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 11 November 2002
Paradigm shift needed in timber industry
Hamidah Atan
SEREMBAN, Nov 11: There is
an urgent need for a paradigm shift in the timber industry and wood utilisation
pattern as a result of the declining wood supply and shift in raw material
usage.
Primary Industries Minister Datuk Seri Dr Lim Keng Yaik today said the raw
material supply in the country was projected to decrease gradually over the
years.
The forest and wood-based industries, therefore, should adapt to the changing
scenario through further advancement of technology, reduction of both production
costs and wastage as well as to increase investment in more automated machinery
to minimise dependence on foreign labour.
Speaking when launching the HeveaPac ready-to-assemble furniture factory near
here today, Lim added that those directly involved in the industries must take
up the challenges of a changing market environment by ensuring supply,
consistency of quality of the products and techology upgrading and aggressive
marketing.
Local manufacturers and exporters must always pay greater attention to market
research and design apart from keeping themselves constantly abreast with
changing customer preferences.
Also present were HeveaBoard Sdn Bhd director Tan Sri Mohamed Rahmat, Senawang
Assemblyman Datuk Woo Ah Lek and HeveaBoard Sdn Bhd managing director, Tenson
Yoong.
Lim said the forestry and timber sectors continued to contribute significantly
to Malaysia's export earnings.
In 2000, exports of timber and timber products reached a high of RM17.7 billion.
"However, due to the generally weak global economic climate, exports
declined by 19.2 per cent to register at RM14.3 billion in 2001."
Apart from contributing about five per cent to the country's total earnings, he
said the industries remained a major player in Malaysia's economy, providing
employment to some 340,000 people.
Lim also said export of furniture was only RM27.5 million in 1986.
However in 2000, furniture exports became a star performer, contributing an
impressive RM5.6 billion to the country's revenue.
Last year, however, the export of furniture dropped by 14.3 per cent to RM4.8
billion, a consequence of the economic slowdown and dampened demand in most
major markets such as the US and Japan.
Lim reminded producers and exporters to take proactive steps to overcome issues
such as increasing price competition due to the emergence of lower cost
producers such as China.
"Despite Malaysia's strong position in the international timber market, the
challenges posed by an evolving trading environment will compel the timber
industry to continuously upgrade and improve to enhance competitiveness."
He added that there was an urgent need to further improve the quality and design
of Malaysia's furniture in an effort to counter competition from the lower-cost
producers.
"To be able to compete more efficiently, apart from differentiating your
products, it is important to stress on product presentation especially at fairs
overseas.
"The products should be well-displayed during such occasions so that the
beauty, quality and value of the products are enhanced," he added.
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