INTERNATIONAL TROPICAL TIMBER ORGANIZATION

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ITTO

PROJECT DOCUMENT

A COMPREHENSIVE INFORMATION SYSTEM FOR SUSTAINABILlTY OF THE WOODEN FURNITURE INDUSTRY IN MALAYSIA

PD 192/03 Rev.3 (M)

ECONOMIC INFORMATION AND MARKET INTELLIGENCE

GOVERNMENT OF MALAYSIA

ENGLISH

The growing importance of the wooden furniture industry in the export structure of the Malaysian economy is encouraging. From a mere RM 58.8 million in, 1988, the export value grew substantially to more than RM 3.9 billion in 1999 and RM 4.4 billion in 2000 but declined to RM 3.8 billion in 2001 (Ministry of Primary Industries, 1990 & 2000; Malaysian Timber Industry Board, 2001; Malaysian Timber Council, 2002). The excellent performance of the wooden furniture industry in the past is closely related to the abundant rubberwood supply, low labour cost, and demand in the international market. Nonetheless, overdependence on rubberwood as a source of raw material, together with an ever-increasing demand by other industries such as medium-density fibreboard, is likely to pose keen competition for future industrial expansion. The predominantly low linkage indicators indicated by most forest-based industries (FBls), with much higher value for the furniture and fixtures industry from empirical research, suggest that the furniture and fixtures industry forms an important bridge between the isolated cluster of FBls and the rest of the economy (Norini, 2000). Sustaining the development of the furniture and fixtures industry would not only help sustain the development of the existing industries but also help encourage development of other potential industries in the FBts. The small project proposal aims at developing an information system on supply and demand for sustainable development of the wooden furniture industry in Malaysia. Such an information system will assist policy makers with better information for future development of the industry, provide market information for international and local buyers on who produces what and where, and assist industrialists in better planning of industrial expansion.

IMPLEMENTlNG AGENCY:

DURATION:

BUDGET AND PROPOSED SOURCES OF FINANCING:

FOREST RESEARCH INSTITUTE MALAYSIA

24 MONTHS

SOURCE ITTO

Govt. of Malaysia

TOTAL

CONTRIBUTION IN US$ 121 072

14552

135624

Table of contents

PART I: CONTEXT

1. Origin 2. Sectoral Policies 3. Programmes and Operational Activities

PART 11: THE SMALL PROJECT

1. Project Objectives 1.1 Development Objective 1.2 Specific Objective 1.3 Brief Description of the Comprehensive Information System (CIS)

2. Justification 2.1 Problems to be addressed 2.2 Intended situation after project completion 2.3 Project strategy 2.4 Target beneficiaries 2.5 Technical and scientific aspects 2.6 Economic aspects 2.7 Environmental aspects 2.8 Social aspects 2.9 Risks

3. Outputs 3.1 Specific Objective 1

Output 1 Output 2 Output 3 Output 4 Output 5 Output 6

4. Activities 4.1 Output 1

Activity 1. 1 Activity 1.2 Activity 1.3 Activity 1.4

4.2 Output 2 Activity 2.1 Activity 2.2 Activity 2.3

4.3 Output 3 Activity 3.1 Activity 3.2 Activity 3.3

4.4 Output 4 Activity 4. 1 Activity 4.2 Activity 4.3

4.5 Output 5 Activity 5.1 Activity 5.2 Activity 5.3

4.6 Output 6 Activity 6.1 Activity 6.2 Activity 6.3

5. Logical framework worksheet

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6. Work Plan 7. Budget

7.1 Project budget by activity 7.2 Project budget by source

PART Ill: OPERATIONAL ARRANGEMENT

1. Management structure 2. Monitoring, reporting, and evaluation 3. Future operation and maintenance

PART IV: TROPICAL TIMBER FRAMEWORK

1. Com pliance with ITT A 1994 Objectives 2. Compliance with ITTO Action Plan 3. References

ANNEX(ES)

A. Profile of the Executing Agency B. Curriculum Vitae C. Terms of reference of key staff D. Modifications as suggested by Panel E. Letter of Undertaking

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26 27 - 32 33 - 34

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PART I. CONTEXT

1. ORIGIN

The development of a comprehensive information system on supply and demand is a new attempt to sustain future development of the wooden furniture industry in Malaysia. The small project proposal is put forward based on the issue of overdependence on rubberwood of between 70% and 80% as a raw­material supply, as indicated by the wooden furniture industry (Ser, 1990; Malaysian-German Chamber of Commerce and Industry, 1999). The issue of keen competition over the rubberwood resource by other consumers, especially medium-density fibreboard producers, also has prompted the need to have a more holistic view of the demand of all users.

In Malaysia, even though several researchers have conducted assessments on the supply and demand of the furniture industry, the information gathered still is not considered substantial enough to provide the true scenario of the wooden furniture industry. The information available is not only scanty but also is usually focussed on a cross-section of a particular year, which is incapable of rendering assistance for future planning on policy directions of the so-called industry.

2. SECTORAL POLICIES

The small project proposal is in line with Malaysia's Second Industrial Master Plan (1996-2005), which aims at sustaining the performance of the wooden furniture industry as one of the leading export-earning industries in FBI activities.

The information base to be developed consists of two major systems, i.e., raw material resources and demand of the wooden furniture industry in Malaysia. The first subsystem provides detailed information on the availability of raw material, whereas the second subsystem reveals the cost of production for certain selected products, operating capacity, species used, market opportunity, and other pertinent issues raised by w'ooden furniture manufacturers. Establishing such a comprehensive information base on demand and supply would further assist in implementing the Second Industrial Master Plan.

The collection of information on other timbers (underutilized or lesser-known species) or nontimber materials suitable for used in the wooden furniture industry is also consistent with the Malaysian National Forestry Policy (MNFP) of 1978 (revised in 1992), which encouraged the use of such materials in production. Such efforts also help relieve stress on the demand of timber from the natural forests, where timber production has to be stabilized at a sustainable level of 18 million m3

, in line with recommendations by the International Tropical Timber Organization (ITTO).

3. PROGRAMMES AND OPERATIONAL ACTIVITIES

The small project also complies with the implementation of the MNFP of 1978, revised in 1992. The MNFP, which centered implementation of sustainable forest management on the nation's permanent forest estate (PFE), also is consistent with efforts to regulate the supply and demand of timber in perpetuity for the forest-based industries, besides ensuring maximum utilization of the resource.

The small project, therefore, will complement the past effort of a model project for cost analysis to achieve sustainable forest management sponsored by ITTO. Even though initially the small project will focus only on the wooden furniture industry, the success of establishing such an information system may be further extended to cover all sectors of the FBls in Malaysia.

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PART 11: THE SMALL PROJECT

1. PROJECT OBJECTIVES

1.1 Development Objective

The small project aims at setting up a comprehensive information system that ensures future sustainability of the wooden furniture industry in Malaysia.

Sustainability of the forest-based industries is in accordance with the Malaysian National Forest Policy, 1978 (revised 1992), and with the ITTO mandate and objectives.

1.2 Specific Objective

To develop a comprehensive information system (CIS) for enhancing the statistical data on the supply and demand for rubberwood in Malaysia.

The CIS involved two systems, called the rubberwood resource information system (RRIS) and the wooden furniture information system (WFIS), at the national level.

1.3 A Brief Description of the CIS

i) Administrative information

Data that are needed include licensed wooden furniture and other rubberwood-related companies, companies registered with the Registrar of Company Malaysia (ROCM), companies in the process of getting permits or licenses for operation, and import and export data.

ii) Economic information

The related information that is required includes wooden furniture industry productivity, cost of production for selected products, and primary input content (i.e., labour, capital, and imports). All of this information will be collected through surveys and is expected to assist in the formulation of a better industrial policy.

In the process of developing the CIS, which consists of two systems, namely, the rubberwood resource information system (RRIS) and the wooden furniture information system (WFIS), there is a need to train at least two forestry personnel from each of the 13 states in Malaysia. The forestry personnel are to be trained in data collection, as well as in processing and disseminating the information.

2. JUSTIFICATION

2.1 Problems to be addressed

Early growth of rubberwood-related industries in Peninsular Malaysia began in the late 1970s, when the so-called wood from the rubber trees was first converted into chips and marketed to Japan. With the abundant area planted with natural rubber, coupled with its newly discovered potential, the number of rubberwood-related industries, such as moulding, particleboard, giftwares, and wooden furniture and furniture components, increased.

This has led to the problem of overdependence of the wooden furniture industry and other rubberwood­related industries on rubberwood as a raw-material supply. The issue of overdependence on rubberwood has been raised by many writers and has been estimated to be in the region of 70% to 80% (Ser, 1990; Malaysian-German Chamber of Commerce and Industry, 1999). To ensure sufficient supply, especially for local furniture manufacturers, the Government of Malaysia had to impose both export quotas and levies in 1990 (Planet Ark, 2002).

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The growing importance of wooden furniture and furniture components can be traced from the amount of export value collected yearly. For example, from a mere RM 58.8 million in 1988, the export value grew substantially to more than RM 3.9 billion and RM 4.4 billion in 1999 and 2000, respectively (Malaysian Timber Industry Board, 2001; Ministry of Primary Industries, 1990, 2000). However, export earnings amounted to only RM 3.8 billion, in 2001, a decrease of more than 13.6% over the previous year (Malaysian Timber Council, 2002). The decrease in export value was due to the slow global economic recovery after the tragic incident hat hit the United States of America (USA) on September 11, 2001. The wooden furniture manufacturers were directly affected by this incident, as the USA is the major importer of Malaysian furniture, followed by Japan, Australia, and Europe. Because of the slow world economic recovery, which indirectly dictates the demand for Malaysian wooden furniture, the supply of rubberwood sawn timber exceeded local demand. The levy, which was imposed on rubberwood sawn timber for export, was reduced by half, from RM 120/m3 to RM 601m 3

, effective February 1, 2002, to overcome the glut in the local market (Forest Conservation Portal, 2002; Planet Ark, 2002;).

The excellent performance of the wooden furniture in the past is attributable to abundant supply of rubberwood logs, low labour cost, and demand in the international market. In fact, the supply of rubberwood is highly affected by the area replanted or newly planted with natural rubber, changes in land use, and other developments. To date, the total area in Malaysia planted with natural rubber stands at almost 1.39 million ha, compared to more than 1.84 million ha in 1990, a decrease of more than 24.5% over the last 11 years (Ministry of Primary Industries, 2001). As the area under rubber continues to decrease, availability of rubberwood for further processing is also affected. To keep track of the supply situation, projection after projection on the availability of rubberwood in Peninsular Malaysia has been made, not only by researchers, but also by other related parties. PrOjections on the supply of rubberwood in the late 1980s and early 1990s from the Peninsula include Khoo et al. (1987), Norini et al. (1990), and Ismariah and Norini (1994); the most recent projections were by Mohd. Nazuri et al. (2000) and Norini et al. (2001). All past prOjections on rubberwood, except those by Ismariah and Norini (1994) and Norini et al. (2001), related the supply to the demand. Because of a lack of documented data, the demand for rubberwood by the wooden furniture and furniture components and other rubberwood-related industries, was based entirely on estimates. The process of estimation has beoome much more difficult because the consumption of rubberwood logs especially by sawmills has not been monitored by the Forestry Department, Peninsular Malaysia, after 1997. In fact, the collection of royalties for rubberwood logs was abolished in 1994 by some states, and by others in 1997, to further encourage their logs utilization for downstream processing locally. This also means that, to be able to estimate the demand of primary processors, such as sawmills, collection of data has to be at the individual mill level.

To date, no data monitoring has been done on Class C mills, i.e., furniture manufacturers licensed to process rubberwood logs and all types of mills that use rubberwood as a raw material. Such a situation means not only that there is a lack of statistical data to be used in long-term planning for the development of the wooden furniture industry in particular, but also that such data as are available are less reliable because they are based on pure estimates. Hence, this small project is not intended to eliminate the existing problems of data collection or the inability to keep track of large numbers of files, but rather to create a totally new database for the wooden furniture industry at the national level.

Looking at the cost structure of the furniture industry in general, the raw material is said to constitute more than 66% of the total cost of production (Saroni, Mohd Shahwahid, & Salleh, 1994). This means that, should anything happen to rubberwood, the whole wooden furniture industry will collapse unless early measures are taken to remedy the situation. Furthermore, because the wooden furniture industry is not the sole user of rubberwood, and because demands of other rubberwood-related industries such as medium-density fibreboard, plywood, particleboard, and cement-bonded board are continuously growing, the need to monitor the demand of all users is crucial. Therefore, before any policies aiming at sustaining the development of the wooden industry are recommended, an in-depth assessment of the current as well as future supply of and demand for rubberwood by all users is needed. The development of the two systems, namely the rubberwood resource information system (RRIS) and the wooden furniture information system (WFIS), is expected to enable the Department of Forestry to keep track of the supply and demand of rubberwood, production, and exports of the wooden furniture industry more effectively.

Through empirical research, the furniture and fixtures as an industry in Malaysia had been recognized as having both high forward and backward linkages. In fact, the predominantly low linkage indicators indicated by most FBls, with a much higher value for the furniture and fixtures industry, suggest that the furniture and fixture industry acts as an important bridge between the isolated cluster of FBls and the rest of the economy (Norini, 2000). This means that the effort to sustain the future performance of the furniture and fixtures industry as a whole and the wooden furniture industry in particular would also help sustain other forest-based industries in Malaysia. In addition, developing the furniture and fixtures industry would

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also help the development of other potential sectors of the FBls. Because there is a lack of current information on the wooden furniture industry in Malaysia, it is highly timely that there should be an institution or agency responsible for monitoring the more than 2,800 wooden furniture manufacturers, whose contribution to export earnings is second only to that of the plywood/veneer industry.

2.2 Intended situation after project completion

The sustainability of the wooden furniture industry has been the focus of interest by most parties in Malaysia. To ensure that the potential of the wooden furniture industry in the country is fully explored, policy after policy has been adopted. Nevertheless, without full understanding of the supply-and-demand situation of the wooden furniture industry and other rubberwood-related industries, a newly introduced policy may not solve but rather further aggravate the existing problem.

The small project will cover several areas of interest, including rubberwood log supply from the estate and smallholding sectors, mills' background, consumption, production, types of machinery used, and sales in both local and international markets for wooden furniture and other rubberwood-related industries. All of the collected information will form a CIS, which is urgently needed, as current available information is not only scanty but also insufficient for future planning of the wooden furniture industry.

The projected supply of rubberwood derived from CIS will assist not only wooden furniture but also other related industries with long-term planning of expansion in industrial capacity. Because the small project is also intended to cover, if possible, the other two states of East Malaysia, i.e., Sabah and Sarawak, the information package that is developed will provide valuable and comprehensive information for industrialists and policy makers alike.

Because the intended small project will cover not only rubberwood as a raw-material supply, information collected for other species as a supplement to rubberwood will be useful to wooden furniture manufacturers. Besides, the system to be developed is also intended for a wider audience, which should facilitate better trade. Four of the six outputs expected from the small project are as follows:

(a) A software on the rubberwood resource information system (RRIS) (b) A software on the wooden furniture information system (WFIS) (c) Comprehensive information system software for the wooden furniture industry (d) Users' manuals for CIS, RRIS, and WFIS

Both the RRIS and the WFIS will be user-friendly expert systems. The two systems software's produced from the small project will act as guides for developing comprehensive databases on both supply of and demand for rubberwood for the furniture industry. Such systems will also facilitate data compilation and processing. Users' manuals will also be produced to assist with access to and effective use of three different software programs, namely, CIS, RRIS, and WFIS.To ensure that the benefits of the small project are shared, a similar system may also be introduced to other interested parties from the tropical­timber-producing countries.

Two other outputs from the small project are technical reports (i) current and future supply and demand of rubberwood and other species for the wooden furniture industry in Malaysia and (ii) Technical report on wooden furniture industry productivity, cost of production for selected products, primary input content, and policies for sustainability. Above all, the small project will form a platform for further development of the national data base on timber production and processing, as well as domestic and international markets for timber products.

2.3 Project strategy

The current development of the wooden furniture and other rubberwood-related industries, without paying attention on the supply and demand, may result in unsustainable performance of those industries. The comprehensive information system covering both supply and demand to be developed in this small project will provide an equal opportunity for furniture manufacturers and other rubberwood-related industries to stay ahead in the domestic and international markets.

Full cooperation from wood-industries associations (e.g., the Malaysian Furniture Association, the Malaysian Wood-Based Panel Association, etc) , furniture manufacturers, and other rubberwood-related manufacturers would provide an excellent opportunity for the formation of the CIS.

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To guarantee that the collection of information at the individual-mill level runs smoothly, selected uniform staff from the Forestry Department in various districts/divisions will be trained. Such training is necessary to ensure that the staff know the data to be collected besides ensuring continuity of data collection after the small project ends. Early involvement of interested parties and targeted beneficiaries, i.e., from planning through implementation, will ensure the success of the proposal/small project. The various Forestry Departments, the Malaysian Furniture Association, and the Malaysian Timber Industry Board will be consulted and actively involved in the following activities:

• Designing a system to collect data on demand for rubberwood by the wooden furniture industry and other rubberwood-related industries

• Developing the different modules of RRIS, WFIS, and CIS • Developing users' manuals for RRIS, WFIS, and CIS • Testing and training of staff in using the different softwares

An example of the letter of undertaking is attached in Annex E.

2.4 Target Beneficiaries

The target beneficiaries of the small project are as follows:

1. Ministry of Primary Industries - Outputs from the small project will provide comprehensive guidance for policy/decision makers, especially with regard to future development of the wooden furniture industry.

2. Wooden furniture and other rubberwood-based industries - Benefits from the project include offering manufacturers comprehensive

information on supply and demand, and providing guidelines for continuous development of the industry. The comprehensive rubberwood information system (CIS) developed from the project will provide manufacturers with first-hand information on availability of rubberwood by state.

3. Rubber smallholders--The small project will provide new incentives for them to explore their untapped rubberwood resources.

4. Forestry Department--The small project will help train field staff to collect, collate, and monitor information. Output from the small project also will provide new information for species selection.

5. Other ITTO member countries--The two systems developed in the small project will be extended for use in ITTO member countries.

6. International and local buyers--Outputs from the small project will provide first-hand information on who produces what and where in the wooden furniture industry. This will facilitate trade, not only between ITTO member countries but also with other international buyers.

7. Forest Research Institute Malaysia (FRIM)--The small project will help in building the institute's capacity, especially in setting up and monitoring the information system.

2.5 Technical and scientific aspects

Early estimations of the supply of green rubberwood logs were based on 180 m3 per ha for both the smallholding and estate sectors (Ismariah & Norini 1994; Khoo et al., 1987; Norini et al., 1990). However, it is well known that the volume of green rubberwood logs from the smallholding sector is, on average, less than that from the estate sector because of injuries during tappin~; thus, a volume of 100m3 per ha was assumed (Norini et al. 2000). Much higher volumes of 220 m and 180 m3 for the estate and smallholding sectors, respectively, were assumed by Nazuri et al. (2002). Because the volume of green rubberwood logs is based on either an estimate or personal communications, the small project intends to conduct a study on the volume of green rubberwood logs available from a hectare of rubber area open for replanting from the smallholding and estate sectors. A few sites from the estate sector and agencies responsible for replanting will be chosen. A similar question on the volume of green rubberwood per ha will also be included in the questionnaire for the sawmills and other industries that carried out their own logging of rubberwood logs. Such an approach will assist in the process of cross-checking with data obtained from experienced loggers.

As stressed in section 2.1 of this small project proposal, the demand for rubberwood by the wooden industry and other rubberwood-related industries was based entirely on estimates of installed capacities.

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However, the actual processing capacity of a mill usually is different from the installed capacity, depending on the types of machinery available. Using the installed capacities of mills as the yardstick for measuring may lead to overestimation or underestimation of the demand for rubberwood by the industries. Therefore, the approach of collecting consumption data for those individual mills that directly consumed green rubberwood logs would reflect the true demand of those industries. The collection of data on sizes of rubberwood usually consumed by the various industries may also help policy makers in drafting practical strategies for future use of rubberwood by other industries.

Basically, the CIS will be developed using the Microsoft Access Database software. It is expected that the program can be run on a personal computer (486 or higher processor) with at least 16 MB RAM and under the Microsoft Windows 95/98 system. A minimum of four modules will be developed for the WFIS system. The four modules are (a) the input and processing module, (b) the data-validation module, (c) the information-update module, and (d) the report module (Figure 1). The input and processing module enables users to validate data on the spot. In this module, all information concerning the wooden furniture mills will be recorded, namely, the name of the furniture mill, state code, month, species used, and so on.

The data-validation module helps users ensure immediately that the data collected are "clean." For instance, double entry of the same furniture mills can easily be detected through this module. The information-update module allows users to update information on the wooden furniture mills.

The report module is the most important of the four modules. Through the use of this module, the types of reports that users desire can be generated. Examples of such reports are a yearly report on wooden furniture production by state, a yearly report on wooden furniture export, information on furniture mills, and other related reports that users need .

................... w,f.!§ ....................... .

Forms received from DFO

Sorting

Coding

Data capture

Data validation

Reports generation

Reports can be generated immediately after data capture

Figure 1: A general flow chart of the wooden furniture information system (WFIS) Note: DFO denotes District Forest officer

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The RRIS also will consist of four main modules, namely, (a) the rubberwood inquiry, (b) graphs, (c) updating the rubberwood information system, and (d) reference file.

The module on rubberwood inquiry will consist of seven submodules, namely, area planted/newly planted with rubber, availability of rubberwood in Malaysia, total rubberwood that is usable as logs and availability of sawn timber, consumption and production of rubberwood logs, production of rubberwood logs and rubberwood sawn timber, export of rubberwood sawn timber, and distribution to sawmills and other related mills. The first submodule is capable of generating information on area replanted/newly planted with rubber under the smallholding and estate sectors by state and district. The submodule on the availability of rubberwood in Malaysia enables users to change any parameters before the data set is retrieved. The parameters in this submodule include volume of 1 ha for the smallholder and the estate sectors, rotation age, and percentage of smallholding and estate sectors. The total rubberwood that is usable as logs and sawn timber availability consists of assumptions on volume of 1 ha, rotation age, percentage of wood that is usable as logs, and recovery rate for sawn timber.

The second module, i.e., graphs, enables users to observe the data in the form of graphs. Information on area replanted/newly planted with rubber, availability of rubberwood in Malaysia, production of rubberwood logs and rubberwood sawn timber, and export of rubberwood sawn timber will be made available in the form of graphs.

The third module is with regard to the process of entering and updating the rubberwood information itself. Five submodules come with this third module, namely, smallholder, sawmill, sawn timber, logs, and export.

The last module, called the reference file, is where all the references files are stored. This module is considered the key to the whole RRIS.

The development of CIS would benefit all interested parties, as the system offers information on both supply and demand simultaneously. For instance, an industrialist who wishes to expand industrial capacity can easily go to the system and find out the availability of rubberwood in the next five years, and so on.

2.6 Economics aspects

Overdependence on rubberwood as a raw material is a critical issue in the Malaysian wooden furniture industry (Malaysian-German Chamber of Commerce & Industry 1999; Ser, 1990). The situation is further aggravated by an ever-increasing demand for rubberwood by other consumers, such as MDF, laminated board, and cement-bonded particleboard. Therefore, the comprehensive rubberwood resource information system to be created will indicate not only whether an excess-capacity problem exists, but also the possibility of industrial expansion by rubberwood users based on the availability of rubberwood supply by state.

The development of the information system, especially on the supply side, will help encourage fuller utilization of the rubberwood resource, including offcuts and other mill residues. In return, this would improve the related industries' mill recovery.

The need for more rubberwood to supplement the growing demand of various industries will further encourage the smallholding sector to exploit its share of the resource. The underutilized rubberwood resource from the smallholding sector can easily be traced from inputs into mills, where individual mills stated their source of raw material. To further boost the development of the wooden furniture industry for the next 15 years, the government of Malaysia (GoM) has approved some RM 200 million for rubber forest plantation, where 25,000 ha of land will be planted (The Star, May 2003). Such direct involvement from GoM indirectly indicates that the wooden furniture industry is here to stay and that monitoring the industry's performance is more crucial than ever. Therefore, it is highly timely that such a database system be created to cater to the growing needs of the furniture industry.

Data bases on demand and supply will link both local and international buyers (including ITTO member countries) with manufacturers of wooden furniture more closely than before. In addition, buyers will have more choices as to where to source different types of furniture in Malaysia.

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2.7 Environmental aspects

No direct environmental implication can be linked with the small project. Nonetheless, availability of rubberwood as an alternative species in the production of wooden furniture, has helped alleviates the pressure on the natural forests. Besides, the existing large track of rubber plantations contributes to carbon sink.

2.8 Social aspects

No direct social implication can be associated with the small project. Nevertheless, should the formation of the CIS help encourage the smallholding sector to further explore its share of rubberwood resources in the market, smallholders' income at the time of replanting will be improved. To date, the smallholding sector's share of the area planted with rubber amounts to 1.22 million ha, Le., 87.9% of the total area of almost 1.39 million ha in 2001 (Ministry of Primary Industries, 2001).

2.9 Risks

The small project is likely to have low technical and timing risks as most of the interested parties, such as the Malaysian Timber Council (MTC), the Malaysian Furniture Association (MFA), the Malaysian Timber Industry Board, the Forestry Department, Peninsular Malaysia, have expressed interest in getting involved.

3. OUTPUTS

Specific Objective 1: To develop a comprehensive information system (CIS) for improving the statistical data on the supply and demand for rubberwood in Malaysia.

- Output 1: Technical report on the current and future supply of and demand for rubberwood and other species for the wooden furniture industry in Malaysia

- Output 2: Technical report on wooden furniture industry productivity, cost of production for selected products, primary input content, and policies for sustainability

- Output 3: A software on the rubberwood resource information system (RRIS)

- Output 4: A software on the wooden furniture information system (WFIS)

- Output 5: A comprehensive information system software for the wooden furniture industry at Department Forestry P. Malaysia, Sabah and Sarawak established.

- Output 6: Users' manuals for CIS, RRIS, and WFIS

4. ACTIVITES

4.1 Output 1: Technical report on the current and future supply and demand of rubberwood and other species for the wooden furniture industry in Malaysia

Activity 1. 1 :

Activity 1.2:

Gathering of available information on areas replanted and newly replanted with rubber by the various agencies responsible for the development of the smallholding, estate, and other individual sectors.

The second part of output 1, Le, the demand of rubberwood need a survey of wooden furniture industry and other rubberwood-related industries in Malaysia. The list of activities are as follows:

a) Preparing the survey questionnaire b) Pretesting the survey questionnaire c) Updating the survey questionnaire d) Training field/uniform staff to carry out the survey e) Actual survey and census

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Activity 1.3:

Activity 1.4:

f) Data analyses on the demand for rubberwood and other timber species by the wooden furniture industry and other rubberwood- related industries

Study on the volume of green rubberwood logs available from a hectare of rubber area open for replanting from the smallholding and estate sectors.

Writing and publishing of a technical report on the current and future supply, and demand of rubberwood and other species for the wooden furniture industry in Malaysia

4.2 Output 2: Technical report on wooden furniture industry productivity, cost of production for certain selected products, primary input content, and policies for sustainability

Activity 2. 1 :

Activity 2.2:

Activity 2.3:

Data analyses on wooden furniture industry productivity, cost of production for selected products, and primary input content

Study on existing policy on sustainability of the FBls in general and the wooden furniture industry in particular

Writing and publishing of technical report

4.3 Output 3: A software on the rubberwood resource information system (RRIS)

Activity 3.1: Developing different modules for RRIS

Activity 3.2: Testing different modules of the RRIS

Activity 3.3: Writing and publishing of the RRIS software

4.4 Output 4: A software on the wooden furniture information system (WFIS)

Activity 4.1: Developing different modules for WFIS

Activity 4.2: Testing different modules of the WFIS

Activity 4.3: Writing and publishing of the WFIS software

4.5 Output 5: A comprehensive information system (CIS) software for wooden furniture industry at Department Forestry P. Malaysia, Sabah and Sarawak established.

Activity 5.1: Linking RRIS and WFIS into one information system

Activity 5.2: Testing different modules of information system software

Activity 5.3: Drafting and final formation of CIS

4.6 Output 6: Users' manuals for CIS, RRIS, and WFIS

Activity 6.1:

Activity 6.2:

Activity 6.3:

Developing different users' manuals for CIS, RRIS, and WFIS

Testing different users' manuals of the CIS, RRIS, and WFIS

Writing and publishing of the users' manuals of the CIS, RRIS. and WFIS

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5. Logical Framework worksheet

PROJECT ELEMENTS I INDICATORS DEVELOPMENT OBJECTIVE

To set up a comprehensive information system (CIS) that The wooden furniture industry's ensures future sustainability of the percentage share in the export wooden furniture industry in sector be maintained at 28% or Malaysia. more

SPECIFIC OBJECTIVES

Specific Objective: To develop a comprehensive Reliable information on wooden information system (CIS) for furniture available at the national enhancing the statistical data on level the supply and demand for rubberwood in Malaysia.

OUTPUTS Output 1: Technical report on the current and future supply of and demand for rubberwood and other species for the wooden furniture industry in Malaysia

Output 2: Technical report on wooden furniture industry productivity, cost of production of selected products, and policies for sustainability

1. Analysis on current and future supply of and demand for rubber-wood are undertaken

2. Training of field/uniform staff from various forestry departments held

Analysis of wooden furniture industry from the perspective of production, selected products, and sales is undertaken

MEANS OF VERIFICATION

Publications by the Ministry of International Trade and the Department of Statistics

Audit report on the application of the comprehensive information system (CIS) at the national level

1. Published report on current and future supply of and demand for rubber-wood in Malaysia

3. Formation of database on current and future supply of and demand for rubber­wood

4. List of field/uniform staff trained.

Report on wooden furniture industry at the national level

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IMPORTANT ASSUMPTIONS

National Forest Policy maintain emphasis on sustainability of the forest-based industries.

Full support from all parties, especially from the furniture industry, Malaysian Furniture Association, and Forestry Department Peninsular Malaysia, Sabah and Sarawak

Department of Forestry P. Malaysia, Sabah and Sarawak established the common CIS

Full support from all parties involved

Full support from all parties involved

PROJECT ELEMENTS INDICATORS MEANS OF VERIFICATION IMPORTANT ASSUMPTIONS Output 3: A software on the RRIS modules established The RRIS is available for use. Full support from all parties rubber-wood resource information Project report involved system (RRIS)

Output 4: A software on the The various modules for WFIS are The WFIS is available for use. Full support from all parties wooden furniture information established Project report involved system (WFIS)

Output 5: Comprehensive Systems linking the various The CIS is available for use Full support from all parties information system (CIS) for the modules for CIS from RRIS and and adopted by other ITTO involved furniture industry WFIS established member countries

Output 6: Users' manuals for CIS, The various users' manual are Users' manuals for CIS, RRIS, and Full support from all parties RRIS, and WFIS published WFIS are available for use. involved

----

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6. Work Plan

2004 20 05

Output/Activities J F M A M J J A 5 0 N D J F M A M J J A 5 0 N D

Output 1: Technical report on the current and future supply and demand of rubberwood in Malaysia

Activity 1. 1 : Gathering of available information on areas replanted and newly replanted with rubber by the

I

various agencies responsible for 0 0 0 0 • the development of the smallholding, estate, and individual sectors.

Activity 1.2: Survey of wooden furniture industry and other rubberwood-related 0 • industries in Malaysia

Activity 1.2.1: Preparing the survey questionnaire 0 • Activity 1.2.2: Pretesting the survey questionnaire 0 • Activity 1.2.3: Updating the survey questionnaire 0 • Activity 1.2.4: Training field/uniform staff to carry 0 0

out the survey

Activity 1.2.5: Actual survey and census 0 0 0 0 • Activity 1.2.6: Data analyses on the demand for

rubberwood and other timber species by the wooden furniture 0 0 0 0 • industry and other rubberwood-related industries

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Activity 1. 3: Study on the volume of green 0 0 0 0 • rubberwood logs available from a hectare of rubber area open for replanting from smallholding and estate sectors.

Activity 1.4: Writing and publishing of technical 0 0 0 • report on the current and future supply, and demand of rubberwood and other species for the wooden furniture industry in Malaysia

Output 2: Technical report on wooden furniture industry productivity, cost of production for certain selected products, primary input content, and policies for sustainability

Activity 2.1: Data analyses on wooden furniture 0 0 0 0 0 0 • industry productivity, cost of production for selected products, and primary input content

Activity 2.2: Study on existing policy on 0 0 0 • sustainability of the FBls in general and the wooden furniture industry in particular

Activity 2.3: Writing and publishing of technical 0 0 0 • report

Output 3: A software on rubberwood resource information s~stem (RRIS)

Activity 3.1: Developing different modules for RRIS 0 0 0 0 0 o •

Activity 3.2: Testing differ~l1t modules of the RRIS 0 0 o •

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ctivity 3.3: Writing and ~ublishing a software 0 0 o • on RRIS

Output 4: A software on the wooden furniture information system (WFIS)

ctivity 4.1: Developing different modules for 0 0 0 0 o • WFIS

ctivity 4.2: Testing different modules of the 0 0 o • WFIS

ctivity 4.3: Writing and ~ublishing a software 0 0 o • onWFIS

Output 5: Information system software for 0 0 0 o • wooden furniture industry

ctivity 5.1: Developing different modules for 0 o • information system software

ctivity 5.2: Testing different modules of the 0 0 o • information system software

Activity 5.3: Drafting and final formation of 0 0 0 • information system software

Output 6: Users' manuals for eiS, RRIS, and WFIS

Activity 6.1 Developing different users' manual 0 0 0 o • for eiS, RRIS, and WFIS

Activity 6.2: Testing different users' manual of the eiS, RRIS, and WFIS 0 o •

Activity 6.3: Writing and ~ublishing of the users' manual of the eiS, RRIS, and WFIS 0 0 0 •

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7.1 BUDGET Overall small project budget by activity

IOutPuUACtiVities Project Sub· Duty Capital Consumable Miscellaneous Year Grand Personnel Contract Travel items items Total

(10) (20) (30) (40) (50) (60) (70) (80) Output 1: Technical report on the current and future supply, and demand of rubberwood in Malaysia

Aclivity 1.1 Gathering of available information on areas replanted and newly replanted with rubber 1236 1000 375 y1 2611 by various agencies responsible for the 200 200 development of the smallholding. estate, and individuals sectors

Activity 1.2. Survey of wooden furniture industry and other rubberwood-related industries in Malaysia Activity 1.2.1 Preparing the survey questionnaire 1236 y1 1236

200 375 575 Activijy 1.2.2 Pretesting of the survey questionnaire 1236 5000 375 y1 6611

200 200 Activity 1.2.3 Updating the survey questionnaire 1236 y1 1236

200 375 400 975 Activity 1.2.4 Training of field/un~orm staff to carry out survey 8000 375 400 y1 8775

1236 1236 200 200

Activity 1.2.5 Actual survey and census 1236 16500 23650 375 800 y1 42561 Note: USD16 500 is meant for the subcontractor to conduct the actual census in the 13 states including Sabah and Sarawak whereas USD23650 and USd10 000 in activities 1.2.5 and 1.3 are meant for all the crew memebrs for dut~ travel within the Peninsular SabahSarawak.

200 200 Activity 1.2.6 Data analyses on the demand for rubberwood and other timber species 1236 375 1611 by the wooden furniture industry ad other ruberwood-related industries 200 400 y2 600

Activity 1.3 Study on the volume of green rubberwood 1236 10000 400 11636 logs available from a hectare of rubber area open for replanting 200 375 575 from smallholding and estate sectors

Activity 1.4 1236 860 260 y1, y2 2356 Writing and publishing of a technical report on the current and future 200 375 140 140 855 supply, and demand of rubberwood and other species for the wooden furniture industry in Malaysia

Budget by ITIO 19124 16500 39650 1875 860 1860 0 0 79869 Budget by the Government of Malaysia 1800 0 0 1500 140 940 0 0 4380 SUBTOTAL 1 20924 16500 39650 3375 1000 2800 0 0 84249

18

IOutPuUActivities Project Sub- Duty Capital Consumable Miscellaneous Year Grand Personnel Contract Travel items items Total

(10) (20) (30) (40) (50) (60) (70) (80)

Qutput 2: Technical report on wooden fumlture Industry productivity, cost of production for certain selected products, primary Input content, and policies for sustalnability

Activity 2.1 Data analyses on wooden fumiture and industry 1236 375 1611 productivity, cost of production for certain selected 200 400 y2 600 products and primary input content. y2

Activity 2.2 Study the existing policy on sustainability 1236 375 400 2011 of the FBls in general and the wooden fumiture in 200 y2 200 particular

Activity 2.3 Final writing and publishing of technical report 1236 140 140 y2 1516

200 375 860 260 1695 Budget by Ino 3708 0 0 750 140 540 0 0 5138 Budget by the Govemment of Malaysia 600 0 0 375 860 660 0 0 2495 SUBTOTAL 2 4308 0 0 1125 1000 1200 0 0 7633 Qutllut 3: A software on rubberwood resource Information s~stem (RRISI

Activity 3.1 Developing different modules for RRIS 1236 375 400 yl 2011

200 200 Activity 3.2 Testing of the modules of RRIS 1236 1000 yl 2236

200 375 400 975 Activity 3.3

1236 375 1000 140 2751 Writing and l1ublishing the RRIS software 200 260 yl,y2 460

Budget by Ino 3708 0 0 750 2000 540 0 0 6998 Budget by the Govemment of Malaysia 600 0 0 375 0 660 0 0 1635 SUBTOTAL 3 4308 0 0 1125 2000 1200 0 0 8633 Qutl1ut 4: A software on the wooden fumiture information s~stem (WFiSI

Activity 4.1 Developing different modules for WFIS 1236 375 400 y2 2011

200 200 Activity 4.2 Testing of the modules of WFIS 1236 375 1000 400 y2 3011

200 200 Activity 4.3

Writing and l1ublishing the WFIS software 1236 860 260 y2 2356 200 375 140 140 855

Budget by Ino 3708 0 0 750 1860 1060 0 0 7378 Budget by the Govemment of Malaysia 600 0 0 375 140 140 0 0 1255 SUBTOTAL 4 4308 0 0 1125 2000 1200 0 0 8633

19

IOUtpUUACtiVities Project Personnel

(10)

Output 5: A comprehensive rubberwood Information system software for wooden furnIture industry

Activity 5.1 Developing different modules for information system 1236 software 200

Activity 5.2 Testing of different modules of information system 900 software 536

Activity 5.3 Drafting and final formation of information of system 900 software 536

Output 6: Users' manuals for CIS, RRIS, and WFIS

Budget by ITIO 3036 Budget by. the Govemment of Malaysia 1272 SUBTOTAL 5 4308

Executing agency managing costs (GoM) Subtotal ITIO 33284 Subtotal GoM 4872 SUBTOTAL 1,2,3,4 & 5 38156 TTTO monitoring and administration costs 1. ITIO monitoring visits 2. Programme support costs 8% x (subtotal + monitoring) Subtotal ITIO 0 Total budQet bv ITIO 33284 Total budQet bv the Gov. of Malavsia 4872 Grand Total 38156

--- --- ---- --- - -

Note: 1. The amount of US$1236 is to be shared by two Reseanch Assistants and Research officers in all activities (Rate for R.A is @ US$21.05/day X 2 X12 days' the balance of US$731and US$200 is meant for research officers)

2. Coordinator, 2 economists, 1 Computer Programmer and 2 Research Assistants @USD 1436/activity ( USD 200/activity will be subsidized by the executing agency)

3. Cost of Research Assistant is at USD536/mont 4. No extra budget is needed for output 6 as all actvities will be treated

together with output 5.

20

Sub- Duty Contract Travel

(20) (30)

0 0 0 0 0 0

16500 39650 0 0

16500 39650

0 0 16500 39650

0 0 165~ 39650

Capital Consumable Miscellaneous Year Grand items items Total (40) (50) (60) (70) (80)

375 400 y2 2011 y2 200

375 400 y2 1675 536

375 2500 260 y2 4035 140 676

1

1125 2500 1060 0 0 7721 0 0 140 0 0 1412

1125 2500 1200 0 0 9133

375 3000 y1,y2 3375 5250 7360 5060 0 0 0 107104 2625 1140 2540 0 0 0 11177 8250 8500 7600 3000 0 0 121656

5000 y1,y2 5000 8968

01 01 Dl 0113968 _y1,y2 13968 5250 7360 5060 o 13968 121072 3000 1140 2540 3000 0 14552 _1g50 8500 7600 3000 13968 135624

7.2 Budget By Source

No Budget Componenets Subtotal Subtotal Grand GoM ITTO Total

10 Project Personnel 11. National Experts 4872 12420 17292 12. Contract Research Assistant 12864 12864 15. Training 8000 8000 19 Component total 4872 33284 38156

20 Subcontracting Part of the actual survey 16500 16500 29. Component total 0 16500 16500

30 Duty Travel 31 Daily Subsistence allowance 311. National Experts 15471 15471 312. Contract Research Assistant (2) 7736 7736 32. Transport 0 321. Domestic transport 16443 16443 Component total 0 39650 39650

40 Capital items 41. Premises 0 42. Computer and accessories 2000 3250 5250 43. Printers 2000 2000 44. Photocopier (renting) 1000 1000 49. Component total 3000 5250 8250

50 Consumable Items 54. Office supplies 460 800 1260 55. Maintenance costs 380 840 1220 56. Communication (Telephone, fax, mail, etc.) 300 220 520 57. Reports and publications 5500 5500 59 Components total 1140 7360 8500

60 Miacellaneous 61. Sundry 2540 5060 7600 62. Auditing 64. Contingencies 69. Component total 2540 5060 7600

70 Executing Agency Management Costs 71. Management costs 3000 3000 79. Component total 3000 0 3000 Subtotal 14552 107104 121656

80 ITTO Monitoring and Administration 81. ITTO monitoring visits 5000 5000 82. Programme support costs 8% x(subtotal+monitoring) 8968 8968 89. Component total 0 13968 13968

100 Grand Total 14552 121072 135624

Note: 1. Hiring of 2 RAs cost about USD536/month 2 CaQital items, and consumable itmes of USD8,259 and USD8,500 are meant for the

various software develoQment associated with the small Qroject.

21

PART Ill: OPERATIONAL MANAGEMENT

1. Management structure

The small project will be implemented under the overall supervision of the Director General of the Forest Research Institute Malaysia (FRIM) as the implementing agency. FRIM as the implementing agency will be further monitored through ITTO's monitoring visits. The two visits will be conducted during the actual implementation of the small project (organizational chart attached). Dr. Norini Haron, Senior Research Officer (Resource Economist), will serve as the project leader and will be directly responsible for the execution of the small project.

This project will be executed with close cooperation from all interested institutions described in section 2.9 of this proposal.

ORGANIZATIONAL CHART

IMPLEMENTING AGENCY (FRIM)

I PROJECT LEADER I ~

NATIONAL EXPERT

- 1 Resource Economist - 1 Senior Research Officer (IT)

2 Engineers 2 Forest Economists 2 System Analysts/Programmers

2. Monitoring, reporting, and evaluation

a) A project progress report will be prepared and submitted to ITTO at the end of the first and second years of the project implementation. These reports will be prepared for the purpose of keeping ITTO informed of the work that was carried out and the progress achieved. A final report will be prepared by the Executing Agency for submission to ITTO.

b) The project will be monitored by representatives of ITTO, at least once every 12 months. The first monitoring mission should visit the Executing Agency after the submission of the first progress report or within 12 months of the project start-up date.

c) The monitoring missions will make an assessment of the project progress from the reports submitted to ITTO and the mission visits. A decision will be made by the monitoring mission to determine whether a mid-term evaluation is necessary and the date for any such evaluation will be agreed between ITTO and the Executing Agency.

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3. Future Operation and Maintenance

All capital items derived from the small project will become the sole property of the Government of Malaysia (Le., FRIM)

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PART IV: TROPICAL TIMBER FRAMEWORK

1. COMPLIANCE WITH ITTA (1994) OBJECTIVES

The small project complies with the following objectives provided under IlTA (1994):

c) To contribute to the process of sustainable development;

h.) To improve market intelligence with a view to ensuring greater transparency in the international timber market, including gathering, compilation, and dissemination of trade related data, including data related to species being traded;

k) To improve marketing and distribution of tropical timber exports from sustainably managed sources;

n) To encourage information-sharing on the international timber market

2. COMPLIANCE WITH ITTO YOKOHAMA ACTION PLAN (2002-2006)

The small project is also related to the ITTO Yokohama Action Plan set out for the economic information and market intelligence committee as follows:

Goal 1. Improve transparency of the international timber market

Goal 2. Promote tropical timber from sustainably managed sources

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References

Forestry Conservation Portal. 2002. Malaysia: rubberwood export levy to be halved. Website: http//forest.org/articles/reader.asp

Ismariah, A and Norini, H. 1994.Availability of Rubberwood Resources in Peninsular Malaysia in Hong, L.T. and H.C.Sim (eds.), Malaysian Forest Resords No.39. Kuala Lumpur: Forest Research Institute Malaysia, Kepong.

Khoo, S.K. Mohd. Ali Sujan and AP. Ng. 1987. Profitability of Rubberwood: Status and Availability in Daljeet Singh, K. Choo, K.T. and L.T. Hong (eds.) Proceedings of the Second Rubberwood Seminar in 19-20 Nov. 1985. Kuala Lumpur: Forest Research Institute Malaysia, Kepong.

Malaysian-German Chamber of Commerce and Industry (1999). Development of the Malaysian furniture industry-Country focus. Pp. 10-11 in Asian Timber, February issue.

Malaysian Timber Council. 2002. Export StatisticsWebsite: http://www.mtc.com.my

Malaysian Timber Industry Board. 2001. Maskayu- Monthly timber bulletin of the Malaysian Timber Industry Board. Vol. 4, April.

Ministry of Primary Industries. 1990 & 2000. Statistics on Commodities.

Mohd Nazuri, H.S., Zaleha, A and M.H. Noor Laila. 2000. Supply, Demand and Pricing for Rubberwood. Paper presented in Seminar on Rubber Forest Plantation -Smart partnership Towards Rubber Forest Development. Kuala Lumpur: Malaysian Rubber Board.

Norini, H. Ismariah, A. and M.S. Ahmad Shakri. 1990. Availability of Rubberwood in Peninsular Malaysia. Pp. 55-99 in Anonymous (Ed.) Proceedings of the International Rubberwood Seminar. Kuala Lumpur: Kuala Lumpur: Forest Research Institute Malaysia, Kepong.

Norini, H. 2000. Structural interdependence of Malaysian industries with special emphasis on the forest­based industries. Unpublished Ph.D Thesis, The University of Wales, Aberystwyth United Kingdom.

Norini, H. Woon, W.C. & Sim, H.C. 2001. Supply and demand of rubberwood in Peninsular Malaysia. Pp.9- 22 in Ahmad Shakri, M.S. et al. (Eds.) Proceedings of the national seminar alternatives to rubberwood, CFFPR 2000 Series. September 26, 2001. Forest Research Institute Malaysia, Kepong Kuala Lumpur.

Planet Ark. 2002. Malaysia to scrap quotas on rubberwood exports. Website: http://www.planetark.org/dailynewstory

Saroni, J, Mohd. Sahawahid, H. 0, & Salleh, Y. 1994. Cost and earning structures of the Malaysian furniture industry. Pp. 121-134 in Mohd. Shahwahid, M.O. (ed.) Opportunities and Constraints in Downstream Wood-based Industrialization-- A Collection of Empirical Findings. Centre for Agricultural Policy Studies (CAPS), Universiti Pertanian Malaysia.

Ser, C.S.(1990). Rubberwood resources in ASEAN and the potential for its wider utilization. Pp. 27-39 in Hong L.T., Ho, K.S, Wong, W.C., Mohd Dahlan, J., Mohd Arshad, S., Tan, Y.E., Ahmad Shakri, M.S., Hoi, W.K. & Hilmi, M.T. (eds.), Proceedings of the International Rubberwood Seminar. Kuala Lumpur.

The Star. 22nd. May, 2003. Highlights of the stimulus package.

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ANNEXES

ANNEX A: PROFILE OF THE EXECUTING AGENCY

The Forest Research Institute Malaysia (FRIM) will be the executing agency in charge of the small project. FRIM mission is to promote sustainable management and optimal utilization of forest resources by generating knowledge and technology through research, development and application. Its main objectives are as follows:

1. To generate knowledge and develop appropriate technology for the conservation, management, development and utilization of forest resources

2. To provide research based services to meet the needs of clients 3. To commercialize R & D results 4. To acquire and disseminate information 5. To create awareness on the environmental and conservation roles of forestry 6. To pursue excellence and attain leadership in tropical research

FRIM has been responsible for the execution of project financed by ITTO i.e., PD 31/95 Rev.3 (F) and pev (VI)/13.

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ANNEX B: CURRICULUM VITAE OF KEY STAFF

Name: Norini Haron, Ph.D

Current Post: Senior Research Officer (Resource Economist) & Special Officer to the Director General of FRIM

Office Address: Forest Research Institute Malaysia (FRIM) Techno-Economic Division, Kepong 52109, Kuala Lumpur. E-mail Address:norini@frim.gov.my

Date of Birth: November 18, 1955

Identity card No: 551118-01-5058

Sex: Female Nationality: Malaysian

Academic Qualifications: Ph.D., University of Wales, Aberystwyth, United Kingdom (2000): M.Sc Forestry with specialization in Resource Economics, Michigan State University, U.S.A(1991); B.Sc in Resource Economics, Universiti Pertanian Malaysia (1985). Diploma Forestry, Universiti Institut Teknologi Mara (UiTM)

Fields of Specialisation/Expertise: Regional Economics/Economic Development, Natural Resource Economics, Forest Economics, Econometric, and Project and Policy Analyses related to Forestry and Forest-Based Industries.

Work Experience: 20 years

1. October 1986 - present Senior Research Officer (Resource Economist) at Forest Research Institute Malaysia (FRIM).

2. August - September 1986 Attachment Officer at Land and Rural Development Unit, Gombak Land Office, Selangor.

3. July 1986 Research Assistant- Faculty of Economics and Management, Universiti Pertanian Malaysia.

4. 1978 - 1982 Assistant Forest Economist, Economic Unit, Department of Forestry Malaysia.

Major R&D Involvement: Past:

IRPA Research Grants on (a) Structural interdependence of Malaysian industries with special emphasis on forest-based Industries, (b) Economic valuation of Eurycoma longfifolia (Tongkat all) plant in Peninsular Malaysia

Current: (a) Sustainability of the rubberwood furniture industry in Malaysia, and (b) Assessment of the impact

of Sustainable (b) Forest Management (SFM) on the wood-based industries (c) FRIM-GEF project on Conservation of biological diversity through sustainable forest management

practices in Malaysia, (d) Optimal silvilculture options for second growth forests, (e) Malaysia-Denmark Twinning Programme- Multipurpose forestry in a changing society (April

2003 - March 2006)

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Awards:

1. Norini, H., Lim, H.F. & Woon, W.C. 2002. Market prospects of fast -growing timber plantation species in Peninsular Malaysia. Best Semi-Technical Publication Award, 2002.

2. Lim, H.F., Norini, H., Woon, W.C. & 2002. Social economic survey of forest plantation in Peninsular Malaysia. Second Best Semi-Technical Publication Award, 2002.

3. Excellent Service Award (2001) 4. Norini, H., Woon, W.C. & Sim, H.C. 2001. Supply and demand of rubberwood in Peninsular

Malaysia. Best Semi-Technical Publication Award, 2001. 5. Norini, H & P. Midmore. 2000. The role of oil palm residues in the development of Malayisa

forest-based industries. Second Best Semi-Technical Publication Award, 2000. 6. Abd. Razak, 0., Abd. Latif, M., Liese, W. and Norini, H. (1995). Planting and utilization of

bamboo in Peninsular Malaysia. Research Pamphlet No. 118. Best Technical Publication, 1995.

National & International Appointments: Assistant Secretary of the Malaysian Association For Research and Environmental Economics (MARE E)

Professional Societies/Affiliation: Michigan State University (MSU) Foresters Alumni, Student Union MSU, College of Agriculture and Natural Resources Alumni MSU, Malaysian Agriculture Economics Association (PETA), Student Union, University Of Wales, United Kingdom, and Malaysian Association of Research Scientists (MARS).

Consultancy & Technical Services Experiences: 1) Forestry and forest-based industries on the move .2000. A case study prepared for the

International Labour Office (ILO) 2) The Socio-Economic Aspects of Private Forest Plantations in Peninsular Malaysia. 2002.

Consultancy report submitted to the Japan International Cooperation Agency (JICA). 3) Market Prospects of Fast-Growing Timber Plantation Species Peninsular Malaysia. 2002.

Consultancy report submitted to the Japan International Cooperation Agency (JICA). 4) Involved in writing of more than 15 technical reports for the Ministry of Primary Industries,

Malaysia and Forest Research Institute of Malaysia (FRIM). 5) Market prospects of teak (Tectona grandis) planted in Malaysia. Consultancy report submitted to

Lembaga Urusan dan Tabung Haji (LUTH). 2003.

No. of Publications to date (detailS on request): 74

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Name:

Current Post:

Address:

Identity card No.:

Date of Birth:

Age:

Sex:

Tuan Ab Rahman bin Tuan muda

Director of Forest Industries Unit

Forest Department Peninsular Malaysia, Jalan Sultan Salahuddin, 50660 Kuala Lumpur.

5157184

13.07.1956

48 yrs.

Male

Qualification: Master of Science (Fire Engineering), Universiti Putra Malaysia

Bachelor of Science (Mechanical Engineering), University of Leeds England

Working Experience:

Mechanical Engineer at Public Works Department, K.L. 1980 -1990:

Designed, supervised installation and maintenance of building services manage the purchasing, overhauling and maintenance of vehicles and heavy machinery for the Department.

Mechanical Engineer at Kelantan Waterworks Department 1991 -1996:

Designed, supervised installation and maintenance of waterworks plants and equipment in the State.

Fire Engineer at Fire and Rescue Department 1997 - June 2000.

Planning and managing the overall operational and maintenance of fire equipment, vehicles and specialized fire machinery in the Department.

Forest Engineer at Forest Industries Unit, Forest Department Peninsular Malaysia July 2000 to present date.

Present work activities/duties:

Planning, control and development of the forest logging industry and wood-based industries in Peninsular Malaysia for the purpose of improving product quality, to achieve optimum product costs, and maximum usage of forest resources as well as increase efficiency of the forest produce to meet the needs of the country.

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Name:

Current Post:

Address:

Identity card No.:

Date of Birth:

Age:

Sex:

Mr. Abdul Aziz Bin Shamsuddin

Mechanical Engineer Forest Industries Unit

Forest Department Peninsular Maslaysia, Jalan Sultan Salahuddin, 50660 Kuala Lumpur.

530720-10-6275

20.07.53

51 yrs.

Male

Qualification: Diploma Mechanical Engineering, Universiti Teknologi Malaysia

BSc. Mechanical Engineering, Sunderland Polytechnic, England

Working Experience:

Mechanical Engineer at Federal Workshop, Public Works Department, K.L. 1984 -1986.

Supervised installation and maintenance of building services, manage the purchasing, overhauling and maintenance of building equipment for schools and Government Departments in Federal Territory (K.L.)

Mechanical Engineer at Ministry of National and Rural Development, K.L. May 1986 -1990.

Identify and recommend suitable machines and equipment in various fields of productions such as woodworking, rattan, bamboo, food products, plastic, metal works and tailoring;

Provide technical guidance and advice to the entrepreneurs and other Government agencies in the aspects of usage, layout and safety of the equipment.

Mechanical Engineer at Federal Workshop, Public Works Department, K.L. Okt.1990 -1994.

Planning, preparing and managing the budget and allocation for the overall operational and maintenance of the assets in the Federal Workshop.

Mechanical Engineer at Technical Regulatory Division, Road Transport Department, K.L. Dis.1994 -1997.

Planning, preparing and managing the budget and allocation for the overall operation and maintenance of the assets for the Division. To regulate the private sector in the inspections of commercial vehicles, To study and approve the applications for the type approval of new vehicles, To approve the plan of new and modified commercial vehicles, To provide technical guidance and advice in the aspects of construction, and use of vehicles for Government agencies and private sectors.

Mechanical Engineer at Forest Industries Unit, Forest Department Peninsular Malaysia Jan. 1998 to present date.

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Present work activities/duties:

To establish wood-based industries information system, data bank and documenting.

To provide technical recommendation and project appraisal in the setting up and licensing of wood-based industries from state's forestry authority in the areas of mill's capacity and efficiency, machines and plants layout and the safety aspects in line to Department's resource policies.

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Name: Mr. Wan Zahiri Hj. Wan Yaacob

Current Post: Senior Research Officer (IT)

Address: Forest Research Institute Malaysia (FRIM) FRIM Business Centre, Kepong 52109, Kuala Lumpur.

Identity card No.: 630818-03-5813

Date of Birth: 18/08/1963

Age: 40 yrs.

Sex: Male

Qualification: B. Computer Science, Universiti Teknologi Malaysia

B. Sc. Mechanical Engineering, Sunderland Polytechnic, England

Working Experience:

1. Malaysian Agricultural Research and Development Institute (MARDI), 1987 - 1991 2. Malaysian Cocoa Board (MCB), 1991 - 1996 3. Forest Research Institute Malaysia (FRIM), 1996 - now

Computer Applications and Databases Developed

1. Expert System on Tobacco, MARDI, 1989 2. Research Management Information System, MARDI, 1989 3. Databank Management for Livestock Production System, MARDI, 1990 4. Dairy Herd Management System, MARDI, 1990 5. Daily Cocoa Prices, MCB, 1991 6. Database Management of Cocoa Licensing System, MCB, 1992 7. Payroll Management System, MCB, 1992 8. Human Resource Information System, MCB, 1993 9. MCB Homepage, MCB, 1995 10. FRIM Homepage, FRIM, 1997 11. Research Budget and Expenses Monitoring System, FRIM, 1999 12. Urban Trees Management System, FRIM, 2000 13. FRIM Intranet (Information Center), FRIM, 2001

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ANNEX C: TERMS OF REFERENCE OF KEY STAFF

1. The small project coordinator

a) Qualification Ph.D. M.Sc. in Forestry with specialization in Resource Economics B.Sc. in Economics

b) Job Experience Minimum of 20 years of professional experience and knowledge in forest economics

c) Duration: 24 months

d) Duties

Under the supervision of the Director of the Techno-Economics Programme, the duties of the Coordinator are as follows:

1. To plan, organize, and execute the small project activities. 2. To formulate a detailed work plan on yearly activities and estimate costs related to small project

activities. 3. To be responsible for day-to-day management of small project activities. 4. To coordinate, mobilize, and supervise all technical experts involved in the small project. 5. To organize a training workshop for field staff involved in the actual survey. 6. To be responsible for the overall writing of technical reports as well as operational and progress

reports. 7. To be responsible for the publication of all technical reports, handbooks and users' manuals.

2. Engineers (2)

a) Qualification

B.Sc. in

b) Job Experience

Minimum of 15 years of experience in forestry activities and forest economics

c) Duration: 24 months

d) Duties

Under the supervision of the so-called Coordinator, the duties of the forest economist are as follows:

1. To manage all technical activities relate to the small project. 2. To carry out all field activities. 3. To assist the Coordinator in organizing a training workshop for field staff involved in the actual

survey. 4. To draft and submit to the Coordinator progress reports pertaining to small project activities.

3. Computer Programmer

a) Qualification

B.Sc. in Computer Science

b) Job Experience

Minimum of 10 years of experience in programming work.

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c) Duration: 24 months

d) Duties

The responsibilities of the computer programmer are as follows:

1. To develop the different modules for the two systems (Le., RRIS and WFIS) and the main information system software (CIS).

2. To be responsible for the final development of the information system software. 3. To assist the Coordinator in the preparation of progress reports, manuals, and technical handbooks

for the different systems. 4. To be responsible for the overall running of the two subsystem and the main system.

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Annex D The Revised Proposal: PD 192/03 Rev.3 (M)

Recommendations i. I nclude users' manuals for

eiS, RRIS, and WFIS in the outputs of the proposal

ii. Ensure early involvement of interested parties in the planning and implementation of the proposal

iii. Include a provision of US$5,000 for ITTO monitoring and evaluation and make the consequent adjustments to the budget of the proposal

iv. Delete the reference to PSC and ITTO International Experts in the project organization chart

Modifications Made Revised: The various users' manuals are indicated in the following sections:

a) Part 11 section 2.2, as one of the six outputs from the small project;

b) Part II section 2.2, paragraph Q;,

c) Part 11. section 3: Outputs

d) Part 11. section 4: Activities

e) Part 11. section 5: Project Elements, output number 6

f) Part 11. section 6: Work Plan

Revised:

This is indicated in paragraph 1, page 8 of the project proposal. An example of the letter of undertaking is also attached in Annex E.

As indicated in part 11, sections 7.1 and 7.2: Budget

As indicated in part Ill. section 1: Management Structure

-35-

Page Number(s)

Page 7

Page 7

Page 11

Page 12

Page 14

Page 17

Pages 20-21

Page 18

AnnexE

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I INSflTOT PEN:EL!~lK~\N .P~~I~U'.~ ANA~~~ALA \'SIA ! ! Fore . ..,tRese.arch lll.stltute 1HCl/fl}Slll ! I

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I Kepong, 52109 Kuala Lumpllr i

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Natne of Project Ll:.!aci.et':

F'r<:>jcctNo:

Projec t l' itle:

DR. NORl"0.rt}l/\RON

TN.:Pt)T~NLI\TI0N SYSTEM FOR S USTA IN AB LUTY

OF THE WOODEN FCRNITURE INDt rSTR 'iF iN _. .... " .' ... L. ' .. t. , .. . .... '.'" .r'" . 'I...l •

MALAYSIA ..

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I iCFttrER. OF U~DIRRTAKL1IiC I.

! I

.' Kfnd.lY be itlfc}fT;nedtliatI agree to" beaeoUa·bQrath}g$CFentL."t!.resClutco pers([n.in the.

; abovt.··.Ptl1pO~~dp:rojedwhjich F}UlVl "Xi:U be $qbmitLing tOlbe :hlt~l1i~ti(mtjl Tropic~ll

I Th:nbltf Qrgal1izatioL1.'(lTTOy t9.Tt~~n(ling;

I

, Date:

Designation: Directo.r F01:Cst rnd"ustdes.:lj~"dJ F (lTcstry Dernwtl11ent PClll!18ulM M::ilaysia. (fOPM)

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