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Prime Ministerls Golden Hand Award 2013 Timber Industry Briefing and Consultation 2014

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Prime Ministerls Golden Hand Award 2013 Timber Industry Briefing and Consultation 2014 ISSN 0126-771X VOL 1 : JANUARY 2014 MTIB TIMBER INDUSTRY BRIEFING AND CONSULTATION 2014 PRIME MINISTER’S GOLDEN HAND AWARD 2013 Editorial Board Chief Editor Publisher Dr. Jalaluddin Harun LEMBAGA PERINDUSTRIAN KAYU MALAYSIA Director-General (MALAYSIAN TIMBER INDUSTRY BOARD) Level 13 - 17, Menara PGRM, Editorial Members 8, Jalan Pudu Ulu, Cheras, P.O. Box 10887, Cover: Encik Ng Wei Siang’s love Puan Hjh. Norchahaya Hashim 50728 Kuala Lumpur, Malaysia Tel : 603-9282 2235 for wood compelled him Encik S. Rajan to submit his entry for the Fax : 603-9200 3769 / 9283 9792 Puan Hjh. Noor Laila Mohamed Halip MTIB photography E-mail : [email protected] Puan Fatahiah Mustafa competition held in mid 2013. Website : www.mtib.gov.my Entitled “Light of Timber”, Encik Mohd Kheiruddin Mohd Rani his shot won the third prize. Puan Hjh. Zaibi Yakin Printer Tuan Hj. Mahpar Atan Abadi Ilmu Sdn. Bhd. Tuan Hj. Kamaruzaman Othman No. 6A & 6B, Jalan SS4D/14, Puan Hjh. Ruzainah Abdul Jalil 47301 Petaling Jaya, Encik Mohd Nor Zamri Mohd Amin Selangor Darul Ehsan, Malaysia Encik Zulkepli Abdul Rani Tel : 03-7804 4588 / 7888 6158 Read eMASKAYU at Cik Hjh. Noor Zakiah Othman Fax : 03-7804 4152 Puan Afrinawati Abu Bakar E-mail : [email protected] www.mtib.gov.my Puan Hafsah Hasbi Website : www.abadiilmu.com 074 MS ISO 9001 : 2008 REG. NO. AR3307 Contents H ighlights 3 Timber Industry Briefing and Consultation 2014 12 Prime Minister’s Golden Hand Award 2013 3 12 14 Retreat on the Use of Timber in Construction 15 Enhancing Testing Skills for Jas and JIS Standard 16 FRIM HTD Forum 15 16 19 Achieving Competitive Advantage through a Quality Management System MS ISO 9001: 2008 Timber Industry in Myanmar 23 19 27 26 Coming Events – June and July 2014 Regular F eatures 27 Chengal – Suitable for Carving 4 Timber World in Brief 10 Domestic Trade News 6 Shipping News 28 MTIB Moments 8 Timber Round-Up Vol 1 : 2014 3 TIMBER NEWS TIMBER INDUSTRY BRIEFING AND CONSULTATION 2014 MPIC Encik M. Nagarajan, Deputy Secretary-General (Plantation and Commodities) of MPIC (front row, second from left), Dr. Jalaluddin Harun, MTIB Director-General (on his left) and other invited guests at the briefing. eing committed to developing the timber industry, it is thus • Sabah Garden Furniture Hub BMTIB’s responsibility to support and facilitate its growth in order to achieve the target outlined by the National Timber • Malaysian Gaharu Hub Industry Policy (NATIP) which is to generate RM53 billion of export revenues by 2020, of which 60% is export from value These five EPPs were agreed upon by the industry because of added products. their impact to the timber industry as a whole. A concerted and structured plan is necessary to guide industry In his opening remarks, Datuk M. Nagarajan, Deputy Secretary- players as to where the industry is heading and actions that General (Plantation and Commodities) of MPIC underlined that have to be taken to ensure the sustainability of the industry. the focus of the consultation on FLEGT VPA which is related to the industry in view of the inclusion of Malaysia under the Forest Law Enforcement Governance and Trade - Voluntary As such, the implementation of NATIP is vital as it addresses Partnership Agreement (VPA). This agreement aims to ensure concerns regarding the factors and issues that will affect that timber products exported to the EU are from a legitimate the achievements of NATIP’s target. For the successful source. implementation of the policy, Ministry of Plantation Industries and Commodities (MPIC) and MTIB organised a Briefing and Consultation on Timber Industry on 9 January in Bangi, Products listed under the FLEGT VPA will need to comply with Selangor. the Timber Legality Assurance System (TLAS) to obtain a FLEGT Licence; the TLAS is formulated based on the existing regulations governing timber harvesting, processing and The issues discussed during the consultation session were trade. FLEGT Licensed timber products under the VPA will be FLEGT-VPA, Forest Development Cess Collection, and Entry officially recognised and accepted by the EU as legal products. Point Project and NATIP. Dato’ Dr. Freezailah Che Yeom, Advisor FLEGT VPA, in During the event, five Entry Point Projects were presented his presentation, highlighted the essentials of TLAS which to get the industry’s opinion on the implementation of those is formulated based on existing licensing procedures for projects. The projects were as follows: Permanent Forest, State Land and Alienated Land being implemented by State Forestry Departments and developed • Enhancing Design, Branding and Exports of Malaysian on a regional basis due to differences in legislation and related Furniture procedures in Peninsular Malaysia, Sabah and Sarawak. As decided by the Cabinet, the implementation of TLAS will be • Enhancing of Mechanisation and Automation in Timber in phases with Peninsular and Sabah in the first phase. The Industry importance of FLEGT VPA mainly focuses on the timber trade with the EU, increasing demand for legal timber by other major • Development of Products from Oil Palm Trunk markets such as the US and Australia. FLEGT VPA is to ensure Cont. on page 13 4 Vol 1 : 2014 furniture on average at 12-13 years’ intervals compared with seven-year intervals a couple of years ago. Several players in the sector believe that it is only a matter of time before the number of suppliers in the sector starts decreasing. In terms of customer volumes, Ikea is today the leading player in TIMBER WORLD IN BRIEF Denmark followed by Swedish Nobia and Danish Kvik. Nobia’s top executive Morten Falkenberg says the Danish kitchen furniture market has shrunk by 30% since 2007. Nobia, according to him, regards Danish companies as too small and AUSTRALIA “somewhat uninteresting” and is not interested in acquisitions The Tasmanian Government Plans to in the Danish market today. TIMBER WORLD IN BRIEF Extend Validity of Pulp Mill Licenses Børsen, 11 January The Tasmania state government of Australia is planning to extend validity of a pulp mill licenses in Tamar Valley from four E UROPE to 10 years. The extension of permit validity period means license owners can delay starting construction until 2017. Sawn Hardwood Demand The government will have to get the Pulp Mill Assessment to Increase Slightly Amendment Bill passed before the license period can be extended. The UNECE Timber Committee forecasts the consumption of ABC News (Australia), 21 January sawn hardwood in the 31 European UNECE countries in 2014 at 11.27 million m3. CANADA For 2013, the Committee estimates a consumption of 11.05 million m3, a slight increase from 2012. The largest GDP Forecast to Grow 1.8%, market, Turkey, is estimated to have shrunk to 2.33 million m3, Lumber Set to be Top Investment Pick while consumption in France is expected to have increased from 1 million m3 to 1.14 million m3 and in Romania from In 2013, Canada’s gross domestic product (GDP) is projected 1.04 million m3 to 1.09 million m3. These three countries are to grow by 1.8%, compared to an estimated 2% growth in the largest sawn hardwood consumers among the 31 2012, according to most predictions. A 2.4% GDP growth is countries. forecast by RBC Dominion Securities. Economists at Bank Euwid Holz, 10 January of Nova Scotia (Scotiabank) expect that the top commodities for investment in 2013 are lumber and wood-board products. It is expected that Canada’s economic growth will be much affected with the decision over the US “fiscal cliff”, which calls E STONIA for tax hikes and spending reductions in view of the country’s Wood Houses Manufacturers budget deficit. Target Growth in 2013 Globe & Mail, 1 January Estonia’s timber-frame and log houses manufacturers export 85% of the total output. The nearly non-existent competition CH INA among the manufacturers on the domestic market contributes Guangdong’s Furniture Output, Sales to joining forces with secondary industries such as the makers of windows and doors as well as furniture, to promote Value Expected to Increase Over 10% export. Estonia is the fourth largest exporting country of log houses in Europe, with a third of the export targeting Norway. China’s Guangdong Furniture Association predicted that the Measured by units or tonnes, Estonia could be the second furniture production and sales value in Guangdong province after Finland. will grow over 10% to CNY330 billion (EUR39.68 billion, USD53.06 billion) in 2013. During 2012, Guangdong’s furniture The domestic log houses manufacturers expect a 10% y/y industry recorded a 7.1% growth in output value to CNY300 growth whereas commercial banks are predicting a 3% billion and a 10.4% rise in domestic sales to CNY201 billion. growth for the Estonian economy in 2013. Nordic Houses The furniture exports value of the province rose 2% to targets even a 20% y/y growth in 2013. The optimism of USD15.23 billion (EUR11.39 billion). wood houses manufacturers is confirmed by the vigorous Wood168, 18 January expansion of Matek, Estnor, and Timbeco in 2012. Nordic Houses, strong in the export of summer log houses, will expand into the segment of urban log houses. The D ENMARK company has established the subsidiary Nordic Urban Houses. Nordic Houses’ production facility at Kuusalu Competition in the Kitchen Furniture makes module and timber-frame log houses under the Market Tightens Bueni trademark. Matek invested in 2012 EUR3.5 million the 7,70 0 m 2 new factory in Pärnu which allows the company Competition in the Danish kitchen furniture market has to double production volumes. Estnor, that manufactures tightened. There are too many players in the sector struggling hand-made log houses and modular houses, has invested for a falling number of customers who renew their kitchen nearly EUR900,000 in a new production facility, and Timbeco Cont.
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