Malaysian forest-based industries in the global economy / H. Norini

The forest-based industries (FBls) in Malaysia have experienced tremendous development over the last few decades. The sector's contributions to the nation's export earnings and creation of employment for the rural poor are substantial. In fact, statistics on export values still list the FBls as one of the three most important sectors, next to petroleum and oil products, in terms of bringing foreign exchange earnings into the country. If one were to trace the development of the FBls in particular and other industries in general, one would realize that direct foreign investment has contributed to such growth. This clearly indicates the openness of the Malaysian economy from the perspective of trade, liberalization of investment, and privatization. As a result, the gross domestic product (GDP) of most goods, including timber projects, has increased. Timber products from Malaysia have faced both tariff and nontariff barriers for decades, in efforts to penetrate the international market. One of the most serious nontraiff barriers that Malaysia has faced over the years is the introduction of bills by local councils in importing countries, calling for a ban on the use of tropical species in public and other development projects. Such a move has affected the overall performance of the FBls in the international arena. With the development of information technology, which allows the movement of information across national boundaries, a more challenging situation of world trade is expected in the future. This paper, therefore, not only highlights the performance of the FBls in different eras but also discusses their future in the context of globalization.