MALAYSIA SET TO INCREASE VALUE-ADDED TIMBER PRODUCTS

By Zakaria Abdul Wahab

SINGAPORE, Oct 12 (Bernama) -– Malaysia is confident that the export of its
value-added timber products would reach the 60 per cent target it set by the
year 2020, according to the Malaysian Timber Industry Board (MTIB) Director
General Dr Jalaluddin Harun.

He said Malaysia’s timber industry players, together with the board, have
been aggressively marketing value-added timber products to not only the
traditional markets but also new emerging markets in the Gulf area in Dubai,
northern Africa in Libya, Morocco, Algeria, and also Eastern Europe, in Poland.

MTIB is also looking at Algiers with the plan to turn it into a regional hub
for Malaysian timber products, Jalaluddin said Tuesday, adding that he recently
visited the northern African countries to lead a trade mission.

Currently, 60 per cent of Malaysia’s timber export comprised mainly of
plywood, sawn timber, fibreboard and logs, and they are mostly shipped to the
traditional markets like Japan, the European Union, and the United States.

Speaking to Bernama here, Jalaluddin said under the National Timber Industry
Policy (Natip) 10-year plan, which was launched last year, Malaysia wanted to
double the annual revenue from timber and timber products exports from RM20
billion (US$1=RM3.08) in 2009 to RM53 billion by 2020.

Jalaluddin was here to attend the three-day international composites
exhibition and forum, the JEC Show Asia, which began at Suntec Tuesday.

He said the target was achievable if the timber industry grew by 6.4 per
cent yearly, and also if more and more timber companies ventured into downstream
activities, producing finished products such as furniture, mouldings and
joinery.

Jalaluddin pointed out that currently 72 per cent of Malaysia’s value-added
timber products exports were from Peninsular, with the remaining 13 per cent
from Sabah and three per cent from Sarawak.

He lamented that the two East Malaysian states were still not into
downstream activities, adding the industry could benefit a lot if these two
states seriously ventured into producing value-added timber products.

Jalaluddin said MTIB was also playing an active role in keeping the
country’s forest in good stead, adding that the government had set up a RM1.04
billion fund under MTIB for forest replanting.

He said MTIB planned to replant 25,000 hectares of land annually, targeting
375,000 hectares by the year 2021.

He said those who were interested to participate in the forest replanting
project could apply for a soft loan from MTIB.

-–BERNAMA