CONTENTS. Editorial Board. Editorial Creating A Robust Bumiputera Industrial And Entrepreneurial Community Through Vendor Development Programme

Transcription

1

2 CONTENTS Editorial Creating A Robust Bumiputera Industrial And Entrepreneurial Community Through Vendor Development Programme Feature Gaharu Cultivation In Sarawak Research And Development Programmes For Planted Forest (Pulp & Paper) Project In Bintulu, Sarawak Highlight Promising Future Foreseen In the Furniture Industry Current Issue 15th Malaysian Forestry Conference PUSAKA SARAWAK TIMBER INDUSTRY DEVELOPMENT CORPORATION (STIDC) Wisma Sumber Alam, Jalan Stadium, Petra Jaya, Kuching, P.O.Box 194, Kuching, Sarawak, Malaysia. Tel: Fax: stidc@pusaka.gov.my Website: Editorial Board ADVISOR Datu Haji Len Talif Salleh General Manager CHIEF EDITOR Hashim Haji Bojet Acting Deputy General Manager MEMBERS Haluyah Binti Awi Acting Senior Assistant General Manager (Administration) Dayang Nena Abang Bruce Senior Assistant General Manager (Trade Development) Catherine Sng Bee Seio Assistant General Manager (Finance & Investment) Edmund Daging Mangku Assistant General Manager (Resource Development) Tagat Jimbat Assistant General Manager (Domestic Trade) 8 9 Market Report Market Performance (January-October 2008) Trade Statistics, Sarawak Trade Statistics (January-October 2008 / January-October 2007) PERKASA bi-monthly newsletter is published by Sarawak Timber Industry Development Corporation (STIDC). All rights reserved. No part of this publication may be reproduced in any form without prior consent of the Publisher. The title PERKASA, its logo and contents remain the property of the Publisher. Opinions expressed by advertisers are not necessarily of the Publisher or Editor. Mohd. Hinri Abdullah Assistant General Manager (Preventive & Enforcement) Suraya Mohamad Ali Senior Manager (Registration & Licensing) Nicholas Andrew Lissem Acting Senior Manager (Industrial Planning) Eda Haji Edan Publications Manager WRITER Norman Botes Noma CONTRIBUTOR Gary Gerisah Bagong 2 PERKASA VOL. 9/10 (September-October2008)

3 SARAWAK TIMBER INDUSTRY DEVELOPMENT CORPORATION (STIDC) Editorial Under the New Economic Policy, the government plans to boost the Bumiputera participation in the economic activities to at least 30%. This is in line with its aspiration to create a robust Bumiputera industrial and entrepreneurial community by Furniture industry being one of the pillars of the nation s economy is having vast potential in realising this aspiration. In 2007, the national revenue earned from this sector was RM7 billion in which Sarawak contributed only RM70 million. The Sarawak Bumiputera s contribution in terms of export earnings during the same period was nil and their domestic turnover was estimated at RM20.5 million. Obviously, there is a need for the Bumiputera entrepreneurs to move in pace with the current market demands. Recognising this fact, the State Government, Sarawak through STIDC had designed the vendor development programme to enhance the competitiveness of these entrepreneurs by giving them contracts to supply the furniture to its departments and agencies as well as the local people. In support of this programme, STIDC had established the furniture complexes in Kuala Baram, Kota Samarahan and Tanjung Manis. Under the Ninth Malaysia Plan ( ), STIDC aims to establish similar complexes in other divisions such as Bintulu and Kapit. These complexes provide conducive workplaces with state-of-the-art facilities for the Bumiputera furniture entrepreneurs to run their business besides helping STIDC to monitor and channel necessary assistance including quality control, technical advisory services and trainings. Space are also available for non- Bumiputera entrepreneurs particularly those providing the related services such as machinery and maintenance. Such scenario therefore creates a synergy between the Bumiputera and non-bumiputera entrepreneurs for mutual benefits. The formation of the Sarawak Bumiputera Furniture Entrepreneurs Association reflects the success of STIDC in unifying its vendors in striving for a resilient furniture industry. It also marks a new milestone in equipping these entrepreneurs to penetrate and remain competitive in the open markets both domestically and globally. Through these programmes, the government hopes to achieve one of its objectives to produce several successful Bumiputera furniture entrepreneurs at the end of the Ninth Malaysia Plan who would be the role model to the others. PERKASA VOL. 9/10 (September-October2008) 3

4 GAHARU CULTIVATION IN SARAWAK Commercial cultivation of Gaharu in Sarawak is gaining momentum and contributes to the livelihood of the local communities. Gaharu also known as agarwood, eaglewood or aloeswood is the name for resinous, fragrant and highly valuable heartwood produced by Aquilaria malaccensis and other species of the Indomalesian tree genus Aquilaria from the family of Thymeleaceae. It is among the most valuable tree species found in Sarawak in which at least three species were identified namely Aquilaria malaccensis, Aquilaria beccariana and Aquilaria microcarpa (Tawan, 2003). It is found in the plain hill slopes and ridges of up to 750m in both primary and secondary lowland dipterocarp forests (Jantan, 1990). Gaharu plays important roles in human lives. In Arab, many considered it as part of their culture and religion. The high class of the Japanese society used it in the rituals of the Kod Doh, an incense appreciation ceremony. Both India and China had the legacy of Gaharu usage in their traditional medicine. In China, it is widely used to treat gastralgia, gastric ulcers, gastroptosis, kidney, liver and respiratory problems. It helped in blood circulation and had a complete antibiotic function against tubercle, typhoid and diarrhea bacillus. The Chinese also used Gaharu for religious ceremonies, perfume, liquor and tea. The European version of Gaharu is represented by the French perfume floracopia where the perfume brand Yves Saint Laurent M7 is using Gaharu oil as its base or fixer to the other fragrance. According to Forestry Department, Peninsular Malaysia, Gaharu prices in 2007 were RM25,000 per kg, RM20,000 per kg, RM18,000 per kg, RM15,000 per kg, RM8,000 per kg and RM3,000 per kg for super grade, grade A, grade B, grade C, grade D and grade E respectively. Prices for other grades were between RM500 RM1,000 per kg. Prices of Gaharu chips on the other hand were between RM5 RM100 per kg. Market survey conducted by the said department in 2007 revealed that Gaharu prices increased by at least five times in four years. Long Bedian, Ulu Baram The Community Forestry Project participants in Long Bedian posing infront of the Gaharu trees and Gaharu products. The cultivation of Aquilaria microcarpa and Aquilaria beccariana in Sarawak are in the form of in-situ mixed cropping (agrisilviculture) system, home-garden and ex-situ intercropping (mixture of timber and Aquilaria species). The earliest record of Aquilaria microcarpa tree cultivation was back in early 1960s when the Kenyah community in Long Gang, Belaga involved themselves in collecting and trading of wild Gaharu. In order to conduct growth study, planting trial of 1.2 ha was done at Sabal Agroforestry Centre in April Mixed planting of Aquilaria microcarpa and Calophyllum tesymanii var. inophylloide (anti-hiv Bintangor species) were planted under a 22-year old Acacia mangium and old secondary forest vegetation. After six months, the first assessment was done where survival rate was 93.7 percent and another assessment was done in August 2007 where survival rate was 83 percent. At the same time, under the Community Forestry Project funded by the State Government (D60/06) poly-bags and other nursery supplies were distributed to the project participants in Long Bedian, Ulu Baram and an in-situ site in Uma Badeng, Asap, Belaga areas for them to collect Gaharu wild seedlings. As at March 2007, there are 9,742 standing Aquilaria microcarpa plants under cultivation recorded in Sarawak and another 18,000 plants are available at the nursery. According to The Wildlife Protection Ordinance 1958 (Chapter 128) Amendment 1998, Second Schedule, CITES permit is required for Gaharu commercial cultivation, collection, propagation as well as import and export. Gaharu from the species of Aquilaria malaccensis was listed under CITES Appendix II with annotation 1 since 17th February 1995 and thereafter it included other Aquilaria species since 17th February The Authority to issue CITES permit in Sarawak is the Forest Department. Commercial cultivation of Gaharu in Sarawak is gaining momentum and contributes to the livelihood of the local communities. Gaharu was also proven to be a potential source of new genes as well as new products particularly drugs. Thus, it is valuable to the international agricultural and pharmaceutical industries. Genecological zonation therefore should be done either using the agro-forestry or community forestry approach to conserve the genetic resources of Gaharu. The adoption of ethno-knowledge of the local communities and scientific approach are crucial in ensuring a brighter future of Gaharu. SUMMARY CITES permit is required for Gaharu commercial cultivation, collection, propagation as well as import and export. The Authority to issue CITES permit in Sarawak is the Forest Department. Genecological zonation should be done either using the agroforestry or community forestry approach to conserve the genetic resources of Gaharu. 4 PERKASA VOL. 9/10 (September-October2008)

5 SARAWAK TIMBER INDUSTRY DEVELOPMENT CORPORATION (STIDC) RESEARCH AND DEVELOPMENT PROGRAMMES FOR PLANTED FOREST (PULP & PAPER) PROJECT IN BINTULU, SARAWAK Research and Development (R&D) Programmes play important role to support the development of forest plantation development in Sarawak. The State Government, Sarawak has embarked on the Planted Forest (Pulp & Paper) project since 2003 in order to supply high quality pulpwood for the proposed State s first pulp mill in Bintulu. An area of about 480,000 hectares, mostly state land in Bintulu Division and part of Sibu Division was set aside for this project. The target is to establish 150,000 hectares of Acacia mangium plantation by 2010 to meet the wood requirement for the pulp mill which will commence operation in Acacia mangium is a fast growing species with good wood quality for pulping. It is also a robust species which adapts very well to a wide range of sites and soil conditions. Presently, about 100,000 hectares of Acacia plantation had been established under this project which is currently managed by Sarawak Planted Forest Sendirian Berhad. The main contractor for this project is Grand Perfect Sdn. Bhd. Research and Development (R&D) programmes play important role to support the development of forest plantation development in Sarawak. The aim is to improve the yield (MAI), quality of the stem form and to produce clones which are resistant to pest and diseases. Under the R&D programme, research on tree improvement was initiated in 2006 to screen and produce high quality genetic material of A. mangium. The improved planting material is expected to produce superior clone with MAI of at least 40m 3 per ha/year as compared with the current MAI of 29.3 m 3 per ha/year. Genetic gains trials were also established to build-up the breeding population. Seed production areas (SPAs) were selected from superior stands within the existing plantation to supply high quality seeds for the plantation. Selected Plus Trees. The silvicultural standards are continuously being refined to ensure optimum treatments and high quality plantations. The standards emphasise on nutrition, thinning and pruning, stocking trial and plantation health. While Progeny Trial 10 months old. Clonal Seed Orchard 8 months old. nutrition determines fertilisation standards for A. mangium, thinning and pruning aim to produce superior quality logs from a final crop of about 250 to 300 stems per hectare. A 10 year old tree is expected to have an average diameter of about 33cm and a height of about 30m. Each tree is expected to yield a total volume to 8cm top diameter of at least 1m 3. Sawlog volume recovery is estimated to be about 60% of the total yield. Stocking trials are also being carried out to determine the optimum stocking through various treatments such as spacing (row x tree/m) and number of stems per hectare. Special attention is given to root rot and termites. PSP evaluations indicate that root rot incidence varies between 0 to 6.4% with an average of less than 1%. The highest infections were observed in the older (>5 years old) stands. Termite infection is about 0.1%. Though the figures are not worrying, studies are being pursued with pests and diseases experts from FRIM, CSIRO and Lincoln University. The main focus now is to develop biological control against insect and fungal attack in the plantation. Successful examples of the application of biological control are numerous in the scientific and commercial literatures. Of these, fungi of the genus Trichoderma are among the most studied and successful biological control agents for plant diseases. Dr Robert Hill and his colleagues from the National Centre for Advanced Bio- Protection Technologies, Lincoln University, New Zealand have extensive experience in developing biological control agents for pathogens of woody plant species. In collaboration with PF Olsen & Co Ltd (a New Zealand based forest management company) they have developed several successful bio-control products for enhancing the establishment, health and vigour of Pinus radiata in the forest nursery (with reduction on the use of fungicide) and controlling plantation diseases; including the commercially available ARBORGUARD tm, which helped to combat and reduce the mortality rate from Armillaria disease by 30 50%. The use of Trichoderma as a biological control for fungal diseases including heart rot in Acacia mangium is being experimented by Dr Robert Hill and assisted by Researchers from SFC. Over 200 root samples were collected from various healthy plants around Samarakan Nursery to produce Trichoderma cultures in the laboratory and about one thousand cultures were tested. This will be narrowed down to around 10 best cultures through a series of trials in the nursery. Selection criteria will be based on the percentage of healthy plants and time required to grow the seedlings in accordance to the required specifications. The expected gains from conducting R&D are enormous. Assuming that the projected MAI of 40m 3 /ha/year will be attained and the yield can be further increased with improved silvicultural treatments and with the use of pest and diseases resistant materials, financial gains could go to as high as RM70.00 for every RM 1.00 spent which is equivalent to a benefit/cost ratio of around 7000%. The Planted Forest (Pulp & Paper) Project in Bintulu has made a strong emphasis on Research and Development (R&D) programmes to support the on-going extensive forest plantation development programme. Positive results were obtained from the tree improvement works with improved growth and yield (MAI), good stem form and production of high quality seeds. The ultimate goal of this R & D Programme is to establish the most productive, profitable and sustainable forest plantation which will become a model for forest plantation development in this region. SUMMARY The target is to establish 150,000 hectares of Acacia mangium plantation by 2010 to meet the wood requirement for the pulp mill which will commence operation in Financial gains could go to as high as RM70.00 for every RM 1.00 spent which is equivalent to a benefit/cost ratio of around 7000%. The ultimate goal of this R & D Programme is to establish the most productive, profitable and sustainable forest plantation which will become a model for forest plantation development in this region. PERKASA VOL. 9/10 (September-October2008) 5

6 PROMISING FUTURE FORESEEN IN THE FURNITURE INDUSTRY RM10 billion export revenue targeted in the furniture industry by 2010 The future of the furniture industry in Malaysia will continue to be buoyant with the targeted export revenue of RM10 billion by This was emphasised by the Honourable Datuk Peter Chin Fah Kui, Minister of Plantation Industries and Commodities, Malaysia at the National Furniture Forum 2008 in Kuala Lumpur recently. According to him, this would be possible with the potential growing markets particularly in Russia and the Middle East. Realising these new opportunities, STIDC aims to further exploit the vast potential of this sector and will continue to promote downstream processing among the local furniture industry players so as to enhance value added products and tap higher export earnings. This is in line with the government s aspiration to create resilient furniture industry for the benefit of the State and the country at large. The Vendor Development Programme which was initiated by STIDC in 1996 is poised to make the government s aspiration a reality. This programme has led to the birth of a considerable number of furniture vendors statewide. This programme benefits these vendors in terms of trainings and courses, furniture sales and expositions as well as exposure visits within and outside the country. Under the same programme, STIDC had also developed a furniture gallery in Kuching and furniture complexes in Kota Samarahan and Miri divisions to promote their products and provide conducive workplaces. These become the impetus to a robust business and subsequently helped some of them to penetrate the export markets. In ensuring the State s furniture industry to reach a greater height, the small and medium scale furniture entrepreneurs as well as the big scale operators will be further developed by encouraging them to participate actively in the national and international furniture fairs. Besides enriching their knowledge and experiences, this helps them to move in pace with the current business trends and to expand their markets. To boost this industry further, STIDC focuses on particular areas such as research and development on furniture designing, penetration of export market and establishment of furniture complexes in other parts of the State. This will help to enhance the competitiveness of the local furniture entrepreneurs, thereby positioning them on par with the international players. STIDC also helps the local furniture industry to work closely with the Malaysian Furniture Promotion Council (MFPC) by organising dialogues to give an insight of the current market trends. The dialogues emphasised on the promotion and development of the local furniture for global markets; the identification and implementation of programmes and strategies that will facilitate the progress of this industry; and the enhancement of Malaysia s image as a world-class player in global furniture arena. The dialogues also highlighted on the training opportunities provided by consuming countries like Japan and China in helping their counterparts to understand their market requirements. MFPC on the other hand helps by sharing expertise in furniture designing and information on international markets. The global market scenario is becoming more competitive. This warrants initiatives among the industry players to upgrade themselves so as to meet the challenging demands. Innovation is therefore imperative to secure bigger share in the world market aside from other factors like high quality products, well established brand name and good marketing strategies. In 2007, Sarawak contributed RM70 million out of the country s RM7 billion from the export of wood-based furniture. The main export items were garden furniture and solid doors. These products were exported mostly to Europe, Australia and USA. Sarawak is blessed with abundant forest resources coupled with friendly government policies. The industry should grab these opportunities and produce good quality products at competitive prices in order to forge ahead and remain vibrant. SUMMARY Furniture sales and expositions are among the annual events carried out under the STIDC Vendor Development Programme. The furniture industry in Malaysia will continue to be buoyant with the targeted export revenue of RM10 billion by STIDC aims to further exploit the vast potential of this sector and will continue to promote downstream processing. The Vendor Development Programme which was initiated by STIDC in 1996 is poised to make the government s aspiration a reality. 6 PERKASA VOL. 9/10 (September-October2008)

7 SARAWAK TIMBER INDUSTRY DEVELOPMENT CORPORATION (STIDC) 15th MALAYSIAN FORESTRY CONFERENCE Addressing Global Demands and Expectations in Forestry Assistant Minister in the Chief Minister s Department (Bumiputera Entrepreneurial Development) and Assistant Minister of Planing and Resource Management, Sarawak, the Honourable Haji Mohd. Naroden Majais (2nd. left) beating the gong to officiate the 15th. Malaysian Forestry Conference. Sarawak played host at the 15th Malaysian Forestry Conference held on 20th - 24th October 2008 in Kuching. Jointly organised by the Forest Department, Sarawak Forestry Corporation Sendirian Berhad (SFC) and STIDC, this triennial conference provided the forum for participants from Sabah, Sarawak and Peninsular Malaysia to share the latest information and experiences on matters related to forestry and the timber industry as a whole. The objectives of the conference were to identify the challenges of the forestry and the timber industry in order to come up with resolutions; to co-ordinate the planned management and utilisation of the forest resources effectively; to co-ordinate research and application of the best techniques in all forestry aspects; to enhance co-operation and networking among foresters nationwide; and to create public awareness on the importance of forests in our livelihood. The conference theme Addressing Global Demands and Expectations in Forestry was aptly chosen in line with the global issues and challenges faced by the forestry and timber sectors. Among the issues which pose challenges in these sectors are global warming, climate change, biodiversity, certification, illegal logging, carbon credit, chain-of-custody, carbon sequestration and land rights. The Right Honourable Pehin Seri Haji Abdul Taib Mahmud, Chief Minister of Sarawak said, the profound interest in forestry particularly in Malaysia makes this topic relevant. Adding that forestry continues to be the backbone of the country s economy he said that it creates relevance for further discussion in this forum. Our very actions are being scrutinised and had attracted multitude reactions. Addressing these issues is crucial otherwise we will be at the disadvantage. Forest certification around the globe, population growth, increasing demand in wood fiber, increased competition in the forestry sector, competition from nonwood products are among the challenges faced by the industry in going forward. Gone were the days when we were merely the suppliers of forest produce. Now, it is a complex and intricate web of networking, legislation and policy driven activities he said. The Chief Minister also emphasised that the Sarawak Government is committed to addressing the issues related to natural resources and environment. According to him, this is being manifested through various initiatives such as the gazetting of the totally protected areas, the establishment of Sarawak Biodiversity Centre and the enhancement of SFM implementation strategies. Meanwhile, the Honourable Datuk Douglas Uggah Embas, Minister of Natural Resources and Environment, Malaysia said, the conference attended by foresters, scientists, researchers, environmentalists and academicians was indeed a boost to our forestry and timber sectors. Apart from providing the avenue to keep the participants abreast with the latest developments in forestry and the related issues, the minister said this conference complements the government s stride in concerting efforts on SFM. With the advances of science and technology, the emergence of new market trends in borderless world, the need to create informed decision, make mutually collective stand and establish a united front by all agencies involved directly or indirectly are of essence and crucial to address global demands and expectations in forestry. It is in this forum, multitude ideas and findings could at least inspire us to find solutions, if not resolve many of the intricacies the minister said. Datu Haji Len, Deputy Permanent Secretary of the Ministry of Planning and Resource Management and Director of Forests who is also the Managing Director cum CEO of SFC and General Manager of STIDC pointed out that global changes in forestry warrant prompt actions, concerted efforts and undivided support. SFM, deforestation, forest plantation and trade will be explored further in this conference. Forestry players need to be proactive, open minded and far sighted in addressing the demands and expectations in forestry. There is much to learn from each other in this conference he said. The conference was attended by more than 360 participants and more than 70 observers from the related government agencies and Non- Governmental Organisations nationwide. 36 papers were presented at the five-day conference which culminated with the adoption of the following resolutions: recognizing the increasing global demands and expectations on forestry and that Malaysia is a party and signatory to numerous international agreements; recognizing the contribution of forests in moderating the negative effect of climate change; recognizing the importancne of expediting SFM implementation; recognizing the critical importance of integrating local community involvement in forestry activities; recognizing the importance of restoring and rehabilitating degraded forests for the maintenance of ecosystem functions and productivity; recognizing the need to protect the permanent forest estates or permanent reserved forests and state land forests against illegal activities; recognizing the increasing demand on forests for recreational and ecotourism activities; recognizing the important role of forests in providing environmental services; recognizing the significance of forest plantations and planted forests for sustaining wood supply and other forest products as well as the need to employ environmentally friendly practices; recognizing the immense economic potential of biodiversity and biotechnology; recognizing the importance of maintaining and sustaining international markets for our timber and other forest products especially those from the Dipterocarp and other major commercial species; and recognizing the pressing need to reposition the wood-based processing industries in the face of global concerns for environmental well-being of resources. It is hoped that the information and experiences acquired from this conference would provide the clear direction for the future of the forestry and timber industries of the country. This is vital in ensuring that the forestry and timber sectors remain the mainstay of the country s economy. SUMMARY Forestry continues to be the backbone of the country s economy and it creates relevance for further discussion in this forum. The conference attended by foresters, scientists, researchers, environmentalists and academicians was indeed a boost to our forestry and timber sectors. Global changes in forestry warrant prompt actions, concerted efforts and undivided support. PERKASA VOL. 9/10 (September-October2008) 7

8 MARKET PERFORMANCE (JANUARY OCTOBER 2008) The accumulated value of logs and timber products exported from January to October 2008 increased by 9.44 % at RM 6,898 billions against that of RM 6,303 billions for the corresponding period in There were increases in the overall volumes of sawn timber, plywood, veneer and block board exported. However, volumes of logs dowels, mouldings, medium density fibreboard, laminated board as well as tonnage of woodchip exported decreased. The values of logs, sawn timber, plywood, veneer, particleboard, medium density fibreboard, block board and other timber products exported for the ten months period in 2008 increased by 2.07 %, %, %, %, 5.68 %, 6.19 %, % and % respectively, in comparison with that of the corresponding period in In cases of dowels, mouldings, laminated board and woodchips the values exported throughout the last ten months of the year decreased by %, %, % and % respectively, compared to that of similar period in The values of plywood, logs and sawn timber at RM billions, RM billion and RM billion respectively, contributed %, % and % to the total revenue obtained from the export of logs and timber products for the first ten months of (Table 1) Logs The volume of logs exported decreased by 1.76 % to 3,066,897 M 3 from 3,121,700 M 3 and the value however, increased by 2.07 % to RM billion from RM billion for the first ten months of 2008 compared to that of similar period in India remains the number one importer of the States logs at % followed by Japan at %, Taiwan at % and China at %, respectively. There was an increase by 8.69 % in the volume of logs exported to India at 1,469,272 M 3 valued at RM billion, contributing % to the overall revenue obtained from the export of logs for the first ten months of 2008 against that of 1,351,800 M 3 exported for the corresponding period last year. The volumes of logs exported to India, Vietnam and South Korea increased by 8.69 %, % and 2.27 % respectively, for the period compared to that of similar period last year. However, export of logs to China, Japan and Taiwan decreased by %, % and 6.92 % respectively, for the period compared to similar period in Consequently, export of logs to India, Taiwan, Japan and China constituted % of the total volume and contributed % to the total revenue obtained from the sale of logs effected from January to October, (Table 2) Sawn Timber The volume of sawn timber exported for the first ten months of 2008 increased by 7.62 % to 921,348 M 3 at a value of RM billion compared to 856,100 M 3 valued at RM billion for the corresponding period last year or rather it was % appreciation in value for Middle East, the Philippines and Taiwan increased their volumes of purchase for the first ten months of 2008 by %, %, and 2.50 % respectively, compared to the corresponding period in However, volumes of the product exported to Korea, Japan, China, Thailand and South Africa for the period decreased by %, %, %, 3.25 % and 2.84 % respectively, compared to that of similar period in In term of volume, Thailand remains the number one taker of the States sawn timber export from January to October 2008 at 237,995 M 3, followed by the Middle East at 213,135 M 3. However, despite the lower volume exported to the Middle East the value was % higher than the sale of the product made to Thailand. The reason could probably be owing to preferences for more popular species and more value added finishing of sawn timber by the more sophisticated Middle East s markets. The sales of sawn timber to Thailand, Middle East, Taiwan, Philippines and China at 698,301 M 3 constituted % of the exported volume for the period and contributed % to the overall revenue obtained from the product. (Table 3) Plywood Plywood export from January to October 2008 at 2,805,306 M 3 was % higher than that of 2,305,100 M 3 exported for the corresponding period in Plywood sales at RM billions contributed % to the overall revenue obtained from the export of logs and timber products for the period. Japan remains the number one importer of the States plywood with purchase of 1,466,058 M 3 valued at RM billions, constituting % of the volume exported and contributing % to the revenue generated from its sale for the first ten months of Other big time plywood importers were Korea, Middle East and Taiwan that made respective purchases of % at 396,749 M 3, 9.62 % at 270,150 M 3, and 8.14 % at 228,397 M 3 and thus made a combined revenue contribution of RM billion or % of the overall value of plywood exported for the period. Export of plywood to Japan, Korea, Middle East and Taiwan constituted % of the overall exported volume and contributing % to the overall revenue obtained from export of the product for the period. (Table 4) The volume and value of veneer exported from January to October, 2008 at 316,665 M 3 and RM billion respectively were % and % more compared to that being exported for the corresponding period last year. Taiwan imported the most veneer at 102,088 M 3, followed by Korea at 77,365 M 3, the Philippines at 30,604 M 3, China at 29,657 M 3 and Japan at 11,642 M 3 for the first ten months of 2008 with a total contribution of % to the overall revenue derived from the sale of the product for the period. (Table 4) Other Timber Products Other timber products which included dowels, mouldings, particleboard, medium density fibreboard ( MDF ), block board, laminated board, woodchips and other timber products ( mentioned in Table 1 ). The value of other timber products at RM billion accounted for 6.20 % of the overall value of logs and timber products exported for the first ten months of Subsequently, the value was 2.37 % more than the value exported for the corresponding period last year, which stood at RM billion. The export of all the products under this category for the period in 2008 except for block board, was lower compared to that being exported for the corresponding first ten months the previous year. However, it is interesting to note that despite the decrease in volumes exported there were respective increases in the value in cases of particleboard, medium density fibreboard and other timber products. The reason for the increase could be due to the substantial increase in the respective unit prices for the products. (Tables 5 & 6) Future Outlook By the end of October 2008, average unit prices of major products such as logs and sawn timber remained stable whereas those of dowels, mouldings, medium density fibreboard, particleboard and laminated flooring were quite encouraging. Unit prices for logs, sawn timber, dowels, mouldings, particleboard, medium density fibreboard and laminated flooring by October, 2008 were 3.90 %, 2.98 %, %,14.86 %, 8.40 %, % and % higher respectively, compared to that of similar period last year. In the cases of plywood, veneer and woodchip, unit prices by October 2008 were 7.90 %, % and % lower respectively, compared to that of the corresponding period last year. Volumes of sawn timber, veneer and plywood exported until the end of October 2008 were higher than that for similar period in 2007, this could possibly be attributed to the lower unit prices for both veneer and plywood. However, in the case of sawn timber though there was an increase in the unit price by 2.98 % in October 2008 as compared to similar period in 2007, the volume exported for the period this year was 7.62 % higher than that last year. In the cases of dowels, mouldings, particleboard, medium density fibreboard and laminated flooring, probably because they registered much higher unit prices by October 2008 compared to similar period in 2007, the volumes exported for the period were much lower in Traditional importers of the States logs in descending order of value were: India, Taiwan, Japan, China and Vietnam which together contributed % to the overall log export revenue up to October, Similarly, Thailand, Middle East and Taiwan were the top three importers of sawn timber, contributing % to the sawn timber export revenue up to October, Likewise, Japan, Korea, Middle East and Taiwan were the four main buyers of the States plywood for the first ten months of The State was quite rainy by 0ctobeer 2008, however there was ample supply of logs for the export market because there were very few takers for the logs being stockpiled earlier, for the simple reason that the asking price by the exporter for the past months was much higher. Global economic slowdown did also play a major role in reducing the overall demand for the logs being stocked for export. However, by the end of October, 2008 the Indian market which is the number one taker of Sarawak s logs export had imported % of the accumulated volume at 3,066,897 M 3. It is expected, the role as a number one importer of the State s logs will still be played by India in the following months. The demand for Sarawak s logs for the production of plywood in Japan up to October, 2008 remains sluggish, because some of the Japanese plywood manufacturers temporarily closed their plywood manufacturing operations. There seemed to be very low demand for plywood in Japan by October 2008 and in order to avoid overstocking, plywood manufacturers in Japan had to resort to temporarily ceased their operation as the most practical measures to check and balance their inventories and price for the product. These economic measures taken by the Japanese plywood manufacturers would directly affect the timber trade, particularly log import to Japan. This measure would certainly create major impact in reducing the volume of logs to be exported from State to Japan. 8 PERKASA VOL. 9/10 (September-October2008)

9 SARAWAK TIMBER INDUSTRY DEVELOPMENT CORPORATION (STIDC) TRADE STATISTICS SARAWAK TABLE 1. EXPORT SUMMARY OF TIMBER AND TIMBER PRODUCTS FROM SARAWAK PRODUCTS Volume (M 3 ) 2008 January-October FOB Value (RM 000) Value % Volume (M 3 ) 2007 January-October FOB Value (RM 000) Value % % Change 2008/2007 Volume Value LOGS 3,066,897 1,494, ,121,700 1,463, (1.76) 2.07 SAWNTIMBER 921, , , , PLYWOOD 2,805,306 3,819, ,305,100 3,406, VENEER 316, , , , DOWELS 2,877 8, ,510 10, (36.21) (15.69) MOULDINGS 8,568 21, ,790 42, (56.71) (50.27) PARTICLEBOARD 97,982 48, ,500 45, (2.51) 5.68 MDF 146, , , , (7.68) 6.19 BLOCK BOARD 14,532 13, LAM. BOARD/FLOORING 12,317 33, ,300 59, (64.09) (43.83) WOODCHIPS (TONNE/KGM) 195,200 22, ,800 36, (23.09) (37.03) OTHER TIMBER PRODUCTS 116, , TOTAL 6,897, ,302, EXPORT VALUE OF TIMBER & TIMBER PRODUCTS FROM SARAWAK PERKASA VOL. 9/10 (September-October2008) 9

10 TABLE 2. EXPORT OF LOGS BY COUNTRY OF DESTINATIONS DESTINATIONS Volume (M 3 ) 2008 January-October FOB Value (RM 000) Value % Volume (M 3 ) 2007 January-October FOB Value (RM 000) Value % INDIA 1,469, , ,351, , CHINA 365, , , , JAPAN 394, , , , TAIWAN 488, , , , SOUTH KOREA 53,592 26, ,400 23, VIETNAM 254,124 90, ,200 53, OTHERS 41,787 21, ,800 23, TOTAL 3,066,897 1,494, ,121,700 1,463, EXPORT VALUE OF LOGS BY COUNTRY OF DESTINATIONS 10 PERKASA VOL. 9/10 (September-October2008)

11 SARAWAK TIMBER INDUSTRY DEVELOPMENT CORPORATION (STIDC) TABLE 3. EXPORT OF SAWNTIMBER BY COUNTRY OF DESTINATIONS DESTINATIONS 2008 January-October Volume FOB Value (M 3 ) (RM 000) Value % Volume (M 3 ) 2007 January-October FOB Value (RM 000) Value % THAILAND 237, , , , MIDDLE EAST 213, , , , TAIWAN 111,522 85, ,800 84, PHILIPPINES 70,433 48, ,600 32, CHINA 65,218 53, ,700 65, KOREA 31,162 31, ,500 58, JAPAN 22,269 31, ,400 40, SOUTH AFRICA 23,318 26, ,000 23, OTHERS 146, , , , TOTAL 921, , , , EXPORT VALUE OF SAWNTIMBER BY COUNTRY OF DESTINATIONS PERKASA VOL. 9/10 (September-October2008) 11

12 TABLE 4. EXPORT OF VENEER AND PLYWOOD BY COUNTRY OF DESTINATIONS PLYWOOD VENEER DESTINATIONS January-October January-October January-October January-October Volume FOB Value Value Volume FOB Value Value Volume FOB Value Value Volume FOB Value Value (M 3 ) (RM 000) % (M 3 ) (RM 000) % (M 3 ) (RM 000) % (M 3 ) (RM 000) % CHINA 52, , ,900 75, ,657 22, ,600 18, MIDDLE EAST 270, , , , ,282 1, JAPAN 1,466,058 2,040, ,234,100 1,896, ,642 19, ,400 28, KOREA 396, , , , ,365 63, ,000 64, PHILIPPINES 41,907 55, ,700 70, ,604 30, ,200 27, SINGAPORE 24,726 29, ,100 34, ,823 3, ,100 4, TAIWAN 228, , , , ,088 97, ,200 73, UNITED STATES 64, , , , EU 83, , ,100 93, OTHERS 177, , , , ,205 53, ,000 16, TOTAL 2,805,306 3,819, ,305,100 3,406, , , , , EXPORT VALUE OF PLYWOOD BY COUNTRY OF DESTINATIONS EXPORT VALUE OF VENEER BY COUNTRY OF DESTINATIONS 12 PERKASA VOL. 9/10 (September-October2008)

13 SARAWAK TIMBER INDUSTRY DEVELOPMENT CORPORATION (STIDC) TABLE 5. EXPORT OF DOWELS AND MOULDINGS BY COUNTRY OF DESTINATIONS DOWELS MOULDINGS DESTINATIONS January-October January-October January-October January-October Volume FOB Value Value Volume FOB Value Value Volume FOB Value Value Volume FOB Value Value (M 3 ) (RM 000) % (M 3 ) (RM 000) % (M 3 ) (RM 000) % (M 3 ) (RM 000) % AUSTRALIA 590 1, , ,595 2, ,980 5, BELGIUM DENMARK GERMANY ,352 4, , JAPAN ,952 6, ,650 20, NETHERLANDS , , TAIWAN ,120 1, UNITED KINGDOM , , UNITED STATES 776 2, ,260 3, , ,420 4, OTHERS 829 2, ,470 2, , ,450 3, TOTAL 2,877 8, ,510 10, ,568 21, ,790 42, EXPORT VALUE OF DOWELS BY COUNTRY OF DESTINATIONS January-October 08 January-October ,416 2,490 EXPORT VALUE OF MOULDINGS BY COUNTRY OF DESTINATIONS PERKASA VOL. 9/10 (September-October2008) 13

14 TABLE 6. EXPORT OF PARTICLEBOARD AND MEDIUM DENSITY FIBREBOARD BY COUNTRY OF DESTINATIONS MEDIUM DENSITY FIBREBOARD (MDF) PARTICLEBOARD DESTINATIONS January-October January-October January-October January-October Volume FOB Value Value Volume FOB Value Value Volume FOB Value Value Volume FOB Value Value (M 3 ) (RM 000) % (M 3 ) (RM 000) % (M 3 ) (RM 000) % (M 3 ) (RM 000) % CHINA 2,962 3, ,600 1, , JAPAN 114, , , , SOUTH KOREA 1,734 1, ,600 1, ,259 5, ,900 9, INDONESIA 9,387 9, ,900 7, ,093 31, ,000 26, TAIWAN 1,700 1, ,800 3, SOUTH AFRICA ,600 2, VIETNAM 1,490 1, ,700 4, ,979 5, ,300 7, OTHERS 14,660 14, ,000 8, ,878 5, ,300 2, TOTAL 146, , , , ,982 48, ,000 45, EXPORT VALUE OF MEDIUM DENSITY FIBREBOARD BY COUNTRY OF DESTINATIONS EXPORT VALUE OF PARTICLEBOARD BY COUNTRY OF DESTINATIONS 14 PERKASA VOL. 9/10 (September-October2008)

15

16 Printed by Wisma Printing Sdn Bhd Tel: