Behind the advent and growth of these valued added industry is the use of machinery and skilled labour.
The current global timber industry is driven by competitiveness. On one hand, is the intense competition unleashed by the People's Republic of China(PRC) and Vietnam which specialises in low-end products.On the other hand, there is Japan and the Republic of Korea (ROK) which utilises high technology in their production of timber products. For Malaysia which is sandwiched somewhere in between, its status as a a producer of comparative advantage based on cheap labour costs is but over.Its moment of truth is here.
Malaysia needs to reinvent itself if it is to maintain its stature as a major exporter of timber products. The way forward will be through the adoption of technology. The industry must accept the reality that the industry now must be technology-driven. There is no longer any other option. Gone are the days of cheap labour or dependence of foreign labour.
The timber industry community must have an innovative mind. And the premise of an innovative mind is an innovative attitude.
As soon as timber industry players become innovative and forsake quick gains for long term strategic advantage, will we then see them in the driver's seat, spearheading technology adoption into the industry.
A corollary to an innovative attitude is the ability to take on risks. This is required if the nation is to successfully migrate to technology intensive processes.
The timber industry is now at a crossroad. The situation is clear. Malaysia cannot compete with low cost producers like China and Vietnam. It is also no match for the technology-savvy Japanese and South Korean manufacturers. Local labour is not interested in the timber industry while foreign labour is fast disappearing.
What choice do the industry really have but to go technology?
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