INTERNATIONAL CONFERENCE ON TIMBER Status of Timber Industry in Sarawak 7 8 June 2013 (Borneo Convention Centre Kuching) NICHOLAS ANDREW LISSEM Industrial Planning Manager Sarawak Timber Industry Development Corporation Wisma Sumber Alam, Jalan Stadium Petra Jaya, 93050 Kuching Sarawak, Malaysia E-mail : nicholal@pusaka.gov.my
INTERNATIONAL CONFERENCE ON TIMBER Status of Timber Industry in Sarawak Background of timber industry Timber export performance Main Timber markets Future challenges
Timber RM 7.08 Billion Petroleum RM 22.13 Billion Sarawak : Export of Major Commodities EXPORT OF COMMODITIES 2011 Timber industry has been and will Palm Oil continue be an important socioeconomic sector for RM 8.30 Billion Sarawak LNG RM 50.26 Billion Timber industry provides economic opportunities like investments, employment and supporting services/industry Catalyze for regional development One of major sources of income for export earnings to Sarawak Export of timber and timber products has been above RM7 billion since 2004 In 2011, timber was fourth largest source of export earning for Sarawak after natural gas, petroleum and palm oil
Volume (million m3) Sarawak : Log Production Trend (1991-2012) 20 18 Total Expon. (Total) 16 14 12 10 8 6 4 2 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 As resource based industry, it is very important to sustain the supply of raw material The timber industry in Sarawak has been relying on logs from natural forest Log production between 2001 to 2012 declined from 12 million m3 to about 9.5 million m3 Production declined at about 1.7% per annum (2001-2012) about 60% of the logs is retained for local processing under the log quota policy introduced in 1988
Sarawak : Timber Industry Structure Logs Mill Residues Sawmill Solid Plywood Veneer LVL Sawdust Residues Primary Industry Woodchips Dowel Moulding Parquet Finger joint Laminated Board, Block board Floorings Parts Secondary Industry MDF Particleboard Compressed wood Wood Plastic Composites Briquettes Pellets Tertiary Industry Furniture Window Door Housing/Carpentry Biomass Fuel
SARAWAK : TIMBER INDUSTRY Item No Workers Production ( 000, m3) Sawmill 171 9,500 1,060 Plywood 45 25,800 2,740 Veneer 21 6,020 640 Dowel/ Moulding 38 570 10 MDF 3 580 244 Particleboard 1 170 122 Woodchips 6 250 393 Furniture 417 2,500 - Others 131 3,000 - *Log 50,000 9,459 **Forest Plantation 43 LPF 9,500 - Total 833 107,890 - Log production : 9.5 million m3 More than 800 wood based mills established Employment : >115,000 including logging and forest plantation Main products are sawntimber, plywood, veneer and fibreboard, woochips Sarawak is largest producer of plywood in Malaysia, 2.74 million m3 Encourage optimum utilization of wood resources Mill residues are used to produce particle board, fibreboard, compressed wood pellet, woodchips, etc Source : * Forest Dept Sarawak ** SMS SCORE, UNIMAS
Wood residues utilization - Nothing should go to wastes Utilization method Capacity (m3/yr) Fibreboard mill 420,000 Particleboard mill 140,000 Woodchip mill 450,000 Wood Pellet mill 48,000 Charcoal briquette mill 140,000 Co-generation plant 1,100,000 Industrial boiler fuel 880,000 Total 3,158,000 Recovery rates of primary industry is less than 60% About 40% are residues, which need to be managed efficiently Residues are recovered and further processed Products produced from residues are woodchip, fibreboard, particle board, pellets, charcoal briquettes and biomass fuel Total residues utilized is about 3.2 million m3 per year Generate export revenue of about RM350 million per year
SARAWAK : TIMBER PRODUCTION PRODUCT Volume (m3) 2008 2009 2010 2011 2012 SAWNTIMBER 1,223,457 1,066,348 1,127,190 963,729 1,060,857 PLYWOOD 3,124,195 2,764,314 2,875,975 2,707,661 2,740,704 VENEER 799,969 674,383 631,549 593,108 640,442 DOWEL 11,724 3,256 2,160 1,619 1,714 MOULDING 5,650 11,202 15,755 9,441 8,712 LAMINATED BOARD 32,603 28,970 36,358 32,419 30,435 FIBREBOARD 240,622 237,923 248,353 237,390 243,637 PARTICLE BOARD 139,551 133,413 134,624 33,335 122,217 * WOODCHIP 209,805 203,326 350,985 362,513 392,744 #LOGS 11,335,578 10,371,138 10,151,766 9,610,454 9,458,554 * Unit measurement metric tonne # Source : Forest Dept, Sarawak
INTERNATIONAL CONFERENCE ON TIMBER 2013 Status of Timber Industry in Sarawak Background of timber industry Timber export performance Main Timber markets Future challenges
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 VALUE (RM'000) SARAWAK : OVERALL DEVELOPMENT PROGRESS TIMBER INDUSTRY 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Other Plywood Sawn timber Logs YEAR Logging, sawmilling, dowel, moulding Log quota policy & timber industry clusters implemented Royalty incentive rebate scheme Plan for commercial forest plantation, implemented Quota for imported timber implemented Harvesting of planted forest species
MALAYSIA : EXPORT VALUE OF TIMBER PRODUCTS, 2012 (RM million) Product Export Value Logs 1,932 Sawn timber 2,473 Plywood 5227 Veneer 344 Dowel/Moulding 699 Fibreboard 1,149 Particleboard 348 Woodchips 49 Furniture 6,505 Builder, Joinery & Carpentry 813 Others 761 Total 20,442 Malaysia is one of the major producer and exporter of tropical timber products Total export earnings for timber products in year 2012 was about RM20.4 billion Peninsula Malaysia exported earning from timber product was about RM11.2 billion Earning from Sarawak for the same was RM7.4 billion Sabah earning was RM1.8 billion Malaysia main timber products produced and exported were sawn timber, plywood, fibreboard, BCJ, furniture, veneer and particle board Peninsula main product is furniture Sabah and Sarawak main product is wood panel (plywood, fibreboard, particleboard) Source : *Ministry of Plantation Industries and Commodities, Malaysia
MALAYSIA : EXPORT VALUE OF TIMBER PRODUCTS, 2012 (RM 000) Product *Pen. Malaysia *Sabah **Sarawak Logs 8,683 123,447 1,799,974 Sawn timber 1,308,472 379,661 785,121 Plywood 308,276 923,269 3,995,759 Veneer 9,302 64,590 269,972 Dowel/Mouldings 549,971 122,585 26,194 Fibreboard 855,082-293,997 Particleboard 277,434 7,442 62,826 Woodchips - - 49,456 Furniture 6,467,637 37,531 - Wooden Frame 142,410 100 - Builder, Joinery & Carpentry 784,397 28,265 - Others 464,537 124,737 170,455 Total 11,176,203 1,811,526 7,454,650 Source : *MTIB **STIDC
EXPORT VALUE (RM 000) OF TIMBER FROM SARAWAK PRODUCT 2012 2011 % (+ / -) LOG 1,799,974 1,843,643 (2.37) SAWNTIMBER 785,121 692,904 13.31 PLYWOOD 3,995,759 3,786,759 5.52 VENEER 269,972 235,031 14.87 LAM. BOARD/FLOORING 48,363 49,582 (2.46) MOULDING 21,353 14,217 50.19 DOWEL 4,841 3,899 24.1665 FIBREBOARD 293,997 252,007 16.66 BLOCKBOARD 896 1,231 (27.21) PARTICLE BOARD 62,826 55,855 12.48 OTHERS 122,092 116,312 4.37 WOODCHIP 49,456 24,092 105.28 TOTAL 7,454,650 7,075,532 5.36
EXPORT VOLUME (m3) OF TIMBER FROM SARAWAK PRODUCT 2012 2011 % (+ / -) LOG 3,301,707 3,088,934 6.89 SAWNTIMBER 821,612 731,390 12.34 PLYWOOD 2,641,308 2,261,807 16.78 VENEER 226,638 204,544 10.80 LAM. BOARD/FLOORING 20,593 20,913 (1.53) MOULDING 8,921 6,215 43.55 DOWEL 1,112 1,139 (2.36) FIBREBOARD 184,761 190,195 (2.86) BLOCKBOARD 1,056 1,122 (5.87) PARTICLE BOARD 120,556 107,956 11.67 OTHERS 94,890 77,347 23.00 WOODCHIP 264,100 158,338 66.80 TOTAL 7,423,154 6,691,360 10.94
INTERNATIONAL CONFERENCE ON TIMBER 2013 Status of Timber Industry in Sarawak Background of timber industry Timber export performance Main Timber markets Future challenges
SARAWAK : EXPORT VOLUME OF LOG BY COUNTRY China 10% Taiwan 12% Korea Japan 2% 6% ASEAN 7% India 63% India Taiwan China Japan Korea ASEAN Total Vol : 3,301,707 m3
SARAWAK : EXPORT VOLUME OF SAWNTIMBER BY COUNTRY Total Vol : 821,612 m3
SARAWAK : EXPORT VOLUME OF PLYWOOD BY COUNTRY Total Vol :2,641,308 m3
SARAWAK : EXPORT VOLUME OF VENEER BY COUNTRY Total Vol : 226,638 m3
SARAWAK : EXPORT VOLUME OF MOULDING BY COUNTRY Total Vol : 8,921 m3
SARAWAK : EXPORT VOLUME OF DOWEL BY COUNTRY Total Vol : 1,112 m3
SARAWAK : EXPORT VOLUME OF FIBREBOARD BY COUNTRY Total Vol : 184,761 m3
SARAWAK : EXPORT VOLUME OF PARTICLE BOARD BY COUNTRY Total Vol : 120,556 m3
SARAWAK :MAJOR TIMBER MARKET Each product has its own large market ; in term of export value Logs market are India (65%), Taiwan (12%), China (10%) and Japan (6%) ; 93% or RM1.679 billion of the total RM1.8 billion Market for sawntimber are ASEAN (43%), Middle East (27%), Taiwan (8%) and Korea (6%); 84% or RM656,646 of the total RM784,959 Major market for plywood are Japan (57%), Middle East (11%), Korea (11%) and Taiwan (8%) ; 87%) or RM3.47 billion of the total RM3.99 billion 90% of export value for veneer are from market like Taiwan (51%), Korea(24%), Phillipines (24%) and China (18%) Japan accounted about 85% of export revenue from fibreboard Major market for particle board are Indonesia (42%), Vietnam (16%), Korea (12%), India (6.5%) and Philippines (6.5%)
INTERNATIONAL CONFERENCE ON TIMBER 2013 Status of Timber Industry in Sarawak Background of timber industry Timber export performance Main Timber markets Future challenges
Timber Industry Future Challenges Demographic : Small population Small domestic market thus industry will still dependent on export market and global economic growth/crisis Limited availability local workforce; industry rely on foreign workers and/or invest on mechanization Natural Forests : Declining production from natural forests, constraining growth on processing of native species Planted Forest : Emergence of planted forests species as potential source of raw material Global economic growth : Industry dependent highly on export demand especially within the Asia Pacific region (ASEAN, Japan, India, China, Korea, Taiwan, etc) Productivity : Technological developments (including traditional knowledge) to improve processing capability and efficiency of planted species
Timber Industry Future Challenges Value adding : ability to produce higher value added products Energy policies : the use of biomass as fuel is increasingly encouraging Institutional changes : Stakeholders in forest sector had expanded to include public forestry agencies, private sectors, civil-society and international /cross border regulations Certification : Buyers are demanding evidence of compliance Safety and Health : control of formaldehyde emission from wood panel products under CARB, JAS, JIS, BMSI, etc Performance/Quality : compliance to performance quality like strength, natural durability, etc Forest governance : Lacey Act, Green Procurement Policy (GoHo Wood), FLEGT, etc Corporate Social Responsibility : need to contribute/support to local communities
International Conference on Timber 2013 Thank You NICHOLAS ANDREW LISSEM Sarawak Timber Industry Development Corporation Wisma Sumber Alam, Jalan Stadium Petra Jaya, 93050 Kuching Sarawak, Malaysia E-mail : nicholal@pusaka.gov.my