights into the issue

of integrity in cargo handling at Malaysian ports.

5.5.1 Theme 1: Professional Competency through Internal

Training

Findings indicate that ports do not place heavy

emphasis on the requirement for external professional

certification among permanent cargo handlers.

Instead, they prioritise structured internal training.

Respondents noted that training is conducted in stages

based on workers’ performance and experience. This

aligns with Institutional Theory, which explains how

organisations develop internal structures to adapt to

industry norms. Meanwhile, Principal-Agent Theory

explains how management uses incentives, such as

promotions, as a means of controlling employee

behaviour.

5.5.2 Theme 2: Integrity and Discipline Systems Based on

Organisational Policies

Ports have established strong integrity systems

with policies such as anti-corruption, whistleblowing

mechanisms, and disciplinary actions including

dismissal and suspension. These actions are seen as

crucial to safeguarding operational integrity. Several

respondents shared experiences of regulatory

violations that resulted in severe penalties, such as the

revocation of port access passes. This approach

demonstrates how Institutional Theory operates in

shaping compliance norms, while Principal-Agent

Theory highlights the necessity of control mechanisms

to prevent misconduct by agents

(employees/contractors).

5.5.3 Theme 3: Compliance Challenges Related to Internal

Factors and Work Behaviour

Various challenges contribute to non-compliance,

including fatigue, lack of training, disciplinary issues,

and dissatisfaction with management. Cases such as

absenteeism, abuse of sick leave, and misuse of

clearance systems indicate risks to safety and integrity.

Based on Principal-Agent Theory, information

asymmetry and conflicts of interest between workers

and management can lead to breaches of integrity.

Institutional Theory explains that weaknesses in

workplace norms and organisational structures

contribute to low levels of compliance.

5.5.4 Theme 4: Preventive Approaches and Strengthening

of Integrity Culture

Ports adopt proactive measures through awareness

programs, regular training, internal audits, and

integrity campaigns. Some respondents mentioned

talks and roadshows led by the legal department, as

well as the use of media platforms such as WhatsApp

and email for integrity-related communication. These

efforts help shape an organisational culture that

supports ethical values, as outlined in Institutional

Theory. Principal-Agent Theory, meanwhile, shows

how training and communication act as monitoring

tools for employee behaviour.

Overall, this report reveals that the issue of integrity

in cargo handling goes beyond rules and regulations. It

also involves workplace culture, training systems,

organisational structure, and the relationship between

employees and management. The thematic analysis

approach has successfully identified key dimensions

that contribute to either the success or failure in

managing integrity at ports. These findings offer

valuable contributions to policy development and best

practices for more ethical and effective management of

maritime logistics operations.

6 CONCLUSIONS

This study emphasises that integrity is a crucial

element in cargo handling at major Malaysian ports.

Violations of integrity in the form of non-compliance

with procedures, abuse of power, and corrupt practices

have been identified as factors that negatively impact

port operational safety, the country's reputation, and

Malaysia’s global competitiveness. Factors such as

685

time pressure and weaknesses in internal monitoring

systems at ports have contributed to integrity breaches.

These include cargo handling that does not follow

standard procedures, abuse of authority by

stakeholders, and corrupt activities such as smuggling

and the release of goods without proper authorisation.

Based on Institutional Theory, such integrity

violations reflect weaknesses in the norms and

regulations governing organisational behaviour,

indicating that regulatory strengthening and enhanced

supervision are required to shift the workplace culture

towards greater transparency and accountability.

Additionally, Principal-Agent Theory explains that

integrity breaches may occur when agents (employees)

act in their own interests and disregard the goals of the

principal (owner). Therefore, this study also highlights

the need for proactive measures to strengthen

integrity, such as stricter law enforcement, educating

workers on work ethics and integrity, and introducing

more rigorous procedures and effective monitoring at

Malaysian ports.

This study has several limitations. First, the study

involved only seven respondents selected through

purposive and snowball sampling. Therefore, the

findings reflect the experiences and perceptions of the

selected stakeholders and should not be generalised to

all port personnel in Malaysia. Second, the study

focused on the Port Klang environment, specifically

Port A and Port B. Consequently, the findings may not

fully represent integrity practices and challenges at

other Malaysian ports. Future studies could involve a

larger and more diverse group of stakeholders and

examine other ports to provide broader comparative

insights.

Emphasis is also placed on the importance of

collaboration between port authorities and

government agencies in combating corruption and

raising awareness about the importance of integrity in

cargo handling. Overall, the study concludes that

reinforcing integrity at Malaysian ports is not only

essential for operational safety but also vital for

attracting foreign investment and enhancing

international perceptions of Malaysia as a secure and

reliable trading destination. In conclusion, integrity

plays a highly significant role in ensuring the smooth

operation and success of ports, as well as the country’s

reputation on the global stage.

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