multipurpose tree species research for small farms: strategies ... - part

Rattan and Bamboo as a Major Industrial
Resource for Rural People in Peninsular Malaysia
Razak Wahab,Hamdan Husain and Abd. LatifMohmod
Rattan and bamboo are two of the most
important and highly sought after minor forest
products in Peninsular Malaysia. Over 1,500
companies are engaged in industries using these
resources, employing more than 10,000 people
(Mohmod et al. 1989). However, the involvement
of rural people is confined to handicraft
production with litt~e interest in venturing into
manufacturing furniture or larger bamboo
products. Their products are usually sold locally
and in neighboring areas. Many problems prevent
the development of local, rural-based rattan and
bamboo industries, among which are a lack of
technical knowledge, quality control, good designs
and product diversification. As a result, their
existing volume-to-cost ratio icads to
disproportionately high production costs and
selling prices.
To promote rattan and bambo enterprises
among rural people, coordinated research and
development activities need to be strengthened. In
addition, intercropping and plantations of rattan
and bamboo should be intioduced to complement
the extraction of raw materials to ensure a
sustainable future supply.
Current Status
Rattan and bamboo are important minor forest
products in Peninsular Malaysia providing a source
of revenue and a means of sustainable employment
in rural areas. This is due to the technology used
iit the industries as well as the readily available
natural resources. These remarkable resources
have many uses where their special features can be
fully exploited.
Rattan and bamboo have been used for a long
time in large, medium, small and cottage industries
in Peninsular Malaysia. Eighty percent of the
existing mills fall in the small and cottage industry
category with an average capital investment of less
than US$5,000, employing from I to 15 people
(Shahwahid and Bajau 1987).
The scale of forest-based factories is defined by
the amount of capital invested and number of
Forest Research Institute of Malaysia (FRIM)
Kuala Lumpur, Malaysia.
75
workers. Cottage industries involve less than
US$ 2,500 and employ five or les,, workers.
Small-scale factories involve less than US$
100,000 and employ up to 50 workers.
Medium-scale factories invest up to US$
200,000 and hire up to 75 workers. Large-scale
factories are those involving more than US$
200,000 with over 75 employees.
Of 600 rattan mills in Peninsular Malaysia,
46% are classified as cottage enterprises, 34%
as smail-scale, and the remainder as medium
and large-scale factories. Of the 600 mills,
15.5% (87) are involved in rattan processing,
12.6% (71) operate in both processing and
manufacturing, while the remaining 71.9% (405)
mills are involved only in manufacturing
(Mohmod el al. 1989). The rattan processing
industry contributed US$3.5 million FOB in
export revenues in 1988 while the rattan
manufacturing industry exported US$6.5 million
FOB worth of commodities (Statistics
Department 1989).
In the bamboo industry over 800 mills are
classified as cottage and small-scale enterprises
while another 100 are categorized as medium
and large-scale. The medium and large-scale
factories are mostly involved in machne -
intensive product manufacturing. Although the
bamboo industry in Peninsular Malaysia began
in the 1950s, their activities were confined to
traditional handicrafts, while the
machine-intensive industry was introduced in
the last four to five years (Mohmod et al. 1989).
Most of the mills are located on the west
coast where the infrastructure is good and the
markets are available and easily accessible.
Cottage and small-scale are synonymous for
the type of industry operating in rural areas.
These rural industries are usually one person
enterprises, managed by the entrepreneur who
oversees the marketing, production, finance,
personnel and overall aspects of business
without the help of specialized staff (IDRC
1985). The technology of production is