FEATURES
The industry is actively progressing towards creating higher value-added products such as mouldings , joinery products and wooden furniture for more revenue with better incorporation of automation and mechanisation . These products are mostly exported to developed countries such as the US and Europe . Timbers for panel products such as plywood , fibreboard and particleboard will also have a greater degree of recovery rate . There will be no room for wastage as the residues will be used for woodchips and sawdust . These products are mostly exported to Japan , the US , and South Korea .
Malaysia recently signed the Regional Comprehensive Economic Partnership ( RCEP ), a free trade agreement in the Asia Pacific region , to strengthen regional economic resilience without unnecessary barriers to trade or disruption to global supply chain . It was the largest FTA ever with its signatories to include Brunei , Cambodia , Indonesia , Laos , Malaysia , Myanmar , the Philippines , Singapore , Thailand , Vietnam , Australia , China , Japan , New Zealand , and South Korea .
Other than that , Malaysia has bilateral and multilateral FTAs with various countries such as Japan , South Korea , Australia , New Zealand , Pakistan , India , China , and Chile .
Malaysia is blessed with a variety of timber species and many of them have potential to be developed and commercialised for both the local and export markets .
Accelerating into e-commerce platforms is currently a strategic priority for the timber industry to improve market access and business profitability .
Moreover , Malaysian timber-based manufacturers have the capacity and capability to produce products from the conceptualisation and design stages to manufacturing them and complying with international standards , as our products are exported to more than 160 countries .
How has the Covid-19 restrictions and lockdowns affected the Malaysian timber industry ? MTC together with many public and private sector organisations played a key role in facilitating the smooth operation of the timber sector during the Movement Control Order ( MCO ) implemented in March 2020 , by analysing and channeling feedback from the industry players to the relevant ministries ( such as the Ministry of Plantation Industries and Commodities and Ministry of International Trade and Industry ).
Two surveys were conducted by MTC in April and June 2020 on the impact of the MCO on the Malaysian timber industry . Findings from these surveys as well as consultation sessions with the timber industry members were used in formulating inputs and suggestions for the policymakers about policy matters and special assistance for businesses during the pandemic .
In addition , the findings from the surveys and consultation sessions have been crucial for MTC towards making a realistic change to its operation model and revision of its activities to help the industry build resilience during this crisis and sustain their business .
Furthermore , quick response and strong support from the government to stimulate the economy through various stimulus packages also helped the industry to weather the impact of the pandemic .
How has Covid-19 affected Malaysia ’ s timber exports around the globe , especially to South Africa ?
The overall export of timber products from January to October 2020 from Malaysia was USD4.2 billion , down by 5.5 % compared to the same period in 2019 . The export of all major timber products , except wooden furniture , suffered varying degree of decline for the period , as the global demand of timber products was interrupted by lockdowns around the world .
The total Malaysian export of timber products to South Africa from January to October 2020 was USD27.9-million , down by 40.3 % compared to the same period last year .
The total Malaysian export of timber products to South Africa from January to October 2020 was USD27.9-million , down by 40.3 % compared to the same period last year .
Export by product ( Jan-Oct 2020 ):
• Sawntimber : USD11.0-million ( -46.8 %)
• Wooden furniture : USD10.7-million ( -30.0 %)
• BJC : USD2.1-million ( -44.8 %)
• Fibreboard : USD1.9-million ( -43.4 %)
• Mouldings : USD1.1-million ( -45.9 %)
• Plywood : USD0.6-million ( -27.0 %)
• Veneer : USD0.05-million ( -67.6 %)
• Other products : USD0.4-million ( -17.8 %)
South Africa contributed about 0.7 % of the total of Malaysia ’ s export of timber products from Jan-Oct 2020 . The majority of the sawntimber species being exported from Malaysia to South Africa is Dark Red Meranti .
Please give us some background and more detailed information about the Malaysian timber and forestry industry . Malaysia has a total forested area of 18.27 million ha of which 10.92 million hectares are permanent reserve forest and 3.31 million hectares are totally protected areas .
Currently , log production in Malaysia is 12.7 million m 3 , sawntimber 3.5 million m 3 , plywood 2.6 million m 3 and veneer 0.6 million m 3 .
The country is moving towards forest plantation and raw material importation to create alternative sources for raw material and encourage value-added manufacturing .
Under its Forest Plantation Development Programme , the total area planted to-date is 124 767ha with the first harvest expected in 2022 .
How does MTC ensure that the forestry and timber industries in Malaysia will remain sustainable in the future ? ‐Malaysia has kept its promise that was made at the Rio Earth Summit in 1992 . Malaysia is committed to maintaining over 50 % of its total land area under forest cover . The country has , to date , maintained 55.3 % of its land area under forest cover .
The national Annual Allowable Cut has been revised from 276 000ha for the period of 1996-2000 to 246 888ha for 2016-2020 to ensure the sustainability of the timber supply from natural forests remains intact . As a major producer and exporter of timber products , tremendous efforts have been made to ensure that it is able to supply timber products that are sourced from sustainably managed forests . For this
www . timberiq . co . za // FEBRUARY / MARCH 2021 19