Young CEO leads from the heart

Muhtar Suhaili shares his take on the Malaysian timber industry and aspirations for the Malaysian Timber Council in a frank and candid interview.

Muhtar Suhaili is the youngest Chief Executive Officer the Malaysian Timber Council (MTC) has ever had. Standing at 181cm, this 39-year-old is a friendly, people-centric gentleman who puts everyone in his company at ease.

Muhtar is also one of those who understand that effective leadership stems from well-adjusted leaders who know how to harness their emotional intelligence to bring out the best in others. “There is no magic formula. I just place the well-being of my staff and those I am in contact with at the heart of everything I do,” he said matter-of-factly. But behind the gentleness of this warmhearted, coolheaded CEO lies a steely character who is determined to persevere and lead his organisation out of the colossal clutches of the COVID-19 pandemic. The Malaysian timber industry, which is the third highest revenue contributor in the commodities sector after palm oil and rubber, has many untold stories and some of which have gone completely unnoticed and occasionally having the industry portrayed in bad light.

“People are still under the impression that it is bad to cut down trees and we harvest our logs indiscriminately, which is not true,” said Muhtar.

“We need to keep our business going and how are we to do this if the industry is not sustainable. Imagine, if we were to cut everything down, where are we to go for raw materials? And Malaysian timber trees take anything between 40 and 60 years to mature… that is a lifetime.

“We have been prudently managing our forest since 1901 using a system called Sustainable Forest Management (SFM) that stipulates only certain trees can be harvested, leaving behind the mother trees, and giving room for the younger trees to mature,” he elaborated.

According to Muhtar, Malaysian timber products are held in high regard in countries like the United States, Japan, Europe and Australia that are known for their stringent production requirements and strict certification standards.

“The Malaysian Timber Certification Council certifies timbers through its Malaysian Timber Certification Scheme (MTCS). MTCS is the first tropical timber certification scheme which is endorsed by the Programme for the Endorsement of Forest Certification. The

Chain of Custody (CoC) also tracks the entire journey of a product which begins at the log harvesting stage,” he said.

As of December 2020, 5.27 million hectares of forests have been certified under MTCS, 22 FMUs and eight forest plantation management units, while there are 381 CoC holders nationwide.

“How can Malaysia continue to be a leading supplier of timberbased products worldwide if it is not up to mark? Sustainability has always been a key factor in our industry,” said Muhtar, who has a Master’s degree in Petroleum Technology from Curtin University of Technology, Australia.

“Since the ‘gestation period’ of Malaysian timbers are long, and in keeping with our pledge under the Rio Earth Summit in 1992 of having at least 50% of our land under forest cover, Malaysia has steadily reduced its annual coupe that makes the augmentation of raw material a necessity.

“MTC’s Import Assistance Programme enables local manufacturers to acquire alternative raw materials. The industry is also producing more higher-value-added products and promoting the use of timbers such as Merpauh and Sepetir for this purpose,” he said.

Prior to his appointment as MTC CEO in November last year, Muhtar was the chairman of the Malaysian Palm Oil Certification Council. He was also the Lead Project Engineer in Shell Malaysia for 15 years. Muhtar is currently pursuing his doctoral degree in Business Administration. He also has a Bachelor’s degree in Mechatronics Engineering.

The newly minted CEO, who has extensive knowledge in managing mega projects, said the Council is also looking into other issues that is affecting the timber sector as such automation, product innovation and labour.

In keeping with its vision of becoming the lead organisation that develops the Malaysian timber industry, Muhtar said, the Council’s Five-Year Plan from 2019 to 2023 will strategically enable the industry to maintain its competitive edge.

“We have in place the seven Must-Wins to ensure the growth and sustainability of the industry,” said Muhtar.

He said cultivating market access, enhancing the process of automation, uplifting the sources for raw materials, supporting business succession programmes, championing design and branding, spurring green initiatives and strengthening relationships with stakeholders are the seven Must-Wins.

In encouraging the industry to wholly embrace automation, the Council has been providing incentives for the purchase of machinery through its Automation and Digital Technology Acquisition Programme (ADTA). To help industry members move swiftly into technology adoption, MTC has also introduced its Smart Manufacturing Consulting Programme. MTC will also be launching its maiden Engineer Placement and Internship in Industry

Programme in March to invite engineers to be part of the industry which is moving towards digitalisation and innovation.

Since the emergence of the COVID-19 pandemic, MTC not only transformed its operations but also aided industry players to adopt digital solutions into their business module.

“The timber sector in Malaysia was one of few non-essential service sectors allowed to operate during the Movement Control Order back in April last year. This shows how important the industry and its contributions are to the national economy. We are determined to keep this industry viable.

“I can’t do this without the support of my staff. The most valuable resource for any CEO is their staff. As the COVID-19 virus still lurks, I need to ensure the safety of my staff and that they remain motivated. This is one of my top priorities,” said Muhtar, as he displays the human side of his leadership.