National Timber Industry Policy 2009 - 2020.

This National Timber Industry Policy (NATIP) is a sub-sectoral document designed to advance the industry up the value chain, maintain competitiveness, and enhance Malaysia's position as a supplier of high-quality timber products to the global market, thereby improving its contribution to the national economy. The document serves as a guiding principle for the development of the timber industry in Malaysia and will be the focal point, outlining the way forward for the industry and determining the appropriate policy directions for its critical aspects. In a highly globalized timber market, innovation and adaptability have been key differentiating factors for competitiveness. It is therefore important for the industry to have clear development objectives and direction to succeed in the world market. The timber industry has always been dependent on foreign technology and machinery. As such, greater efforts must be undertaken by local research institutes and universities to develop indigenous technology through increased involvement in R&D activities.
The Policy aims to (i) sustainably develop the timber industry, targeting RM53 billion in export earnings primarily from high-value downstream products, through strategies like sustainable raw material management, prioritizing domestic log supply, promoting alternative materials and wood residue utilization, gaining global recognition for certified timber, encouraging SME consolidation, and establishing supporting services; (ii) sustainable supply of raw materials from diverse sources, including natural forests and plantations, complemented by imports, R&D for higher yields, private sector investment in forest plantations, and the development of biomass and composite materials, alongside efforts to secure better prices and strengthen industry cooperation; (iii) prioritize innovation and technology development by strengthening its structure to become a top-quality supplier, enhancing collaborative R&D for product improvement and new innovations, incentivizing new technology adoption, and utilizing alternative energy sources; (iv) expand the global market share and competitiveness by enhancing value, promoting a green image, developing new products, and implementing strategic marketing to increase exports and grow the domestic market; (v) prioritize human capital development strengthening core technical skills like design and wood finishing, alongside crucial soft skills such as marketing and management, while also addressing structural changes through reduced foreign worker dependency, cluster promotion, and increased research in materials diversification; (vi) enhance SME participation through increased funding, incentives, and awareness programs promoting access to loans and credit facilities; (vii) foster competitive and sustainable participation of the Bumiputera indigenous ethnic group across the entire timber industry value chain, particularly in downstream activities and ITCs, by encouraging state government involvement, restructuring timber industry parks, and developing woodcraft and cottage SMEs.