PROJECTS APPROVED IN 2005

In 2005, a total of 86 projects were approved with investments of RM789.1 million compared with RM1.2 billion in 2004 in the wood-based sector including furniture. The higher investment in 2004 was due to the approval of two large projects with investments of over RM200 million for the manufacture of particleboard and moulded MDF.

Of the 86 projects approved, 58 were new projects with investment of RM440.2 million (56.3%) while 28 were expansion/diversification projects (RM341.7 million or 43.7%). Domestic investments amounted to RM641.3 million or 82 per cent of total investments.

The highest investments were recorded in the wooden furniture sub-sector with 50 projects approved involving investments of RM421.5 million, compared with RM302.6 million in 2004. Most of the projects approved will be export-oriented. Domestic investments amounted to RM358 million or 84.9 per cent of total investments. Thirty-three (33) were new projects with investments of RM208.2 million and 17 were expansion/diversification projects with investments of RM213.3 million. Most of the projects approved were proposed to be located in Selangor (20), Johor (15) and Melaka (8).

In the panel products sub-sector, six projects were approved with investments of RM117.8 million (15.1%). Domestic investments amounted to RM111.1 million or 94.4 per cent of total investments. Five were new projects with investment of RM106.8 million and one was for expansion/diversification with investments of RM 11 million. Projects approved included a joint-venture project to manufacture fibre composite board utilising rice husk with Canadian technology. The product is proposed to be exported to the EU, the USA and ASEAN markets.

Thirteen (13) projects were approved in the mouldings and BCJs sub-sector with investments of RM112.5 million. Domestic investments amounted to RM89.2 million or 79.3 per cent of total investments. Eight were new projects with investments of RM54.6 million and five were expansion/diversification projects with investments of RM57.9 million. Projects approved were mainly for the manufacture of wooden doors and flooring boards. Among the other projects approved were six projects to manufacture activated carbon/charcoal briquettes with total investments of RM21.5 million. Four of these projects were Malaysian-owned.

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Source: Malaysian Industrial Development Authority (MIDA)