“Legal and Sustainable Sourcing

Opportunities in Malaysia”

By Tay Yi Wei

IWPA 61st World of Wood Convention

San Francisco, California, USA

April 5 - 7, 2017

1. Malaysian Timber Industry

2. Legal and Sustainable Forestry in Malaysia

3. Sustainable Malaysian Timber Products

4. Malaysia’s Leading Hardwood-Meranti

5. Concluding Remarks

Outline

Malaysian Timber Industry: Socio-

Economic Importance

US$7.09 bil of Malaysia’s export earnings (2016)

1.8% of Malaysia’s GDP

(2016)

3.7% of total merchandise

exports (2016)

0.9% (130,000) of total employment

(2016)

Exports to > 160 countries

Malaysia –USA Trade

USA - one of Malaysia’s top trading partners with respectable trade balance

US$19.3 bil

US$13.4 bil

961.2

842.6

784.9

786.4

805.4

729.4

802.8

731.9

746.3

786.0

795.4

0 200 400 600 800 1000 1200

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

EXPORT OF TIMBER & TIMBER PRODUCTS

TO USA 2006 – 2016 (USD MIL)

0

100

200

300

400

500

600

700

11

.6

38

.8

0.3

25

.3

0.2

10

.7

25

.1

21

.8

63

9.8

0.5

11

.8

12

.6

49

.3

0.4

24

.5

0.2

11

.4

25

.8

20

.9

63

8.0

0.2

12

.2

Chart Title

2015 2016

EXPORT OF TIMBER & TIMBER PRODUCTS

TO USA 2016 (USD MIL)

Forest Management Start (1900s)

National Forestry Policy

1978

National Forestry Act

(1984)

ITTO year 2000 Objective

National Forestry Revised (1992)

National Forestry Act

1984 Amended

Legal and Sustainable Forestry in Malaysia

Forest Management Agencies in Malaysia

Forestry Department of Peninsular Malaysia

Sabah Forestry Department

Sarawak Forestry Department

11th Malaysian Plan (2016 – 2020)(hectare)

Penisular Malaysia Sarawak Sabah

41,888 155,000 50,000

Total: 246,888

Annual Allowable Cut

16.97%

62.78%

20.25%

Penisular Malaysia

Sarawak

Sabah

Selective Management System (SMS)

Source: Ministry of Natural Resources and Environment

11

Permanent Reserved Forests

14.55 mil. ha.

State land/ Alienated Land

1.86 mil. ha.

National Parks/Wildlife & Bird Sanctuaries

1.86 mil. ha.

Total Forested Area 18.27 mil. ha.

Forest Cover in Malaysia

Endorsed by PEFC in May 2009

Netherlands announced the full acceptance of MTCS under the Dutch Public Procurement policy for

Sustainable Timber in 2017

Malaysia Timber Certification Scheme (MTCS)

Timber Legality Assurance

System (TLAS) is to meet the

due diligence requirements

under the EU Timber Regulation

(EUTR).

Malaysia Timber Legality

Sarawak Timber Legality Verification

System (STLVS) is a legality system

covering the process of licensing;

harvesting, transporting,

manufacturing and trading of logs

and timber products

Malaysia is confident that the availability of MTCS/PEFC certified timber and MYTLAS has meet the requirement for legality due

diligence as required under Lacey Act

> 100 years experience in Sustainable Forest Management Practices

Response to International Regulations

Range of wood

products

Logs

Wooden Furniture

Joinery products

Mouldings

Panel products

Sawntimber

Malaysian Timber Industry - Products Range

Malaysian Timber Industry – Product

Standard on Grading Rules

Malaysian Grading Rules (MGR), 2009:

Select & Better

Standard & Better

Serviceable & Better

Sound & Better

Utility & Better

Merchantable

Introducing Meranti – The Leading

Malaysian Hardwood

Source: OHC

Until today, Red Meranti is still the important timber for Germany and the Netherlands for their production of doors, windows and Frames.

The Shorea tree can be as tall as 195 feet. The record setting tallest tropical tree in Asia is a Shorea tree recorded at 293 feet found in Sabah, Malaysia last year and is as tall as London’s Big Ben clock tower.

There are two types of Meranti: Dark Red Meranti – (Bukit, Nemesu & Seraya) Red Meranti - (Tembaga & Kepong)

Introducing Meranti – The Leading

Malaysian Hardwood

Meranti Bukit Shorea Platyclados Color Deep red brown Common Application Decking/joinery Kiln Dried (KD) Density At 15% Moisture Content 550 – 700 kg/m3

Meranti Nemesu Shorea Pauciflora Color Deep red Common Application Staircase/ Siding / Rain Screen/ Windows & Doors Kiln Dried (KD) Density At 15% Moisture Content 500 – 650 kg/m3

Source: OHC

Meranti Seraya Shorea Curtisii Color Medium red Common Application Windows/ Doors Kiln Dried (KD) Density At 15% Moisture Content 450 – 550 kg/m3

Source: OHC

Meranti Tembaga Shorea Leprosula Color Smooth pink Common Application Windows and Doors Kiln Dried (KD) Density At 15% Moisture Content 420 – 500 kg/m3

Source: Henry Gueldenfinnig

Meranti Kepong Shorea Ovalis Color Soft red Common Application Interior Furnishing Kiln Dried (KD) Density At 15% Moisture Content 400 – 460 kg/m3

Applications

Certified legal and/or sustainable

No additional chemical needed

Attractive appearance and easy to work with

Under Malaysian

Grading Rules (MGR)

Why Malaysian Meranti?

Concluding Remarks

Source: OHC

Thank You