Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	NIKKO HOTEL, KUALA LUMPUR 
Tarikh/Date 	: 	05/03/98 
Tajuk/Title  	: 	THE OFFICIAL OPENING OF THE 
			INTERNATIONAL TIMBE CONFERENCE 1998 



    1.    First  and  foremost, I would  like  to  thank  the
    organisers, The Malaysian Timber Board and the  Malaysian
    Timber  Council for inviting me to officiate  the  launch
    of   this 1998 International Timber Conference.  I  would
    also  like to welcome the foreign participants  at   this
    conference.   As you may have noticed we are  trying  our
    best  to  sustain and even grow our economy.  We  believe
    that  the economic prosperity of any country is good  for
    other   countries.    We  believe   in   our   prosperity
    benefiting  others and vice-versa.  We do not believe  in
    impoverishing others in order to enrich ourselves.
    
    2.    I  also  wish  to congratulate the  organisers  for
    their  effort  in organising this conference,   which  is
    held  in  conjunction  with the 'Malaysian  International
    Furniture Fair'.
    
    3.    It  is a pleasure and an honour for me to  be  with
    you  to  deliver   this  address to such a  distinguished
    gathering  of timber industrialists and experts  at  this
    1998  International  Timber  Conference  which  has  been
    appropriately  given  the  theme  'Globalisation  of  the
    Timber  Industry in the Next Millennium'.  To our foreign
    guests I would also like to take this opportunity to  bid
    all  of  you  a  very warm welcome and wish you  'Selamat
    Datang'   and   hope  that  you  will  also   take   this
    opportunity  to  enjoy  the many  touristic  sites  which
    Malaysia has to offer including our natural forests.
    
    4.    The conference theme and the various topics  to  be
    discussed  over  the  next two days are  appropriate  and
    timely   considering   the   numerous   challenges    and
    opportunities   that are brought about  by  globalisation
    and  liberalisation  of international trade  particularly
    in  forest products.  And we have also to examine  market
    prospects  arising from liberalisation under the  Uruguay
    Round  in  view of the concern about the environment  and
    sustainable    development,   which     if     improperly
    translated   into  trade  policies  and  measures   could
    restrict the export earnings of developing countries.
    
    5.    The  sustainable management of the forests and  the
    utilisation  of  timber  products constitute  fundamental
    components  of the overall socio-economic development  of
    many  timber-producing countries including Malaysia.   It
    has  been estimated that the total world forest cover  in
    1995,  comprising natural and plantation forests was  3.4
    billion hectares with 50 percent of this located  in  the
    developing  countries comprising mainly tropical  forest.
    The  tropical  forest  cover has  unfortunately  declined
    from  1.79  billion  hectares  in 1990  to  1.73  billion
    hectares  in  1995,  as countries with  tropical  forests
    have   recently been utilising their forest resources  as
    a  source  of  revenue for their largely poverty-stricken
    countries.
    
    6.    The  United  Nations Conference on Environment  and
    Development  (UNCED)  in  1992 highlighted  the  critical
    role  of  the forests for environmental conservation  and
    sustainable  economic development.  This  recognition  is
    also  reflected in international conventions such as  the
    international  convention  on biological  diversity,  the
    international  convention to combat  desertification  and
    the framework convention on global climate change.
    
    7.    Unfortunately  the commitments made  at  UNCED  and
    post  UNCED  agreements  by the  developed  countries  to
    provide   new   additional   financial   resources    and
    environmentally-sound technology transfer  to  developing
    countries  for  the management of their forest  resources
    have  yet  to be realised.  The extent of global  concern
    over  forestry  and its impact on the global  environment
    has  certainly not been matched by any determined  action
    programme of operationalising and implementing the  UNCED
    forest  principles and forest related chapters of  Agenda
    21.   Whilst  the establishment of the global environment
    facility   (GEF)  was  a major achievement,  its  funding
    levels  have  not been sufficient to meet its objectives,
    thus   rendering  it  ineffective.   The  United  Nations
    General  Assembly  Special  Session  (UNGASS)  which  was
    convened  in June last year, to review the implementation
    of  Agenda  21,  noted  that the global  environment  has
    continued  to  deteriorate although some  countries  have
    succeeded  in curbing pollution and slowing the  rate  of
    resource degradation.
    
    8.    In  this regard, I would like to urge the developed
    countries   to   re-affirm  and  put  into   action   the
    commitments to provide concrete assistance to  developing
    countries  to  achieve sustainable  management  of  their
    forest   resources.   In  addition,  sustainable   forest
    management   should   be   promoted   through    mutually
    supportive  trade  and environmental policies.   Malaysia
    remains   convinced   that   an   international    forest
    convention  would provide the necessary  legal  framework
    for  ensuring an equitable, transparent and comprehensive
    mechanism  that  balances sustainable forest  management,
    biodiversity and economic growth.  Such a convention  can
    remedy  the  problems of legal uncertainty  and  lack  of
    predictability    currently   faced   in    international
    regulation of global forestry.  In this respect, I  would
    like   to  reiterate  that  Malaysia  will  continue   to
    examine,  identify  and implement  the  commitments  made
    under  Agenda  21, especially those related to  combating
    deforestation and conservation of biological diversity.
    
    9.    Recent trends which reflect the increased  emphasis
    on  environmental roles of forests include management  of
    forests  as  ecosystems,  the  adoption  of  environment-
    friendly  logging  systems  and  restrictions  on  timber
    harvesting  in  some  countries.  Environmental  concerns
    have  also  led  to  certain developed countries  putting
    pressure  for timber certification schemes,   effectively
    restricting  importation  and  utilisation  of   tropical
    timber.
    
    10.   We  cannot  afford to ignore these changes  in  the
    global  perceptions  of forest and forestry.   We  accept
    that  forests  are  no longer just a  source  of  timber.
    They  also  play  an  important role  in  regulating  the
    climate  and  in  the  absorption of carbon  dioxide  and
    other  wastes.   They are also a source  of  biodiversity
    and  contribute  towards medicinal products.  Hence,  the
    greatest challenge to mankind in the coming century  will
    be  to  strike  a  balance between the need  to  conserve
    forests  for  environmental protection and  biodiversity,
    while  trying to meet the need for living space  as  well
    as  timber  as  a  source of wealth  for  poor  countries
    especially.
    
    11.   Indeed, we need to come to terms with reality: that
    forest  resources  could  be utilised  on  a  sustainable
    basis   if   the   global  community  is   committed   to
    safeguarding    this    important    natural    heritage.
    Currently, there are many efforts being pursued  by  both
    governments  and  non-governmental organisations  (NGOs),
    at   national,  regional  and  international  levels   to
    promote  sustainable forest management.  I would like  to
    call  upon  the  global community to accelerate  regional
    and  international  cooperation  in  matters  related  to
    sustainable   forest  management  and  development.    In
    addition,  countries  must also forge  greater  strategic
    alliances  to  exchange  experiences  and  knowledge   on
    sustainable forest management.
    
    12.   For  sustainable forest management, countries  will
    have   to   forego  potential  wealth  and  plough   back
    considerable  resources into the forestry  sector.   Poor
    countries  cannot  be  expected to  do  this  unassisted.
    Besides,  if  they are to provide a carbon sink  for  the
    world,  including  for  the rich countries,  it  is  only
    right that there should be cost sharing between them  and
    the  rich countries.  This has become even more necessary
    as  some of these countries have been made poorer through
    the  activities  of  rich traders  from  rich  countries.
    Malaysia has established its own fund for the purpose  of
    carrying  out  activities related to  sustainable  forest
    management  but the campaign against tropical  timber  is
    depriving  the country of revenue needed to  sustain  the
    fund.
    
    13.   Malaysia is against unilateral actions taken by the
    major  developed consumer markets to restrict or  boycott
    the  use  of tropical timber.  Such  actions only  render
    the   forests  valueless  as  a  source  of  income   and
    consequently   the   forests  are   being   cleared   for
    agricultural  and  other purposes.  Of  course  no  money
    will  be  spent  on  preserving the forests.   In  short,
    restrictions  on trade in timber products will  not  help
    to  reduce  deforestation in  the  developing  countries.
    In  fact,  if efforts are taken by the major  markets  to
    provide greater market access and higher value to  timber
    products,  producer  countries  would  be  in  a   better
    position  to  undertake sustainable management  of  their
    forests.
    
    14.   The  global trade in forest products, is  estimated
    at  US$114  billion and continues to increase in  volume.
    However,  the  developed countries dominate  this  trade,
    accounting  for  about 80 percent of  the  timber  trade.
    The  developing  countries have entered  this  field  but
    their share of the trade is still small.
    
    15.   The  Food  and Agriculture Organisation  (FAO)  has
    estimated  that world timber consumption would reach  3.8
    billion cubic metres by the year 2010.
    
    16.   A  global outlook study on trends to the year  2020
    by  the  FAO  also indicates that long term  adequacy  of
    supply   of   timber  products  will  depend   upon   the
    sustainable  management of forest resources.   The  world
    population  is  expected to grow to about 10  billion  by
    the  middle  of  the next century and  this  will  create
    greater demand for timber and timber products.
    
    17.   Malaysia believes  and supports  globalisation  and
    greater  liberalisation in trade and investment  both  at
    regional  as  well as international levels.   We  believe
    they  would  contribute towards growth  and  development.
    Malaysia  is one of the strong proponents of a more  open
    economy  and  greater cross-border flow  of  capital  and
    trade.   We welcome foreign direct investments.   However
    we  believe  that cross-border flows, liberalisation  and
    globalisation   must   not  be  regarded   as   ends   in
    themselves.   They  should  contribute  toward  equitable
    distribution  of wealth for all.  Unilateral  actions  to
    achieve  these  objectives  are  not  likely  to  benefit
    anyone else other than the party concerned.
    
    18.   The  Uruguay  Round  Agreement  aimed  at  reducing
    tariff    and    non-tariff   barriers    requires    all
    participating  countries to follow common trading  rules.
    For  the  timber  products category, although  a  general
    consensus  has  been  reached  to  reduce  tariffs,   the
    schedule  of  implementation has not been finalised.   In
    the   meantime   local  authorities  are   negating   the
    commitments  made  by  their  countries  towards   tariff
    reductions and fair trade by imposing their own rules  on
    the  usage  of  timber within their  jurisdiction.   This
    renders international agreements meaningless.
    
    19.    At  the  last  Asia-Pacific  Economic  Cooperation
    (APEC)   meeting  in  Vancouver,  member  countries   had
    reaffirmed  their  commitment to further  market-openings
    in  trade  and  investments.  It is  gratifying  to  note
    that   under   the   agreed  Early   Voluntary   Sectoral
    Liberalisation, APEC leaders had endorsed  the  selection
    of  product  sectors which had the support  from  members
    for  early trade liberalisation measures.  Among them  is
    the  forest  products  sector.   Malaysia  welcomes  such
    positive  developments  as  these  efforts  will  provide
    increased  market access, particularly for products  from
    the  developing  countries  in  APEC.   In  this  regard,
    developed  countries  should  allow  more  room  for  the
    developing countries to adjust themselves and  to  pursue
    national  goals  effectively  before  forcing  upon  them
    liberalisation measures which they are not  prepared  for
    as yet.
    
    20.   I  am  also  glad  to  note  that  the  initiatives
    undertaken at the ASEAN, WTO and APEC meetings  have  led
    to   the   dismantling  of  tariff  barriers  for  timber
    products.   Unfortunately the recent  forced  lifting  of
    restrictions  on  the  export of  unprocessed  timber  in
    order to liberalise trade has resulted in the erosion  of
    incomes  for  timber exporting countries.   Impoverishing
    countries  through certain means also have the effect  of
    forcing  them  to  export  unprocessed,  low  value-added
    timber in order to earn much needed foreign exchange.
    
    21.   I  am  happy  to  note that a number  of  Malaysian
    timber companies have ventured into foreign countries  to
    establish  strategic  alliances  and  partnerships   with
    local   companies  in  the  management  of  their  forest
    resources.    Malaysian  companies   believe   in   smart
    partnerships which result in equitable benefits  for  all
    the   parties  involved.   Accordingly  these   Malaysian
    companies have not only extracted timber but have  helped
    to  develop  infrastructural facilities such as  schools,
    hospitals  and  other  social amenities.   They  have  of
    course  practised sustainable forest management in  order
    to  preserve  the  timber resources of  these  countries.
    Unfortunately there have been accusations that  they  are
    "environmental marauders" even when they  have  not  even
    ventured  into  certain countries.  That  Malaysia  today
    still has 50 percent forest cover bears testimony to  the
    efficiency  and  care of Malaysian timber companies  when
    extracting  timber.  By contrast certain countries  which
    have  become developed have lost almost all their  forest
    cover.
    
    22.   Timber as construction material has been used since
    the  beginning of time.  It is one of the most  beautiful
    materials  for  furniture and other products.   Over  the
    years  wastage from processing has been reduced  so  much
    that   almost   nothing   is   left   unutilised.     The
    maximisation of the use of timber has resulted in  lesser
    need to extract timber.
    
    23.   The  best  way to reduce the felling of  trees  and
    destruction  of the forests is to make every tree  felled
    to   yield  maximum  returns.   This  can  be   done   by
    increasing the price of timber, by reducing the  cost  of
    extraction,  by  adding  value  to  the  maximum   before
    exporting.   If  all these are done then countries  which
    depend on timber for their economic development need  not
    extract timber in an unsustainable way.  The worst  thing
    to  do  if  we want to minimise timber extraction  is  to
    impoverish timber-producing countries.  Therefore,  there
    is  need for the appropriate global policies to be put in
    place  to ensure fair and equitable international trading
    practices  and  market  access  particularly  for  timber
    products.
    
    24.   Finally, I would like to call upon all participants
    to  make  full  use of the conference to obtain  as  much
    information  as possible from the speakers and  panelists
    who  I  am  told have vast experience and are experts  in
    their respective  fields.  To all foreign participants  I
    wish  you  a  pleasant  stay  in  Kuala  Lumpur.    I  am
    confident  that you will have a fruitful deliberation  in
    this conference.  On this note, I have great pleasure  in
    declaring   open  the  International  Timber   Conference
    1998.

 



 
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