|
|
|
2005 Looks Promising For The Malaysian Timber IndustryMINISTER OF PLANTATION INDUSTRIES AND COMMODITIES, DATUK PETER CHIN, IN DESCRIBING 2004 AS A GOOD YEAR FOR THE MALAYSIAN TIMBER INDUSTRY, IS OPTIMISTIC THAT THE INDUSTRY WILL RECORD HIGHER GROWTH IN EXPORTS FOR 2005.
On the increase in the export value for 2004 as compared to that of 2003, which was RM16.3 billion, the Minister attributed the increase to the export growth of value-added timber products, which contributed about 40% of the total timber exports. He expressed confidence that with better exploitation of alternative materials such as from oil palm biomass and Kenaf for the production of fibreboard, the industry will be able to record higher earnings. In the light of tough competition in the international markets, the Minister called on Malaysian exporters and manufacturers to be proactive and take up several measures to remain competitive. Besides making better use of available timber resources, the industry should diversify its markets. "In establishing new markets, I urge exporters to depart from the practice of using price as the main market strategy which is common among timber manufacturers and exporters. Instead we should devise a market strategy by improving the image of our industry through branding, supply reliability and provision of good service. It is also important that the industry practices and maintains good corporate governance as well," he said.
Earlier, MTC Chief Executive Officer, Datuk Ismail Awang called on the industry to re-examine its technological capacity to compete in the global market. "In a global market, big is definitely beautiful. You still have to be of certain size to compete successfully in the global market for the long-term. One of the ways is to re-examine our technological capacity, both in the short- and long-term. We must stand back and evaluate ourselves objectively, and see if we're doing enough, at a pace fast enough, to continue being a trading nation in the 21st century," he said. Datuk Ismail also highlighted that there are now 26 timber-based companies listed on Bursa Malaysia (Malaysia's stock exchange). "Many years back, most timber-based companies that went public had a lot of raw materials at their disposal. Today, it is encouraging to note that many more timber companies are manufacturing-based, with no timber concessions. This reflects maturity and progress in the business. More and more companies realise the need to move up the value chain, and some are doing that successfully," he said. Datuk Ismail sees this as a positive development for Malaysian timber-based companies to become regional players in terms of production economics such as outsourcing one's production process. "This is not something new anymore. Most companies that move their production units to lower cost bases actually spend more time and resources on marketing, branding and promoting their products, and this is the direction that the Malaysian timber industry should be heading and heading fast," he added. The lunch was held in conjunction with MTC's 13th Anniversary. Also present were the Ministry's Parliamentary Secretary, Mr. Ng Lip Yong, Secretary General, Tan Sri Dr. Abdullah Mohd. Tahir, MTC Chairman, Tunku Tan Sri Datuk Osman Ahmad, MTC Board Members as well as representatives from the relevant agencies, timber trade associations and invited guests. |
Advertisement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
SPEAKING
AT the MTC annual lunch on 10 January 2005, Datuk Peter Chin said exports of
Malaysian timber products are expected to increase by 10% in 2005 from the
estimated RM17 billion for 2004. According to the Minister, the demand for
timber products is expected to be high in countries where there is a
construction boom such as the UAE. Reconstruction works in ELI countries such as
Poland, Hungary and the Czech Republic will provide another important source of
growth for the industry.
On
the issue of raw material supplies, Datuk Peter Chin said that his Ministry is
planning to introduce a viable financial package to promote and encourage
private sector investment in the development of large scale forest plantations
in Malaysia. "Although a range of fiscal incentives is made available by
the Government, private sector investment in forest plantations has yet to
materialise in a significant manner," he said. The Minister has planned to
visit New Zealand this year to gain a better perspective on the establishment of
its viable forest plantation industry in which 90% of the forest plantations is
private sector owned.
MTC’s
