Summary
Within three decades, the medium density fibreboard (MDF) industry has grown and contributed significantly to the external trade of the wood-based sector of Malaysia. Today the industry is at a cross road. Although, trade is expanding, but initial relative advantages over other competitors have marginally eroded. Over time new critical success factors played important roles as the industry responded to changes in global challenges. New strategies and tactical actions were undertaken. Through an industrial survey using the strength, weakness, opportunity and threat (SWOT) approach, this paper assesses the strategic competitiveness position of the MDF industry in Peninsular Malaysia.
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Assessing the Strategic Competitiveness of the Malaysian Medium Density Fibreboard Industry
1. Introduction
1.1 World Scenario of MDF Production and TradeThe global demand of medium density fibreboard (MDF) is increasing rapidly. A previous census showed that there are 110 MDF mills worldwide, with an annual potential production capacity of more than 8.9 million cubic metres in 1990 (Anon, 2005). Global production of MDF has risen dramatically from 5 to 35 million cubic metres since then to 2005 respectively. In addition, Anon (2006a) claimed that MDF capacity worldwide has increased significantly to 50 million cubic metres by the end of 2006. Similarly, the global consumption of MDF is projected to grow at 7% - 9% to reach 50 million cubic metres by the end of 2008. The selling price of MDF is also expected to continue to increase, on the back of strong demand from the construction industry in the Middle East and China (Anon, 2006b).In the Asia Pacific regions, MDF production was the leading growth performer among the woodbased sector, with an average growth rate of 9% during the period of 2000 and 2005 (Table 1). The distributions of the production within this region reveals that production of MDF in South East Asia grew by 14% per year; in North Asia by 5% per year; in Oceania by 6% per year and in South Asia by 10% per year. In 2005, Asia Pacific MDF production base was dominated by China and Malaysia which contributed about 26% and 14%» respectively (Figure 1).In terms of consumption, the Asia Pacific regions also experienced a tremendous growth with 8.6% per year during the period of 2000-2005 (FAO, 2005). Regionally, average annual growth rates were almost equal. The consumption of MDF in China grew at 9% per year during the period while consumption in South East Asia grew by 10% per year; in North Asia by 8% per year; in Oceania by 5% per year and in South Asia by 9% per year. In 2005, Asia Pacific MDF consumption base was also dominated by China and Japan comprising of 32% and 16% respectively (Figure 1).In the context of MDF exporting, the m...See the full content of this document
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