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INDUSTRY
@ Forest | September-October , 2022
Empowering Bumi entrepreneurs
Memorandum of Understanding between CTCS Worldwide Sdn Bhd will increase competitiveness of Bumiputera entrepreneurs in the timber industry
THE timber sector had a successful year in 2021 , with exports totalling RM22.74 billion , an increase of 3.27 per cent compared to 2020 . By June 2022 , the export value of wood goods had reached RM13.19 billion , up 13.79 per cent from RM11.59 billion during the same period in 2021 .
At the signing ceremony of the Memorandum of Understanding ( MoU ) between CTCS Worldwide Sdn Bhd ( CWSB ), Minister of Plantation Industry and Commodities Datuk Zuraida Kamaruddin stated : “ The timber industry is essential and has a very significant role in contributing to the country ’ s economic development .
“ Timber products have been successfully exported to more than 160 countries , including significant furniture markets such as the United States ( US ), Japan , Singapore , Australia and the United Kingdom .
“ However , the export performance of furniture by Bumiputera entrepreneurs is still small , which is less than 1 per cent of the value of Malaysian furniture exports . Bumiputera furniture exports in 2021 decreased by 15.40 per cent , which is RM54.74 million compared to RM64.70 million in 2020 .”
Zuraida witnessed the signing ceremony of the MoU between CWSB and seven related stakeholders . The signing of the MoU demonstrates the government ’ s dedication to empowering Bumiputera business entrepreneurs in the timber industry through the work and role of the CWSB , a subsidiary of the Malaysian Timber Industry Board ( MTIB ).
CWSB , together with MTIB , signed a total of seven MoUs with stakeholders :
• Universiti Putra Malaysia ( UPM ), MYTeakwood Holdings Sdn Bhd ( MYTeakwood ) and Green Afforestation International Network Sdn Bhd ( Gain Green ) to implement the construction of a prototype house using Paulownia Cross Laminated Timber ( CLT ) building materials for the Construction Industry with the Ready to Install
Datuk Hajah Zuraida Kamaruddin with stakeholders .
MoU signing between CWSB and UPM , MYTeakwood
& Gain Green .
System ( ReTIS ) concept ;
• Universiti Tun Hussein Onn Malaysia ( UTHM ) is for the development of ecosystem support in the Muar Furniture Park ( MFP ) Teaching Factory ( TF ), UTHM to help the development of the furniture industry , especially the furniture industry in the Southern region , which is in the Muar district which is the main contributor to Malaysia ’ s furniture exports ;
• Langkawi Development Authority ( LADA ) to develop more Bumiputera entrepreneurs in the woodworking and carving industry in Langkawi ;
• Terengganu Timber Industry Training Center ( TTITC ) to improve the skills of Bumiputera vendors under CWSB through training ;
• Muar Furniture Association ( MFA ) Events to encourage the participation of Bumiputera entrepreneurs in promotional programs and exhibitions ; and
• Persatuan Pengusaha Kayu Kayan dan Perabot Bumiputera Malaysia ( PEKA ) to develop Bumiputera entrepreneurs in the local wood products industry . According to Zuraida , CWSB received
an allocation of RM25 million from the ministry and an additional RM10 million to strengthen the timber industry .
“ The key performance indicator ( KPI ) target of the seven MoUs was to achieve a contract value of RM50 million for the local and international markets .”
The involvement of furniture exporters among Bumiputera entrepreneurs is also still low . In 2021 , there were 21 Bumiputera furniture factories under the supervision of MTIB , still consistently carrying export activities out of 485 Bumiputera woodworking factories .
While 90 per cent of the total 485 Bumiputera woodworking factories are furniture entrepreneurs , the majority fall under small and micro enterprises .
In addition to strengthening its position and function as a driving force for Bumiputera entrepreneurs in the wood industry , CWSB hopes that the cooperation made possible by the MoUs will enable it to draw in more Bumiputera business owners . It will allow them to jointly fight to improve competitiveness at the local and international levels . – @ Forest