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The National Timber Industry Policy (NATIP)


NATIP is a guiding principle for the development of the timber industry in Malaysia. The policy is the focal point which outlines the way forward for the industry and determines the appropriate policy directions for critical aspects of the timber industry. By adopting the policy, the timber fraternity will be able to align their operations and long term plans according to the strategies prescribed in NATIP and take an active part in the mainstream development of the industry.

NATIP is setting the pace and impetus for the progress of the industry. In a highly globalised timber market, innovation as well as responding to the changing environment in all aspects have been the key differentiating factors to remain competitive. It is therefore important for the industry to have clear development objectives and direction to be successful in the world market.

Policy Direction

The policy direction sets the path for sustainable development of the timber industry in the medium (2015) and the long-term (2020) for acheiving the target of RM53 billion in export earnings. The broad policy directions are:

i. shift the focus of the timber industry from upstream activities to higher value-added downstream activities. Export earnings from the downstream wood products are targeted at 60 percent and 40 percent from primary activities;

ii. raw materials to be managed in a sustainable manner in compliance with the domestic laws and regulations;

iii. the FPP is to be enhanced in order to ensure thet there is a sustainable and sufficient supply of raw materials for the timber industry in the long term;

iv. supplementing the requirement of timber-based industries through imports of timber and maximising the use of available timber resources;

v. the supply of logs to the domestic market is to be given priority in order to ensure that there is adequate supply of logs for the local manufacturers producing timber products;

vi. encourage the timber industry to use alternative materials such as biomass, biocomposite, Kenaf, orchard and landscaping timber to be utilised by the timber industry;

vii. the industry should maximise the use of wood residues from the forest as well as from the activities of the timber industry;

viii. emphasis will be given for downstream activities located in the various economic development corridors to increase and accelerate the promotion of downstream activities;

ix. greater emphasis to be given to HRD, R&D, acquiring state of the art technologies, design and development, branding and ODM;

x. promoting global recognition of MTCC certification of tropical timber;

xi. formulating government policies to mandate the use of certified quality timber that are from legal and sustainable sources of timber in the government projects;

xii. encouraging the consolidation of SME in the timber industry; and

xiii. establishing and enhancing supporting services such as the establishment of Material City, manufacturing support services and Home Ideas Centre.