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Production Potential of Rubberwood in Malaysia: Its Economic Challenges

The article is a result of collaborative work between the furniture research group at BNU, the Faculty of Forestry, Putra University, Malaysia, and the Chinese Academy of Forestry, Beijing, investigating the potential and comparative value of woods used in furniture manufacturing industries globally. After investigating Rubberwood use in the UK, Kaner found it was now perceived as a valuable material for furniture and panel products. Rubber wood has emerged as the most important raw material for Malaysia, the third largest producer in the world. A plantation crop regarded as highly environmentally friendly, it was heralded as a successful green crop. However, it is currently under threat from rapidly growing forestation of palm used mainly for its valuable oil. Cultivation of Rubberwood has reduced by nearly half (from 1.93 million hectares to 1.0 million hectares). The profitability of rubber harvested from rubber wood is in decline due to the low net value of rubber; the yield dropped significantly from 17% return to 8% return pa. The secondary use of Rubberwood as a timber material has been successfully established in the region returning export revenue. However within Malaysia up to 35% of waste materials (biomass) are not being used by small producers and this is an issue where economic potential is being lost. As the West is now accepting Rubberwood as a worthy material, not just a substitute for other more acclaimed timber species, Kaner established growth potential in the UK use of Rubberwood in furniture manufacturing. The research identified that the issues relating to biomass must be addressed to ensure that the supply of Rubberwood can meet the demand for it over the next decade, especially for its use as panel materials and furniture related objects.