According to the World Bank, the global demand for timber will quadruple by 2050 and Malaysia as one of the world’s leading suppliers of tropical timber-based products, needs to revisit the imperatives that will sustain or enhance its position in the global marketplace. Source: Timberbiz
This was the message that was conveyed by the Minister of Primary Industries YB Puan Teresa Kok at the opening ceremony of the Malaysian Timber Council’s (MTC) the first Malaysian Timber Conference titled Towards a Better Tomorrow.
Also present were MTC Chairman Dato’ Low Kian Chuan, Malaysian Timber Industry Board Chairman Wong Tack, MTC Board of Trustees and MTC CEO Richard Yu as well as industry captains from various organisations.
The Malaysian timber industry contributed about 1.7% to the national GDP with export earnings of RM23.2 billion in 2017 and as at August 2018, the export figures had reached RM14.57 billion.
Wooden furniture, plywood, sawntimber, fibreboard and builders’ joinery and carpentry are the main revenue generators for the sector.
“I am very proud to see that Malaysia has established itself as a major producer and exporter of timber and timber products in over 160 countries. Our manufacturers are also widely respected for producing top quality products. We need to maintain our position in the global market and for that we need to face up to challenges by employing innovative, sustainable and market-driven solutions,” said Ms Kok.
She added that Malaysia’s commitment in maintaining its forest cover at above 50% as pledged at the 1992 Rio Earth Summit will ensure that the timber industry remains sustainable in the long-term.
“We cannot do the same thing and expect different results. Timber-based manufacturers must identify and overcome common pitfalls associated with growth so that their business can continue to thrive,” said Ms Kok.
The minister congratulated MTC on its repertoire of programs that are helping the export-oriented wood-based industry players to develop their businesses overseas.
The incentives from MTC’s Import Assistance Program was increased from RM5 million to RM7 million this year to enable timber-based manufacturers to augment raw material supply.
MTC’s Financial Incentive for the Purchase of Machinery program, which was launched in December last year, encourages SMEs to adopt the latest in technology by providing partial reimbursements on machine price and freight charges. For this, MTC has allocated RM3 million which will be spread over 3 years, with RM1 million allocated per year.
Meanwhile, Mr Low said Malaysian timber-based manufacturers must understand the lifecycles of their products to help them maximise on their profitability.
“As time goes, our products must also change and be in line with current market trends. Therefore, it is important for us to change our mindset and be innovative in creating a steady stream of new products for the market.
“There is also a pertinent need for succession plans within each company so that the younger generation find the timber industry as an attractive and viable one,” said Low. He also said that timber-based manufacturers need real-time market intelligence, technological upgrade and raw material supply solutions.”
Nine speakers from Italy, Switzerland, Finland and Malaysia provided detailed takeaways on how to address the full scope of the challenges the timber industry is facing.
The crux of the conference presentations centred on the global economic outlook, the timber demand and supply worldwide, the need for certification which proves that timbers are extracted in a sustainable and legal manner, embracing technology in relation to IR4.0 as well as commercialization of research findings.
The speakers were Alan Tan, Dr Ed Pepke, Peter Latham, Sylvia Weichenberger, Dr Gan Kee Seng, Ng Kheng Joo, Laurent Maillefer, Dato’ Nor Akhirrudin Mahmud and Yu.
Mr Tan is the Chief Economist at Affin Hwang Investment Bank Bhd while Dr Pepke is the Senior Market and Policy Analyst at the European Forest Institute. He is also an Associate at Dovetail Partners, Inc., which is an environmental think tank in the US.
Mr Latham is the Chairman of PEFC International, Switzerland, and Weichenberger is the Partner and Senior Expert of the Centre for Industrial Studies, Italy.
Dr Gan is the Director of Forest Products Division from the Forest Research Institute Malaysia while Ng is the Technical Director and Co-Founder of Novetec Innovation Sdn Bhd. Mr Maillefer is the Vice-President, Robotics – ABB Malaysia while Nor Akhirrudin is the Director-General of Forestry, Peninsular Malaysia.
