1. SPEECH BY
YB DATO’ SRI DOUGLAS UGGAH EMBAS
MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES
MALAYSIA
LAUNCHING OF EXPORT FURNITURE EXHIBITION (EFE) 2014
MALAYSIA AGRO EXPOSITION PARK SERDANG (MAEPS)
MONDAY, 5 AUGUST 2013
YBrs. En. Richard Ko
Chairman, EFE Expo Sdn Bhd
President
Malaysia Furniture Entrepreneur Association
YBhg. Dato Edmond Chew
President
Kuala Lumpur and Selangor Furniture Entrepreneur Association
YBrs. En. Sunny Ter
President
Malaysia Furniture Industry Council
YBhg. Dato Mohd Arif Othman
Chief Executive Officer
MAEPS Management Sdn Bhd
Dato’-Dato’, Datin-Datin, Distinguished Guests
Ladies and Gentlemen,
A very good afternoon and Salam 1Malaysia.
I would like to take this opportunity to express my appreciation to the
organisers, EFE Expo Sdn. Bhd. and the Malaysia Furniture
Entrepreneur Association (MFEA) for the invitation to officiate the official
launching of Export Furniture Exhibition 2014 or popularly known as EFE
2014. It is indeed an honour to officiate an important event for the
furniture fraternity.
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2. 2.
I understand that EFE 2014 is the 10th in its series organised by
MFEA to further promote the development of furniture industry. In this
context, I also wish to congratulate MFEA on its success in organising
EFE 2013, which was held in March this year at this same venue.
Ladies and gentlemen,
3.
The wood-based sector is an important component of timber
industry. Over the years, the wood-based sector has undergone major
changes and it is now a major exporter of processed and finished wood
products, in particular furniture products. In 2012, Malaysia’s furniture
export was valued at RM8 billion, an increase of 4.3% compared to
RM7.67 billion in 2011. This is very encouraging despite the challenging
external environment, in particular with the economic slowdown in major
importing markets.
4.
The furniture sector has contributed towards making Malaysia as
one of the world’s largest producer and exporter of furniture. Malaysia is
currently ranked as the 8th largest global furniture exporter. This has
been achieved through concerted and relentless efforts on the part of
industry players and facilitative measures by the Government towards
ensuring resilience of the industry. Notwithstanding these, it is also
pertinent on the part of the industry to discharge leadership role towards
ensuring competitiveness and relevance in the global supply chain.
5.
Despite such commendable achievement, we are aware of the
various challenges faced by the wood-based industry. The Ministry has
initiated a number of programmes including sufficient supplies of raw
materials and skilled workers for the furniture industry. Through the
promotion of forest plantation, we encourage replanting of old and
unproductive rubber trees with fast growing timber species and provide
soft loans to entrepreneurs who can increase the areas for forest
plantation. Under the Forest Plantation Development Programme, it is
targeted to plant 375,000 hectares by 2020, which is envisaged to
contribute 5 million cubic meters of raw materials for the downstream
industries annually.
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3. 6.
In addition, the Government has also implemented liberal wood
import policy and encouraged research and development (R&D) on the
utilisation of bio-composite and other alternative materials. These
measures taken collectively are expected to facilitate the growth of the
timber industry towards achieving export value of RM53 billion by 2020,
with export of furniture products valued at RM16 billion.
Ladies and gentlemen,
7.
Malaysia is committed towards sustainable forest management
(SFM) by adhering to its own Malaysian criteria and indicators which are
recognised by the Programme for the Endorsement of Forest
Certification schemes (PEFC). We are actively promoting the green
image of the timber industry through the Malaysian Timber Certification
Scheme (MTCS). This scheme ensures that the Malaysian timber
products are produced from sustainable and legal sources.
8.
In addition, the major importing countries have legislation or
considering measures to ensure only legally harvested timber products
are imported. These include the Lacey Act in the United States and the
Australian Illegal Logging Prohibition Act 2012. Malaysia is also currently
negotiating with the European Union (EU) on the Voluntary Partnership
Agreement (VPA) under the EU-Forest Law, Enforcement, Governance
and Trade (FLEGT). This VPA is aimed at further ensuring environment
conscious consumers in the EU that timber products imported from
Malaysia are manufactured using legally produced timber. Conclusion of
the VPA will also allow Malaysian manufacturers to export timber
products to the EU and enjoy greenlane treatment.
Ladies and gentlemen,
9.
In this modern era, furniture production is not made from wood
fully. Notwithstanding this, I also hope that the industry will continue to
produce furniture products that are market oriented, as well as focus on
improving production technology and productivity. In terms of design, we
need to explore innovative measures to strengthen the design and
image of furniture products exported from Malaysia. In this context, I
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4. wish to applaud EFE for organising the design competition during EFE
2013. This event had provided opportunity to showcase newer designs
which has potential for commercialisation. I hope that this competition
will be continued in EFE 2014, as it provides the platform to promote the
development of design in Malaysia.
10. I would also like to urge the furniture industry to factor in new
developments in the market, in particular relating to green policies.
There has been a growing trend to produce eco-friendly and market
green products, in line with growing global demands for environmentally
friendly products. In the light of this, it is important for manufacturers to
focus and produce products along the line of eco-friendliness. I would
also urge the manufacturers to continue developing sustainable material
and methods to take advantage of the market shift towards ‘green
furniture’. A balance between economic growth and sustainability is
important to ensure long-term growth of the furniture industry.
Ladies and gentlemen,
11. The furniture industry is currently confronted with a number of
issues. These include addressing labour shortages. The furniture
industry is reliant on foreign labour and this poses difficulties if the
sources of foreign labour declines in the future. The furniture sector
while aware of this consequences, need to implement measures to
ensure accelerated reduction on foreign labour. In this regard, the
Government will continue to facilitate labour requirements for the
industry through consultations with the furniture associations. However, I
wish to urge manufacturers to accelerate their mechanisation and
automation efforts and improve on design and accelerate branding.
12. A trade platform such as EFE provides opportunities to Malaysian
furniture manufacturers to showcase the latest designs and
developments in the furniture industry. In addition, this event also
provides the window to strengthen existing business relationship and
explore new business areas. In this context, it is pertinent that Malaysian
furniture manufacturers continue focusing on innovation, design,
improve manufacturing technique and adjust their marketing strategies.
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5. Ladies and gentlemen,
13. I am optimistic that the 10th Export Furniture Exhibition 2014 will
continue to create opportunities for Malaysian furniture manufacturers
and its related industry players to expand your market internationally.
The EFE international fair is an excellent platform for industry players to
showcase and brand your finest quality and designs to capture the
attention of the global buyers. Emerging markets are important drivers
for global recovery and remain the key growth engines of global wealth. I
encourage industry players to continuously explore and tap into
emerging markets in our bid to strengthen our market positions.
On this note, I have great pleasure to officially launch Export Furniture
Exhibition 2014.
Thank you.
Kementerian Perusahaan Perladangan dan Komoditi
5 August 2013
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