STRIVE TO ACHIEVE TECHNOLOGICAL ADVANCEMENT

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1 3 STRIVE TO ACHIEVE TECHNOLOGICAL ADVANCEMENT Haji Len (centre) having discussion with Harry Rickman, Senior Vice President (Recovery Division) of ANDRITZ OY (2nd. right) during the Ligna Plus Fair in Hannover, Germany. Haji Len (3rd. right) and the team together with representatives of METSO (pulp and paper technology supplier) and RWE Solution (EPC Contractor) in Berlin, Germany. Group photo with representatives of KFW IPEX-BANK, Frankfurt, Germany. In the stride to achieve technological advancement in the state s wood-based sector and to facilitate technological collaboration with the international counterparts, the General Manager of STIDC, Haji Len Talif Salleh together with few other board members recently visited the technologically advanced countries like UK, Germany and Sweden. In London, UK they met Andy Roby, Advisor for Corporate Social Responsibility of Timber Trade Federation and Mark Willkinson of BM TRADA. In Germany, they had the opportunity to visit the World Trade Fair for timber and wood-based industries at Ligna plus, Hannover and a visit to Siempelkamp mill at Krepeld, a prominent technology and machine supplier of MDF industry as well as a visit to a new pulp mill at Stendal, Berlin. The group also had discussion with POLIMA AB, a leading manufacturer of core plugs and distance blocks in Stockholm, Sweden on the possibility to establish similar mill in Sarawak on joint venture basis. The visit, among others aimed to gain an insight on the current trends in woodworking and wood processing technologies besides experiencing the application of modern machinery and system. In addition, it also aimed to form strategic alliance with related parties in related fields as well as to enhance trade relationship with the international counterparts and to acquire useful information for formulating policies and strategies to upgrade the efficiency and quality of our production system. The visit was an opportunity for us to dip our toe into the European markets and find out how things happen there. We were encouraged by their positive response Haji Len said. 5

2 4 STIDC PARTICIPATED IN THE SWEDISH PULP AND PAPER TECHNICAL SEMINAR STIDC participated in the Swedish Pulp and Paper Technical Seminar and Discussion held in Kuala Lumpur on 25th April The seminar which carried a theme New Available Technology was jointly organized by the Embassy of Sweden, Swedish Pulp and Paper Technology Group and Swedish Environmental Technology Group aimed to provide an insight on the modernization, expansion and environmental issues in pulp and paper industry. Swedish Ambassador, H.E. Bruno S. Beijer highlighted that this seminar was a follow-up of a similar event in 2001 in Sarawak and an Executive Tour to Sweden in 2003 where the Malaysian executives had the privilege to visit the Swedish pulp and paper industries. It was also part of the seminar series held in India and South East Asia. Malaysia being located in the equatorial region has the opportunity to cultivate fast growing trees for pulp making. However, it concentrates on recycling activities though in the long run it needs the pulp to substitute or add value to secondary fibres. Recently there were considerable number of companies indicated their interest in studying the possibility to convert our oil palm residue such as empty fruit bunch into pulp and paper. Therefore, I call upon the Swedish companies to look into this new fibres by providing technological support in pulp and paper making including environmental and effluent treatment Haji Mas ut said. Sweden ranks the world s fourth largest and third largest in Europe in terms of pulp and paper industry. Productivity, efficiency and environmental issues have always been its priority. This seminar therefore forms the core of Sweden- Malaysia relationship the Ambassador said while indicating their readiness to co-operate on related fields. Meanwhile the Secretary General of Malaysian Pulp and Paper Manufacturers Association, Haji Mas ut A. Samah said Malaysia and Sweden have become trading partners in pulp and paper for a considerable period of time. Sweden has always been the inspirational founder of many technological innovations and invention in improving the art of paper making. It is indisputable that Sweden is advancing in the paper making business due to its long history of probably two centuries as compared to Malaysia which had its first mini paper mill of about 10 metric tons per day only in Sweden s paper consumption is 2.5 times larger compared to Malaysia s consumption though the population of Malaysia is 2.5 times larger than Sweden s population. Comparatively, Sweden has more than 100 pulp and paper mills throughout the country with a capacity of more than 23 million metric tons per annum as compared to Malaysia which could hardly have 20 mills with a total capacity of 1.7 million metric tons per annum. The gap justifies that Malaysia should have new investments in pulp and paper manufacturing sector. Hence, the government encourages the industry to expand by providing various incentives. He mentioned that this seminar was a good venue for the Swedish pulp and paper companies to share their successful stories adding that Malaysia being a net paper importer has to expedite its expansion to meet at least the local demand besides concentrating on other important factors such as productivity, quality and cost effectiveness. From right: Mr. Ake Ryhagen (Vice President, Industry Sector Corperation), Haji Mas ut A. Samah, Haji Len Talif Salleh (General Manager of STIDC) and Eda Edan having conversation on points of interest. Representatives of the nine prominent Swedish pulp and paper companies presented their papers, each featuring among others the background and products of the companies. The seminar also covered business meetings and topics such as Trends in Pulp Manufacturing, Trends in Paper Making, Minimising Water Effluents, Asia s Future Role in a European Perspective and World Tendencies for Pulp, Paper and Secondary Fibres. Rick c. van Lee, Senior Pulp and Paper Mill Specialist of Tatau Pulp Manufacturer Sdn. Bhd., Sarawak presented a paper which among others highlighting the company s background, source of wood, conservation and community development, financial highlight and indicative timeline. The seminar was indeed timely and beneficial particularly to Sarawak as it moves towards establishing its pulp and paper mill to complete the development spectrum of its wood-based sector and to contribute further to the socioeconomy of the state. SARAWAK TIMBER INDUSTRY DEVELOPMENT CORPORATION (STIDC) 6

3 5 STIDC SIGNED MoU ON PRODUCTIVITY AND QUALITY STIDC will continue to co-operate with the related government agencies in designing the relevant programmes to enhance the development of the furniture entrepreneurs of Sarawak particularly its furniture vendors. The signing of Memorandum of Understanding on Productivity and Quality (P&Q) and Financial Management for its vendor companies with the National Productivity Corporation (NPC) on 23rd April 2005 manifests its stride in creating a resilient local furniture industry. Deputy General Manager, Haji Rabani Taip represented STIDC while NPC was represented by its Regional Director, Abdul Latif Abu Seman. This P&Q and Financial Management programmes are sponsored by the Ministry of Co-operative and Entrepreneur Development. NPC plays its role as the programme consultant while STIDC identifies the potential vendors. This time four vendors namely Hillog Sdn. Bhd., Tanjung Manis Furniture Sdn. Bhd., F.B.F. Reka Enterprise and A.K.S. Holding Sdn. Bhd were identified to participate in the programmes which commenced in April Abdul Latif disclosed that as at February 2005, the amount of fund approved under the Ministry of Co-operative and Entrepreneur Development Financial Assistance Scheme in respect of Sarawak s small and medium scale entrepreneurs is 2% out of RM13.38 million. He pointed out that NPC had also raised the following suggestions: (i) Formation of Community of Practices for industries in Sarawak based on area of common interest (ii) More programmes on sharing of best practices among companies in the state (iii) Use of NPC E-Benchmark System ( via the BOND System in sharing benchmarks and best practices (iv) Use facilities and expertise provided by NPC, Sarawak. In his address, Haji Rabani said that last year four furniture vendors namely Archiwood Enterprise, Hizone Sdn. Bhd., Syarikat M & N Furniture and Ikmas Jaya benefited from similar programmes by adopting 5S in their management and business undertakings and were certified under P 7 Q Development Programme. 5S is a Japanese acronym for Seiri (Sorting), Seiton (Simplifying), Seiso (Sweeping), Seiketsu (Standardisation) and Shitsuke (Self-Discipline). Haji Rabani (right) and Abdul Latif (left) exchanging the memorandum. Apparently, these programmes had been implemented successfully by the vendors concerned and had contributed positive impact on their employees as well as business performance. Production lines and workplaces become more systematic and conducive as a result of constant housekeeping. Perpetual quality control has led to productivity and knowledge enhancement thereby building customers confidence on their products and services. Effective business planning and employees welfare become utmost important. Ultimately, they have succeeded in attracting new buyers and securing more contracts from both public and private sectors. This has brought to the surge of their sales and turnover. Haji Rabani reminded the local furniture entrepreneurs to be fully committed in order to penetrate and stay competitive in the international markets. Apart from urging the newly selected vendors to adopt P&Q system in their factory management, he also hoped that the spirit of co-operation among the related government agencies would continue for mutual benefit. In approaching the globalisation era, steps must be taken to improve the business strategies of these entrepreneurs so as to enhance their productivity, cost effectiveness as well as competitiveness. Globalisation challenges must be viewed as opportunities instead of obstacles. AFTA and WTO implementation would have adverse impact on the local furniture entrepreneurs without pre-emptive measures. Hence, there is a need for them to master the export markets to ensure steadfastness in their fields of endeavour. Besides, they should also produce goods at competitive prices, exquisite and quality design as well as minimal production costs. 7

4 6 STIDC, SARAWAK BUMIPUTRA FURNITURE ENTREPRENEURS ASSOCIATION PARTICIPATED IN TRADE EXPOSITION Once again the masses were exposed with the current development of the state s woodbased industry. This time through the participation of STIDC and Sarawak Bumiputera Furniture Entrepreneurs Association in the Miri Trade Exposition held from 17th-22nd May 2005, in conjunction with the elevation of Miri into a city status. STIDC exhibited its roles and functions as the leader and catalyst of the state s wood-based industry besides being a key player for the development of Tanjung Manis New Township into a prominent economic hub in the central region of Sarawak. Besides featuring its role in developing the small and medium scale furniture entrepreneurs, STIDC also took this opportunity to promote the training and courses available at Tanjung Manis Training Centre. Wood carving demonstrations were also carried out by outstanding trainees throughout the exposition. To the Sarawak Bumiputera Furniture Entrepreneurs Association, this exposition was a turning point as this was the first time all the 14 member companies participated in such event outside Kuching and Kota Samarahan divisions under one roof. Indeed it was a golden opportunity for these companies to promote their products such as household furniture, office furniture and garden furniture as well as to expand their business. Chairman of the association, Mohamad Bahaman Sulaiman said, this was the first activity involving all the member companies since its inauguration recently. He added that the association plans to organise similar event in other divisions to promote the association particularly among the Bumiputera furniture entrepreneurs. Besides its aspiration to acquire showrooms in the major towns of Sarawak, the association also looks forward to organise frequent exposure trips to the related industries both inside and outside the country to ensure technology transfer for the benefit of its members, the Chairman elaborated. Roslyn Uding, Executive Officer of UTEP MASTIA who participated in the exposition for the first time opined that the exposition was essential particularly to the Bumiputera furniture entrepreneurs to gain exposure on the current trends of technology, design and market. Through this exposition I realise that STIDC is conducting the wood-based training and courses including wood carving and furniture making. Hopefully STIDC and the Sarawak Bumiputera Furniture Entrepreneurs Association will pursue this type of event. It is also hoped that the local woodbased industries will recruit those who have successfully completed the training and courses from Tanjung Manis Training Centre for mutual benefit she added. Wood Carving demonstration. A section of the exhibition booth. SARAWAK TIMBER INDUSTRY DEVELOPMENT CORPORATION (STIDC) 8

5 7 FURNITURE SALE AND EXPOSITION 2005 Twelve furniture vendors of STIDC participated in the furniture sale and exposition at the Furniture Industrial Complex, Kota Samarahan. The four-day event, 25th-28th April 2005 was jointly organised by STIDC and Sarawak Bumiputera Furniture Entrepreneurs Association in conjunction with the first anniversary of the complex. This exposition showcased among others the household furniture, office furniture and garden furniture locally designed and produced by the participating vendors. This annual event among others aimed to promote the products of these vendors besides helping them to expand their business. Since 1996, STIDC plays its effective role in guiding the furniture vendors of Sarawak. This has led to the birth of the furniture vendor development programme. Since then, the response for this programme has been encouraging and has produced significant number of furniture vendors. General Manager of STIDC, Haji Len Talif Salleh emphasised that the furniture industry of Sarawak lags behind its Peninsular Malaysia counterparts. As such he urged them to strive to be at par with the successful players and stay competitive both at the local and international markets. His speech was read by the Deputy General Manager, Haji Rabani Taip. Haji Rabani (right) cutting the ribbon to mark the launching of the sale and exposition. He commended the furniture vendors in Kuching for taking an exemplary step in forming the Sarawak Bumiputera Furniture Entrepreneurs Association under the Chairmanship of Mohamad Bahaman Sulaiman. Assuring the association of STIDC s continuous support, Haji Len also expressed his hope that this association will play its important role in promoting the furniture industry among the furniture entrepreneurs. He was optimistic that Sarawak has the potential to be one of the leading producers of quality furniture in Malaysia in view that it has abundant of forest resources. The local players were reminded to improve themselves in terms of knowledge and skills for better quality, design, productivity and cost effectiveness. Haji Rabani (centre) and other management members of STIDC having a close view at some of the exhibited items. They were informed that STIDC will pursue its stride for the latest approach and strategies to bring this industry into greater height. This could be realised by acquiring the relevant expertise and entrepreneurs development programmes for the benefit of this industry. The industry players were encouraged to render their undivided support in whatever activities organised by STIDC and the related government agencies. This is due to the fact that this sector has great potential to be further developed into another important socio-economic activity. A section of the Furniture Sale and Exposition. 9 7/5/05, 4:40 AM