multipurpose tree species research for small farms: strategies ... - part
multipurpose tree species research for small farms: strategies ... - part
multipurpose tree species research for small farms: strategies ... - part
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traditional and simple with few exceptions.<br />
Consequently, this one person management system<br />
creates many problems inhibiting further<br />
development of these industries,<br />
Peninsular Malaysia has an abundant supply of<br />
rattan and bamboo. However, in terms of the<br />
industries related to these resources, Malaysian<br />
achievements trail far behind the accomplishments<br />
of other countries that went into the business much<br />
later. This is due to Malaysia's tendency to sell raw<br />
materials instead of producing value-added<br />
products. In 1988, export revenues <strong>for</strong> the rattan<br />
and bamboo industries amounted to only US$10<br />
million and US$1.2 million FOB, respectively<br />
(Statistics De<strong>part</strong>ment 1989).<br />
Trade data from various government agencies<br />
such as the Malaysian Export Trade Centre<br />
(MEXPO) and the Malaysian Handicraft<br />
Development Corporation (PKKM) confirm that<br />
both rattan and bamboo products show potential.<br />
The current trend indicates that there is a<br />
continuous demand <strong>for</strong> these products. The<br />
Federation of Malaysian Manufacturers (FMM<br />
1988) projected that revenues <strong>for</strong> the export of<br />
ratan furniture wo,.'d reach US$30 million in the<br />
1990s and the increasing demand <strong>for</strong> cheap<br />
disposable bamboo products should indicate a<br />
bright future <strong>for</strong> the bamboo industry,<br />
Problems<br />
From site visits and feedback on questionnaire<br />
surveys, both industries cited similar problems.<br />
Major problems mentioned include the following<br />
categories,<br />
Raw material supply<br />
The industries face problems in securing a<br />
continuous supply of suitable bamboo and high<br />
grade rattan. The factories are <strong>for</strong>ced to accept<br />
inferior quality rattan because the prize <strong>for</strong> better<br />
grade materials is prohibitively expensive.<br />
Consequently, they experience problems in<br />
meeting buyers/clients' specifications.<br />
Logging and the convcrsion of <strong>for</strong>ests to<br />
agriculture and settlements contributes to a rapidly<br />
dwindling supply of raw materials, <strong>part</strong>icularly in<br />
the more accessible <strong>for</strong>ests w, there are no<br />
mandatory measures to ripiace these natural<br />
resources.<br />
Poor management<br />
Most cottage and <strong>small</strong>-scale businesses are<br />
76<br />
either individually or family operated by people<br />
with minimal educational backgrounds. As<br />
such, they have poor accounting practices,<br />
inappropriate factory layouts antiquated<br />
production techniques which result inlow<br />
productivity levels and poor workmanship.<br />
Their activities are usually limited due to a lack<br />
of capital and difficulty in obtaining credit and<br />
bank loans. These difficulties prevent them<br />
from expanding and acquiring a permanent<br />
business site.<br />
Technical problems<br />
The industry is labor intensive but<br />
entrepreneurs have difficulty in attracting and<br />
recruiting permanent workers and experienced<br />
labor. Experienced artisans either already work<br />
<strong>for</strong> established mills or operate their own mills.<br />
Apprentices usually take time to master their<br />
craft and many prefer to pursue other less<br />
arduous careers. There are not enough<br />
graduates from the Malaysian Handicraft<br />
Development Corporation to fill the expanding<br />
demand.<br />
The technical level of the industries is very<br />
low. They rely on traditional skills, resulting in a<br />
low production volume. The village industry<br />
assistance program which provides basic<br />
machinery can not be fully utilized as the mills<br />
are scattered in rural areas lacking<br />
infrastructure such as electricity and telephone<br />
service.<br />
Entrepreneurs often produce inferior quality<br />
products due to a variety of technical problems.<br />
Services provided by various agencies to identify<br />
and solve problems often involve no follow up.<br />
This leaves the entrepreneurs with their<br />
problems unsolved.<br />
Product development<br />
Originality in design is important. However,<br />
in Peninsular Malaysia, product design fails to<br />
receive adequate atlention. Very few written<br />
materials are available and institutions are only<br />
indirectly involved in actual design work.<br />
Entrepreneurs have to rely on existing ethnic<br />
designs or copying ideas from other sources.<br />
Marketing<br />
Most entrepreneurs are unable to compete in<br />
the open market due to high production costs.<br />
They market their products by selling directly to<br />
wholesalers and retailers, and through<br />
government contracts and sub-contracting.