Malaysian Timber Industry Board (MTIB) Roles and Functions as Prescribed in Malaysian Timber Industry Board (Incorporation) Act 1973 (Act 105) To further enhance industrialization and upgrading of the timber industry with emphasis on value-added processing To promote and improve the markets and marketing of timber products To facilitate further development of SMEs To develop and promote standards for the manufacture of quality timber products To foster orderliness in the timber trade
Sawmills 1,019 Furniture plants 2,152 4,162 mills Plywood/ Veneer mills 181 Others 119 Moulding mills 341 Kiln Drying/Preservation plants 236/99 Source : MTIB, FDPM, FD Sabah, FD Sarawak MDF mills 15 3
KPPK MALAYSIA : EXPORT OF TIMBER PRODUCTS (2011) TOTAL : RM 20.03 Billion Source : DOS & MTIB
MALAYSIA : EXPORTS OF TIMBER & TIMBER PRODUCTS BY REGION, 2011 UNITED KINGDOM 3.60% NETHERLANDS 2.32% GERMANY 1.25% BELGIUM 1.00% FRANCE 0.89% ITALY 0.44% DENMARK 0.30% OCEANIA / PACIFIC 4.64% AFRICA 3.73% EUROPE 12.44% AMERICAS 14.26% OTHER COUNTRIES 0.05% ASIA 64.90% JAPAN 22.98% INDIA 7.52% TAIWAN 5.20% SINGAPORE 4.13% CHINA 3.71% KOREA, REPUBLIC OF 3.64% THAILAND 3.34% UAE 2.62% USA 11.14% CANADA 1.44% MEXICO 0.55% CHILE 0.36% PUERTO RICO 0.11% Source : MTIB, DOSM TOTAL : RM 20.03 billion 5
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THRUST 1: Industry Structure NATIP Targets by 2020 7
Thrusts of NATIP Thrust 7: Bumiputera Participation Thrust 1: Industry Structure Thrust 2: Supply of Raw Materials Thrust 6: Funding & Incentives NATIP Thrusts Thrust 3: Innovation & Technology Thrust 5: Human Capital Development Thrust 4: Marketing & Promotion 8
RM billion MALAYSIA: ACTUAL TIMBER & TIMBER PRODUCT EXPORT vs NATIP PROJECTION 60.00 40.00 20.00 0.00-20.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Actual 19.79 21.51 23.44 22.76 22.79 19.49 20.52 20.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Actual vs Projection 0.00 0.54 1.13-0.97-2.46-7.38-8.07-10.3 Projection 19.79 20.97 22.31 23.74 25.25 26.87 28.59 30.42 32.37 34.44 36.64 38.99 41.48 44.14 46.96 49.97 53.17 Source : MTIB, DOSM 9
SOURCES OF RAW MATERIAL FOR WOOD-BASED INDUSTRY
OVERVIEW OF THE SUPPLY OF RAW MATERIALS Malaysia Land Use (Mil. Ha.) Region Peninsular Malaysia Land Area National Forest Forest Plantation Agricultural tree * Total Forest area 13.2 5.8 0.1 3.3 5.9 44.7 Sarawak 12.3 7.9 0.1 0.7 8.0 65.0 Sabah 7.4 4.1 0.2 1.5 4.3 58.1 Malaysia 32.9 17.8 0.4 5.5 18.2 55.3 Total Forest area (%) Sources : FDPM, SFD, SD Sarawak * Oil Estimate palm, rubber, cocoa and coconut plantations
Policy Directions on Raw Material Supply Managing the raw materials in a sustainable manner in compliance with the domestic laws and regulation [Sustainable Forest Management and Selective Management System Enhancing the Forest Plantation Programme (EFP) Supplementing the requirement of timber based industries through the imports of timber Prioritising the supply of logs to the domestic market Encouraging timber industry to use alternative materials eg: biomass, bio composite, kenaf orchard and landscaping timber Maximising the use of wood residues from the forest as well as from the activities of timber industry Giving emphasis to downstream activities that are located in the various economic developments corridors Promoting global recognition of MTCC certification of tropical timber.
1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 PROJECTION OF TIMBER RAW MATERIAL PRODUCTION AND DOMESTIC DEMAND FOR TIMBER INDUSTRIES Million m 3 50 45 40 35 30 25 20 15 10 5 2008 (Mil m3) 2021 (Mil m3) Natural Forest Forest Plantation Log Production 2035 (Mil m3) Natural Forest 20 18 15 Forest Plantation 2 8 14 Total Log Production 22 26 29 Domestic Demand 15 22 28 Domestic Demand 0 Year Source : FPDSB, MTIB and JPSM (2010)
Production of logs from natural forests, 2000-2009 Year Peninsular Malaysia Sabah Sarawak Malaysia Million m 3 2000 5.1 3.7 14.3 23.1 2001 4.2 2.6 12.2 19.0 2002 4.4 4.4 12.3 21.1 2003 4.4 5.0 12.2 21.6 2004 4.6 5.4 12.1 22.1 2005 4.4 6.0 12.0 22.4 2006 4.7 5.3 11.9 21.9 2007 4.2 5.9 11.9 22.0 2008 4.0 4.7 11.3 20.1 2009 3.7 4.1 10.4 18.2 Sources : FDPM, SFD, SD Sarawak and MTIB
NATURAL FORESTS Annual coupe area under the 9 th and 10 th Malaysia Plans (PFR) Region Peninsular Malaysia Sabah Sarawak Malaysia Hectares 9 th Malaysia Plan (2006-2010) 36,955 60,000 170,000 266,955 10 th Malaysia Plan (2011-2015) 39,873 60,000 155,000 254,873 Sources : FDPM, SFD, SD Sarawak and NRE
Supply of Raw Materials MALAYSIA- PROJECTED AVERAGE ANNUAL LOG PRODUCTION FROM NATURAL FOREST, 2006-2020 (PFR, STATE AND ALIENATED LAND) FIVE YEAR PERIOD PENINSULAR MALAYSIA SABAH SARAWAK MALAYSIA MILLION m 3 2006-2010 3.8 4.1 11.5 19.4 2011-2015 3.0 2.5 10.0 15.5 2016-2020 2.5 1.5 10.0 14.0 Source : JPSM, JPS, JHS dan NRE 16
THRUST 2: Supply of Raw Materials Existing Forest Plantations by state:- NO. STATE ACRAGE (ha) Species 1. Johor 17,407 Acacia mangium dan Getah 2. Kedah 3,100 Acacia mangium, Teak, Getah dan Sentang 3. Kelantan 4,400 Acacia mangium, Jati, Getah, Sentang and etc Melaka 113 Getah, Merawan sp, Karas dan Sentang 4. Negeri Sembilan 364 Acacia mangium, Getah dan Karas 5. Pahang 19,017 Acacia mangium, Getah, Sentang dan lain-lain 6. Perak 1,175 Jati, Pine, Getah, Sentang dan lain-lain 7. Perlis 671 Teak dan Karas 8. Selangor 11,381 Pine, Getah, Sentang, Mahogany dan lain-lain 9. Terengganu 3,915 Acacia mangium, Getah, Kapur dan lain-lain 10. Sabah 107,441.39 188,505.65 Acacia mangium, A. Crassicarpa, A. Aulococarpa, A. Hybrid,, Falcataria moluccana Eucalyptus grandis, Eucalyptus deglupta, Eucalyptus spp. dan Gmelina arborea 11. Sarawak 224,335 Acacia spp., Kelempayan, Albizia, Eucalyptus, Paraserianthes dan lain-lain TOTAL ACRAGE 581, 825.04 Source : JPSM, JPS, JHS dan NRE 17
FOREST PLANTATIONS Malaysia Projected average annual production of logs from forests plantations, 2006-2020 (Programme Managed by State Forestry Department) Five year period Peninsular Malaysia Sabah Sarawak Malaysia Million m 3 2006-2010 0.8 0.5 2.0 3.3 2011-2015 0.8 0.6 10.4 11.8 2016-2020 0.9 0.8 15.0 16.7 Sources : FDPM, SFD, SD Sarawak
(M3) THRUST 2: Supply of Raw Materials MALAYSIA PROJECTION OF TIMBER & HEVEAWOOD HARVESTED FROM MTIB/FPDSB FOREST PLANTATION PROGRAMME, 2022 2030 (Managed by FPDSB) 6000000 5000000 4000000 3000000 2000000 1000000 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 Heveawood 1333908 1534208.1 1521839.85 1676596.5 2078521.5 2807610 3747045 4271100 5288850 Acacia 1191838.5 986382 379608.75 1309500 1667475 2014200 1981125 1981125 1930500 Laran 409365.9 336394.62 217474.2 509760 1175850 540000 675000 810000 945000 Khaya 0 121416 164184 156000 156000 146400 108000 144000 204000 Batai 0 0 0 345990 139650 196650 225150 280155 228000 Sources: MTIB, FPDSB 19
MALAYSIAN RUBBERWOOD PLANTATIONS Malaysia Projected average log production from rubber plantation (existing operation) (Managed by Forestry Department) Five year period Peninsular Malaysia Sabah Sarawak Malaysia Million m 3 2006-2010 2.1 n.a n.a 2.1 2011-2015 1.9 0.1 n.a 2.0 2016-2020 1.7 0.1 n.a 1.8 Sources : FDPM, SFD, SD Sarawak Note : n.a not available
MALAYSIA Malaysia Projected average annual log production from natural forest, forest plantations and rubber plantations, 2006 2020 Five year period Peninsular Malaysia Sabah Sarawak Malaysia Million m 3 2006-2010 6.7 4.6 13.5 24.8 2011-2015 5.6 3.7 18.8 28.10 2016-2020 11.0 2.4 25.0 38.40
Wood Residues Malaysia i) Forest residues Type million m3 Logging 5.1 Primary manufacturing 2.92 Plywood 0.91 Secondary 0.90 Total 9.83 Courtesy MTIB, 2006 22
AVAILABILITY OF ALTERNATIVE / NEW RAW MATERIALS Oil Palm Biomass RICE HUSK/STRAW COCONUT STEM BAMBOO - 52.6 million tonnes/year dry biomass (OPT, OPF, EFB, PKS, MF) - 326,000 tonnes/year - 3,200 tonnes/year - 10 million culms/year Source : MTIB, MPOB, JPSM, National Biomass Roadmap, BERNAS As at Dec 2011
Fibre And Biocomposite Materials Natural fibres such as rice husk, kenaf, coconut coir, oil palm biomass as raw materials to supplement wood from the natural forest for utilization of wood based and biocomposite industries. MTIB s function are to develop and enhance the production of new value-added products that leading towards NATIP s target. 24
WOOD BASED INDUSTRY SOLID WOOD LOGS SAWN TIMBER MOULDINGS BUILDERS JOINERY & CARPENTRY (BJC) FURNITURE BIOCOMPOSITE I. CONVENTIONAL COMPOSITE PLYWOOD PARTICLEBOARD FIBREBOARD CEMENTBOARD II. ADVANCE COMPOSITE NATURAL FIBRE POLYMER COMPOSITE (NFPC) 25
Current supply chain of plywood, MDF/particleboard, and wood plastic composites
BIOCOMPOSITE Uses Natural fibres or bio polymer. It can be divided into the following groups: 1. Conventional composites: Plywood, Laminated Veneer Lumber (LVL), particleboards, fiberboards, insulation board, hardboard, Oriented Strand board (OSB) etc. based on Uses synthetic adhesives or organic binders organic binding PLYWOOD GLULAM I-BEAM combination of OSB-LVL Particleboard
2. Natural Fiber Reinforced Composites Fibre reinforced plastic composites (FRPC) either thermoplastics or thermosetting, rubbers They are renewable, cheap, completely or partially recyclable
3. Lignocellulosic-mineral composites (Wood Cement Board) Use inorganic binders Mainly used as building components
Applications Deckings Courtesy by Fibersit.com
CURRENT UTILIZATION OF BIOMASS FOR WOOD BASED INDUSTRY Products Number of Companies RICE HUSK Fibre Plastic Composite 4 Fibre Cement board 1 OIL PALM BIOMASS Plywood (trunk) 5 Medium density board (EFB) 3 Oil palm lumber (trunk) 2 Particleboard (EFB) 1 Fibre plastic composite (EFB) 1 WOOD SAWDUST Wood plastic composite 8 Total 26
Malaysia Natural Forest/Resources is sustainably managed in accordance to Principle and criteria under SFM [PFE/PFR] To meet environmental and ecological need there would be a reduction in logging activities from natural forest Forest Plantation and import activities and use of alternative raw material would be expected to fullfill the shortage A Technical committee of NATIP high impact activities have been identified (such as develop programme, forest plantation research for log export and intensify import of raw materials). Transform timber industry from commodity based to high value added timber based industry. 32