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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.

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