Saturday, January 23, 2010

Food & Beverages Industry in the Eastern Region

OVERVIEW

Malaysia with its rich tropical and agricultural resources combined with the diverse cultures including Malay, Chinese and Indian; have resulted in a fascinating range of processed food with an Asian twist. Today’ lifestyle changes have led to the increase in the demand for convenience and health food.

Potential of Food & Beverages Industries in The East Coast Region of Malaysia

The huge potential of food & beverages industry development in Malaysia has prompted our government in giving their serious attention to develop the sector. Under the Industrial Master Plan 3 (IMP3), F&B was highlighted for promotion as well as seven (7) key of the strategic trusts for food processing are introduced;

IMP3: Strategic Thrusts for Food Processing

Ensuring the availability of the supply raw materials;
Expanding and diversifying food processing activities and promoting the growth of the targeted areas;
Enhancing sectoral linkages and support services;
Intensifying research and development;
Enhancing competitiveness and increasing export;
Strengthening human resource development; and
Strengthening the institutional support and delivery system

Initiatives under the East Coast Economic Region (ECER)

Based on its potential, the ECER Master Plan aims to enlarge the food processing industry (food and beverages) due to the advantageous geographical orientation, considerable labor pool especially in the rural areas, strong resource endowment, strong potential for property development and competitive wage rates compared to the West Coast State. Key initiatives devised are as follows;

Agriculture Clusters Key Analysis

Crop-Base Clusters
Livestock, Based Clusters
Fish-Based Clusters
· Fruit & vegetables
· Highland agriculture / floriculture
· Herbs
· Kenaf
· Beef
· Mutton
· Poultry
· Breeder animals
· Animals feed production
· Marine capture fisheries
· Brackwishwater aquaculture
· Freshwater aquaculture

Crop Based Cluster

Crop Based Cluster

Initiatives & Location
· Fruit & vegetables
-Permanent Food Production Park (TKPM): Fruits-Lanchang, Ulu Jelai & Ulu Tembeling
-Citrus Valley-Durian Mentangau, Dungun
-Integrated Park, Rompin
· Highland agriculture/ floriculture

-Permanent Food Production Park (TKPM):
Vegetables & Floriculture- Lojing
· Herbs

-Herbal Park & Satelite Farm- Gua Musang, Lanchang, Raub, Dungun & Jeli
-Herbal & Biotechnology Center of Excellence (COE)- UDM
· Kenaf
-Kenaf Plantation & Animal Feed Production Industry- Bachok, Pasir Putih, Besut, Setiu & Marang.

Livestock Based Cluster
Initiatives & Location
· Cattle Industry
-Cattle Research & Innovation Center- Muadzam Shah
-Cattle Multiplier farm- Ulu Lepar, Tanah Merah, Ulu Tersat
-Livestock Feed industry- Bachok, Ulu Lepar, Ulu Tersat
-Cattle Integration In Pineapple Plantation- Rompin, Pekan
-Beef Valley, Dairy Farming- Kuala Krai, Pasir Putih, Marang, Lipis, Bera & Rompin
· Goat Industry
-Goat Research & Innovation Center- Kuala Berang
-Goat Multiplier & Commercial Farm - Telaga Papan, Kuala Berang
-Goat Integration in Rubber Plantation- Besut & Hulu Terengganu
Intensive Goat farming- Machang
· Poultry Industry
-Fully Integrated Poultry & Processing Park- Gua Musang
-Poultry Processing Industry & Day-Old-Chick Production- Gambang, Chendering
-Poultry Feed Production Industry- Gebeng, Kuantan

Fish Based Cluster
Fish Based Cluster
Initiatives & Location
· Marine Fish Cluster
-Integrated Fisheries Park- Tok Bali-Kelantan
-Fish processing Park- Kuantan
-Collection Processing & Packaging Center (CPCC)
–Kuala Kemaman, Pengkalan Kubor, Bachok
· Freshwater & Marine Fish Aquaculture Cluster
-Freshwater Fish Hatchery & Marketing Center- Raub, Pahang
-Marine Fish & Shrimp Hatchery and Marketing Center- Kuala Pahang
-Integrated Tilapia Production Park- Tasik Kenyir & Tasik Pergau
-Integrated Shrimp production Park- Setiu

The developments of the agriculture or food industry in the East Coast Region in Malaysia are clustered by location in order to spur the development as well as ensuring its success. The clusters devised are as follow:

Agro Based Industry Cluster

Pasir Mas- Food processing (Crops, Beef & Poultry based)
Tok Bali- Fish processing, Integrated Fisheries Park
Bachok- Fish processing
Gua Musang- Herbs/ Biotechnology Industry & food processing (Beef & poultry Based)
Kuala Krai- Food processing (Beef & poultry based)
Chendering- Food processing (fish & poultry based)
Kuala Kemaman- Food processing (fish based)
Gambang- Food processing (crops, poultry & beef based)
Kuantan- Fish processing park


Agro Based Industry Cluster
Agro based Industry Cluster
Initiatives & Location
· Development of Incubation of Centers for Micro food Processors
- Kota Bharu & Specialty Food
- Kuantan- Traditional & Specialty food

Collection, Processing & Packaging Center (CPCC) and Collection & Marketing Center (CMC)

CPCC/CMC Centers
Initiatives and location
· Fruits & Vegetables CPCC
-Lojing -Kuantan
-Jerantut -Rompin
-Kota bharu -Lanchang
-Besut
· Fisheries CPCC
-Pengkalan Kubor
-Bachok
-Kuala Kemaman
· Herbal CPCC
-Gua Musang
-Dungun
-Lanchang
· Kenaf CPCC
-Bachok
-Setiu
-Marang
· Livestock CMC
-Felda Chiku
-Felda Jerangau
-Felda Chini

The Incentives Offered Under ECER

New fiscal incentives include under ECER are:
i. Income tax exemption up to 10 years;
ii. Investment tax allowance (ITA) amounting to 100% of qualifying capital expenditure for 5 years;
iii. Stamp duty exemption;
iv. Import duty and sales tax exemption

Under the ECER Masterplan, Halal F&B sector are identified to be developed via Halal Parks in Kelantan (Pasir Mas) and Pahang (Gambang). The objective of Halal Park is to participate in Malaysian’s vision ‘To be the Global Halal Hub or Halal Center for the World’ and to take advantage of rising global halal products and market development.

The components of the Halal Park included;
· Industrial site
· Incubator centers
· Logistic and distribution center
· SMIs development center
· Research and development center
· Land and infrastructure development for industrial park
· Marketing and promotion

Strength and Weaknesses: ECER as F&B Producer

The key strengths of ECER for the developments of F&B industries are;
Strong resources endowment
Considerable labor pool especially in the rural areas and among females
Competitive wage rates compared to the West Coast States
Strong potential for property development
Lower cost of living
Good education system and other basic community services
Advantageous geographical orientation

The potential of F&B industry in the ECER is boost by the growing population with rising income in Malaysia, where the demand for food consumption, animal feed and industrial usage has increase. Abundance of available land had also made the East Coast region a cheaper alternative for the food and beverages industry or agriculture itself. In addition, incentives offered by the ECER Master Plan are expected to influence the investor for capital injection in the industry.

The drawback of East Coast Region of Malaysia includes slow rate of capital accumulation in all aspect of the industry especially in term of inward investment. Traditional methods of farming are stilll being used by the farmer, and quick expansion of the industry is impossible without the modernization of machine and farming technology.

Ministry of Agriculture and Agro-based Industry (MOA) had further stated additional challenges in this industry which are;
Increase in food prices;
Increase cost of production inputs or raw material;
Land constraint;
Old and unskilled workforce;
Unavailability and low quality of seedlings;
Unavailability of agriculture infrastructure;
Less commercialization of R&D and innovation.

Several ways have been identified to reselve the challenges including:
Developing larger labor pool as well as skill capacities;
Implementing mechanization and automation in the sector for more effective and efficient work task;
Encouraging private sector participation;
Adoption of modern technology and k-economy driven to boost this industry abroad.
Enhancement of the support system for instance R&D, marketing strategies, special incentives and funding to assist the sector to be more competitive.
Introduction and development of the agro-tourism industry as additional income attraction to the industry.

Contribution: Mohd. Khodri, Practical 02/2009

ECER Plastic Park CLusters

OVERVIEW
Malaysia is already one of the largest plastic producers in Asia with the industry becoming increasingly dominant in Malaysia's export mix. In 2008, total trade for plastic products increased by 3.9 per cent to RM14.94 billion (2007:RM14.38 billion).

The total exports of plastic products in 2008, recorded an increase of 11.5 per cent to RM9.34 billion compared with RM8.38 billion in 2007, accounting for 1.4 per cent of total manufactured goods. Key export markets for Malaysia's plastics industry include Singapore (19.5 per cent) followed by Japan, UK, USA and Thailand.

The main export items were packaging materials such as plastic containers and bottles, plastic bags and sacks, plastics stoppers, lids and caps and plastic plates, sheets, film, foil & strip. Other major item was articles of plastics such as plastics pipe sealing tape, plastic for medical or surgical and frames as well as plates, sheets, film, foil and strips and plastic containers and bottles, plastic bags and sacks, plastic stoppers, lids and cap.

KERTEH PLASTIC PARK (KPP)
The KPP was built under the ECER masterplan to develop the petrochemical industry stream. Currently, the Oil and Gas sector contributed eighty per cent of Terengganu’s GDP. The park, located within the East Coast Economic Region (ECER), aims to promote further downstream investments in the plastics and plastic-related industries by tapping into the potential synergies with the nearby Kertih Integrated Petrochemical Complex (KIPC) which consist of the oil, gas petrochemical and supporting facilities within the Petronas Petroleum Industry Complex, with investments worth RM70 billion.

It is aimed at adding value to the national hydrocarbon resources by moving up the product value chain and expanding downstream activities in the petrochemical industry into plastics and plastics-related industries.

Other than enhancing the competitiveness of Malaysia’s plastics industry, it provides a focused development to cater to the needs of the industry. Developed on a 140-hectare site known as Lot Q next to KIPC; the Kertih Plastics Park will house plastics and plastics-related industries.

By building this park, the local value chain for the country's petrochemical industry is expected to be extended and encourage innovation in end-product plastic manufacturing. KPP would also serve as a haven for developing and enhancing capability in the local plastics industry by providing technical and vocational training to complement the work of the local educational institutions.

KPP is expected to produce product within Malaysia as well as the global market. The park expects the industrial lots to be fully taken up by 2015. It also targets to attract RM2 billion worth of investment and creating more than 7,000 jobs in the manufacturing, support and ancillary services. The private sector, especially small and medium enterprises are encourage to seize the opportunity to establish their plastics and plastic-related factories in KPP. The success of KPP is based on the easy access to feedstock and availability of existing infrastructure and support services in KIPC. The access to reliable and just-in-time feedstock supply translates into savings in logistics and warehousing cost.

It is also expected to spur the development of other sectors such as food and automotive as well as encourage the development of local small and medium scale enterprises, which will feed off the critical mass at the Kertih Plastics Park.

This project is in response to the need to enhance the competitiveness of Malaysia's plastics industry. The KPP will provide focused development to cater to the specific needs of the plastics industry. The other plastics parks in the world are Dow Olefinverbund GmbH Value Park in Germany, Jain Plastics Park in India and Abu Dhabi Polymer Park in United Arab Emirates.

ECER MASTERPLAN UPDATES
ECER aims to attract investment of RM112 billion between 2008 and 2020 of which 47 per cent consisting of private investment both locally and outside Malaysia. By June 2009, 77 of 105 projects would be implemented. ECER aims to transform Pahang, Kelantan and Terengganu into a developed region by 2020.

Currently, ECER as Malaysia's first fully- integrated 140-hectare Kertih Plastic Park (KPP), has already attracted RM145 million in investments via Hi-Essence Cable Sdn Bhd, manufacturer of wire and cable, is investing RM85 million, Latenfield Pipe Industries Sdn Bhd, RM40 million, while FMD Polypipes Industry Sdn Bhd will invest RM20 million to manufacture plastic pipes.

CURRENT KPP OCCUPANTS
Latenfield Pipe Industries Sdn Bhd
- Investment of about RM40.23 million to building its first factory to manufacture pipes.
- Located on a 4.8 hectare site within the plastic hub, the Latenfield factory will produce Modified Polyvinyl Chloride (MPVC) pipes that do not easily deteriorate and are of a high quality to cater to the agricultural industry, water reticulation and sewage, mining and cabling as well as that for internal piping.
- Latenfield is optimistic of netting RM40 million in annual sales when the new factory begins operations in two years time with orders for the MPVC pipies were expected from overseas, especially from among Asean countries under its brand as well as an orginal equipment manufacturer.
- MPVC is a product widely accepted in developed countries such as Australia and New Zealand for application in pressure piping. It is produced by combining a PVC resin with a polymeric switching agent, to yield a strong finish for the end product.
- The MPVC pipes, made from PVC resin combined with a polymeric switching agent, will have higher strength and will not deteriorate easily compared to conventional pipes. These pipes can be used in plantations, for water reticulation and sewage, mining and cabling as well as for internal piping.
- The MPVC compound was developed at the Petronas Polymer Technology Centre. The MPVC pipes, which could last up to 50 years against some 15- year lifespan for conventional PVC pipes, are used at the KPP, he said.Currently, MPVC is widely used in developed countries such as Australia and New Zealand in pressure piping.
- At the KPP, Latenfield will cooperate with Vinyl Chloride (M) Sdn Bhd, a Petronas subsidiary, who will supply the MPVC compound as well as the technical assistance.

Hi-Essence Sdn. Bhd.
- Investment worth RM85 million to build a cable and plastic wire factory.
- Callaboration with the Taiwan Stock Exchange-listed Hua Eng Wire and Cable Ltd for transfer of technology and technical collaboration, as well as with Petronas Polymer Technology Centre for technology collaboration on wire and cable products.
- Callobaration with Petronas through a technology agreement to do research and design in PVC (polyvinyl chloride), plastic polymer and polyether. This collaboration will help develop these products locally in the future as they were currently sourced overseas.


CONCLUSION
In view of attractive tax incentives and dedicated infrastructure to export plastics, Malaysian plastic manufacturers should deliberate in setting up factories at KPP. Currently, plastic manufacturers have long been scattered throughout Malaysia and KPP with its more systematic clustor development offers the opportunity to be vertically integrated with just-in-time delivery and warehousing.

By tapping the Kertih Integrated Petrochemical Complex, plastic manufacturers can benefit from reliable and just-in-time feedstock supply of plastic resin and savings in warehousing and logistics costs. Plastic exports can be shipped out from Kuantan Port via a dedicated railway line which was developed earlier by Petronas to serve its need between Kertih and Gambang petrochemical plants.


REFERENCE

1. “Kertih Plastic Park : Malaysia’s First Fully Integrated Plastic Hub”, East Coast Economic Region Development Council (ECERDC), 2008
2. www.ecerdc.com
3. www.bernama.com


PLASTIC MANUFACTURERS IN THE EAST COAST – MATRADE MEMBERS

GERFLOR-ZIL FLOORING (M) SDN BHD
LOT 38, KAW PERINDUSTRIAN BENTONG28700 PAHANGMALAYSIA
Telephone: 6 - 09 - 2221514 / 09 - 2221506
Facsimille: 6 - 09 - 2221500
Business Enquiries: ROHIZAT ABDUL, MUHAMAD ANUAR MAT BAKAR
Email: scrap@streamyx.com
Product(s): PVC VINYL HOMOGENEOUS TILES, VINYL COMPOSITION TILES

GLOBAL GREEN PACK SDN BHD (FORMELY KNOWN AS WEBSCAPE SDN BHD)
A 101, 2ND FLOORSRI DAGANGAN, JALAN TUN ISMAILKUANTAN25000 PAHANGMALAYSIA
Telephone: 6 - 09 - 5134533 / 5151561
Facsimille: 6 - 09 - 5151274 / 5365748
Senior Executive: SYED ABD RAHMAN ALHAMID
Business Enquiries: SYED ABD RAHMAN ALHAMID, SYED ABD RAHMAN ALKHARID
Email: ggpack@gmail.com
Website: http://www.ggpack.com
Product(s): POLYSTYRENE PALLETS

PLASTIC MANUFACTURERS IN THE EAST COAST UNDER – NON MEMBERS

FM PLASTIC INDUSTRIES SDN. BHD.
Lot PT 10014, Kawasan Perindustrian Jakar 3
24000, Kemaman
Terengganu
Tel: 09 – 868 1102
Faks: 09 – 868 1101
Contact : Mr. Mohamad Pauzi bin Ismail, General Manager
Products:
· PE Heavy Duty Bagging Film (Form, Fill & Seal (FFS) Bag)
· PET Bottles
· Plastic Bags
· Zipper Bag for medical usages

FMD POLYPIPES INDUSTRY SDN BHD
Wisma FM Holdings
No.10, Persiaran 65C,
Pekeliling Business Centre
Jln. Pahang Barat,
50300 Kuala Lumpur
T: 03-4022 1010
F: 03-4025 1010/4021 1010
E: fmh@streamyx.com
Contact: En. Shamsudin bin Dato’ Hj. Musa, Asst. Secretary General
019-235 1010 / sudin1010@gmail.com


HI-ESSENCE CABLE SDN BHD
No.2, Bandar Puteri
47100 Puchong, Selangor
T: 03-8061 3793
F: 03-8061 2493
E: www.he-cable.com
Contact: Mr. Roy Fong T.L / Sales Manager
019-312 0685 / royfong@he-cable.com
Products:
· Wire and Cable Manufacturers
o Power Cable
o Marine Cable (Ship / Offshore Platforms)
o Communication Cables
o Chemical, Oil & Gas Plants / Refineries
o Control & Instrumentation Cables
o Fire Resistent Cables
· Transformers and Cable Glands


LATENFIELD PIPE INDUSTRIES SDN BHD
Lot 79, Jln. Kuala Berang,
Padang Midin (Tmn. Koperasi)
21400 Kuala Terengganu, Terengganu
T: 09- 631 3188
F: 09- 622 6188
Contact: Mr. Chong Chow Yee / Managing Director
019-900 0100 / cychong@epms.com.my
Products:
· Pipes

Batik & Handicraft Industry in the East Coast

OVERVIEW

Malaysia especially Terengganu, boasts variety of traditional hand-crafted objects ranging from antiques to modern hand-made crafts consisting of textiles (batik) and accessories, wood crafts, ceramic and clayware, crafts made of precious or common metals with superb workmanship.

BATIK
Batik is one the most well known handicraft in Malaysia. Batik refers to the process of wax-resist painting and dye painting to produce a multi-coloured intricate design to fabrics. The word "batik" is believed to be related to the Malay word "titik" which means "point", "dot" or "drop".

The origin of batik is shrouded in mystery because fabric disintegrates, making it impossible for historians to pinpoint when the technique was first discovered. The earliest evidence can be traced back to China and India, from which batik then travelled to the rest of the world.

The two main types of batik produced in Malaysia today are:

Handrawn batik – designs were drawn on fabric with hot liquid wax, using a metal object called canting. When the wax outlines are done, the brushes are used to paint dyes within the outlines. The use of brushes allows for the creation of shaded and multi-hued designs.

Block-printed - a copper block or sometimes a wooden stamp with artistically patterned bottom is used. The block is dipped into wax and press printed onto the fabric, which is then dip-dyed. The wax will then be removed by boiling and batik with single or multi color is produced.

The number of batik producers has grown by 40 per cent since the national batik movement was launched in 2003. There were only 324 batik producers in 2004. Three years later, the number has risen to 468. Similarly, job opportunities in the industry have gone up by 20 per cent from 1,915 people in 2004 to 2,318 in 2008. (News Straits Times, 2008).

At the launch of the International Malaysian Batik Festival 2007, RM50 million annual allocations under the Handicraft Industry Development Fund was announced and expected to boost the batik industry especially in the Northern Corridor Economic Region (NCER) and East Coast Economic Region (ECER).

Batik has evolved into a unique art form that has inspired people from all over the world.Batik is a versatile art form that lends itself to any kind of creative expressions. Today, batik is used as paintings or used on lampshades, footwear, picture frames, bed-sheets, wall paneling and other items of lifestyle design.

Batik Centre in The East Coast of Malaysia

TERENGGANU

· NOOR ARFA CRAFT COMPLEX (NACC)
Lot 4153 Kawasan Perindustrian Chendering, 21080 Kuala Terengganu, Terengganu
Tel: 09-6179 700 Fax: 09-6179 701
Email: nacc@noor-arfa.com.my

· Wanisma Craft & Trading
No.32, Ladang Sekolah, Jalan Sultan Zainal Abidin, 20000 Kuala Terengganu. Tel: 09-6223311

· Batik Handicraft
1544, kg.Rusila, 21080 Kuala Terengganu.
Tel: 09-6182584

· Sutera Semai Centre
Permint Sutera Semai Sdn.Bhd, Kawasan Perindustrian Chendering,21080 Kuala Terengganu.
Tel: 09-6171355

· Sykt. Hj. Wan Othman Mohd
1060,Jalan Sultan Zainal Abidin, 20000 Kuala Terengganu.
Tel: 09-6221531

· Ambi Songket & Batik
1071, Lrg.Pengkalan Lama, Kg.Gong Tok Nasek, 21100 Kuala Terengganu
Tel: 013-9588615

· Desa Craft
73, Jalan Sultan Ismail, 20200, Kuala Terengganu.
Tel: 09-6221539 / 09-6232575

· Aina Batik
5544, Kg.Padang Midin, 20400 Kuala Terengganu.
Tel: 09-6192545 / 09-9833986

· Nizi Batik
BT. 12 1/4, Bukit Jong, Jalan Kelantan, 21600 Kuala Terengganu. Tel: 019-9837098

· Norhafiza Batik
106, Kg.Pusu Tinggi, 22000 Jertih
Tel: 09-6182584

· Pusat Budaya Craft, Perbadanan Kraftangan Malaysia,Cawangan TerengganuLot 2195, Kawasan Perindustrian Chendering, 21080 Kuala Terengganu.Tel : 09-6171033 / Fax : 09-6231209

PAHANG

· Batik RM
E-594, Tanah Putih Ferry, 25100 Kuantan, Pahang Darul MakmurTel: 609-513 9631 / Fax : 609-513 3345

· Malaysian Handicraft Development Corporation Pahang BranchLot 11, Songsang Industrial Area, 28000 Temerloh, Pahang Darul MakmurTel: 609-271271

· Galeri Tenun Pahang
Lot 1-47, Kompleks Teruntum, 25000 Kuantan, Pahang Darul MakmurTel: 609-556 2344

KELANTAN
· Handicraft Centre
3, Bangunan Kota Sri Mutiara 9, Jln Sultan Yahya Petra, 15200, Kota Bharu, Kelantan
Tel: 609-7430621

HANDICRAFT

Handicraft is defined as a type of work where useful and decorative devices are made completely by hand or using only simple tools. The individual artisanship of the items is a paramount criterion, as well as such items often have cultural and religious significances. Types of handicrafts products include Brass / Copperware, Keris, Lidi Weaving, Mengkuang / Pandan Weaving, Rebana Ubi, Wau and Rattan.

The agency in charge, Malaysian Handicraft Development Corporation (MHDC) has ambitious plans to increase skilled craftsmen in line with the vision to develop and preserve the heritage craft industry. To increase the number of skilled craftsmen, MHDC emphasis on skilled manpower development of artisans, research and development, training along with providing trade incentives and help in marketing and promotional activities. These initiatives positively affected the number of craftsmen from 3,480 in 2004 to 6,167 at the end of 2007.

At present, most of the handicraft industry caters mostly for the local market. However Mengkuang-weaving is identified to have great international potential. Mengkuang-weaving industry has never been highly popular among local craft entrepreneurs as it demands labour-intensive while the returns are small. From the total of the 6,167 local craftsmen, only 131 are involved in the Mengkuang industry and the weavers are mainly from Terengganu, Kelantan, Perak, Kedah, Negeri Sembilan and Sabah (Source: Kraftangan). Through R&D, new designs and innovative uses for mengkuang products are indentified such as bags, gift, wall panelling and so on.

Handicrafts Centre in The East Coast of Malaysia

TERENGGANU

· Terengganu Museum
Bukit Losong, 20566, KualaTerengganu, Terengganu

· Pusat Budaya Craft, Perbadanan Kraftangan Malaysia,Cawangan Terengganu, Lot 2195, Kawasan Perindustrian Chendering,21080 Kuala Terengganu.Tel : 09-6171033 / Fax : 09-6231209

· Malaysian Handicraft Centre Perbandaran Kemajuan Kraftangan Malaysia,Kawasan Perindustrian Chendering, 21080, Terengganu Darul Iman.Tel : 09-617 1033 or 09-617 1034 / Fax : 09-6231209

· Desa Craft
Tingkat Bawah, Wisma Maju, Jalan Sultan Ismail, 20200 Kuala Terengganu, Terengganu Darul Iman. Tel: 09-636 627 / Fax: 09-6231209

PAHANG

· Batik RM
E-594, Tanah Putih Ferry, 25100, Kuantan, Pahang Darul MakmurTel: 609-513 9631 / Fax : 609-513 3345

· Malaysian Handicraft Development Corporation Pahang BranchLot 11, Songsang Industrial Area, 28000,Temerloh, Pahang Darul MakmurTel: 609-271271

· Galeri Tenun Pahang Lot 1-47Kompleks Teruntum, 25000, Kuantan, Pahang Darul MakmurTel: 609-556 2344

· Kraftlogam
24828, Batu 4, Jalan Gambang, 27150, Kuantan, Pahang Darul Makmur

KELANTAN

· Handicraft Centre
3, Bangunan Kota Sri Mutiara 9, Jln Sultan Yahya Petra, 15200 Kota Bharu, Kelantan
Tel: 609-7430621

ISSUES IN THE INDUSTRY

Production
The increasingly high cost of production as the cost of raw materials has increased double from the original price caused by the indirect effect of the higher oil prices in early 2009. However, the handicraft and batik producers are unable to increase the price of the product because of the price sensitivity among the handicraft customers.

Research and Development
Most of the handicraft producers do not carry R&D activities to enable them to compete in the global market. Only a small number of them are doing R&D to modify the products to suit local or intended requirements e.g. songket as table runners or decorative wall paneling.

Marketing
In terms of marketing, the industry is also facing difficulties in accessing and understanding viable new markets. Rural artisans see traditional market disappearing, and often not aware of the potential new market for their products. Entrepreneurs, also have no knowledge on how to access to new markets segments, or to understand the requirements for exploring the global market.

Human Resources
Lack of skilled crafts personnel is often perceived as an inhibiting factor for market development, which may be contributed due to the traditional method used in the production of handicraft products. The younger generation would not spend hours to produce something with little income. To counter this, ways need to be devised on how to maximize the craft value or artisan’s productivity as well as producing new generations of artisans.

CONCLUSION

Continuous efforts are being undertaken by the Malaysian government via its various agencies in order to develop the Malaysian handicraft and batik industry to the greatest potential.

Issues, problems and challenges faced by the industry in eastern states (Terengganu, Pahang and Kelantan) need to taken into consideration in the light of the formulating strategies for the development of industry.

By handling the challenges identified as well as the handing out the correct assistance and guidance, craft has the potential to become an increasingly important contributor to the Malaysia’s economy.

Contribution: Nur Dalila Alias (Practical Student 02/2009)