MALAYSIA’S timber-based manufacturers must adapt to changing requirements and demands of the global markets to remain competitive, says Malaysian Timber Council (MTC) deputy chief executive officer Richard Yu.
He said the local timber industry must continuously upgrade their product quality and production efficiency.
“Malaysian timber products are highly competitive as evidenced by our exports to more than 160 countries. By understanding the latest market trends and developments, exporters can plan their production and marketing strategies to comply with such requirements,” he told NST Business via email recently.
Yu said the local timber industry had evolved from producing sawn timber and plywood to making more diversified and value-added downstream products, such as furniture, flooring and bedding parts.
Malaysia is ranked among the world’s top exporters of tropical plywood, sawn timber and wooden furniture. The sector generates steady export earnings for the economy and is a major employer of highly-skilled carpentry and wooden-structured building personnel.
For the first nine months of this year, Malaysia’s timber exports increased 6.2 per cent to more than RM17 billion from RM16 billion in the same period last year.
“In Malaysia, we have been practising Sustainable Forest Management since 1901. We have one of the best forest management systems to ensure regular and continuous supply of timber,” said Yu.
The Annual Allowable Cutting is strictly implemented to balance the production and extraction of timber for sustainability reasons.
He said the Plantation Industries and Commodities Ministry, through the Malaysian Timber Industry Board (MTIB), had introduced the Forest Plantation Development Programme to develop 375,000ha of forest plantations by 2020 to help sustain supply of raw materials for downstream businesses.
“Raw material supply is also partially augmented through MTC’s programmes such as raw material sourcing missions and the implementation of MTC’s Import Assistance Programme,” he said.
Yu said local timber-based manufacturers needed to study market trends closely and innovate to stay relevant in the marketplace.
“Accurate market intelligence on current trends and developments is crucial in helping our manufacturers boost their export competitiveness.”
Yu said MTC had programmes and incentives to help furniture and carpentry manufacturers automate and achieve greater efficiency.
“Local manufacturers need to move from operating as original equipment manufacturer system to original design manufacturer to produce more higher value and design-centric furniture.
“Equally important, an original brand manufacturing approach to develop global brands will ensure greater market acceptance of our furniture globally,” he added.