Summary
• Malaysian companies say customers still see the FSC as the certification “gold standard”.
• The Malaysian MTCS certification programme is developing, but market awareness of the scheme needs to be raised.
• The forest industry says it liaises closely with local stakeholders.

Malaysia’s timber and forestry businesses cover the spectrum, from rudimentary to ultra-modern.

On a two-week fact-finding tour of the sector for overseas press and industry representatives organised by the Malaysian Timber Council (MTC), we saw both, with levels of sophistication varying widely from one company to another.

Watching three men in sandals manually push a huge log towards a band saw is something not easily forgotten. By contrast, in panel mills, health and safety protocol was strictly enforced, with hard hats, earplugs and face masks the order of the day. The technology was more advanced too, with WoodEye scanners, for instance, featuring in automated production lines.

But while this was an eye opener, the principal interest of the tour group, drawn from Europe and Australia, were latest developments in the industry in terms of sustainability, legality and certification.

Many of the companies visited were signed up, or aspired to Forest Stewardship Council (FSC) certification, which they say customers still view as the gold standard.

There was evidence of growing interest in the Programme for the Endorsement of Forest Certification (PEFC) and Malaysian Timber Certification Scheme (MTCS (formerly MTCC)), with the PEFC having now completed a consultation on the inclusion of MTCS under its umbrella. Timber producer Victory Enterprises, for instance, has both FSC and MTCS certificates in its efforts to satisfy increasingly environmentally concerned customers.

However, other companies said there was still a need to raise the profile of the Malaysian scheme to give it real market momentum.

Door producer Ivory Pearl and picture frame manufacturer Classic Scenic said they currently rely on FSC timber as demand for the MTCS brand is still relatively low, providing little economic incentive to back it. The former added that, besides the lack of market pressure for the scheme, it is also hampered by supply-side problems. This, it added, is an area the MTCS needs to address and, without consistent, reliable delivery of timber certified under the scheme, Ivory Pearl will continue to use more expensive imported material.

CPET development

In the UK, meanwhile, comes news which could both raise awareness of the Malaysian scheme and boost acceptance of timber certified under it. Previously the UK government’s Central Point of Expertise on Timber procurement accepted the MTCS as evidence of legality only. But it has now decided that it will be given proof of sustainability status, once proposed revisions are in place.

Gunung Seraya, another wood products company on the tour itinerary, said it is taking a hands-on, proactive approach in nurturing its supply chain to provide certified products. Its own inspections and on-site checks are helping keep suppliers on their toes and raising awareness of the value of certification.

The company said some sawmills still see the chain of custody process as added bureaucracy, but this is changing as the market for legally sourced products grows.

Minister of plantation industries and commodities Peter Chin supported this view, saying businesses which drag their heels will increasingly find it more of a hindrance to remain uncertified than to achieve certification.

VPA signatory

Malaysia is also signing up to a Voluntary Partnership Agreement (VPA) with the EU, a scheme that guarantees European market access to supplier countries that commit to sustainable forest management.

Recent comments from Vincent Piket, European Commission ambassador, indicated that the VPA will be concluded within three or four months. And Mr Chin said that this will also help accelerate uptake of certification.

“The industry increasingly realises the need to ensure its timber is legal and sustainable if it is to play a role in the world market,” he said. “We are trying our best to bring the standards up to levels expected by consumers.”

The industry tour also brought up the issues of stakeholder involvement in logging projects and the rights of indigenous peoples.

Ose Murang, a resident of the Miri region in Sarawak, commented on work under way in the area to establish effective communication between logging companies and indigenous people.

The logging industry, he said, could play a role in helping isolated indigenous groups to access services such as education and healthcare, as well as developing infrastructure across Miri.

He insisted that the views of local people did play a big part in forestry development and that consensus was key, as imposing decisions from above was “counter-productive and caused resentment”.

The MTC’s message to the visiting delegation was that Malaysia’s forestry and timber sectors are committed to progress and development, but based on an understanding of the need to protect and enhance the environment. It praised “progressive companies” working to high standards of sustainability and derided those still turning a blind eye to certification and environmental best practice.