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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