2200
ANNUAL
REPORT
ENGAGE CONNECT GROW
2020 ANNUAL REPORT
CONTENTS
01-06
PERFORMANCE REVIEW
• Chairman’s Statement
• CEO’s Review of Operations
07-16
CORPORATE INFORMATION
• Corporate Profile
• Corporate Philosophy
• Objectives
• Roadmap 2019-2023
• Organisational Structure
• Board Matters
• Management Team & In-House Working Groups/Committee
17-22
PERFORMANCE OF THE MALAYSIAN TIMBER TRADE
• Malaysia: Export of Timber and Timber Products 2016-2020
• Malaysia: Top 10 Markets of Timber and Timber Products in 2020
• Malaysia: Top 10 Wooden Furniture Export Destinations in 2020
• Malaysia: Top 10 Plywood Export Destinations in 2020
• Malaysia: Top 10 Sawntimber Export Destinations in 2020
• Malaysia: Top 10 BJC Export Destinations in 2020
• Malaysia: Top 10 Fibreboard Export Destinations in 2020
• Malaysia: Top 10 Mouldings Export Destinations in 2020
• Malaysia: Top 10 Logs Export Destinations in 2020
• Malaysia: Top 10 Chipboard/Particleboard Export Destinations in 2020
• Malaysia: Top 10 Veneer Export Destinations in 2020
• Malaysia: Top 10 Wooden Frame Export Destinations in 2020
• Outlook 2021
23-54
OPERATIONS REVIEW
• Promote Trade & Enhance Market Access
• Expand Industry’s Technology Base
• Augment Raw Material Supply
• Represent Industry’s Interest
• Green Issue Management
• Information Dissemination & Market Intelligence
55
FINANCIAL REVIEW
• Financial Information
1 2020 ANNUAL REPORT
PERFORMANCE REVIEW
Tuan Haji Mazli Zakuan Mohd Noor
MTC Chairman
2020 ANNUAL REPORT 2
CHAIRMAN’S STATEMENT
On behalf of the MTC Board of Trustees, I am pleased to present Industries and Commodities (MPIC), relevant government
MTC’s Annual Report and Financial Information for the year agencies, the six national level timber-based associations and
ended 31 December 2020. independent members to the Board. I would like to take this
opportunity to express my appreciation to YBhg. Dato’ Low and
The COVID-19 global pandemic has disrupted lives across all the immediate past Trustees for their invaluable contribution
countries and communities as well as negatively impacted global to MTC and, by extension, to the industry. At the same time, I
economic growth in the year 2020. This was beyond anything warmly welcome the newly appointed and reappointed members
experienced in nearly a century with estimates so far indicating of the Board and look forward to working closely with all of them
that the pandemic had reduced global economic growth to an in bringing the timber industry to great heights.
annualised rate of -4.5% to -6.0% and global trade by 5.3% in 2020,
based on a report by the US Congressional Research Service. At the senior management level, I would like to thank Mr. Richard
Yu Tuan Chong for serving as Chief Executive Officer (CEO) up to 12
For Malaysia, the country’s economy declined further in Q4 2020, March 2020, and Mr. Wong Kah Cane as Acting CEO until 30 October
leading to a worse contraction in Gross Domestic Product (GDP) 2020, respectively. At the same time, I extend a warm welcome to
than initially projected by the government. According to the Mr. Muhtar Suhaili as the new CEO of MTC effective 1 November
Department of Statistics Malaysia (DOSM), the country’s Q4 2020 2020. Given his background as a professional technologist and
GDP fell by 3.4%, which was bigger than the 2.7% decline in the vast experience in the corporate sector including at multi-national
previous quarter. Overall, the country’s GDP shrank by 5.6%, the corporations, I believe Mr. Muhtar is well-equipped to advise the
biggest contraction since the 1998 Asian Financial Crisis. Board as well as lead the management of MTC in furthering the
cause of the country’s various timber industry sectors.
Despite such gloomy figures, the Malaysian timber industry’s export
performance raked in RM22.02 billion, a slight decline of 2.1% year- It is heartening to see the encouraging projection by the
on-year. This was achieved on the back of strong overseas demand International Monetary Fund for global growth of 6% in 2021
for Malaysia’s wooden furniture, which saw export value rising as well as the World Bank’s GDP growth projection of 6% for
16.9%. We have every reason to be proud given the many challenges Malaysia in 2021. This strengthens Bank Negara Malaysia’s
faced by the timber industry in such difficult times. For us at MTC, projection of between 6% and 7.5% for the country’s economic
we will continue to support the industry in all ways possible to steer growth in 2021. In tandem with these positive sentiments,
through these challenging times and beyond, given that we have MPIC has targeted a 4.5% export growth totaling RM23 billion
been set up by the industry and for the industry. from Malaysia’s timber and timber products sector for 2021.
Based on these scenarios, I am pleased to report that MTC’s Given the progress in vaccination rate and lower COVID-19
financial position has remained strong with a Net Assets Value infection numbers in Malaysia’s key timber and timber products
(NAV) of RM922.6 million, a 5.4% increase from RM875.2 million markets such as the United States of America, Europe, Japan,
registered for the previous year. This will further ensure that MTC China and Australia, and notwithstanding further outbreaks of
is well-funded to execute the multiple programmes and activities the pandemic, there are immense export business opportunities
for the best interest of the timber industry in Malaysia. for Malaysia’s timber industry in 2021. I am confident that with
the all-out support of MPIC under the stewardship of YB Dato’
Within MTC, there had been several changes at the Board of Dr. Mohd Khairuddin, the country’s timber industry can achieve
Trustees level in 2020. With the end of YBhg. Dato’ Low Kian its targeted export growth for 2021 and beyond.
Chuan’s two-year tenure as Chairman on 26 July 2020, I have been
entrusted by Minister of Plantation Industries and Commodities, Thank you.
YB Dato’ Dr. Mohd Khairuddin Aman Razali, to helm MTC effective
1 August 2020. YB Dato’ Dr. Mohd Khairuddin also appointed as HAJI MAZLI ZAKUAN MOHD NOOR
well as reappointed representatives from the Ministry of Plantation Chairman
3 2020 ANNUAL REPORT
Mr. Muhtar Suhaili
MTC Chief Executive Officer
2020 ANNUAL REPORT 4
CEO’s REVIEW OF OPERATIONS
The year 2020 saw many changes and adjustments in MTC’s plans In August 2020, MTC also held a brainstorming session in Melaka
due to the COVID-19 pandemic in light of lockdowns at home where its management team and executives discussed relevant
and abroad. Amidst the disruptions, a series of consultations strategies, programmes and activities beneficial for the timber
among various government ministries and agencies and the industry, particularly for 2021 as well as several years beyond.
private sector through the support of the Ministry of Plantation As a result, MTC’s new 14 focus areas were conceptualised to
Industries and Commodities (MPIC) were held to fine tune zone in on areas of growth moving forward for the industry.
the regulations and SOPs with the objective of allowing the Taking aim to sharpen its focus for plans moving forward, I had
commodities sector to operate during the lockdowns. also introduced the MTC Roadmap, which spells out the 7 Must-
Wins for the year 2021.
The challenges faced by the industry were also captured in two
online surveys conducted by MTC in April 2020 and June 2020 Travel restrictions and prohibitions on large gatherings meant
where industry members expressed their concerns over slowing MTC’s organisation of exhibitions and planned participation
global and domestic demands, cashflow management, order in many international trade fairs had been reduced, cancelled,
fulfilling issues and workforce sustenance. The findings of these postponed or turned into virtual exhibitions. However, MTC
surveys were used to formulate strategies and policies which carried on with several key activities to sustain the momentum.
included enabling industry members to obtain approvals to
operate with strict adherence to the SOPs during the Movement MTC participated in nine trade fairs both physically and
Control Order (MCO) in March-April 2020. During the extended virtually. Among them were Furniture China’s Digital
(MCO) and subsequent Conditional MCO periods, 90% of the Trade Show (8 August to 8 November 2020) which saw the
industry had resumed operations while more than 60% had participation of nine Malaysian companies. MTC also virtually
begun exporting their products. joined the 3D Wood and Woodworking Show, India, Dubai
Woodshow and Architect@work, Rotterdam, The Netherlands.
MTC also promptly launched into its Business Continuity Through our regional offices, MTC also participated in major
Plan to enable staff to work from home while restructuring trade fairs like Nepal Wood 2020, IndiaWood 2020, Interzum
its operations in an effort to effect transformation for all and Guangzhou 2020, Xi’an International Furniture Exhibition and
strengthen its support for the industry. Its budget review in Fenestration BAU in China.
May 2020 had also taken into account the information gathered
from consultations with the industry, engagement with overseas The council was geared to follow up on the successful run of its
buyers and importers as well as other relevant communication inaugural Malaysian Wood Expo (MWE) 2019 with Wood-M, a
channels established by MTC. smaller-scaled version of MWE, but the show had to be cancelled
Sharing about MTC during MPIC Minister’s visit.
5 2020 ANNUAL REPORT
as well. Similarly, MTC had planned for a Malaysian Timber Week under this programme. MTC also continued with its Financial
in August 2020 to bring together local and overseas stakeholders Incentive for Purchase of Machinery (FIPM) programme and
for business networking and information exchange, but the disbursed about RM2.1 million to 64 companies in 2020.
event too was shelved.
A new programme, the Designer Incubator Programme (DIP)
Digitisation and digitalisation increasingly became a necessity was launched by MTC in 2020. Through the programme, 25
in order to mitigate the unprecedented challenges brought by pairs of local designers and architects with timber-based
the COVID-19 pandemic as global trade and supply chains had and furniture manufacturers had been matched to develop
been disrupted – the new norms of doing business became vital. prototypes of Malaysian produced high-value timber-based
Measures were taken to assist the industry in its transition and furniture products expected to be showcased at selected
towards industrial revolution 4.0 (IR 4.0). fairs in early 2021.
Mr. Muhtar at the Meeting with Timber Associations on MTC’s Programme and In its Corporate Social Responsibility (CSR) programmes, in
Activities for 2021. March 2020, MTC set up the COVID-19 Humanitarian Aid
Fund in collaboration with several timber associations as well
As part of its Business Continuity Plan during the pandemic, as over 70 timber-based companies where about RM908,950
MTC not only transformed its own operations but also helped was raised.
many timber-based manufacturers to digitalise and move onto
e-platforms as well as keep their business engagements intact MTC also allocated RM250,000 under its “Giving Back to the
through webinars, virtual dialogue and B2B sessions. In 2020, Community”, “Giving Back to Nature” and “Giving Back to
MTC had organised six webinars on business digitisation and Stakeholders” CSR programmes. Contributions were made to
digitalisation with 337 participants and four on digital marketing 10 charitable and non-governmental organisations under the
with 282 participants. There was also a webinar on automation Giving Back to the Community programme while RM50,000 was
and digitalisation with 84 participants. pledged to Yayasan Hijau Malaysia for the National 100 Million
Tree-Planting Campaign under the Giving Back to Nature
MTC also organised 10 virtual dialogues with counterparts from initiative. MTC also provided financial assistance to industry
The Netherlands, Eastern Europe, China, Sri Lanka, Saudi Arabia, members who were affected by the COVID-19 pandemic in its
UAE, US, Nepal, and Europe. A dialogue session on the European Giving Back to Stakeholders programme.
Furniture Market attracted 72 participants while there was also
an online B2B with UAE timber importers. In terms of publications and collaterals, MTC had been
publishing COVID-19 related Public Notices as well as increased
Besides the market promotion and business development its frequency of Timber Malaysia from a quarterly output
activities, MTC continued with its industry development to a bimonthly publication. In addition, its social media post
programmes such as the Import Assistance Programme (IAP). frequency had also been increased.
In 2020, about RM4.6 million was disbursed to 93 companies
Meeting to discuss MTC’s asset management.
2020 ANNUAL REPORT 6
MTC supporting 100 Million Tree Planting Campaign. Mr. Muhtar during the European Furniture Market and Overview online session.
When my term as Chief Executive Officer began on 1 November Townhall meeting in December 2020, every member of the staff
2020, I initiated a people-centric, performance-based and had signed the “Integrity Pledge” and “Confidential & Non-
stakeholders-friendly approach where the goal is to operate with Disclosure Agreement” as part of our commitment towards
integrity, honesty and respect for people’s cultures. This applies good governance.
to our internal interactions and operations where we encourage
an ‘Open Door Policy’ among other practices. I am more than Looking forward, MTC has and will continue to adapt, review
happy to recognise all our staff and stakeholders’ passion to work and restrategise its programmes and activities as and when
together to bring MTC to greater heights. I look forward for all needed, according to the best interest of its industry members
of us to continue this journey together as per the tagline: Let’s and buyers of Malaysian timber-based products.
Power Progress Together!
Thank you.
In December 2020, MTC had also formed an “Integrity and
Governance Committee” as well as the “Work Hard, Play Hard and “LET’S POWER PROGRESS TOGETHER!”
Pray Hard (WHP2H) Committee” which apart from inculcating a
work life balance amongst staff, also seeks to manifest our values MUHTAR BIN SUHAILI
of integrity and mutual respect as mentioned. During the Staff Chief Executive Officer
Mr. Muhtar at the MTC Staff Town Hall Session.
7 2020 ANNUAL REPORT
CORPORATE INFORMATION
CORPORATE PROFILE
The Malaysian Timber Council (MTC) was established in January 1992 to promote the development and growth of the Malaysian
timber industry. Incorporated as a company limited by guarantee under the Companies Act 1965, MTC is governed by a Board of
Trustees whose members are appointed by the Minister of Plantation Industries and Commodities.
CORPORATE PHILOSOPHY
Vision Mission
To be the lead organisation that develops the To ensure the sustainability of the Malaysian timber
Malaysian timber industry into a world leader in the industry by improving its competitiveness, enhancing
manufacture and trade of timber products. market access and creating trade opportunities.
OBJECTIVES
• To promote the Malaysian timber trade and develop the market for timber products globally.
• To develop the timber industry by expanding the industry’s manufacturing technology base and
value-adding its production line.
• To augment the supply of raw materials for the timber-processing industry.
• To provide information services to the timber industry.
• To enhance the global credibility of the Malaysian timber industry.
2020 ANNUAL REPORT 8
ROADMAP 2019-2023
9 2020 ANNUAL REPORT
ORGANISATIONAL
STRUCTURE
(As at 31 December 2020)
2020 ANNUAL REPORT 10
11 2020 ANNUAL REPORT
BOARD MATTERS
BOARD OF TRUSTEES
The Chairman and Board of Trustees determine the Council’s policies. Members consist of a representative each from the five founding members
of MTC, namely:
• Malaysian Wood Industries Association (MWIA) • Malaysian Wood Moulding and Joinery Council (MWMJC)
• The Timber Exporters’ Association of Malaysia (TEAM) • Malaysian Furniture Council (MFC)
• Malaysian Panel-Products Manufacturers’ Association (MPMA)
There is also a representative each from:
• Ministry of Plantation Industries and Commodities (MPIC) • Forestry Department of Peninsular Malaysia (FDPM)
• Malaysian Timber Industry Board (MTIB) • Association of Malaysian Bumiputra Timber and Furniture
Entrepreneurs (PEKA)
Seated (L-R): Datuk Chua Hock Gee (MPMA), Mr. Mohd Kheiruddin Mohd Rani (MTIB), Datuk Ravi Muthayah (MPIC),
Tuan Haji Mazli Zakuan Mohd Noor (Chairman), Mr. Muhtar Suhaili (Ex-Officio), Dato’ Mohd Ridza Awang (FDPM) and
Ms. Agnes Chan (Company Secretary).
Standing (L-R): Mr. Richard Yu Tuan Chong (Independent), Dato’ Mok Khiaw Hui (MWIC), Dato’ Ahmad Nadzarudin Abdul Razak
(Independent), Mr. Matthew Law Kian Siong (MFC), Mr. George Yap Hong Thien (MWMJC), Mr. Wong Kar Wai (TEAM),
Tuan Haji Hanafee Haji Yusoff (PEKA) and Mr. Mohd Kamal Nazmi Kamaruddin (Independent).
Inset: Mr. Kang Meng Fuat (Independent).
Independent Trustees are also appointed from time to time The appointments of two Industry Trustees on 1 January 2020,
at the discretion of the Minister of Plantation Industries and namely, Mr. Matthew Law Kian Siong (MFC) and Tuan Haji
Commodities. Hanafee Yusoff (PEKA), were revoked on 31 July 2020. They
were reappointed on 1 August 2020.
The tenure of Dato’ Low Kian Chuan as MTC Chairman ended
on 26 July 2020. Tuan Haji Mazli Zakuan Mohd Noor, first Four Industry Trustees were appointed on 1 August 2020,
appointed as an Independent Trustee on 15 May 2020, was namely, Dato’ Mok Khiaw Hui (MWIA), Mr. Wong Kar Wai
appointed as the new Chairman of MTC effective 1 August 2020. (TEAM), Datuk Chua Hock Gee (MPMA) and Mr. George Yap
Hong Thien (MWMJC).
Three Trustees from the Government sector, namely, Datuk Ravi
Muthayah (MPIC), Mr Mohd Kheiruddin Mohd Rani (MTIB) and The appointments of two Independent Trustees on 1 January
Dato’ Mohd Ridza Awang (FDPM), were appointed on 1 January 2020, namely, Dato’ Goh Boon Kim and Ms. Cheh Chooi Jing,
2020. were revoked on 1 April 2020.
The appointments of three Industry Trustees on 1 January 2020, Four new Independent Trustees were appointed in 2020, namely,
namely, Mr. Goh Chee Yew (MWIA), Mr. Lee Leh Yew (TEAM) Mr. Mohd Kamal Nazmi Kamaruddin, Dato’ Ahmad Nadzarudin
and Mr. Lim Chee Hwa (MWMJC), were revoked on 31 July 2020. Abdul Razak, Mr. Kang Meng Fuat and Mr. Richard Yu Tuan
Chong, on 14 May, 15 May, 15 July and 1 August, respectively.
2020 ANNUAL REPORT 12
178th MTC Board Meeting, 9 December 2020.
BOARD MEETINGS
Seven Board Meetings were held during the year. These were the 173rd to 178th Board Meetings held on 19 February, 11 March, 12 May,
26 June, 27 October and 9 December, respectively, and one Special Board Meeting held on 8 July.
ANNUAL GENERAL MEETING
The 28th Annual General Meeting was held on 11 August 2020 and the following were passed:
• Audited Financial Statements of MTC for the financial year ended 31 December 2019 and the Reports of the Trustees
and of the Auditors contained therein;
• Payment of Trustees’ fees / remunerations / other benefits in respect of the financial year ended 31 December 2019; and
• Reappointment of auditors of the Council, RSM Malaysia for the ensuing year.
EXTRAORDINARY GENERAL MEETINGS
No Extraordinary General Meetings were held in 2020.
BOARD COMMITTEES
Investment and Risk Committee (IRC)
The IRC was established in 1998 to oversee all investment-related matters for the MTC Endowment Fund. This requirement was stipulated by the
Ministry of Finance (MOF) and the Ministry of Plantation Industries and Commodities (MPIC) as MTC would be managing funds provided by
the government. The IRC ensures that the Endowment Fund is invested according to guidelines and asset allocations issued by the MOF. It also
reviews the fund performance and makes appropriate recommendations to the MTC Board on appointments and termination of fund managers.
The Endowment Fund’s performance is submitted to both MPIC and MOF on a quarterly basis.
Members of the IRC as of 31 December 2020 were:
• Tuan Haji Mazli Zakuan Mohd Noor (Chairman)
• Datuk Ravi Muthayah (MPIC)
• Ms. Che Wan Najwa (MOF)
• Mr. Muhtar Suhaili (MTC CEO)
In 2020, the IRC met twice to discuss MTC investment-related matters.
13 2020 ANNUAL REPORT
Human Resource, Nomination and Remuneration Committee (HRNRC)
The HRNRC is tasked to advise on policy matters and policy directions on matters related to nomination and
remuneration for MTC Board of Trustees and MTC staff to ensure these commensurate with industry standards.
Members of the HRNRC as of 31 December 2020 were:
• Datuk Ravi Muthayah (Chairman)
• Tuan Haji Hanafee Haji Yusoff (PEKA)
• Mr. George Yap (MWMJC)
• Mr. Matthew Law (MFC)
• Mr. Mohd Kamal Nazmi Kamaruddin (Independent Trustee)
• Mr. Muhtar Suhaili (MTC CEO)
The HRNRC met once in 2020.
Industry and Market Development Committee (IMDC)
The IMDC is an advisory committee that provides policy recommendations and strategic directions in support of MTC’s key thrusts on
industry development and empowerment, market intelligence, market development and stakeholder engagement and review strategic
framework to improve the effectiveness of MTC’s programmes and activities.
Members of the IMDC as of 31 December 2020 were:
• Dato' Mok Khiaw Hui (Chairman - MWIA)
• Mr. Pubadi a/l Govindasamy (MPIC)
• Mr. Mohd Kheiruddin Mohd Rani (MTIB)
• Dato' Mohd Ridza Awang (FDPM)
• Mr. Wong Kar Wai (TEAM)
• Mr. George Yap Hong Thien (MWMJC)
• Mr. Matthew Law Kian Siong (MFC)
• Tuan Haji Hanafee Yusoff (PEKA)
• Datuk Chua Hock Gee (MPMA)
• Mr. Richard Yu (Independent Trustee)
• Ms. Aedreena Reeza Alwi (MITI)
• MTC Management (represented by CEO Mr. Muhtar Suhaili)
The IMDC met twice in 2020, chaired by Mr. Simon Lim (IMDC Chairman up to 18 November 2020).
Audit and Oversight Committee (AOC)
The AOC is tasked to safeguard the assets of MTC, encourage an enabling environment for corporate governance and
institutionalise prudent spending.
Members of the AOC as of 31 December 2020 were:
• Dato’ Ahmad Nadzarudin Abdul Razak (Chairman)
• Mr. Mad Zaidi Mohd Karli (MPIC)
• Mr. Wong Kar Wai (TEAM)
• Datuk Chua Hock Gee (MPMA)
• Mr. Kang Meng Fuat (Independent Trustee)
The AOC met twice in 2020.
2020 ANNUAL REPORT 14
15 2020 ANNUAL REPORT
MANAGEMENT TEAM & IN-HOUSE
WORKING GROUPS/COMMITTEE
Note: This photo was taken for a Hari Raya event.
Seated (L-R): Mr. Jasvinder Singh (Head, Legal Division), Mr. Khairul Anwar (Director, International Business Development
Division, Cluster 2 - South Asia, Middle East and Africa), Mr. Muhtar Suhaili (Chief Executive Officer), Mr. Roger Chin (Chief
Operations Officer), Mr. Mokhtar Mohd Yaacob (Director, Industry Development Division) and Mr. Edward Tan (Head,
Investment Division).
2nd row (L-R): Ms. Rohayu Razali (Secretary to Chief Executive Officer), Ms. Andrea Lim (Head, Internal Audit Division),
Ms. Jennyfer Lee (Head, Human Resource Division), Ms. Noraihan Abdul Rahman (Director, Corporate Communications
Division), Ms. Lau Li Har (Director, Strategic Planning Division), Ms. Alexis Chang (Director, Market Promotion Division) and
Ms. Sharon Wong (Manager, Board Secretariat Division).
3rd row (L-R): Mr. Justin Choo (Head, Information & Communications Technology Division), Mr. Philip Liew (Financial Controller), Mr. Faizal Shah Zainal Alam Shah
(Head, Administration Division) and Mr. Mohamed Azly Yusof (Senior Manager, Finance Division).
Inset (L-R): Mr. Wong Kah Cane (Deputy Chief Executive Officer) and Mr. Tan Ting Wai (Director, International Business Development Division, Cluster 1 - East Asia,
Europe and Americas).
Four In-House Working Groups (IHWG) have been established to ensure proper organisation-wide consultation on and for the smooth
running of specific aspects of MTC’s operations. They are as follows:
IHWG ON EXTERNAL SOURCING OF TIMBER RAW MATERIALS
The IHWG on External Sourcing of Timber Raw Materials is responsible for the verification and approval of applications by companies for timber
raw material import assistance.
The members of the IHWG on External Sourcing of Timber Raw Materials as of 31 December 2020 were:
• Mr. Muhtar Suhaili – Chairman
• Mr. Wong Kah Cane
• Mr. Mohamed Azly Yusof
• Mr. Philip Liew
• Mr. Mokhtar Mohd Yaacob
• Ms. Adeline Goh
2020 ANNUAL REPORT 16
IHWG ON FINANCIAL INCENTIVE FOR PURCHASE OF MACHINERY
The IHWG on Financial Incentive for Purchase of Machinery is responsible for the verification and approval of applications by companies for
financial incentive for purchase of machinery.
The members of the IHWG on Financial Incentive for Purchase of Machinery as of 31 December 2020 were:
• Mr. Muhtar Suhaili – Chairman
• Mr. Wong Kah Cane
• Mr. Mohamed Azly Yusof
• Mr. Philip Liew
• Mr. Mokhtar Mohd Yaacob
• Ms. Adeline Goh
IHWG ON COMMUNICATIONS
The IHWG on Communications is tasked with providing a cohesive and integrated approach to MTC’s communications’ needs, both print and
electronic.
The members of the IHWG on Communications as of 31 December 2020 were:
• Mr. Muhtar Suhaili – Chairman
• Mr. Wong Kah Cane
• Ms. Noraihan Abdul Rahman
• Ms. Alexis Chang
• Mr. Mokhtar Mohd Yaacob
• Ms. Lau Li Har
• Mr. Tan Ting Wai
• Mr. Mohamed Azly Yusof
• Mr. Andrew Kong
IHWG ON HUMAN RESOURCE
The IHWG on Human Resource is responsible for human resource management and planning such as staffing, training, career progression,
reward management, employee relationship and welfare matters.
The members of the IHWG on Human Resource as of 31 December 2020 were:
• Mr. Muhtar Suhaili – Chairman
• Mr. Wong Kah Cane
• Mr. Roger Chin
• Ms. Jennyfer Lee
INTEGRITY AND GOVERNANCE COMMITTEE
The Integrity and Governance Committee is responsible for instilling the values of integrity and mutual respect in the workplace as well as
ensuring an anti-bribery and anti-corruption culture in MTC.
The members of the Integrity and Governance Committee as of 31 December 2020 were:
• Mr. Jasvinder Singh – Chairman
• Ms. Jennyfer Lee – Deputy Chairman
• Ms. Sharon Wong
• Ms. Nor Atiqah Hasan
17 2020 ANNUAL REPORT
PERFORMANCE OF THE
MALAYSIAN TIMBER TRADE
Malaysia: Export of Timber and Timber Products 2016-2020
The export of timber and timber products from Malaysia averaged at RM22.41 billion from 2016 to 2020. Malaysia’s export of major
timber products in 2020 stood at RM22.02 billion, moderating slightly by -2.1% from the previous year. Export of wooden furniture
(including rattan and bamboo furniture) experienced a major increase in 2020 at RM10.63 billion (+16.2%) while other timber products
were traded below the previous year’s value. The export of plywood in 2020 was valued at RM2.84 billion (-16.5%), sawntimber at RM2.39
billion (-29.2%), builders’ joinery and carpentry at RM971.7 million (-6.3%), fibreboard at RM726.9 million (-31.5%), mouldings at
RM687.9 million (-21.1%), logs at RM509.6 million (-32.9%), chipboard/particleboard at RM266.5 million (-27.4%), veneer at RM94.1
million (-45.1%) and wooden frame at RM91.8 million (-27.7%). Other timber products in total contributed RM2.81 billion to the
country’s export of timber products, increasing by 12.8%.
Malaysian timber products are well known globally with strong market presence in key export markets. There are eight timber product
exports from Malaysia being ranked within the Top 10 and Top 20 globally in value terms in 2020.
In the Top 10, plywood from Malaysia was ranked 4th, wooden furniture was ranked 6th, wooden frame was ranked 6th and mouldings
was ranked 9th globally in 2020. In the Top 20, sawntimber was ranked 13th, fibreboard was ranked 17th, BJC was ranked 18th and logs
were ranked 19th globally in 2020.
2020 ANNUAL REPORT 18
Malaysia: Top 10 Markets of Timber and Timber Products in 2020*
Total Export: RM22.02 Billion The top export destination for Malaysian timber and
timber products in 2020 is the United States at RM7.45
billion with a market share of 33.8%. Japan comes second
with RM2.73 billion (12.4% share), followed by China
at RM2.25 billion (10.2% share), Australia at RM878.7
million (4% share), Singapore at RM833 million (3.8%
share), the United Kingdom at RM782.6 million (3.6%
share), India at RM779.6 million (3.5% share), South Korea
at RM674.6 million (3.1% share), Taiwan at RM457.9
million (2.1% share) and Thailand to round up the top 10
export markets at RM408.4 million (1.9% share). The top
10 export markets accounted for 78.3% of the total export
of Malaysia’s timber and timber products in 2020.
Malaysia: Top 10 Wooden Furniture Export Destinations in 2020*
Total Export: RM10.5Billion Wooden furniture (including bamboo and rattan furniture)
was the top timber product exported by Malaysia in 2020
with 48.3% share of the total export valued at RM10.63
billion (+16.2% year-on-year). Malaysia’s export of wooden
furniture ranked 6th globally in 2020. The biggest market
was the United States (RM6.61 billion; 62.2% share). Japan
was the 2nd top export destination valued at RM473.2
million (4.5% share), followed by the United Kingdom at
RM470.2 million (4.4% share), Australia at RM435.3 million
(4.1% share), Singapore at RM312.5 million (2.9% share),
Canada at RM297.1 million (2.8% share), Saudi Arabia at
RM161.5 million (1.5% share), China at RM147.3 million
(1.4% share), India at RM131.8 million (1.2% share) and the
United Arab Emirates at RM131.5 million (1.2% share).
Malaysia: Top 10 Plywood Export Destinations in 2020*
Total Export: RM2.8 Billion Plywood was the 2nd largest timber product exported from
*Sources: DOSM & MTIB Malaysia in value term in 2020 at RM2.84 billion (-16.5%
year-on-year). It also ranked 5th in the world. Japan
remained the top export destination for Malaysian plywood
in 2020 with an export value of RM1.38 billion (48.5%
share). The United States were ranked 2nd at RM348.3
million (12.3% share), followed by South Korea at RM216.5
million (7.6% share), Yemen at RM151.2 million (5.3%
share), Taiwan at RM146.3 million (5.2% share), the United
Kingdom at RM113.7 million (4.0% share), Australia at
RM113.3 million (4.0% share), Thailand at RM57.5 million
(2.0% share), Mexico at RM46.4 million (1.6% share) and
Hong Kong at RM31.4 million (1.1% share).
19 2020 ANNUAL REPORT
Malaysia: Top 10 Sawntimber Export Destinations in 2020*
Total Export: RM2.4 Billion Sawntimber was the 3rd largest export from Malaysia
in value term in 2020 at RM2.39 billion (-29.2% year-
on-year) and ranked 13th globally. Thailand was the top
importer of Malaysian sawntimber with RM257.9 million
(10.8% share), followed by China at RM248.8 million
(10.4% share), India at RM219.4 million (9.2% share),
Yemen at RM203.9 million (8.5% share), the Philippines
at RM177.0 million (7.4% share), Taiwan at RM135.2
million (5.7% share), Sri Lanka at RM118.5 million (5.0%
share), the Netherlands at RM118.3 million (4.9% share),
the United Arab Emirates at RM117.4 million (4.9% share)
and Japan at RM105.5 million (4.4% share).
Malaysia: Top 10 BJC Export Destinations in 2020* Builders’ Joinery and Carpentry (BJC) was the 4th largest
Total Export: RM971.7 Million export from Malaysia in value term in 2020 at RM971.7
million (-6.3% year-on-year) and ranked 19th globally.
The United States was ranked 1st as an importer of BJC
from Malaysia in 2020 at RM203.2 million (20.9% share),
followed by Australia at RM162.6 million (16.7% share), the
United Kingdom at RM127.7 million (13.1% share), Japan
at RM55.2 million (5.7% share), Belgium at RM52.9 million
(5.4% share), Singapore at RM46.8 million (4.8% share),
India at RM32.4 million (3.3% share), Norway at RM27.4
million (2.8% share), Denmark at RM22.9 million (2.4%
share) and the Netherlands at RM22.4 million (2.3% share).
Malaysia: Top 10 Fibreboard Export Destinations in 2020*
Total Export: RM726.9 Million Fibreboard was the 5th largest export from Malaysia
*Sources: DOSM & MTIB in value term in 2020 at RM726.9 million (-31.5%
year-on-year) and ranked 17th globally. With a market
share of 34.7%, Japan was the top fibreboard export
destination from Malaysia at RM251.9 million, followed
by Pakistan at RM50.5 million (6.9% share), the United
Arab Emirates at RM47.7 million (6.6% share), the
Philippines at RM42.0 million (5.8% share), the United
States at RM39.2 million (5.4% share), Indonesia at
RM36.3 million (5.0% share), India at RM32.1 million
(4.4% share), Australia at RM26.8 million (3.7% share),
Vietnam at RM22.2 million (3.1% share) and Oman at
RM16.7 million (2.3% share).
2020 ANNUAL REPORT 20
Malaysia: Top 10 Mouldings Export Destinations in 2020*
Mouldings was the 6th largest export from Malaysia in value
term in 2020 at RM687.9 million (-21.1% year-on-year) and
ranked 9th globally. The Netherlands was the top importer of
Malaysian mouldings with RM217.7 million (31.6% share),
followed by the United States at RM90.9 million (13.2% share),
Australia at RM83.8 million (12.2% share), Japan at RM67.2
million (9.8% share), South Korea at RM35.8 million (5.2%
share), Germany at RM29.4 million (4.3% share), France at
RM27.8 million (4.0% share), the United Kingdom at RM26.2
million (3.8% share), Belgium at RM21.6 million (3.1% share)
and Singapore at RM19.4 million (2.8% share).
Total Export: RM687.9 Million
Malaysia: Top 10 Logs Export Destinations in 2020*
Logs were the 7th largest export from Malaysia in value
term in 2020 at RM509.6 million (-32.9% year-on-year) and
ranked 19th globally. About 61.8% of these were exported to
India with an export value of RM315 million. Indonesia was
the second top importer with RM99.2 million (19.5% share),
followed by Taiwan at RM52.4 million (10.3% share), Japan
at RM19.9 million (3.9% share), Vietnam at RM12.6 million
(2.5% share), China at RM6.6 million (1.3% share), South
Korea at RM2.9 million (0.6% share), Singapore at RM0.7
million (0.1% share), Thailand at RM0.1 million (0.02% share)
and Maldives at RM0.1 million (0.01% share).
Total Export: RM509.6 Million
Malaysia: Top 10 Chipboard/Particleboard Export Destinations in 2020*
Chipboard/Particleboard was the 8th largest export
from Malaysia in value term in 2020 at RM266.5 million
(-27.4% year-on-year) and ranked 28th globally. China
was the top export destination at RM73.2 million (27.5%
share), followed by Vietnam at RM46.1 million (17.3%
share), South Korea at RM39.0 million (14.6% share),
Japan at RM29.9 million (11.2% share), the Philippines
at RM22.0 million (8.3% share), Indonesia at RM16.5
million (6.2% share), Thailand at RM8.9 million (3.3%
share), India at RM7.7 million (2.9% share), Peru at
RM6.1 million (2.3% share) and the United Arab Emirates
at RM4.2 million (1.6% share).
Total Export: RM266.5 Million
*Sources: DOSM & MTIB
21 2020 ANNUAL REPORT
Malaysia: Top 10 Veneer Export Destinations in 2020*
Total Export: RM94.1 Million Veneer was the 9th largest export from Malaysia in value
term in 2020 at RM94.1 million (-45.1% year-on-year)
and ranked 28th globally. The top importer of veneer
from Malaysia was Taiwan at RM21.6 million (23.0%
share), with South Korea coming close in 2nd place at
RM15.5 million (16.4% share). Japan and China followed
after with RM11.5 million (12.3% share) and RM11.5
million (12.2% share) respectively. Exports to India were
valued at RM6.9 million (7.3% share), followed by the
Philippines at RM6.7 million (7.1% share), the United
States at RM5.0 million (5.3% share), Australia at RM3.8
million (4.1% share), Italy at RM3.4 million (3.6% share)
and Canada at RM2.9 million (3.1% share).
Malaysia: Top 10 Wooden Frame Export Destinations in 2020*
Wooden frame was the 10th largest export from Malaysia
in value term in 2020 at RM91.8 million (-27.7% year-
on-year) and ranked 6th globally. About 70.1% share of
the export of wooden frame from Malaysia went to the
United States at RM64.3 million. Australia was the next
top export destination at RM13.9 million (15.1% share),
followed by New Zealand at RM2.7 million (2.9% share),
Japan at RM2.6 million (2.9% share), Canada at RM1.4
million (1.5% share), Singapore at RM1.3 million (1.4%
share), Croatia at RM0.9 million (1.0% share), Hong Kong
at RM0.9 million (1.0% share), Belgium at RM0.8 million
(0.9% share) and the United Kingdom at RM0.8 million
(0.8% share).
Total Export: RM91.8 Million
*Sources: DOSM & MTIB
2020 ANNUAL REPORT 22
Outlook 2021
The World Economic Outlook report by the International Monetary Fund (IMF) in April 2021 projected the global growth in 2021 to
be at 6.0% before moderating to 4.4% in 2022, both of which have been revised upward from its October 2020 assessment. This is in
anticipation of vaccine-powered recovery in the second half of 2021 and continued adaptation of economic activity to subdued mobility
due to the COVID-19 pandemic.
Closer to home, the World Bank in March 2021 has lowered its gross domestic product (GDP) growth projection for Malaysia to 6% in 2021,
from 6.7% earlier, taking into account the recent increase in COVID-19 infections, political uncertainty and slower-than-expected vaccine
rollouts in advanced economies elsewhere. Meanwhile, the Bank Negara Malaysia in March 2021 has projected the country’s economy to
grow at between 6.0% and 7.5% in 2021. The development of the COVID-19 pandemic, the vaccine rollout and the improvement in the
labour market conditions are among the main factors cited to be shaping the recovery.
Malaysia recorded a contraction of 0.5% in the first quarter of 2021, a sign of recovery from a decrease of 3.4% in the previous quarter
with improvement seen in all economic sectors, especially the manufacturing sector. The government’s decision to allow major economic
sectors to continue operating during a limited lockdown in the first quarter was a key factor behind Malaysia’s better-than-expected
performance over the period.
The timber industry registered encouraging export of RM22.02 billion in 2020, declining just 2.1% from 2019’s RM22.50 billion, thanks
to the approval to operate during the Movement Control Order (MCO) which was first imposed on 18 March 2020. The timber industry
ranked third in the export of agricommodity-based products after palm oil (RM73.25 billion) and rubber (RM48.54 billion). The Ministry
of Plantation Industries and Commodities (MPIC) targets for the Malaysia’s export of timber and timber product to reach RM23 billion
in 2021, with a 4.5% growth.
For the first quarter of 2021, Malaysian timber and timber product exports achieved a 9.9% quarter on quarter growth to RM6.04 billion,
which is 26.2% of the total targeted for 2021. The increase was driven by the increase of exports of wooden furniture (including bamboo
and rattan furniture) at 32.4% valued at RM3.11 billion, BJC at 22.3% (RM286.10 million) and mouldings at 5.8% (RM197.57 million).
While the recovery of both global and Malaysian economies is set to continue in 2021, there are still various risks that may tilt the
growth to the downside. Among these are the duration of the next round of Movement Control Order (MCO) enforced nationwide on
1 June 2021, the operation of the timber industry and its whole supply chain during MCO, the containment measures, vaccination
progress and the impact of government policy measures.
On the upside, the progress in the vaccination rate and infection numbers in Malaysia’s key export markets such as the United States,
Europe, Japan, China and Australia in tandem with the economic reopening and sustained economic post-pandemic recovery may
provide immense business opportunities for the Malaysian timber industry in 2021 and beyond. The shortages of timber raw material
and semi-finished and finished products such as BJC and furniture to complement new building and housing construction will continue
to drive timber commodity prices above the pre-pandemic trendline.
All in all, the performance of the Malaysian timber industry in 2021 will be dependent on the progress of the country in reducing
COVID-19 infection rate, and if successful, will be further exposed to the vast growth opportunity in the economic recovery of its key
export markets.
23 2020 ANNUAL REPORT
OPERATIONS REVIEW
PROMOTE TRADE & ENHANCE
MARKET ACCESS
Participation in Trade Fairs
MTC’s participation in international trade fairs is one of the most cost-efficient ways for promoting Malaysian timber products and
strengthening networking, apart from gathering market intelligence, generating trade enquiries and promoting Malaysia’s sustainable
forestry management policies. Be it through the setting up of MTC Malaysian timber or furniture pavilions or MTC marketplace promotion
exhibition booths in selected market places, MTC’s participation in trade fairs is often combined with a market visit or survey, which
often involves meetings with local companies and timber-based associations. Trade enquiries and market intelligence gathered through
these activities are passed on to the members of the Malaysian timber industry through their associations or debriefing sessions.
Malaysian Timber & Furniture Pavilions
MTC organised the participation of 11 companies in Furniture China’s Digital Trade Show from 8 August to 8 November 2020.
The show report has been disseminated to industry members.
Furniture China 2020.
2020 ANNUAL REPORT 24
MTC Marketplace Promotion
MTC participated in the following trade fairs:
MTC Nepal Wood 2020 15
South
Asia (31 January – 2 February) Trade Enquiries Received
IndiaWood 2020 32
(27 February – 2 March) Trade Enquiries Received
Virtual Fair: 3D Wood 4
and Woodworking Show
Trade Enquiries Received
(7-20 December)
IndiaWood 2020. Nepal Wood 2020.
Interzum Guangzhou 2020 6 MTC
East
(27-30 July) Trade Enquiries Received Asia
19th Xi’an International 3
Furniture Exhibition
Trade Enquiries Received
(17-20 September)
9
Fenestration BAU
Trade Enquiries Received
29 October – 1 November)
Interzum Guangzhou 2020. 19th Xi’an International Furniture Exhibition.
25 2020 ANNUAL REPORT
MTC Virtual Fair: 5
Middle Dubai Woodshow
East Trade Enquiries Received
(7-9 September)
Dubai Woodshow 2020.
Virtual Fair: - MTC
Architect@work Europe
Trade Enquiries Received
(17-20 September)
Architect@work
2020 ANNUAL REPORT 26
Market Visits and Event Attendance
MTC personnel from HQ and Regional Offices carry out regular market visits and surveys, which are important for intelligence gathering,
particularly on the latest innovations, updates and trends for timber products and building materials. This is also an opportunity to
establish local network contact and to reconnect with the industry.
In 2020, MTC undertook three market visits in the following countries: Turkey, USA and UAE. Findings from these visits were
disseminated to the industry either through debriefing sessions or the timber-based associations.
Personnel of MTC HQ and Regional Offices also attended relevant trade-based seminars and briefings in their respective areas of
operations. Findings from attendance at such forums were also channeled to the industry.
Financial Incentive for Participation in International Furniture Fairs (MIFF & EFE)
MTC received a total of 115 applications from the industry and 35 eligible companies were selected to participate under this Financial Incentive.
With the rescheduling of the Malaysian International Furniture Fair (MIFF) and Export Furniture Exhibition (EFE) to 2021, the incentive for
participation in the fairs was extended to MIFF Furniverse 2020, a virtual exhibition by MIFF. Two companies participated in MIFF Furniverse
2020 under this Financial Incentive Programme.
MTC Financial Incentive for Visit to International Trade Shows
Four applications were approved but due to the COVID-19 pandemic and travel restrictions, no submission of reimbursement was received in 2020.
Organising Events/Meetings/Presentations/Briefings
MTC organised the following events and activities in 2020:
MEETINGS
Events/Activities Date
Post-Evaluation Assessment on MWE 2019 27 February
Meeting with EFE on Wood-M 17 March
Meeting with the Malaysian Institute of Interior Design & Malaysian Furniture Council 15 May
VISITS
Events/Activities Date
Eucalyptus Plantation in Johor (17 July) 17 July
Eucalyptus Plantation in Perak (20 July) 20 July
Industry Visit in Penang 6 August
Industry Visit in Klang Valley and Johor 17 August
Industry Visit in Klang Valley 10 September
Industry Visit in Terengganu and Kelantan 13-15 September
Industry Visit in Johor 17-20 September
27 2020 ANNUAL REPORT
Ms. Bindra, President of Interior Designers Association of Nepal during the dialogue.
WEBINARS
Events/Activities Date
Digital Planning “How to Get Started for Micro, Small & Medium Businesses?” 9 July
by Alwin Ang, SmartB Solutions Sdn Bhd
“Create Better Talent Organisation and Automate People Operations” by Effon Khoo, Kakitangan.com 16 July
“Step by Step Guideline to Digitise Your Business” by Vickson Tan, Exabytes 30 July
“Understand the E-commerce Trend That Affects Wholesale Distribution” by Chuah Teong Kee, Boostorder 6 August
“How to Bring Your Business Online in One Day” by Eric Lian, EasyStore 12 August
“How Online Technology Can Grow Your Business” by Neo Wei Jie, Xero 27 August
“How Leveraging on the Power of Social Media and Digital Marketing Can Help Malaysian SMEs to Gain 15 October
New Clients and Markets at Zero Advertising Budget” by Dr. Daniele Gambero, REI Group of Companies
“Building Your Digital Marketing Strategy in 2020 and Beyond” by Amir Haghbin, Wepool Sdn Bhd 22 October
“The Critical Importance of Digital Marketing, Social Media & Content Marketing in the New Normal 5 November
Business Landscape” by Ernie Chen, Life & Business Transformation Strategist
“The Importance of Standing Out Online in A Digital 4.0 World – And How to Do It” 19 November
by Roberto Cumaraswamy, Marketing Consultant
“Riding the Wave of Digital Disruption with Industry 4.0” 15 December
Malaysia-The Netherlands 17 June
Malaysia-Eastern Europe 30 June
Malaysia-China 3 July
Malaysia-Sri Lanka 16 July
Malaysia-UAE 28 July
Malaysia-US 4 August
Malaysia-Saudi Arabia 27 August
Malaysia-Nepal 23 September
Malaysia-US 29 September
Malaysia-Europe 9 December
MTC’s webinar collaboration with SHRDC and MPC. MTC held 10 webinars from July to December 2020.
VIRTUAL B2B
Events/Activities Date
Malaysian timber manufacturers and UAE importers 4 December
2020 ANNUAL REPORT 28
MARKET INTELLIGENCE & NETWORKING
MARKET CORRESPONDENT
To take full advantage of new markets and opportunities, MTC engaged market correspondents for selected major markets with untapped market
opportunities especially where MTC does not have full -fledged representative offices to cover these markets nor the language skills to operate in
them. Quarterly reports of these markets are prepared by the market correspondents and disseminated to the industry members.
MTC renewed the contract of Mr Georges Koo, market correspondent for Mauritius, South Africa, and Africa region from 1 February to 31 December
2020. Mr. Georges Koo was commissioned to prepare market updates on Mauritius and South Africa quarterly and comprehensive reports on two
selected African countries. The quarterly market updates on these two countries submitted by Mr. Georges Koo were disseminated to the timber
associations. Mr Koo was also tasked to carry out MTC related activities and programmes when necessary.
TRADE ENQUIRIES
The following trade enquiries were received by MTC HQ and Regional Offices in 2020:
Received by No. of Enquiries
MTC HQ 15
MTC South Asia 24
MTC Middle East & Africa 19
MTC East Asia 34
MTC Europe 16
MTC Americas 27
All enquiries were attended to and sent to the timber associations for onward dissemination to their members.
TRADE VISITORS AND ORGANISATIONS
MTC HQ and its Regional Offices in Europe, South Asia, Middle East & Africa met with and/or arranged business meetings for 21 trade
visitors and organisations including Malaysian company representatives and importers from India and UAE. MTC East Asia carried out
online promotion and advertising via its official WeChat account which has 1,127 Malaysian and Chinese timber industry members.
NEW PROGRAMME
DESIGN INCUBATOR PROGRAMME
The Design Incubator Programme (DIP) proposal was presented to the IMDC on 25 June 2020 where the meeting agreed to the formation of a Task
Force to finetune the project proposal. IMDC then accepted DIP at its second meeting on 23 July 2020. The project aims to connect local designers/
architects with timber-based and furniture manufacturers to develop Malaysian-made high-value timber-based and furniture products with design
concepts and brand for the international market.
The application for participation in the programme ended on 21 August 2020. The registered designers and manufacturers were pre-matched based
on their choices as indicated in a survey. A meet-and-greet session was organised on 8 September 2020 for the manufacturer-designer pairs to
meet and discuss on their potential collaboration. A total 25 matched pairs had agreed to collaborate to produce and test their prototypes which are
expected to be ready by the end of January 2021.
Design Incubator Programme’s first meet-and-greet session. Designers and manufacturers in deep discussion during the meet-and-greet session.
29 2020 ANNUAL REPORT
EXPAND INDUSTRY’S
MANUFACTURING BASE
ORGANISING OF TECHNICAL SEMINARS/ SURVEYS/ TECHNOLOGY
MISSIONS/ STUDY VISITS/ WORKSHOPS/ RESOURCE MISSIONS
Technology Acquisition and Study Missions are among the avenues for the Council to collect information on, or expose SMIs to the latest
product development, new technology in woodworking machinery and various markets’ technical requirements. MTC’s good relations
with its counterparts in many different regions has enabled the Council to organise many such visits over the years.
Technical seminars, workshops, conferences, briefings and presentations are held regularly to update industry members on government
regulations relating to the timber-based manufacturing sector, new processing technology and products as well as to promote the wider
use of timber and timber products in the building construction sector. These events are either organised by MTC alone or in collaboration
with relevant government agencies and timber-based organisations. Selected speakers are invited to share their knowledge and expertise
during such events.
Technology Acquisition and Study Mission to China (25-30 March)
The mission was aborted due to the COVID-19 pandemic.
Fact-Finding Mission by the Finnish Sawmill Association (17-19 February 2020)
The Finnish Sawmill Association conducted a reciprocate visit to Malaysia from 17-19 February 2020 following MTC’s Resource Business
Mission to Finland and Sweden which was held from 11-18 August 2019.
The objective of the mission was to familiarise with the timber industry in Malaysia and to enhance networking. The mission was part
of their feasibility study in organising a seminar to explore potential areas of collaboration between the two countries. MTC coordinated
meetings with MTIB as well as visits to several factories.
Visit by Finnish Sawmill Association.
MTC TECHNICAL PROJECTS FOR THE INDUSTRY
Two field visits were conducted under the Mechanisation and Automation and Retrofitting Programme.
2020 ANNUAL REPORT 30
PARTICIPATION IN TECHNICAL PROJECTS/ WORKING GROUPS/
COMMITTEES/ CONFERENCES/ FORUMS/ SEMINARS/ MEETINGS
MTC has been involved in many technical projects in collaboration with various agencies. MTC also regularly attends relevant conferences, forums and
seminars to obtain updates on technical matters/requirements that could impact upon operations and market access for Malaysian manufacturers
as well as to provide our views and stance in such fora as appropriate. In 2020, the technical projects and more significant meetings that MTC
participated in were as follows:
Technical Projects/Working Groups/Committees/ Date
Conferences/Forums/Seminars/Meetings
Getting Started with uCustoms 18 February
Seminar on Smart Manufacturing Adoption in Industries 25 February
Briefing on Skim Peningkatan Produktiviti Enterprise (LEAN): Prerequisite for Industry 4.0 27 February
Sirim-KISMEC-Bosch Masterclass Programme on Industry 4.0 11 March
Mesyuarat Jawatankuasa Teknikal Pembangunan Ladang Hutan Bil 1/2020 12 June
Meeting on Inbound Fumigation 19 June
Mesyuarat Jawatankuasa Teknikal Wang Levi Bil 1/2020 29 June
Meeting on Inbound Fumigation 2 July
Briefing on Labour Standards Compliance for Sustainable Supply Chain 29 July
Mesyuarat Jawantankuasa Teknikal Pembangunan 3/2020 12 August
Majlis Perlancaran & Perasmian Perladangan Komuniti, Batu Kikir, Negeri Sembilan 7 September
Mesyuarat Jawatankuasa Teknikal Wang Levi 2/2020 8 September
Program Lean Creanova MTIB 2019 9 September
Bengkel Pembangunan Malaysian Standard berkenaan Formaldehyde Emission Limit for Wood-Based Panels 9-10 September
Mesyuarat Jawatankuasa Teknikal Berkenaan Wood-Based Panels Bil 2/2020 10 September
Mesyuarat Jawatankuasa Teknikal Berkenaan Struktur Kayu 2/2020 11 September
Bengkel Konsultansi Pelan Strategik Industri Perkayuan Negara 2021 – 2025 14 September
Program GMP 5S Creanova MTIB 2019 22 September
Training on Life Cycle Assessment 5-6 October
National Mirror Committee (NMC) on Wood-based Panels (ISO/TC89) 1/2020 10 November
FINANCIAL INCENTIVE FOR PURCHASE OF MACHINERY (FIPM)
FIPM is an MTC financial incentive programme for the purchase of machinery to encourage SMEs of the timber industry in Peninsular Malaysia to
adopt the latest technology in mechanisation/automation in achieving the following:
• Sawmilling and manufacturing of value-added wood-based products of consistent quality
• Improving productivity; and/or
• Reducing labour dependency.
MTC revised its FIPM guidelines effective 1 June 2020 to increase the reimbursement rate and coverage to help mitigate the effects of the COVID-19
pandemic as follows:
Incentive Programme Revised Guidelines*
FIPM 2019 • Reimbursement rate: Increase to 20% (maximum RM50,000)
Machinery must be installed and commissioned in 2020.
• Reimbursement rate: Increase to 20% (maximum RM50,000)
Machinery must be installed and commissioned in 2020.
FIPM MWE 2019 • Reimbursement rate: Increase to 20% (maximum RM50,000)
Machinery must be installed and commissioned in 2020 or by March 2021.
• Extended to non-SMEs with reimbursement rate at 10% (maximum RM50,000)
for the purchase of the machinery at value ≥ RM300,000.
FIPM 2020 •
•
•
Note: * MTC’s Terms and Conditions apply
31 2020 ANNUAL REPORT
MTC received 103 applications for FIPM 2020 with a total machinery value of RM18,862,442.
In 2020, a total of 134 Due Diligence Audit (DDA) visits for FIPM 2019, FIPM MWE 2019 and FIPM 2020 were conducted from January to October.
Due to the rise in COVID-19 cases and the implementation of CMCO, the DDA was conducted remotely since 5 October 2020. MTC
conducted a total of 34 remote DDA visits for FIPM 2019, FIPM MWE 2019 and FIPM 2020 applications.
In 2020, a total of RM2,057,903.63 was disbursed to 64 companies as follows:
Description FIPM
2019 MWE 2019 2020
No. of Companies 35 22 7
Total Disbursement (RM) 1,038,526.88 828,936.46 190,440.29
Productivity Improvement (%) 25 – 1,170 22 – 290 41 – 517
Number of Workers Reduced (pax) 85 32 12
FINANCIAL INCENTIVE FOR CONSULTANCY SERVICE: FACTORY ASSESSMENT FOR AIR
POLLUTION CONTROL (APC)
No applications were received for this incentive in 2020.
FINANCIAL INCENTIVE FOR PURCHASE OF AIR POLLUTION CONTROL (APC) EQUIPMENT
This MTC financial incentive programme was announced on 13 May 2019 to encourage and assist SMEs in the timber industry in Peninsular
Malaysia to comply with CAR 2014. A budget allocation of RM1 million was set aside to provide partial reimbursement of the cost of purchasing
APC equipment. The financial incentive provided is on a “first-come, first-served basis”, until the budgeted allocation is completely utilised in the
particular year.
A total of four companies applied for the incentive and the In-House Working Group (IHWG) approved a reimbursement of RM50,000 for one
company. The other three companies have gone through the DDA during the APC equipment installation and are pending documents for submission.
With effect from 1 June 2020, non-SMEs are also eligible for this initiative.
FINANCIAL INCENTIVE FOR ATTENDING COMPETENCY COURSE IN COMPLIANCE WITH CLEAN
AIR REGULATIONS 2014 (CAR 2014)
This MTC financial incentive was implemented on 13 May 2019 to encourage SMEs to send their staff to attend Competency Course(s) in compliance
with the Clean Air Regulations 2014 (CAR 2014).
Each company is required to have a competent person stationed at each factory to handle Air Pollution Control (APC) Equipment. The designated
staff is required to attend Competency Course(s) conducted by certified training provider(s), go through the certification process and comply with all
the requirements before he/she is certified as a competent person. Competency Courses relevant to the timber industry are as follows:
No. Competency Course
1 Certified Environmental Professional in Bag Filter Operation
2 Certified Environmental Professional in Scrubber Operation
No applications were received in 2020.
FINANCIAL INCENTIVE FOR RETROFITTING MACHINERY
No applications were received in 2020.
2020 ANNUAL REPORT 32
NEW PROGRAMME
ENGINEER PLACEMENT AND INTERNSHIP IN TIMBER INDUSTRY PROGRAMME (EPIP)
The new initiative aims to facilitate small and medium enterprises (SMEs) and non-SMEs to employ professional technical personnel to develop
their career in the timber industry. This is part of human capital readiness in technology adoption towards IR4.0. Communication with the
following higher learning institutions and training providers were made for potential collaboration.
Description Institution Remarks
University UniKL, UiTM, TAR UC, • To brief on Engineer Placement and Internship programmes
UPM, UTHM, IIUM • To discuss on long-term partnership
• MoU
Training Provider SHRDC, MARii, KISMEC, • To discuss on potential partnership in providing training facilities
Johor Skills, PSDC and certified trainers
• Request for Proposal (RFP)
The EPIP will commence in the first quarter of 2021.
Meeting with UiTM. Engagement Session with UTHM.
STUDY ON IMPROVING THE EFFICIENCY OF THE SAWMILLING INDUSTRY
The inaugural Working Group (WG) meeting was held on 1 September 2020 and was chaired by Mr Saw Eng Thai of the Malaysian Wood Industries
Association (MWIA).
The objective of this WG is to explore ideas on how to improve the efficiency and to assist the sawmilling sector to move towards mechanisation and
automation that would gradually reduce their dependency on manual labour and increase output as well as consistency in product quality.
The meeting agreed that high investment is required and that the WG should focus on the “low hanging fruits” which could give immediate benefits/
solutions for the sawmillers due to the uncertainty on the supply of logs.
The meeting agreed that the retrofitting programme on material handling and post-sawing processes would benefit the local sawmillers. MTC will
engage local consultant(s) and machinery fabricator(s) to identify potential areas for retrofitting as well as to design and fabricate the machinery.
Potential items to be included in the retrofitting programme are as follows:
i) Digital size controller for bandsaw
ii) Laser light marker for cross cutting machine
iii) Green line laser for marking (30-40 ft)
iv) Optimiser which caters for small dimensions, i.e., 1” x 2”, 2” x 2”
STUDY ON WOOD-BASED PANELS SUPPLY-DEMAND IN PENINSULAR MALAYSIA
The Study on Supply and Demand of Wood-based Panels in Peninsular Malaysia commenced in October 2020 to identify the status and main product
types produced and demanded by the domestic market as well as identifying critical factors affecting the supply-demand in Peninsular Malaysia. It
will also provide a brief appraisal of the overall trends in the global panel-based furniture market.
Dr. Jegatheswaran Ratnasingam from Universiti Putra Malaysia (UPM) was commissioned to conduct the study. The outcome and recommendation
obtained from this study will be imperative in understanding the current supply and demand and to determine the extension of MTC’s Import
Assistance Programme for wood-based panels. The draft report of the study was submitted to MTC on 29 December 2020.
33 2020 ANNUAL REPORT
AUGMENT RAW MATERIAL SUPPLY
IAP’s DIRECT SOURCING PROGRAMME (DSP) 2020
The objective of the MTC Import Assistance Programme (IAP)’s DSP is to assist local timber manufacturers, particularly SMEs in
Peninsular Malaysia, to import timber raw materials to supplement or augment its supply. Incentives are provided to defray part of the
freight and handling charges.
The total budget allocation for MTC’s IAP 2020 is RM5 million and reimbursement to approved companies was on a “first-come, first-served”
basis. Under IAP’s DSP 2020, a total of RM4,615,170.64 was disbursed to 93 participating companies from 1 January to 31 December 2020. MTC
had approved 116 companies to participate in the programme. Of the 116 companies, 21 companies were new participants and 15 non-SMEs.
Under the IAP MWE 2019, a total of RM141,088.25 was disbursed to four companies. A total of 40 companies were eligible for the IAP
MWE 2019. MTC had approved 10 companies to participate in the programme.
The CIF value of timber purchased was RM148,758,561.05.
IAP FOR PLANTING MATERIALS (SEEDLINGS/PLANTLETS)
The objective of the IAP for Planting Materials is to support the timber industry’s initiative to import planting materials, i.e., seedlings/plantlets for
establishment of forest plantations. This programme aims to promote the establishment of forest plantations of fast-growing tree species for future
sustainable timber supply. No applications were received in 2020.
IAP’s INDUSTRIAL TESTING PROGRAMME (ITP)
The objective of ITP is to encourage the timber industry to diversify its production by utilising timber species from offshore sources that are new to
their production. A total of RM9,059 was disbursed to one company.
ENHANCEMENT OF IAP PORTAL
A discussion with TMS Software Sdn Bhd was held on 29 January 2020 to deliberate on the Change Request (CR) document for IAP. The CR document
was signed on 24 February 2020.
In addition, the Functional Specification Document (FSD) for FIPM Application Module was signed on 17 February 2020. The CR document for IAP
and Application Module for FIPM were patched to the online portal on 1 June 2020.
The revised Functional Specification Document (FSD) for FIPM reimbursement module was signed-off on 18 December 2020 and scheduled to be
completed in April 2021.
IAP AUDIT VISITS
Nine factories were audited during the period in review.
A timber factory during an IAP audit visit. Inspections during an IAP audit visit.
2020 ANNUAL REPORT 34
REPRESENT INDUSTRY’S INTEREST
BUMIPUTERA DEVELOPMENT
The new initiative aims to facilitate small and medium enterprises (SMEs) and non-SMEs to employ professional technical personnel to develop
their career in the timber industry. This is part of human capital readiness in technology adoption towards IR4.0. Communication with the
following higher learning institutions and training providers were made for potential collaboration.
MTC’s OUTREACH PROGRAMME WITH INDUSTRY
MTC organised the following meeting and consultative sessions with representatives of the timber associations in 2020:
Event Date Timber Associations/Industry
Meeting with MWMJC 14 February MWMJC Exco
Online Consultative Sessions with 21 April Presidents/Chairmen of Timber Associations
Timber Associations and key timber 22 April MFC & PEKA
and furniture exporters on MCO 23 April MWMJC
and Post-MCO strategies 23 April MWIA and selected panel-products companies
24 April TEAM
28 April Selected timber & furniture exporters
20 May TEAM
Online Consultative Sessions with representatives 6 October PEKA & MFC
from the six Timber Associations on MTC’s 7 October TEAM, MWIA & MWMJC
Programmes and Activities for 2021 22 October MPMA
Meeting with Timber Associations on 7 December TEAM, MWIA, MPMA, PEKA, MFC & MWMJC
MTC’s Programme and Activities for 2021
Outreach meeting with MWMJC. Engagement with MWIA Committee Members.
Representatives from MPMA during the 7 December meeting. Representatives from MFC during the 7 December meeting.
35 2020 ANNUAL REPORT
Consultative meeting with TEAM. Representative from PEKA dialling in to the 7 December meeting.
ORGANISING OF TALKS AND BRAINSTORMING SESSION
Event Date No. of Participants/ Companies
MTC Budget 2021 13 – 15 August • MTC: 41 staff
Brainstorming Session • Moderators: 2 (invited)
MTC Economic Affairs Talk on 8 October • External participants:
“How the Timber Industry Survives the 46 participants from 35 companies
Covid-19 Crisis? (via Zoom) • MTC: 16 participants
Briefing on Sustainability Issues (via Zoom) 17 December • MTC: 12 participants
MTC Budget 2021 Brainstorming Session.
Online Economic Talk. Briefing on Sustainability Issues.
2020 ANNUAL REPORT 36
GREEN ISSUE MANAGEMENT
PROACTIVE MEASURES
MTC’s proactive measures involve consistent engagement with relevant stakeholders, particularly in Europe. This forms the crux of MTC’s
work to manage issues that have a direct bearing on the Malaysian timber industry. Meetings are regularly held with representatives
from, amongst others:
• Malaysian Embassies in Europe
• Relevant European Government Ministries and member state federations
• European Commission Directorate-Generals for Environment, Enterprise and Market
• Programme for the Endorsement of Forest Certification (PEFC International) and PEFC National Schemes particularly PEFC
UK, PEFC Netherlands and PEFC Germany.
The issues monitored and proactively managed to safeguard Malaysia’s image include the following:
• Monitoring of media reports on illegal logging and deforestation
• Monitoring reports pertaining to Reducing Emissions from Deforestation and Forest Degradation in Developing Countries
(REDD, REDD+)
• Activities of ENGOs and subject matters that they focus on
• The EU Timber Regulation (EUTR)
• Continuously working with industry stakeholders in Malaysia and the EU on the utilisation of the Peninsular Malaysia
Timber Legality Assurance System (MYTLAS Peninsular Malaysia)
• The EU Forest Law Enforcement, Governance and Trade (FLEGT) Voluntary Partnership Agreements (VPAs)
• Timber procurement policies of individual European countries (TPAC/SMK)
• Transparency International’s Corruption Perception index (CPI)
• International Union for Conservation of Nature (IUCN) Red List of Threatened Species
• Nordic Ecolabelling List of Prohibited Tree Species
• United Nations Environment Programme – World Conservation Monitoring Centre (UNEP-WCMC) Malaysia Country Overview
• Chatham House Country Note
REACTIVE MEASURES
MTC’s monitoring and reactive measures are conducted by MTC HQ and its regional offices, particularly MTC Europe. Issues monitored are
not limited to forestry and timber-related matters. Matters that have an indirect bearing on the Malaysian timber industry, like allegations of
forest clearing for the establishment of oil palm plantations and the debate on biofuel and climate change are also actively monitored, be it in
print, broadcast or electronic media. MTC constantly kept MPI and other relevant ministries and agencies abreast of developments in Europe
and elsewhere. Where necessary, information is channeled to agencies like the MTIB, MTCC, Malaysian timber-based associations and related
entities like the Malaysian Palm Oil Council and Malaysian Palm Oil Certification Council.
The following specific subject matters have been closely monitored by MTC in the general and trade-based media:
• Illegal logging and related international trade in illegal timber products
• Legislative efforts on restricting the timber trade
• Biofuel, forest conversion and climate change
• Environmental NGOs’ activities
• EU FLEGT-VPA
• EU Timber Regulation (EUTR)
• Transparency International’s Corruption Perception Index
• IUCN Red List of Endangered Species
• Responsible Purchasing Policies by the Timber Trade Federations / Associations of the UK, The Netherlands, France, Germany,
Italy and Belgium
• Politics of countries with influential ‘green’ parties
37 2020 ANNUAL REPORT
As part of its monitoring of issues relating to the industry, policy and sustainability, MTC also participates in relevant meetings,
conferences, and dialogues. In 2020, MTC attended 25 events which include the following:
• Biodiversity Forum for Business and Private Sector in Malaysia 2020 (7 January)
• Mesyuarat Penyelarasan Penganjuran Mesyuarat APEC EGILAT Ke-17 (13 January)
• Workshop APEC Experts Group on Illegal Logging and Associated Trade Meeting (EGILAT 17) (4-7 February)
• Engagement between FMM members and YB Minister of Water, Land and Natural Resources (KATS) (13 February)
• Seminar Industry Awareness on Life Cycle Analysis (LCA), Carbon Footprint (CFP) and Ecolabelling (18 February)
• First Meeting of the Interim Working Group for the Establishment of the Malaysian Platform for Business and Biodiversity
(MPBB) (19 February)
• Preparatory Meeting of the Fifteenth Session United Nations Forum on Forests – UNFF15 (21 February)
• Seminar on Smart Manufacturing Adoption in Industries (25 February)
• Webinar on MCO: Related Legal Issues & Options for SMEs (15 April 2020)
• Webinar on Dissecting Malaysia's Economic Stimulus Response for the Digital Economy (16 April)
• Webinar on Post-COVID-19 The Change in the Global Furniture Landscape: What is Ahead? (28 April)
• Webinar: Biodiversiti Kebangsaan (21 May)
• Malaysia International Furniture Fair (MIFF) Webinar 2.0: Design for the COVID Era (4 June)
• Mesyuarat Jawatankuasa Teknikal Projek TPIKM: Capacity Building for Compliance with Requirement for Certification
Under MTCS No. 1/2020 (23 June)
• Briefing on the Authorised Economic Operator (AEO) Programme by the Royal Malaysian Customs Department (22 July).
• Industry Consultation on The Way Forward for the CPTPP and MEUFTA (27 July)
• Briefing on Labour Standards Compliance for Sustainable Supply Chain (29 July)
• APEC EGILAT18 Virtual Meeting (25 August).
• Mesyuarat Bengkel Konsultasi Dasar Agrikomoditi Negara (DAKN) (23 September).
• Public-Private Dialogue (PPD) on Understanding Non-Tariff Measures on Agriculture, Forestry and Fisheries Sectors
to Enhance Trade to Improve Rural Development and Poverty Alleviation in the Asia Pacific Region (1 – 2 October)
• 23rd ASEAN Senior Officials on Forestry Meeting (23rd ASOF) & 23rd ASEAN Working Group on Forest Product
Development Meeting (23rd AWG-FPD) (6-7 October)
• 56th Session of the International Tropical Timber Council (ITTC56) (9-13 November)
• 7th Annual Sustainable Tropical Timber Coalition (STTC) Conference (19 November)
• Webinar: National Tax Seminar (SPK) (19 & 23 November)
• The Star Webinar on Forced Labour: The UK, US, and Australian Perspective (17 December)
APEC EGILAT18. 56th Session of ITTC.
CONFERENCES/ SEMINARS/ WORKSHOPS/ MEETINGS/ WEBINARS
Conferences, seminars, workshops, meetings and webinars attended by MTC in 2020 to represent the interest of the industry is
summarised as follows:
Activity No of Meetings
Participation in regional and international conferences/seminars/forums/webinars 19
Participation in local conferences/seminars/forums/webinars 67
Meetings with government agencies (MPIC, KeTSA, MTIB, MTCC, MATRADE, MIDA) 43
Meetings/Networking events (e.g. Annual Dinners, Opening Ceremonies, Factory Visits) 726
with the timber trade associations/companies/traders
Meetings with other related organisations/companies 8
2020 ANNUAL REPORT 38
FEEDBACK/ INPUTS PROVIDED TO MPIC AND OTHER
MINISTRIES/ AGENCIES
Ministry/ Agency Date Timber Associations/Industry
MPIC 16 January Input on Cadangan Promosi Eksport bagi Tahun 2021 (16 January)
22 January Permohonan Nota Ikhtisar dan Nota Percakapan Malaysia – Republik
Demokratik Rakyat Laos
10 February Permohonan Nota Ikhtisar Bagi Hubungan Dua Hala Malaysia dengan Korea Selatan
18 February Permohonan Input daripada Kementerian Luar Negeri: Lawatan YAB Perdana
Menteri Ke Belanda, Bosnia & Herzegovina, United Kingdom Dan Sepanyol
21 February Input on Speaking Notes and Brief for “Malaysia-Norway European Free Trade
Association (EFTA) Member States”
4 March Input on “Endorsed EGILAT 2020 Work Plan and Cross Fora Policy Dialogue
Draft Concept Paper”
9 March Input on “Senarai Export Insentif 2020 yang ditawarkan oleh MTC” for
Workshop to Empower Incentive Coordination and Collaboration Office of MIDA
10 March Permohonan Input daripada Kementerian Luar Negeri - Nota Ikhtisar Ddn Nota
Percakapan Hubungan Dua Hala Malaysia-Hungary
12 March Brief and Speaking Notes for the Courtesy Call on YAB Prime Minister by H.E.
Ambassador of the People’s Republic of China
20 March Permohonan Nota Ikhtisar dan Nota Percakapan Malaysia-China
25 March Input on “UNEP WCMC Malaysia Country Overview”
25 March Input on Speaking Notes and Brief for “Malaysia-Australia Brief on Agri-Commodity”
25 March Input on “Laporan Informasi dan Status Terkini Majlis Kayu-kayan Malaysia (MTC)”
23 March Permohonan Brif Komoditi Antara Malaysia Dengan India
21 April Input on Nota Ikhtisar & Nota Percakapan Hubungan Dua Hala Malaysia
Dengan Belanda
27 April Temubual Eksklusif YBTM 1 Dalam Edisi Perdana @Forest
27 April Zero Draft Fifteenth Session United Nations Forum on Forests (UNFF15)
Omnibus Resolution
28 April Second Draft of Policy Dialogue Concept Paper 1st APEC Cross Fora Policy
Dialogue between ACTWG – EGILAT and SCCP
5 May Review on the Draft Revised Guidelines for Forest Landscape Restoration (FLR)
in the Tropics through Non-Objection Procedures
14 May Revision ASEAN C&I for Legality of Timber
21 May Bantuan/Insentif dalam Bentuk Geran dan Pinjaman yang disediakan oleh
Agensi dan Majlis
21 May Input for “Bantuan/Insentif Sektor Perladangan Dan Agrikomoditi” to MPIC
28 May ASEAN Guidelines for Sustainable Harvest and Resource Management
Protocols for NTFPs
1 June Penggubalan Rang Undang-undang (RUU) Pelaksanaan Langkah Sementara Bagi
Mengurangkan Kesan COVID-19 dan Pelaksanaan Perintah Kawalan Pergerakan (PKP)
18 June Draft Voluntary National Report to UNFF15
9 July Nota Ikhtisar & Nota Percakapan Hubungan Dua Hala Malaysia Dengan Jepun
9 July Maklumbalas Pelan Tindakan Retreat 2020 MPIC
3 August Nota Ikhtisar & Nota Percakapan Hubungan Dua Hala Malaysia Dengan China
17 August Compendium of Resources for the Facilitation of the Trade and Distribution of
Legally Harvested Forest Products in the APEC Region
18 August 18th Meeting of APEC Experts Group on Illegal Logging and Associated Trade
(EGILAT18) - Malaysia’s Intervention for Session III: Impact of COVID-19
Inter-session Works on Policy Theme: “Advancing the Trade and Distribution of
Legally Harvested Forest Products in the APEC region” – Industry Survey
1 September
39 2020 ANNUAL REPORT
Ministry/ Agency Date Timber Associations/Industry
MPIC 10 September Kertas Draf Penubuhan Yayasan Pembangunan Ekonomi Agrikomoditi (YaPEA)
di bawah Kementerian Perusahaan Perladangan dan Komoditi
14 September United Kingdom - Consultation on Due Diligence on Forest Risk Commodities
21 September Cadangan Bidang Kerjasama antara Malaysia dan UK
23 September Nota Intervensi Mesyuarat Ke-23 ASEAN Working Group on Forest Products
Development (AWG-FPD) dan Mesyuarat Ke-23 ASEAN Senior Officials
on Forestry (ASOF)
21 October Input for the Malaysia-Iran Preferential Trade Agreement (MIPTA)
27 October Input for MITI’s Action Plan Formulation Workshop of the Strategic Committee
for Pandemic Management – Working Group 4: Economy & Industry
5 November Nota Ikhtisar Negara Emiriah Arab Bersatu, Turki dan Arab Saudi
13 November Cadangan Kerjasama Malaysia-UK di dalam Bidang Small and
Medium Enterprises (SMEs)
18 November World Trade Organization (WTO) Joint Statement Initiative (JSI) on
Investment Facilitation for Development
19 November Cabinet Memorandum Dasar Perhutanan Malaysia & Dasar Perhutanan
Semenanjung Malaysia
27 November Request for Control of Export Related Charges
22 December Cadangan Kertas Untuk Dibentangkan Dalam Mesyuarat Majlis Negara Bagi
Kerajaan Tempatan Ke-77 (MNKT KE-77)
29 December Kempen Antipersaingan Produk: Senarai Program dan Aktiviti Agensi / Majlis
Sedia Ada dan Sedang Dalam Perancangan Untuk Dilaksanakan
Ministry of International Trade 24 April Post-MCO Economic Recovery Measures
and Industry 30 October Memorandum MITI Dialogue 2020
Ministry of Finance 27 April Input for “Memorandum Bagi Penyediaan Belanjawan 2021” to
Ministry of Finance Malaysia
21 May Memorandum Belanjawan 2021
Malaysia External Trade 3 June Updated MTC’s latest marketing programme on MATRADE’s TPMS
(Trade Promotion Management System).
Development Corporation
3 June Updated MTC’s latest marketing programme on MATRADE’s TPMS
(Trade Promotion Management System).
3 June Provided updates on MTC marketing programme for 2020 to MPIC and MATRADE.
Human Resource 13 July Human Capital and SME Development to Transform the Timber Industry
Development Fund
COVID-19-RELATED INDUSTRY SURVEYS
Two COVID-19-related industry surveys were conducted:
• Online Survey on Impact of MCO to the Malaysian Timber Industry (2 April)
• Online Survey on the Level of Business and Export Operations of the Malaysian Timber Industry (1 June)
The outcomes of the surveys were used to formulate strategies and for press releases. An industry priority list was also compiled for
the Ministry of International Trade and Industry (MITI) and Malaysian Timber Industry Board to assist industry members to obtain
operation approvals during the MCO in March/April.
2020 ANNUAL REPORT 40
MTC CORPORATE SOCIAL RESPONSIBILITY (CSR) INITIATIVES
YB Minister of Plantation Industries and Commodities Dato’ Dr. Mohd. Khairuddin Aman Razali (left) receiving the industry’s contribution from YBhg. Dato’ Low Kian Chuan. Looking on
is Mr. Goh Chee Yew, President of MTA and MWIA. The final total amount raised was RM908,950, which was handed over to MPIC for channeling to the various organisations.
COVID-19 Humanitarian Aid Fund
In March 2020, MTC set up the COVID-19 Humanitarian Aid Fund in collaboration with MWMJC, MWIA, PEKA, MFC, TEAM and
the Malaysian Timber Association (MTA) and over 70 timber-based companies, which together raised a total of RM908,950. MTC
contributed RM250,000, MWMJC (RM150,000), MWIA (RM100,000), PEKA, MFC, TEAM and MTA (RM50,000 each) with the
balance coming from the timber companies.
The proceeds were channeled to the following NGOs, university, and welfare organisations affected by the Movement Control Order (MCO):
Recipients Amount (RM)
Universiti Sultan Zainal Abidin for the COVID-19 Health Assessment and 50,000
Self-Evaluation (CHaSe) System and Services
Yayasan Sunbeams Home 150,000
Yayasan Kasih (Kasih Hospice Foundation) 141,750
Pusat Jagaan Kanak-Kanak Cacat Taman Megah 146,700
Persatuan Prihatin Ummah Malaysia 50,000
Yayasan MyAQSA 50,000
Pertubuhan Pendokong dan Pencinta Ulamak 50,000
Persatuan Syafaqah Ummah 50,000
Yayasan Himmah Malaysia 50,000
Majlis Ittihad Ummah 50,000
Muslim Care Malaysia Society 50,000
Pertubuhan Kemajuan Ekonomi Rakyat Terengganu Darul Iman 45,500
MTC allocated a sum of RM250,000 for the following CSR initiatives in 2020
1. Giving back to Community –RM100,000 for contribution to the community especially charitable organisations and welfare
homes affected by the COVID-19 pandemic.
2. Giving back to Nature –RM50,000 for tree-planting programmes to educate the general public on the importance of the environment.
3. Giving back to Stakeholders –RM100,000 for contribution to help industry players who are affected by COVID-19 and facing hardship.
41 2020 ANNUAL REPORT
Giving back to Community
MTC made contribution to following 10 charitable and non-profit organisations with each receiving RM10,000 as assistance to support
their operations as well as fund their efforts in promoting education for young children and youths and helping the underprivileged:
1. Home for The Children by Rumah Charis
2. Yayasan Anak Warisan Alam
3. Persatuan Kebajikan Alam Sekitar Malaysia
4. Pusat Jagaan Lekshmy Illam
5. Pusat Jagaan Pertubuhan Kebajikan Rumah Kasih Jing Yuan
6. Kompleks Tahfiz Al-Quran & Anak Yatim Al Qaradhawi
7. Pertubuhan Kebajikan Al Abrar Malaysia
8. Malaysian Association for the Blind
9. Pertubuhan Kebajikan Islam Peribadi Mulia
10. National Autism Society of Malaysia
Pertubuhan Kebajikan Al Abrar Malaysia.
Rumah Charis.
Pusat Jagaan Pertubuhan Kebajikan Rumah Kasih Jing Yuan.
Malaysian Association for the Blind.
Kompleks Tahfiz Al-Quran & Anak Yatim Al Qaradhawi. Pertubuhan Kebajikan Islam Peribadi Mulia.
Yayasan Anak Warisan Alam. National Autism Society of Malaysia.
2020 ANNUAL REPORT 42
Pusat Jagaan Lekshmy Illam Persatuan Kebajikan Alam Sekitar Malaysia (Rakan Alam).
Giving back to Nature
MTC pledged RM50,000 to Yayasan Hijau Malaysia, an agency under the Ministry of Energy and Natural Resources (KeTSA) for the
National 100 Million Tree-Planting Campaign as part of its CSR to support and create awareness on the importance of the forest to make
Malaysia green to the public.
Giving back to Stakeholders - Contribution to Industry Members
MTC set-up the MTC Industry Contribution Programme Fund Approval Committee (ICPF-AC) to provide financial assistance to industry
members, including the secretariat staff of the six timber associations who are affected by COVID-19 and to lessen their burden in
instances of unexpected hardships, calamity, and other unexpected misfortunes. Each association has been allocated RM16,700.
Working Visits by Officials from MPIC and other agencies/associations to MTC
In 2020, MTC received official working visits from the following:
• Visit by YB Dato’ Sri Dr. Wee Jeck Seng and YB Tuan Willie Anak Mongin, Deputy Ministers of Plantation Industries
and Commodities, 17 June.
• Visit by Tuan Haji Kamaruzaman Mohamad, Chairman of the Malaysian Timber Certification Council (MTCC), 8 September.
• Visit by Mr. Pubadi Govindasamy, Senior Under-Secretary of the Ministry of Plantation Industries and Commodities’ Timber,
Tobacco and Kenaf Industries Development Division, 15 September
• Visit by YB Dato’ Dr. Mohd Khairuddin Aman Razali, Minister of Plantation Industries and Commodities, 8 December.
MPIC Minister with MTC Chairman and Management Team.
43 2020 ANNUAL REPORT
MPIC Deputy Ministers’ visit to MTC.
MTCC Chairman’s visit to MTC. Senior Under-Secretary of MPIC’s Timber, Tobacco and Kenaf Industries Development
Division visiting MTC.
The following timber associations and organisations paid courtesy
calls on MTC Chairman / Chief Executive Officer:
• High Commission of the Republic of Singapore,
12 November
• The Timber Exporters’ Association of Malaysia (TEAM),
18 November
• Malaysian Wood Moulding & Joinery Council (MWMJC),
1 December
• Malaysian Furniture Council (MFC), 3 December
• LGM Properties Corporation, 10 December
• Yayasan Hijau Malaysia, 14 December
• Malaysian Wood Industries Association (MWIA),
18 December
LGM Properties Corporation’s visit to MTC.
Visit by Yayasan Hijau Malaysia to MTC. Singapore High Commission’s visit to MTC.
2020 ANNUAL REPORT 44
INFORMATION DISSEMINATION
AND MARKET INTELLIGENCE
MTC undertakes several initiatives to send out the right messages and information to the various stakeholders of the Malaysian timber industry
as well as the general public. In 2019, these initiatives include the following:
MEDIA AND CORPORATE RELATIONS
COVID-19-Related Public Notices
MTC has continued to publish notices on its website, Timber Malaysia, TimberNewsline WhatsApp group and social media platforms to
inform the public and the timber industry of MTC’s compliance with the MCO/CMCO/RMCO.
Reminders were also put up to inform the timber industry to adhere strictly to all directives set by the various government ministries/
agencies to contain the spread of COVID-19 as well as to assure overseas buyers of the availability of Malaysian timber products
throughout the MCO/CMCO/RMCO periods.
These notices and reminders were updated as and when to reflect the latest announcements and directives by the government. Below are
a few samples of these notices and reminders:
COVID-19 Awareness Campaign
MTC had participated in the COVID-19 Awareness Campaign under the National Disaster Management Agency or NADMA to distribute
NADMA posters on COVID-19 to timber associations and companies.
NADMA posters at MTC HQ.
45 2020 ANNUAL REPORT
Corporate Communications
MTC continued with its publicity efforts in mainstream media as well as advertise in selected trade magazines and journals as follows:
Mainstream media • 169 articles in the mainstream and
4 press releases online media
10 media interviews
• 8 media broadcasts
Trade magazines, • 39 articles published in specialist
e-journals & billboard
trade magazines and/or e-publications
33 advertisements and journals (local and foreign)
12 articles/advertorials*
Social media • 627 page likes on Facebook
platforms • 136 followers on Instagram
• 83 followers on Twitter
95 postings on MTC social media platforms • 35 followers on Pinterest
• 295 followers on LinkedIn
• 16 subscribers on YouTube
*New advertorials published in 2020: • Amazing Malaysian Kitchen Cabinets
• Floored by Beauty • The Allure of Wood in Furniture
• Malaysia’s Fine Dining Sets
Awareness Campaign
MTC engaged Ar. Azman Zainal to give a talk
on timber in construction to 100 Bachelor
of Science in Architecture students during a
special online lecture on 14 December 2020.
The lecture session was mooted by University
of Technology, Malaysia (UTM)’s Faculty of
Built Environment and Surveying (FABU)
Senior Lecturer and second year students’
coordinator, Ar. Chan Lai Wai.
2020 ANNUAL REPORT 46
MTC’s Instagram posts. Educational posts on MTC’s Instagram
Industry updates on Facebook. Twitter updates.
MTC’s YouTube channel.
47 2020 ANNUAL REPORT
INFORMATION AND COMMUNICATIONS TECHNOLOGY
ICT Unit undertook the following activities/exercises:
Internet Infrastructure Upgrade
The Internet backbone upgrade, which includes laying of fiber optic cables and activation of fiber Internet, was completed on 16
November 2020. Wireless connectivity upgrades, from Wi-Fi 4 to Wi-Fi 6, was completed on 11 December 2020.
Network Attached Storage (NAS)
The NAS hardware was delivered on 23 November 2020 and was successfully deployed on 25 November 2020.
Business Continuity and Mobility (BCP)
A total of 46 new laptops were deployed to staff to ensure that MTC remains operational on premises or remotely.
Website Traffic
The website attracted an average of 2,329 new users per month in the third quarter of 2020 and with an average of 2.14 minutes per
visitor. The top three foreign visitors were from United States, Singapore, and United Kingdom. The most visited pages besides the main
page were Management Team, Trade Information and MTC Profile.
IT SECURITY
Virtual Private Network (VPN)
A VPN solution was successfully deployed and rolled out on 5 October 2020.
Next Generation Anti-Virus and Endpoint Detection & Response
The software has been deployed on all endpoint to combat virus and malware attacks.
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