The Malaysian Wood Moulding and Joinery Council (MWMJC) represents the downstream timber industry in Malaysia, and as part of its efforts to assist its members in pursuing sustainable growth strategies, engages with them in forum group discussions to discuss matters of common concern and interest, while brainstorming solutions together. One such recent discussion involving members of the wooden moulding and picture frame subsector managed to highlight several points of improvement within the industry, including issues pertaining to shortages of raw materials and labour, ESG implementation, transparency of government fees and charges, and industry-wide branding.
Involving the entire wooden moulding and picture frame ecosystem, focus group participants included representatives from manufacturers, exporters, and installers. There was significant unanimity on many industry-wide issues, providing MWMJC a clear focus on the issues that mattered most.
With regards to the shortage of raw materials, especially timber, MWMJC has taken cognisance of this matter and will be exploring the possibility of using different kinds of timber species, potentially arranging for the use of lesser-known imported species, as well as speaking with industrial tree plantations, especially the ones in Sabah and Sarawak as they have already completed their first harvesting. This will help alleviate the industry-wide raw materials shortage.
MWMJC agrees with its members that in light of the lack of skilled labour within the subsector, there is a need in the short term to retain the current skilled foreign labour, as well as to foster and encourage the development of local skilled labour in the long term. In light of many local university graduates having unrealistic expectations and thus not staying within the subsector for long, MWMJC will work with TVET and other such institutions to come up with apprenticeship programmes leading to clear career paths for young people with an interest in the field. In the meantime, MWMJC will further liaise with other timber-related bodies and the relevant government authorities to increase the length of foreign work permits.
While AI and automation does play a role in reduce the subsector’s reliance on labour, MWMJC acknowledges that due to the current nature of the subsector, which faces a demand of a wide variety of lower-priced products, this role is more limited than if the products were more standardised, streamlined, and higher-cost. MWMJC recommends local solution providers to showcase the latest technologies and systems, helping with customisation to suit the industry players’ requirements.
In addition, MWMJC will also collaborate with the appropriate parties to explore the possibilities of leveraging Malaysia’s international good reputation with regards to timber products, and through an industry-wide rebranding exercise, shift to serve more niche products with fewer but higher-value products that are perceived as higher-class.
To this end, while demand for compliance to environmental, social, and governance (ESG) regulations has been uneven, industry players in wooden mouldings and picture frames recognise that such ESG compliance has significant advantages, especially when it comes to obtaining financing, and in the light of tightening regulations such as the European Union Deforestation Regulation (EUDR). In order to help its members that may find unfamiliarity with ESG requirements and compliance complexities challenging, MWMJC had previously organised ESG seminars and will continue to do so. MWMJC also recommends that member companies can highlight their current and planned ESG-related practices in their public outreach and promotional materials, and point out that they are ‘moving towards ESG’.
MWMJC will also be engaging with other timber-related bodies and the government to increase transparency over various industry-related charges and fees. Many focus group participants have noted that increases and additions to these charges or fees are often not well-communicated, with them finding out any changes only upon payment. Occasionally, these charges and fees are also imposed without adequate prior consultation with industry stakeholders, so better communication here will also be beneficial.
These are some of MWMJC’s conclusions and proposed implementation steps based on the focus group discussions, which will ultimately benefit the building and construction industry. For more information on how MWMJC can keep companies apprised of the latest developments in the field, visit its website at https://www.mwmjc.my/ or call the Secretariat at +603-9283 7893.
