National Timber Industry Policy (NATIP)

NATIP is also the culmination of an extensive research, work, thoughts and consultation programme which the Ministry of Plantation Industries and Commodities and the Malaysian Timber Industry Board (MTIB) have carried out over a span of three years to identify what needed to be done to ensure the continued viability of the wood-based industry in Malaysia up to the year 2020. All sectors of the timber industry and the relevant support services, including research organisations, institutes of higher learning and the financial sectors, were consulted in the formulation process. The policy directions presented in NATIP are concerned with the long-term development of the timber industry. They are set out as a course of actions designed specifically for the industry to maintain and enhance its competitive edge in the global marketplace. At the end of NATIP implementation period in 2020, it is envisaged that the annual export of timber and timber products will reach RM53 billion, which is more than double the performance today. NATIP contains 7 pillars that are instrumental for generating growth in the industry. They are: Thrust 1: Thrust 2: Thrust 3: Thrust 4: Thrust 5: Thrust 6: Thrust 7: Industry structure Supply of raw materials Innovation and technology Marketing and promotion Human capital development Funding and incentives Bumiputera participation

NATIP will guide stakeholders and industry players on the trend of development which is most feasible for the industry to embark on. Activities developed for NATIP represent a constituent of the Governments broad programme of building a resilient and competitive nation at a high level of sustainable growth. Following the launching ceremony on 17 February 2009, the implementation of those activities under specific action plans will be implemented by the relevant ministries, agencies and organisations. Regular monitoring of the progress made and evaluation of programmes and activities will be undertaken. The Ministry of Plantation Industries and Commodities, Malaysia is the governing Ministry while the Malaysian Timber Industry Board is the central implementing agency Policy Direction The policy direction sets the path for sustainable development of the timber industry in the medium (2015) and the long-term (2020) for acheiving the target of RM53 billion in export earnings. The broad policy directions are: i. shift the focus of the timber industry from upstream activities to higher value-added downstream activities. Export earnings from the downstream wood products are targeted at 60

percent and 40 percent from primary activities; ii. raw materials to be managed in a sustainable manner in compliance with the domestic laws and regulations; iii. the FPP is to be enhanced in order to ensure thet there is a sustainable and sufficient supply of raw materials for the timber industry in the long term; iv. supplementing the requirement of timber-based industries through imports of timber and maximising the use of available timber resources; v. the supply of logs to the domestic market is to be given priority in order to ensure that there is adequate supply of logs for the local manufacturers producing timber products; vi. encourage the timber industry to use alternative materials such as biomass, biocomposite, Kenaf, orchard and landscaping timber to be utilised by the timber industry; vii. the industry should maximise the use of wood residues from the forest as well as from the activities of the timber industry; viii. emphasis will be given for downstream activities located in the various economic development corridors to increase and accelerate the promotion of downstream activities; ix. greater emphasis to be given to HRD, R&D, acquiring state of the art technologies, design and development, branding and ODM; x. promoting global recognition of MTCC certification of tropical timber; xi. formulating government policies to mandate the use of certified quality timber that are from legal and sustainable sources of timber in the government projects; xii. encouraging the consolidation of SME in the timber industry; and xiii. establishing and enhancing supporting services such as the establishment of Material City, manufacturing support services and Home Ideas Centre

WTE 368 TIMBER TRADE National Timber Industry Policy (NATIP)

MOHAMAD HAFIZ HELMY BIN MOHAMAD AFANDI 2009808092 AS1176B ASSIGNMENT 2 LECTURER: SITI NOORBAINI BINTI SAMIN.