MALA YSIA
EXC HA NG E O F INFO RMA TIO N O N THE PRO G RESS REPO RT O F A SEA N MEMBER C O UNTRIES IN THE WO O D- BA SED SEC TO R
1. O VERVIEW O F WO O D- BA SED INDUSTRY
The Ma la ysia n timb e r ind ustry, is o ne o f the o ld e st ma nufa c turing ind ustrie s in Ma la ysia , a nd ha s g ro wn tre me nd o usly in the p a st d e c a d e s. It e nc o mp a sse s a wid e ra ng e o f a c tivitie s fro m sa wmilling , se c o nd a ry p ro c e ssing to te rtia ry p ro c e ssing . It c o ntinue s to p la y a n imp o rta nt ro le in the so c io -e c o no mic d e ve lo p me nt o f the c o untry, a nd p ro vid e s e mp lo yme nt o p p o rtunitie s.
The e xp o rt p e rfo rma nc e o f the timb e r se c to r ha s ind e e d b e e n sp e c ta c ula r. Exp o rt o f wo o d a nd w o o d -b a se d p ro d uc ts in 2005 wa s USD 5.82 b illio n re g iste ring a n inc re a se o f 8.8 p e rc e nt fro m the p re vio us ye a r. Ma la ysia ’ s e xp o rt o f wo o d e n p ro d uc ts to ASEAN c o untrie s wa s USD 83.2 m illio n in 2005. Plyw o o d a nd furniture p ro d uc ts we re the ‘ g ro wth d rive rs’ o f the ind ustry d e sp ite inc re a sing c o mp e titio n. The se two p ro d uc ts a c c o unte d fo r mo re tha n ha lf o f a ll re c e ip ts fro m Ma la ysia ’ s timb e r ind ustry e xp o rts.
The c o nc e p t o f sta nd a rd isa tio n ha s b e c o me a c ritic a l b usine ss issue with tre me nd o us imp lic a tio ns fo r e nha nc ing c o mp e titive ne ss. In this c o nte xt, the G o ve rnme nt ha s id e ntifie d the d e ve lo p me nt o f sta nd a rd s a s o ne o f the sp e c ific me a sure s tha t ha s to b e g ive n p rio rity to furthe r e nha nc e the d e ve lo p me nt o f the timb e r ind ustry in Ma la ysia .
2. STA NDA RDS, TEC HNIC AL REG ULA TIO NS AND C O NFO RMITY A SSESSMENT
C urre ntly the re a re two o rg a niza tio ns/ a g e nc ie s re sp o nsib le fo r the d e ve lo p me nt o f sta nd a rd s fo r the timb e r se c to r. The Ma la ysia n Timb e r Ind ustry Bo a rd (MTIB) und e rta ke s the d e ve lo p me nt o f sta nd a rd s o n timb e r, timb e r p ro d uc ts a nd timb e r struc ture , w hile the Ma la ysia n Wo o d Pre se rva tive Asso c ia tio n is re sp o nsib le fo r the d e ve lo p me nt o f sta nd a rd s p e rta ining to w o o d p re se rva tive s.
In a n e ffo rt to furthe r e nha nc e the use o f Ma la ysia n Sta nd a rd s, the De p a rtme nt o f Sta nd a rd s Ma la ysia (DSM) ha s o utline d stra te g ie s fo r a wid e r a d o p tio n o f Ma la ysia n Sta nd a rd s, a nd to b ring a b o ut g re a te r a wa re ne ss a nd usa g e o f Ma la ysia n Sta nd a rd s. Fo r the wo o d -b a se d se c to r, c urre ntly, the a d o p tio n o r a p p lic a tio n o f the re q uire me nts o f Ma la ysia n Sta nd a rd s, a s is g e ne ra lly the c a se , is vo lunta ry.
A G ENDA ITEM 5.1
The DSM e nc o ura g e s use o f te c hnic a l re g ula tio ns to imp le me nt na tio na l sta nd a rd . Ho w e ve r, in timb e r ind ustry, this id e a is still a t a n infa nt sta g e .
3. DEVELO PMENT A ND PRO G RESS STA TUS O F STA NDA RDS DEVELO PMENT 3.1 Sta tus o f im p le m e nta tio n fo r e a c h na tio na l sta nd a rd
Ma la ysia n Sta nd a rd s p a rtic ula rly o n timb e r a nd timb e r p ro d uc ts, a re use d in ma ny fo rms e g . in p ro c ure me nt d o c ume nts, in sp e c ifying re q uire me nts fo r tra d e , in a sc e rta ining q ua lity le ve ls o f p ro d uc ts in ma nufa c turing a nd se rvic e p ro visio n a nd a s a ve hic le fo r te c hno lo g y tra nsfe r. The y a c t a s stra te g ic to o ls fo r the e xp o rt o f Ma la ysia n p ro d uc ts a nd se rvic e s a s the y a re a lso a lig ne d to inte rna tio na l sta nd a rd s.
4. O THER RELEVANT INFO RMA TIO N
4.1 TREA TI Wo rksho p o n Tra d e in Wo o d Pro d uc ts
Fo llo wing the d ia lo g ue a nd p re se nta tio n ma d e b y the Euro p e a n C o mmissio n (EC ) re p re se nta tive d uring the 3rd AC C SQ Me e ting o f Pro d uc t Wo rking G ro up o n Wo o d -Ba se d Pro d uc ts in Ba ng ko k, Ma la ysia wa s g ive n the o p p o rtunity to ho st the TREATI Wo rksho p o n Tra d e in Wo o d -Ba se d Pro d uc ts, in c o lla b o ra tio n with the EC . It w a s suc c e ssfully he ld o n 24-25 Ma y 2006 a t the Dyna sty Ho te l, Kua la Lump ur.
The p rima ry p urp o se o f the w o rksho p wa s to p a ve the wa y fo r imp ro ve d tra d e in wo o d p ro d uc ts, e sp e c ia lly tho se e xp o rte rs fro m the ASEAN re g io n who we re inte re ste d to ve nture into the EU. Se rie s o f c o nsulta tio ns ha d b e e n he ld b e tw e e n the EC re p re se nta tive s a nd MTIB, p a rtic ula rly o n the c o nte nts o f the Wo rksho p p ro g ra mme to e nsure tha t the Wo rksho p w o uld fa c ilita te a c o mp re he nsive d isc ussio n o n issue s c o nc e rning tra d e o f timb e r b e tw e e n EU a nd ASEAN. The p ro p o se d c o nte nt o f the p ro g ra mme w a s a lso se nt to the Fo c a l Po int fo r ASEAN Wo o d -Ba se d Pro d uc ts Inte g ra tio n fo r ASEAN’ s vie w.
Fo urte e n p re se nta tio ns w e re ma d e d uring the two -d a y Wo rksho p . The fina l p ro g ra mme o f the Wo rksho p a p p e a rs a s Anne x 1. The Wo rksho p wa s a tte nd e d b y a to ta l o f 72 p a rtic ip a nts fro m 7 ASEAN c o untrie s, inc lud ing Ma la ysia , Sing a p o re , Vie t Na m, La o s, C a mb o d ia , Ind o ne sia a nd the Philip p ine s. The la rg e st d e le g a tio ns c a me fro m Ma la ysia .
5. C O NC LUSIO N
C urre ntly, the re a re mo re tha n 80 Ma la ysia n sta nd a rd s re la te d to timb e r a nd its p ro c e sse s. The list o f sta nd a rd s ha s b e e n c irc ula te d in the 3rd AC C SQ PWG WBP Me e ting he ld in Ba ng ko k. The se sta nd a rd s we re d e sig ne d a nd d e ve lo p e d in suc h a wa y tha t the y a re in a lig nme nt a nd in c o nfo rmity with the re le va nt inte rna tio na l sta nd a rd s.
The le ve l o f a wa re ne ss a nd a d va nc e me nts with re sp e c t to sta nd a rd s d e ve lo p me nt is ve ry lo w in mo st d e ve lo p ing c o untrie s inc lud ing ASEAN c o untrie s, a nd it ma y ta ke se ve ra l ye a rs a nd c o nsid e ra b le inve stme nt to imp ro ve this sc e na rio . Fo r ASEAN c o untrie s wishing to e nte r into so me fo rm o f c o nfo rmity a sse ssme nt me c ha nism with the ir tra d ing p a rtne rs, ne e d to a d d re ss the ir ina d e q ua c y o f infra struc ture a nd huma n c a p ita l fo r the func tio ning a nd ma inte na nc e o f a d e q ua te la b o ra to ry te sting fa c ilitie s.
Ma ny d e ve lo p ing c o untrie s, inc lud ing ASEAN c o untrie s, a re me mb e rs o f ISO . Ho we ve r, d ue to se ve ra l fa c to rs the y a re no t we ll re p re se nte d in the wo rking c o mmitte e s o f the ISO . This is a se rio us issue , whic h ne e d to b e a d d re sse d . Fa iling whic h, the re is a p o ssib ility tha t ASEAN c o untrie s vie ws a re no t re fle c te d in the Inte rna tio na l Sta nd a rd s a nd re q uire me nts o f the se sta nd a rd s ma y turn o ut b e imp e d ing tra d e , ra the r tha n fa c ilita te tra d e .
In this re sp e c t, Ma la ysia wish to p ro p o se tha t the o p p o rtunitie s a va ile d thro ug h the Pro d uc t Wo rking G ro up b e ta ke n a d va nta g e o f d isc uss a nd ta ke c o mmo n p o sitio n o n c urre nt sta nd a rd s b e ing d e ve lo p e d in ISO , in p a rtic ula r tho se sta nd a rd s whic h a re like ly to ha ve imp lic a tio n o n tra d e fo r ASEAN me mb e r c o untrie s. In this re g a rd , so me o f the a c tive ISO Te c hnic a l C o mmitte e s, e g . TC 89 : Wo o d - Ba se d Pa ne l, TC 165 : Tim b e r Struc ture a nd TC 218 : Tim b e r; must b e ve ntila te d in this me e ting to fa c ilita te ASEAN me mb e r c o untrie s to ta ke up c o mmo n ASEAN p o sitio n.
A nne x 1
Welcoming address Mr. Gijs Berends, European Commission
Official Opening Y.B Senator Dato’ Dr. Vijayaratnam
Seevaratnam, Parliamentary Secretary, Ministry
Thursday 25 May, 2006
Day 2 Session I 9.00-11.30
Existing policies and their impact on timber trade Status of EU FLEGT implementation in
ASEAN region
Mr. Vincent van den Berk, EU Delegation Malaysia
Control of timber imports in EU countries Mr. Duncan Brack, RIIA 10.30-10.50 Coffee/Tea Break
Maritime legislation regarding illegal cargo Mr. Gan Seng Chee, Maritime Law Association of Singapore
11.30-12.30 Buffet Lunch at the Hotel Day 2 Session II 12.30-14.30
Opportunities for ASEAN producers in major markets Facilitating ASEAN-EU trade:
capacity-building in conformity assessment
Alain Decharnat, Team Leader, Euro-pean Committee for Standardization EU-ASEAN Technical Assistance Pro-gramme
Public procurement and corporate purchasing policies in major markets
Mr. Jukka Tissari, Savcor Indufor Oy
Responsible purchasing; buyer’s point of view
Ms. Rachel Butler, Environmental Manager, Finnforest UK
14.40-15.00 Coffee/Tea Break Day 2 Session III 15.00-16.00
ASEAN’s regional integration process – A framework to guide the development of timber trade
ASEAN’s roadmap for economic integration in the forest sector in promoting legal trade and combating illegal trade
Mr. Prabianto Wibowo, ASEAN Secre-tariat
Concluding remarks Mr. Gijs Berends, European Commission
