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            He said exports contributed RM7.183 billion, signifying   INDONESIA
          strong demand for Malaysian timber products while imports   Contribution of manufacturing to economy dips
          stood at RM 2.767 billion, reflecting healthy domestic use   The Indonesian Furniture and Handicraft Industry Association
          and a well-connected supply chain.                 (HIMKI) has raised concerns about the declining share of the

            Wooden furniture took the lead in exports bringing in   manufacturing sector in the nation's GDP, as it has fallen from
          RM3,083 million, followed by plywood (RM742.5 million),   28 percent in 2010 to below 19 percent currently.
          sawn timber (RM582.5 million) and fibreboard (RM210 million).   The furniture and handicraft sectors, despite their importance
            Zainal also pointed out material shortages as ‘a significant   to the creative economy are particularly affected by this
          hurdle’, with Malaysia importing up to 60 percent of its raw   downturn. The sector faces many challenges, including high
          materials such as timber, hardware and fabrics.    production and logistics costs, dependence on imported raw
            Zainal continued saying that Sarawak’s timber export   materials, hurdles to access financing and fierce international
          earnings reached RM2.84 billion last year, a slight drop from   competition.
          RM3.14 billion in 2023.                               The Association emphasised the need for an integrated

            “Sarawak, despite its rich timber resources, exports raw   approach, including developing industrial clusters, prioritising
          wood rather than finished products thus limiting value-added   design and utilising international trade fairs for promotion.
          opportunities. In addition, our industry relies heavily on foreign   Despite the challenges HIMKI sees several growth
          workers which affect skills retention and innovation. Locally, there   opportunities, particularly over the next five years. The global
          is a shortage of skilled craftsmen and designers, which slows   trend toward sustainability and eco-friendly products presents
          productivity and the adoption of new technologies”, he said.  a new market for furniture made from materials like bamboo
                                                             and rattan.

          Training future foresters                             Additionally, trade agreements such as the Indonesia–European
          Nineteen postgraduate students from Universiti Malaysia   Union Comprehensive Economic Partnership Agreement (IEU-
          Sabah (UMS) completed a four-day intensive training workshop   CEPA) could provide tariff benefits for Indonesian goods.
          aimed at empowering the younger generation to understand   The Chairman of HIMKI has said a fundamental "mental
          sustainable forest management and biodiversity conservation.   transformation" is necessary on the part of entrepreneurs. He
            The high-impact training, GIS & Statistical Analysis Training   stressed that the industry's habit of copying designs from
          Workshop was held through a special collaboration between   buyers  or  other  producers  creates  an  image  of  ‘low-cost
          UMS and the Sabah Environmental Trust (SET), a local non-  factory’ rather than a hub of creativity leading to businesses
          governmental organisation.

            Dr. Elia Godoong, a Senior Lecturer at the Faculty of
          Tropical Forestry, UMS and  one  of  the  workshop  trainer                                         Nick Brundle Photography
          on statistics said the participants were introduced to both
          technical and practical skills essential for forest management
          and biodiversity conservation.
            The participants also learned to use advanced geospatial
          technologies such as Geographic Information Systems (GIS), as

          well as big data analytics and statistical modelling approaches
          using R software.
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