WASTE TO WEALTH:

VALUE ADDED
PRODUCTS
DR. LOH YUEH FENG
FIBRE AND BIOCOMPOSITE CENTRE (FIDEC)
MALAYSIAN TIMBER INDUSTRY BOARD

1
PRESTASI INDUSTRI
KAYU-KAYAN

2
CONTRIBUTION OF MALAYSIA TIMBER INDUSTRY,
2015
MARKET
Export : RM 22.14
billion
Domestic : RM 13
billion
INVESTMENT
Total : RM 35.14
billion Domestic:
Export Contribution
RM 654.4 million

2.84 % from FDI : RM 248 million

RM 779.95 billion
WORK FORCE Total:
RM 902.4 mil.
More than 240,000
workers

3
 MALAYSIA: WOOD-BASED MILLS, 2014

MALAYSIA Furniture & wood Sawmills Moulding Plywood/

machining Veneer/ polyply/
3,629 blockboard/
1,001 309 laminated board
1,708
PENINSULA 205
R
2,471

Sarawak
760
Kiln Drying/ Woodchip/ Builders MDF *Others
Sabah Preservation Particleboard/ Joinery &
398 plants
Chipboard Carpentry 13 15
210 / 94 24
50
*comprising pulp & paper, matches, pencil, wooden4pallet
Source : DOSM, JPSM, Sabah FD,MID Sabah, STIDC
 6.5%

5
Sumber: DOS & MTIB
 MALAYSIA : EXPORT OF MAJOR TIMBER PRODUCTS, 2015

Other Products Logs

Rattan Furniture
RM1.01 Bil RM2.02 Bil
RM31 Million
(4%) (9%)
(0.1%)

Sawntimber
Wooden Furniture RM 3.17 Bil
(14%)
RM7.28 Bil
(32.9%)
Plywood
RM4.69 Bil
(21%)

Builders Joinery & Carpentry

RM1.11 Bil
(5%)
Veneer
Wooden Frame
Fibreboard RM352 Million
RM129 Million
RM1.13 Bil Mouldings (2%)
(1%)
(5%) RM832 Million
Chipboard/Particlebrd (4%)
RM371 Million
(2%)

Total: RM 22.14 Billion6

Sumber: DOS & MTIB
BAHAN MENTAH GENTIAN DI
MALAYSIA
FIBRE RESOURCES IN
MALAYSIA
 SOURCES OF
WOOD/FIBRE FOR WPC
INDUSTRY

Rubberwood ~ 9.3
mill. m3/yr

Bamboo ~ 8.6
mill. Culms/yr

Forest and wood residues

~ 10 mill. m3/yr
 Biomass

540,000 tonnes
11,602 tonnes stem
Rice husk
Kenaf

18 million m3 trunk
9.2 million tonnes

Oil palm stem Empty Fruit bunch

10
OIL Palm Biomass

18 million m3 trunk/yr

43 million tonnes
Oil Palm Fronds
11
OTHER RAW MATERIALS

Sugarcane
bagasse
Bamboo

Kenaf

12
Mill residue
 RAW MATERIALS FOR
BIOCOMPOSITE
Forest Resourses / Biomass
Log Production from natural forest 4.2 million m3/yr
Plantation program (Rubber, 3- 8.6 million m3 (2002-2030)
Acacia, Laran)
Oil Palm Biomass 18 million m3 trunk/yr
- Frond 43 million tonnes/ yr
-Empty fruit bunches 9.6 million/yr
Rick husk 540,000 tonnes/yr
Kenaf (stem)-Actual 11,602 tonnes/yr
Bamboo 8.6 milllion culm/yr or
51,600 m3/yr
Source : Buku perangkaan JPSM 2014, MTIB, MPOB, JPSM, National Biomass
Roadmap, BERNAS, LKTN as at 2015

14
14
PENGKOMERSILAN R&D
VALUE ADDED PRODUCTS

15
 MALAYSIA: BIOCOMPOSITE EXPORT 2010-2015
6000

5000
EXPORT VALUE (RM MILLION)

4000

3000

2000

1000

0
Plywood Veneer Chipboard/ Fiberboard WPC
particleboard

Plywood Veneer Chipboard/ particleboard Fiberboard WPC

2010 5147 338 228 1202 1.7
2011 5103 321 337 1128 4.4
2012 5137 333 339 1149 6
2013 5323 287 343 1054 0.4
2014 5202 305 341 1058 0.6
2015 4690 351 371 1133 0.5

16
Source: MTIB
 Cement Bonded Composites

Fibreboard Particleboard Fibre Reinforced Plastic

Veneer-based material Composites (FRPC)
~Insulating board
~Plywood ~Medium density
~Laminated veneer fibreboard (MDF) Oriented Strand Board
Agricultural Fibre Composites
lumber (LVL) ~Hardboard (OSB)

NATURAL FIBRE
17
A. DEVELOPMENT OF OIL PALM TIMBER FROM OIL PALM TRUNK (OPW)

B. DEVELOPMENT OF HIGH-GRADE OIL PALM STEM PLYWOOD FOR

EXPORT MARKET

18
18
Prototaip Perabot daripada Papan Lapis Batang Kelapa Sawit (OPT)
C. Research on The Development of Sandwich Panel for Interior Aircraft
Application

D. Development of New Coating Material and Leather Tannery using

Tannin Extracted from Acacia Wood Bark

20
20
Pengujian Leather Tannery di SILVA TEAM, Italy, 2012
ALTERNATIVE MATERIAL IN
CONSTRUCTION
WOOD PLASTIC COMPOSITE
WPC Products and Its Applications

DECKING
BROADWALK & HANDRAIL
OUTDOOR PRODUCTS
AUTOMOTIVES & OTHERS
 FORECAST OF OIL PALM TRUNK
SUPPLY IN WOOD-BASED INDUSTRY
 Availability of Oil Palm Trunk

Availability of oil palm tress 2015-2031 = 18 million logs/year

Source: MPOB 28
28
 BUSINESS POTENTIAL

HOW MUCH PLYWOOD CAN BE

PRODUCED ?

1 ha = 136 trees
Use 18 feet length = 0.387 m3
1 ha = 53 m3 (logs)
With 60% of recovery for plywood, the output will be 32 m3 of
plywood/ha
Taking into consideration the current price of palm plywood 1 m3
oil palm plywood = RM1,100
Generates an additional income around
RM35,200/ha
130,000 ha x RM35,200 = RM4.5 billion/year
1 m3 tropical plywood = RM1,759

29
29
 BUSINESS POTENTIAL

HOW MUCH PALM TIMBER CAN BE

PRODUCED ?

1 ha = 136 trees
Use 9 feet length = 0.19 m3
1 ha = 26 m3 (logs)
With 25% recovery for sawn timber, the output will be 6.5 m3 of
sawn timber/ha
Taking into consideration the price of palm timber at RM2,200 per
m3.
Generates an additional income around 1 ha = RM 14,300
130,000 ha x RM14,300 = RM 1.9 billion/year
The selling price is similiar with Kembang semangkuk and
Melantai around RM2,100 RM2,200

30 30
 Forecast of Oil Palm Trunk Supply, Plywood and Sawn Timber production
in Malaysia from 2015 to 2032

Year

2015 ~ 2020 2021 ~ 2026 2027 ~ 2032

Area due for

593,528 958,925 805,892
replanting (ha)

Number of felled oil

80,719,808 130,413,800 109,601,312
palm trunks

Amount of plywood
19 Million 31 Million 26 Million
produced (m3)

Value Plywood (RM) 21 Billion 34 Billion 29 Billion

Amount of Sawn
Timber Produced
(m3)
4 Million 6 Million 5 million

Value Sawn Timber

(RM)
8.8 Billion 13 Billion 11 Billion
31
Source: MPOB and MTIB 31
 MARKET POTENTIAL

It is estimated 18 million stems available

every year

Based on 18 MILLION stems, about 4.5

million m3 of OPS plywood can be produced
each year.

Export market: United States, United

Kingdom, and Japan Due to its environment
friendliness, lightness, and easy to work
with.

32