RESOURCES AND SUPPLY OF

SUSTAINABLE WOOD IN ASIA

ITTO International Forum

Shanghai, China

22 October 2019

George Tan

1MALAYSIAN TIMBER COUNCIL

Image source: The Star Online

World: Total Trade of Timber and Timber ProductsLogs, Sawntimber, Panel Products, Mouldings, BCJ, Furniture

2MALAYSIAN TIMBER COUNCIL

Export45%

Import55%

275,0 287,3232,5

276,6296,0

285,8

0,0

100,0

200,0

300,0

400,0

500,0

600,0

700,0

2016 2017 2018

USD

billion

Export Import Source: UN Comtrade

Image Source: Demak.com.au

Asian Map

3

Malaysian Map

Forest Types in Malaysia:• Permanent Reserve Forest (PRF) / Permanent Forest Estate (PFE)• State Land Forest• Protected Forest / Totally Protected Forest (TPA)• Plantation Forest

4

FORESTRY IN MALAYSIA

• Sustainable Forest Management (SFM)

− Primary Forest (limited logging for sustainability)

− Secondary Forest (controlled logging)

− Pre & Post Felling Inventory

• Government financial assistance for forest plantation

− 9 fast-growing species

5MALAYSIAN TIMBER COUNCIL

Image Source: Phinemo

FORESTRY AND TIMBER INDUSTRY

• Responsible agency and councils:

− Regulatory & Enforcement:

− Federal and State Forestry Departments

− Malaysian Timber Industry Board (MTIB)

− Forest Research Institute Malaysia (FRIM)

− Malaysian Timber Certification Council (MTCC)

− Malaysian Timber Council (MTC)

6MALAYSIAN TIMBER COUNCIL

Image Source: Phinemo

MALAYSIAN TIMBERS

•2,500+ commercial tree species identified by leaves, bark and pores

•Heavy hardwood, medium hardwood and light hardwood

•5 grades in Malaysian Grading Rules (MGR)

• Export to 165+ countries−Sawntimber, furniture, mouldings and panel products

MALAYSIAN TIMBER COUNCIL 7

Image Source: Mongabay

MALAYSIA: TOTAL EXPORT OF TIMBER PRODUCT TO 165+ COUNTRIES

8MALAYSIAN TIMBER COUNCIL

Japan

United States

India

Korea, South

Australia

others

MALAYSIA TOTAL EXPORT IN 2018USD5.5 BILLION

Japan,978,9

United States,930,0

India; 338,8

Korea, South,306,5

Australia; 273,3

China; 272,7

Others,2 403,1

0,0

1 000,0

2 000,0

3 000,0

4 000,0

5 000,0

6 000,0

2016 2017 2018

USD

million

Image Source: PLH TimberSource: Global Trade Atlas

MALAYSIA: TOTAL IMPORT OF TIMBER PRODUCT

9MALAYSIAN TIMBER COUNCIL

China,365,1

Indonesia; 184,5

Vietnam; 145,2

Thailand; 90,5

Australia; 71,1

Others,274,8

0,0

200,0

400,0

600,0

800,0

1 000,0

1 200,0

2016 2017 2018

US

D m

illio

n

Importation – good infrastructure and facilities • Veneers (from China,

Canada, US) for value-add for doors, furniture

• Sawntimber (Sapele) for lam-scant to EU market

• Strict restriction in place from Department of Agriculture (DOA) Malaysia

Image Source: Phuong Hy Co. Ltd.

Source: Global Trade Atlas

SUPPLY OF SUSTAINABLE AND LEGAL WOOD• Certification (sustainable and legal)

‒ Malaysian Timber Certification Scheme (MTCS)

‒ Programme for the Endorsement of Forest Certification (PEFC)

‒ Peninsular Malaysia Timber Legality Assurance System (MYTLAS)

‒ Statement of Legality (to non-EU destinations) – by MTIB

‒ Sarawak Timber Legality Verification System (STLVS)

‒ Sabah Timber Legality Assurance System (Sabah TLAS)

10MALAYSIAN TIMBER COUNCIL

Image Source: Eco-Business

SUPPLY OF SUSTAINABLE AND LEGAL WOOD (cont’d)

• Cost for maintaining sustainability certification:

− Chain of Custody (CoC), Removal Pass and Audit Fees

• Our legality and sustainability certification systems are accepted in:

− European Union Timber Regulation (EUTR)

− US Lacey Act

− Australian Illegal Logging Prohibition Act (ILPA)

− etc.

• More countries are sourcing for certified timber from Malaysia

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Image Source: Eco-Business

CONCLUSION

“There is no shortage in the supply of timber!”

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Image Source: ArcDaily

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THANK YOU

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Image Source: Outdeco