An 07 Report Malaysia

AG ENDA ITEM 5.1

Stre ng the n a nd Enha nc e Ne two rking Amo ng ASEAN Me mb e r C o untrie s O n
Sta nd a rd s, Te c hnic a l Re g ula tio ns And C o nfo rmity Asse ssme nt Pro c e d ure s

MALA YSIA
EXC HANG E O F INFO RMATIO N O N THE PRO G RESS REPO RT O F ASEA N MEMBER C O UNTRIES
IN THE WO O D- BASED SEC TO R

1.

O VERVIEW O F WO O D- BASED 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 wo 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. Plywo 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.

STANDARDS, TEC HNIC AL REG ULATIO NS AND C O NFO RMITY ASSESSMENT

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 , while 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 wo 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.

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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 we 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 AND PRO G RESS STATUS O F STANDARDS DEVELO PMENT
3.1 Sta tus o f im ple m e nta tio n fo r e a c h na tio na l sta nda 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 RMATIO N
4.1 TREATI Wo rksho p o n Tra de in Wo o d Pro duc 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 wa 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 wo 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 twe 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 wo 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 twe 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 wa 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 we re ma d e d uring the
p ro g ra mme o f the Wo rksho p a p p e a rs a s Anne x
b y a to ta l o f 72 p a rtic ip a nts fro m 7 ASEAN
Sing a p o re , Vie t Na m, La o s, C a mb o d ia , Ind o ne sia
d e le g a tio ns c a me fro m Ma la ysia .

two -d a y Wo rksho p .

The fina l

1 . The Wo rksho p wa s a tte nd e d

c o untrie s, inc lud ing Ma la ysia ,
a nd the Philip p ine s. The la rg e st

Bo th EU a nd ASEAN a re sig nific a nt tra d ing b lo c s a nd the y re p re se nte d p o te ntia l
ma rke ts to e a c h o the r fo r a wid e ra ng e o f p ro d uc ts, inc lud ing timb e r. Fo r
Ma la ysia , Euro p e is a sig nific a nt ma rke t fo r he r timb e r a nd timb e r p ro d uc ts. In
2005, e xp o rts o f timb e r a nd timb e r p ro d uc ts to EU to ta le d RM2.77 b illio n o r

USD748.8 millio n, re p re se nting Ma la ysia ’ s third la rg e st ma rke t fo r timb e r a fte r
Ja p a n a nd the Unite d Sta te s. The ma in timb e r p ro d uc ts e xp o rte d to EU a re
sa wntimb e r, wo o d e n furniture , jo ine ry p ro d uc ts a nd p lywo o d . Ma la ysia e njo ys a
lo ng histo ry in timb e r tra d ing with the EU whe re sa wntimb e r is the ma in p ro d uc t
e xp o rte d sinc e a fe w d e c a d e s a g o .

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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.

Fdrive / Co untry Re p o rt 4thAC CSQ (RI)


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Anne x 1

TREA TI Wo rksho p o n tra de in wo o d pro duc ts
24- 25 Ma y 2006
Dyna sty Ho te l, Kua la Lum pur

Wednesday 24 May, 2006
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Presented by

Item
8.30-9.00 Registration
Day 1 Session I 9.00-12.00
Welcoming address

Mr. Gijs Berends, European Commission


Official Opening

Y.B Senator Dato’ Dr. Vijayaratnam
Seevaratnam, Parliamentary Secretary, Ministry
of Plantation Industries & Commodities,
MALAYSIA

Opportunities for regional co-operation
Demand and supply of timber in SouthEast Asia

Mr. Jukka Tissari, Savcor Indufor Oy

Trade flows of timber between EU,
ASEAN and other Asian countries

Mr. Jukka Tissari, Savcor Indufor Oy

10.20-10.40 Coffee/Tea Break
Regional cooperation as a component of
strategies to combat illegal logging


Mr. Duncan Brack, RIIA

Planned and implemented action
Mr. Neria A. Andin, Assistant Director, Forest
regarding illegal logging in ASEAN
Management Bureau, DENR, Phil-ippines
countries – implications for regional cooperation
12.00-13.00 Buffet Lunch at the Hotel
Day 1 Session II 13.00-14.30
Enhancing regional cooperation
Monitoring of timber trade flows

Dr. Lauren Flejzor, International Tropical Timber
Organisation, ITTO

Benefits and pitfalls for responsible
businesses from regional cooperation

To be confirmed


14.30-15.00 Coffee/Tea Break
Day 1 Session III 15.00-16.30
Managing supply and demand
Reduction of overcapacity in industries –
a necessary and realistic option?

Mr. David Brown, Team Leader, DFID
Multistakeholder Project Indonesia

The role of plantation development in
promoting sustainable timber trade

To be confirmed

18.30-20.00 Cocktail Dinner at the Hotel

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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: capacitybuilding 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

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