24 TH

MTIB Corporate Information

Malaysia’s Timber Industry

National Timber Industry Policy

Rules and regulations governing timber

industry

Practices adopted in formulating Act (legal

provisions), policy, rules/regulation and

procedures

Other Government Initiatives

Conclusion

2

SCOPE OF PRESENTATION

3

MTIB was established in 1973

under Act 105.

A Statutory body previously

under the Ministry of Primary

Industries and currently under

the Ministry of Plantation

Industries and Commodities. Akta 105

4

The latest revision of Act 105

(Amendment 2010) was

approved in Parliament in 2010

and gazetted on 15 Mac 2011.

To be the prime agency instrumental for the

development of a competitive timber industry

5

To enhance the sustainable growth of the Malaysian timber industry

through the provision of a conducive environment and continuous extension of quality services

6

7

MTIB Board Member 2011-2013

Chairman : YBhg. Datuk Madius Tangau

Members : 6 from Ministry/Department/Agency

(MPIC, MoF, MITI, FRIM, JPSM, MTIB)

5 from States Representatives

(Johor, Perak, Terengganu, Sabah, Sarawak)

6 from Timber Associations

(MWIA, MPMA, MWMJC, PEKA, TEAM, MFC)

2 from Individual Capacity (Appointed by Minister)

(EPU, JKR)

8

Industry Development

Market Development

Skills / Expertise Development

SME Development

Strategic Planning

Regulatory & Enforcement

Research and Development (Bio- composite – FIDEC)

Forest Plantation

MTIB VISION

MTIB MISSION

To further enhance

industrialisation and

up-grading of the timber

industry with emphasis

on value-added

processing

To promote

and improve the

markets and

marketing of

timber

products To facilitate

further

development

of SMEs.

To develop and

promote

standards for

the manufacture

of quality timber

products.

To foster

orderliness in

the timber

trade

9

10

Employment

About 276,000

people

Contribution of

timber to total

Export

3.2 % of

RM639 billion

Market Size

Export : RM 20.04

billion

Domestic : RM 24.0

billion

Total : 44.52 billion

Investments

Wood and wood

products: RM 304.2

million

Furniture & fixtures:

RM 428.1 million

Total : 732.3

million

11

Furniture

plants

1,958 Sawntimber

1,019

Mouldings

341

Kiln drying/

preservation plants

236/99

Plywood/veneer

mills/blockboard

183

MDF mills

15

3,991

Mills

Others

140

Source : FDPM, FD Sabah, FD Sarawak 12

MALAYSIA : EXPORT OF TIMBER & TIMBER

PRODUCTS 2004 –2011

Source : MTIB, DOSM

0

5

10

15

20

25

2004 2005 2006 2007 2008 2009 2010 2011

RM billion 19.78 21.45 23.4 22.76 22.79 19.49 20.52 20.03

13

MALAYSIA : EXPORTS OF TIMBER & TIMBER PRODUCTS

BY REGION, 2011

Source : MTIB, DOSM

ASIA64.90%

AMERICAS 14.26%

EUROPE 12.44%

OCEANIA / PACIFIC

4.64%

AFRICA 3.73%

OTHER COUNTRIES

0.05%

TOTAL : RM 20.03 billion

JAPAN 22.98%

INDIA 7.52%

TAIWAN 5.20%

SINGAPORE 4.13%

CHINA 3.71%

KOREA, REPUBLIC

OF 3.64%

THAILAND 3.34%

UAE 2.62%

UNITED KINGDOM 3.60%

NETHERLANDS 2.32%

GERMANY 1.25%

BELGIUM 1.00%

FRANCE 0.89%

ITALY 0.44%

DENMARK 0.30%

USA 11.14%

CANADA 1.44%

MEXICO 0.55%

CHILE 0.36%

PUERTO RICO 0.11%

14

15

NATIONAL TIMBER INDUSTRY POLICY (NATIP)

The Policy was launched by the Deputy PM of Malaysia in

2009

Provides policy direction for the timber industry for a

period from 2009 to 2020

Ensure synergistic development of the upstream and

downstream activities in the timber industry;

To make timber sector remains sustainable and

competitve in a challenging global environment

Enhance the industry’s competitiveness to meet the

challenges of globalisation and liberalisation

MTIB take the lead role in NATIP implementation

16

NATIP Thrusts

Thrust 2:

Supply of raw

materials

Thrust 3: Innovation &

technology

Thrust 1: Industry

structure

Thrust 4: Marketing &

promotion

Thrust 5: Human capital

development

Thrust:6

Funding &

incentives

Thrust 7: Bumiputera

participation

17

18

NATIP TARGETS BY 2020

Export Target 2020: RM53 Billion

60% : 40%

(value added) (commodity)

to shift the focus of timber industry from

upstream actvty to higher value added

downstream actvty . Export earning from

down stream products are targeted at 60%

and the remaining 40% from primary actvty

6.4% annual export growth to reach RM53

billion

19

20

SOURCE OF POWER AND AUTHORITY

• Malaysian Timber Industry Board (Act 105)

– Section 14: Registration of company and

individual involve in timber export/import and

domestic activity

– Section 20 : Timber Export Cess Order (2000);

[prescribe rate imposed on export of timber,

timber species and timber products]

– Section 17:Power to suspend, cancel or refuse

to renew registration

21

……continue

Section 34 of MTIB Act 105 provides power to Minister

to make rules and regulations after consulting the

Board

• 1. Timber Industry (Registration) Amendment Rules

1991

• 2. MTIB (Procedure for Suspension, Cancellation and

Refusal to Renew Registration Rules) 1991

• 3. MTIB (Registration) (Appeal) Rules 1991

• 4. MTIB (Compounding of Offences) Regulations 2011

Rules and regulations were made in consultation with the

industry and tabled to the Board before submitting to

Ministry for approval and gazzete

22

…….continue

• Under Customs Act (Act 235) 1969. the DG of

Customs has delegated power to MTIB to

issue import and export license to timber and

timber products:

– Export license: Customs (Prohibitions of

Exports) Order 1988, Second Schedule, item

38

– Import license : Customs (Prohibitions of

Import) Order 1988. Second Schedule, item 6

.…continue

• MTIB assume role as the Management Authority (MA) for

CITES (Convention of International Trade of Endangered

Species) since 2001

• Malaysia has enforced its national law to implement CITES

decision known as International Trade in Endangered

Species Act 2008 (Act 686) and MTIB has been appointed

as MA and Enforcement Authority

• MTIB roles amongst other: to issue export, import and re-

export permit and registration of artificially propagated

plant of any scheduled species for commercial trade –

International Trade in Endangered Species (Permit,

Certificate, Registration and Fees) Regulation 2009

• Currently 16 timber species are listed as scheduled

species

23

REGULATORY ENTITIES IN TIMBER

EXPORT OPERATIONS

Department of

Statistics Industry Specific

Information

Seekers

Custom

Department

Banks

Ministry of Plantation

Industries and Commodities

Forestry

Department Industry

Specific

information

MTIB

Exporters Suppliers Processors Jetty

Operators

Timber

Graders

Importers

Tra

de

Facilit

ati

on

Re

gu

lato

ry

Req

uire

men

t

Po

lic

y

Flo

w

Trade

Payments

Facilitation

Internal Relationships

Tra

de F

acil

itati

on

T

rad

e P

aym

en

ts F

ac

ilitatio

n

Regulated Entities

24

25

26

PROCESS IN FORMULATING NATIP AND MONITORING

Extensive consultation process involving relevant

ministries, government department and industry during

NATIP formulation

Round table discussions and dialogue were held with

the industry and government agencies twice a year to

gather issues that need special attention

Lab ie consultation process undertaken for NKRA is

carried out to monitor NATIP achievement

NATIP technical commt set up according to thrust

strategy and meeting decisions table at Steering comtt

chaired by Sec General of Ministry

27

TO ENHANCE PROCESSING OF

VALUE ADDED TIMBER

PRODUCTS

1. Raw material • 6 proposal

4. Marketing & logistic • 7 proposal

2. Bumiputra • 6 proposal

3. Labour • 4 proposal

2nd LAB (KK), 28-30 March 2011

Lab NATIP

Sabah

Lab NATIP

Kuala

Lumpur

3. Marketing & Promotion • 2 proposal

1. Raw material • 4 proposal

2. Labour • 3 proposal

1st LAB (KL), 24-25 Feb 2011

28

…..continue

NATIP lab for Peninsular Malaysia was held on 24-25

February 2011 in Kuala Lumpur involving 27

Ministries, agencies and associations to deliberate

issues on raw material, labour, and marketing and

promotion

9 initiatives proposed

for Sabah, the lab was held on 28-30 March 2011 in

Kota Kinabalu, Sabah involving 35 Ministries,

agencies and associations to deliberate issues on

labour, raw material, involvement of natives and

marketing and logistics

22 initiatives proposed

FORMULATION OF MTIB REVISED ACT

• Draft of revised Act took place from 2006 to 2008

• Two stake holder consultation processes were

convened ie on 25 October 2007 and 7 January

2008

• relevant ministries, government agencies and

industry comprising of the 6 timber associations ie

exporters, plywood manufacturers, wood industry,

mouldings and joinery manufacturers, furniture

manufacturers and native people took part

• The draft was presented to MTIB Board on 7 April

2008

29

30

….continue

• The working taskforce was set up comprising of

timber industry and MTIB to resolve outstanding

issues. The draft was revised and accepted by

the Board

• The Bill was approved by the Attorney General

Office on 17 May 2010

• The Bill was tabled at Cabinet Meeting for

approval on 2 July 2010.

• Bill was approved at Parliament lower House on

13 October 2010 and subsequently by Upper

House 13 Disember 2010

• The MTIB Revised Act 105 was gazzeted on 15

Mac 2011.

31

CONSULTATION PROCESS

Proposed policy or rules shall be tabled at MTIB

Board meeting

engagement process with industry or target

groups is carried out to gather input, views and

comments to formulate policy/rules and regulation

Comments received will be deliberated at

taskforce and points/issue raised will be clarified

Feedback be reported at Board meeting and

decisions will be made based on majority

32

….continue

the most extensive consultation process carried out is on

the proposed Forest Law Enforcement Governance and

Trade Voluntary Partnership Agreement (VPA) between

Malaysia and EU Government.

the negotiations have commenced since 2006

The proposed agreement intend to require timber

products exported from legal sourced.

On average at least 2 major consultations annually were

held involving all major stakeholder and NGO’s and

usually according to region

Annual Dialogue

33

34

NOTIFICATION TO THE INDUSTRY

• Rules, regulations and procedures intended to

industry are published and circulated in the form

of Timber Export Bulletin, Board circulars, Timber

Grading Instruction, MGR Supplement and

Guidelines to the industry

• New rules, announcement and procedures will be

posted at MTIB website

• Notification also through system, e-mail and sms

• Systems objective is to facilitate the process as

well as enhance delivery system to the industry,

public, stakeholders and internal users

MTIB PUBLICATIONS AND REFERENCES

35

36

MTIB WEBSITE

• MTIB makes the information above available through its

web site which can be divided to 3 target groups MTIB

staffs (internal), public and industry

• information intended to industry and public such as; MCS,

Timber Information Exchange Services, Malaysian

wood.net, e-Response, Rubberwood-E, List of Grader,

Timber Export Bulletin, staff directory

• MTIB’s client charter and its performance are also featured

• Portal designed to be comprehensive, user friendly, using

single sign-on application concept, centralized data-based,

integrated and part of n office automation.

MTIB Official Web site

37

38

MTIB CORE SYSTEM (MCS)

• Use of ICT has been identified by Malaysian

government as key enabler in the

implementation of all programs and initiative to

further enhance government delivery services

• MTIB has introduced e-services in 2005, that

comprise all its electronic services

• Subsequently MTIB Core System (MCS) has

been implemented in 2003 comprise of module

for export license application, registration of

export-based activities, e-grading, physical

inspection for export consignment, e-account,

export data and statistics.

MCS MODULES

39

40

….continue

MTIB entered the Prime Minister Award

Competition for ICT Initiatives in 2009

(participated by all Ministries and Statutory

Bodies) submitting its electronic invention

for its core services (MTIB Core systems)

and won 4th place - Award of Director

General of Malaysian Modernisation and

Planning Unit (MAMPU).

41

QUALITY ASSURANCE CERTIFICATION

• MTIB has been awarded with MS ISO 9001:2000

on 9 July 2004 by SIRIM QAS under Malaysian

Standards Department for 3 activities:

- registration related to the export of timber

products

- issuance of export license

- Physical inspection for export consignment timber

products

• Recently one new scope under MS ISO

9001:2008 has been awarded ie. Issuance of

import permit

• Customer’s feedback (internal and external) study

is a requirement for continuous improvement

42

43

STATEMENT FROM CHAIRMAN OF PEMANDU

“We must transform to achieve VISION 2020 and fulfill the

nation’s expectations of a government that champions 1

Malaysia, puts its people first and delivers big result fast.

Transformation are seldom easy, they involve conquering our

own fear of the unknown while also winning over those who

defend the status quo and attempt to obstruct our own effort In

this journey , we will be transparent with our plans, transparent

with our targets and transparent in reporting our performance

to the nation”.

PEMANDU (PERFORMANCE MANAGEMENT AND DELIVERY UNIT ) IS

A UNIT SET UP UNDER PRIME MINISTER DEPARTMENT TO

OVERSEAS THE IMPLEMENTATION OF GOVERNMENT

TRANSFORMATION PROGRAM.

44

GOVERNMENT TRANSFORMATION PROGRAM

• GTP has been formulated by the government to expedite

vision 2020

• based on principles 1Malaysia, People first, Performance

now

• Phased over three periods ie. Horizon 1(2010-2012),

Horizon 2 (2012-2015) and Horizon 3 (2015-2020)

• “the days of government knows best are over. To ensure

right feedback are obtained multiple input sources, nations

opinions, perception surveys, media analysis (alternative

and mainstream), dialogues with academicians, private and

public sector leaders are being conducted” – Malaysian PM

• Clean, transparent and accountable with corruption,

malpractices and abuse power well under control and

reduced to a minimum

45

POLICIES FOR ELECTRONIC MEDIA

Use of electronic medium by all government

agencies is regulated by Malaysian

Modernisation and Planning Unit (MAMPU)

All government agencies are required to

publish and publicise their activities such as

news, announcement, information

regulations/rules and procedures, statistics

etc through agencies web site and portal

46

MAMPU CRITERIA

• News, activities, event must be featured

within 1 month from the date of event

• Contain info on major activities, services,

download feature, government link,

person to contact, staffs directory.

• security features to protect hackers

• charter client of agencies core services

• Rules and procedures be described also

forms to be used and charges imposed if

any

47

ISSUANCE OF BUSINESS LICENSING

Government set up project known as BLESS

(on-line business licenses application system)

Function as one stop center for a company to

apply license on-line

Information that can be accessed: business

license in Malaysia, procedure to apply, to

check status of license application especially

when a particular license requires action from

various agencies or authorities

Will help company or individual to obtain their

license or approval timely and orderly

48

Decision made at the Head of Statutory

Bodies Meeting in April 2012

Engagement and consultation with clients/

customers or industry shall be convened

before implementation or enforcement of any

policies, rules or regulation

Regulatory agencies must be transparent in

carrying out their roles and function to

industry

Proposal for new laws, rules and policy

should be well informed to the industry and be

posted at agency’s web site

49

Conclusions

MTIB has taken approach on “engagement”

process with the industry and other stakeholder

in formulation of policy, rules and procedures

Adopting “accountability, transparency and

integrity” in carrying out its functions

MTIB subscribes to continuous improvement in

its delivery services to its clients

MTIB involve in trade facilitation to support

business sector as an engine growth to

country’s economy

Malaysia government is moving towards

transformation process and formation of good

governance.

1 MALAYSIA, PEOPLE FIRST,

PERFORMANCE NOW