Awang Tengah gestures while speaking at the press conference. – Photo by Chimon Upon
KUCHING (Nov 23): Sarawak’s total export earnings of timber and timber products between January and September this year drops by 19 per cent to RM2.81 billion compared to RM3.47 billion over the same period last year, said Datuk Amar Awang Tengah Ali Hasan today.
The Deputy Chief Minister and Second Minister of Urban Development and Natural Resources said the total export earnings for this year was forecast to drop to about RM3.75 billion compared to RM4.5 billion last year.
“The major markets are Japan which accounted for 49 per cent or RM1.37 billion of the total export followed by the Middle East at 10 per cent or RM290 million, India (eight per cent or RM226 million), Taiwan (eight per cent or RM217 million) and South Korea (six per cent or RM155 million).
“Malaysia has lost its market position to Indonesia in terms of Japan’s plywood import this year,” he told a press conference on ‘Status and Performance of Sarawak Timber Industry During Covid-19’ at a hotel here.
To recapture the Japanese market, Awang Tengah said industry players must enhance their efficiency in terms of production and cost of production.
He said industry players must capitalise on the state’s natural forests and planted forests as well as adopt high technology to enhance their production and reduce the cost of production to stay competitive in the global market.
“Our plywood quality is more superior than the plywood produced from other countries,” he added.
Awang Tengah said industry players needed to re-strategise their action plan to focus on higher productivity and go for less wastage, re-tooling, digital technology and utilisation of planted species.
He said the Sarawak government encouraged utilisation of plywood for manufacturing of furniture, flooring and doors through extension of existing plywood operation and establishment of mills.
“There is R&D (research and development) on enhancement of utilisation of planted timber species for production of high value-added products.”
He added that other initiatives included the establishment of bamboo plantation and development of bamboo-based industry, establishment of Furniture Parks in Kuching and Tanjung Manis, establishment of furniture testing lab and establishment of Sarawak Design Centre (Saradec) to promote design, innovation and creativity.