Economic considerations of indigenous species for forest plantations Malaysia

Mohd Shahwahid Hj Othman, . and Nor'ini Haron, . and Ismariah Ahmad, . (1992) Economic considerations of indigenous species for forest plantations Malaysia. [Proceedings Paper]

The viability of indigenous species for forest plantation is compared with existing experiences from plantation of fast growing exotic species in the light of government policies on forest plantation establishments. The positive attributes of indigenous species are their marketability including market acceptance as well as the higher value attached to them. Their negative attributes are related to the longer production period which entails higher capital costs carried forward to final harvest. In comparison forest plantation of Acacia mangium and other fast growing timber species have shorter rotations but relatively lower market acceptance to certain end-uses thus restricting the prices that can be fetched. The above considerations are integrated together in a financial analysis. The promotion of forest plantation of indigenous species as a commercially viable business proposition to private companies is evaluated in the light of the salient characteristics of forest plantation investments. The longer production period above could be a reservation for the private sector's involvements unless R and D is further developed towards achieving financially attractive intercropping ventures with shorter maturing crops such as rattans and that a more attractive package of investment incentives and softer loan facilities are provided for.

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Abstract

The viability of indigenous species for forest plantation is compared with existing experiences from plantation of fast growing exotic species in the light of government policies on forest plantation establishments. The positive attributes of indigenous species are their marketability including market acceptance as well as the higher value attached to them. Their negative attributes are related to the longer production period which entails higher capital costs carried forward to final harvest. In comparison forest plantation of Acacia mangium and other fast growing timber species have shorter rotations but relatively lower market acceptance to certain end-uses thus restricting the prices that can be fetched. The above considerations are integrated together in a financial analysis. The promotion of forest plantation of indigenous species as a commercially viable business proposition to private companies is evaluated in the light of the salient characteristics of forest plantation investments. The longer production period above could be a reservation for the private sector's involvements unless R and D is further developed towards achieving financially attractive intercropping ventures with shorter maturing crops such as rattans and that a more attractive package of investment incentives and softer loan facilities are provided for.

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Item Type:	Proceedings Paper
Additional Information:	Summary En
AGROVOC Term:	VARIEDADES INDIGENAS
AGROVOC Term:	ANALISIS ECONOMICO
AGROVOC Term:	VIABILIDAD ECONOMICA
AGROVOC Term:	MALASIA/ ARBOLES MADERABLES
AGROVOC Term:	INDICE DE CRECIMIENTO
Geographical Term:	MALAYSIA
Depositing User:	Ms. Norfaezah Khomsan
Last Modified:	24 Apr 2025 05:26
URI:	http://webagris.upm.edu.my/id/eprint/15112

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