Bumiputera, Non-Bumiputera Firms Needed to Strengthen Malaysian Timber Industry
Minister of Plantation Industries and Commodities Datuk Seri Johari Abdul Ghani urged Bumiputera companies in the local timber industry to collaborate with non-Bumiputera companies to expand their market share and strengthen their competitiveness.
He emphasised the importance of creating an ecosystem that can help Bumiputera companies compete, especially through a strong supply chain network.
“Many designs and ideas from these Bumiputera companies cannot be realised if we don’t have supply chain. We cannot work in isolation in this business world. Business is universal,” he said.
Johari also explained that as part of the government’s commitment to empower Bumiputera entrepreneurs, the government, through the Malaysian Timber Industry Board (MTIB), has allocated RM44.7 million under the 10th and 12th Malaysia Plans to provide high tech machinery to Bumiputera entrepreneurs. This initiative has benefitted 175 entrepreneurs with 319 units of machinery supplied.
Recently, Johari announced that the export value of timber products increased 4.9% to RM22.9 billion last year, compared to 2023, as the timber industry is the third largest export contributor for agricommodity products after palm oil (RM114.4 billion) and rubber (RM33.7 billion).
Johari noted that among the export destinations of local timber products include United States, Europe and Asia, but the total number of Bumiputera participation in the timber industry is still at a low level.
“Despite an increase compared to 2023, Bumiputera entrepreneurs still contribute less than 1% or RM44 million of the total export of timber and timber products. Most Bumiputera entrepreneurs are still in the SME category,” he added.
Furthermore, Johari revealed that his ministry (KPK) – through the timber agencies namely the Malaysian Timber Industry Board (MTIB) and the Malaysian Timber Council (MTC) – strives to increase the competitiveness and involvement of Bumiputera in the timber industry through the core policies and strategies outlined under the National Agricommodity Policy (DAKN) 2021-2030 and the National Timber Industry Strategic Plan 2021-2025.
The DAKN also outlined several key strategies to empower Bumiputera participation such as fostering collaboration between timber companies, ensuring Bumiputera entrepreneurs get sustainability certification and promoting higher local cultural skills such as carpentry, wood carving and local design for artisan entrepreneurs.
