Luncheon Panel Promotion Strategies for Globally Sources Timber from Sustainably Managed Forests

Transcription

1 Luncheon Panel Promotion Strategies for Globally Sources Timber from Sustainably Managed Forests IWPA 60 th World of Wood Convention Austin, Texas USA April 5-8, 2016 By Dr Abdul Rahim Nik, FASc Chief Executive Officer

2 Outline 1. Malaysian Timber Council 2. Malaysian Timber Industry 3. Commitment to Sustainable Forestry Supply of Legal and Sustainable Malaysian Timber Products Response to International Regulations on Legal & Sustainable Timber Trade 4. Why Do Business with Malaysia 5. Concluding Remarks 2

3 Malaysian Timber Council Established in January 10, 1992; company limited by guarantee under Companies Act

4 Promotion for Malaysian timber Expand market opportunities Augment raw material supply Nurture the timber industry Dissemination of information 4

5 Malaysian Timber Council & Regional Offices Dubai Guangzhou London HQ India (Q3 2016) 5

6 Malaysian Timber Industry: Socio-Economic Importance US$7.2 bil of Malaysia s export earnings (2015) 2.1% of Malaysia s GDP (2015) 3.2% of total merchandise exports (2015) 1% (130,000) of total employment (2015) Exports to > 160 countries 6

7 MALAYSIA: EXPORT OF MAJOR TIMBER & TIMBER PRODUCTS ( USD Billion

8 Profile of Tropical Timber Exporters Major tropical log exporters ( ) Major tropical sawnwood exporters ( ) Source: ITTO 8

9 Profile of Tropical Timber Exporters Major tropical plywood exporters ( ) Major tropical exporters of wooden furniture and parts ( ) Source: ITTO 9

10 Malaysia USA Trade USA - one of Malaysia s top trading partners with respectable trade balance US$18.8 bil US$14.2 bil 10

11 MALAYSIA: EXPORT OF TIMBER & TIMBER PRODUCTS TO USA ( ) 1,200.0 USD Million 1,

12 Malaysian Timber Industry - Products Range Logs Sawntimber Panel products wide range of wood products Wooden Furniture Joinery products Mouldings 12

13 Malaysian Timber Industry Product Standard on Grading Rules Malaysian Grading Rules (MGR): Select & Better Standard & Better Serviceable & Better Sound & Better Utility & Better Merchantable 13

14 Timber Classifications Red Balau Heavy Hardwoods kg/m3 Keruing Medium Hardwoods kg/m3 Dark Red Meranti Light Hardwoods kg/m3 14

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16 State land/ Alienated Land 1.86 Forest Cover in Malaysia 2014 TOTAL FORESTED AREA (mil. ha.) Permanent Reserved Forests Production (SFM) Totally Protected 1.86 National Parks/Wildlife & Bird Sanctuaries 1.83 Source: Ministry of Natural Resources and Environment SARAWAK PENINSULAR MALAYSIA 8.03 mil. ha (64.9%) SABAH 4.44 mil. ha (60.3 %) 5.80 mil. ha (44.0%) 16

17 Forest Management Agencies: Forestry Department of Peninsular Malaysia Sabah Forestry Department Sarawak Forestry Department Annual Allowable Coupe: Agreed by National Forestry Council all states must abide and observed the forestry regulation by forestry agencies A deliberate move by the Government to ensure the sustainable development of the timber industry in the long term. 17

18 Forest plantation programme 25,000 ha per year to achieve 375,000 ha over 15 years 5 mil m 3 every 25,000 ha Major Species Rubberwood Acacia Mangium The development of forest plantations will not be at the expense of natural forests, as forest plantations will mainly be developed on idle lands or abandoned agriculture lands. 18

19 Timber Legality Assurance System (TLAS) to meet the due diligence requirements under the EU Timber Regulation (EUTR). 19

20 endorsed by PEFC 350 Chain of Custody (CoC) holders under MTCS 1 st tropical timber certification scheme in Asia Pacific endorsed by the PEFC with 4.3 mil ha of MTCS certified forest as of Jan 2016 a voluntary national scheme for independent assessment of forest management practices and chain-of-custody MTC role in sustained advocacy of Malaysia s efforts leading to the acceptance of the MTCS > 1 million m3 of certified tropical timber to 47 countries 20

21 > 100 years experience in Sustainable Forest Management Practices TLAS - Legality MTCS-PEFC - Sustainability Malaysia is one of the world s most competitive countries and the most connected countries to international trade networks - EU-ITTO Report on Independent Market Monitoring Initiative 21

22 Educated & skilled workforce Green Growth Green Building Index Reputable and reliable International player worldwide exports for decades Source of sustainable & legal timber Developed infrastructure Strategic location in the heart of South East Asia Supportive government policies low import tariff Ability to custom make & flexibility Wide range of timber species & products of international standards 22

23 Impact of TPPA TPP population million TPP GDP of US$28 trillion (2014) TPP account for 25.5% of world trade offer a huge market to be tapped Beneficial to Malaysian exporters with lower tariffs and trade barriers once implemented 23

24 The Malaysian timber industry is able to meet demand in global markets for legal and sustainably produced timber and timber products. Malaysia s exporters are compliant with the requirements of USA s Lacey Act, due diligence under the EU Timber Regulation (EUTR) and the Illegal Logging Prohibition Act Australia. Under the 11 th Malaysian Plan ( ), the Malaysian government aims to attain green growth that is inclusive, sustainable, competitive and progressive. In concluding, Malaysia is fully committed to making its growth one that is green in its march towards achieving its vision as a developed nation. 24

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