Malaysia: Furniture manufacturers face threat of closure May 12, 2009
Some furniture manufacturers could be forced to close
within six months as a result of the 50% increase of the
levy for foreign workers, indicated The Star. Mr. Desmond
Tan, president of the Malaysia Furniture Entrepreneurs
Association (MFEA), commented that the federal
government needed to address the problem quickly as it would have an adverse effect on the operational costs of
furniture manufacturers. With declining orders, he added
that it could lead to further layoffs at the management and
executive levels. Furniture exports posted a 14.2% drop in
January 2009, to RM621.3 million, from RM724.2 million
compared to the same month in year 2008. Malaysia’s
furniture exports registered 2% growth in year 2008 from
year 2007, and were worth RM8.7 billion. This translates
to only 2.6% of the world’s market for furniture.
MTC to represent timber sector at MICCOS event in August
2009
The Malaysian agricultural commodity industry will be
holding a major exhibition for international buyers at the
Malaysia International Commodity Conference &
Showcase (MICCOS), which will be convened at the
Malaysia Agro Exposition Park Serdang (MAEPS) from
13 to 16 August 2009. The Malaysian timber sector will be
represented by the Malaysian Timber Council and the
Malaysian Timber Industry Board.
Properties facing foreclosure on the rise in Malaysia
The number of properties facing foreclosure or
receivership had increased from between 10% to 20% as
more property owners fell victim to the recession in
Malaysia. Personal and business bankruptcy in Malaysia is
expected to increase significantly as well, reported The
Star.
Withdrawal of investment could impact timber sector
Many banks are reportedly to have started withdrawing
trade credit facilities from a wide range of exporters,
including those with low credit risk exposure in the timber
sector. Most Malaysian banks traditionally favor the
construction sector over the manufacturing and trading
sectors. This has contributed to the large number of
abandoned construction projects in Malaysia during a
recession, which in turn drives down prices of building
materials and timber products.
Malaysia Log Prices Malaysia
Log Prices
Sarawak
log, FOB
US$
per m³
Meranti SQ up
230-254
Small
212-243
Super small
201-225
Keruing SQ up
217-229
Small
187-218
Super small
162-193
Kapur SQ up
207-232
Selangan Batu SQ up
178-215
Pen. Malaysia
logs, domestic (SQ)
US$ per m³
DR Meranti
233-252 ⇑
Balau
300-327
Merbau
324-359
Rubberwood
40-75
Keruing
216-232
Peninsular
Malaysian meranti logs are top grade and are used for scantlings for
the EU. Their prices are higher than Sarawaks.
Malaysia
Sawnwood Prices
Malaysia
Sawnwood,
FOB
US$
per m³
White Meranti A & up
281-312 ⇓
Seraya Scantlings (75x125 KD)
453-468⇓
Sepetir Boards
250-272 ⇓
Sesendok 25,50mm
353-371 ⇓
Kembang Semangkok
295-318 ⇓
Malaysian
Sawnwood, domestic
US$ per m³
Balau (25&50mm,100mm+)
333-353 ⇓
Merbau
477-529⇓
Kempas 50mmx (75,100 & 125mm)
261-301 ⇓
Rubberwood
25x75x660mm up
194-244
50-75mm Sq.
235-267 ⇓
>75mm Sq.
257-286 ⇓
Malaysia Plywood Prices
Malaysia
ply MR BB/CC, FOB
US$
per m³
2.7mm
415-477 ⇓
3mm
392-422 ⇓
9mm & up
337-409 ⇓
Meranti ply
BB/CC, domestic
US$ per m³
3mm
388-429 ⇓
12-18mm
322-351 ⇓
Other
Malaysia Panel Prices
Malaysia,
Other Panels, FOB
US$
per m³
Particleboard Export 12mm & up
229-252 ⇓
Domestic 12mm & up
214-231 ⇓
MDF
Export 15-19mm
284-316 ⇓
Domestic 12-18mm
273-291 ⇓
Malaysia
Added Value Product Prices
Malaysia,
Mouldings, FOB
US$
per m³
Selagan Batu Decking
547-557 ⇓
Red Meranti Mouldings 11x68/92mm x 7ft up
Grade A
563-576 ⇓
Grade B
514-523 ⇓
Malaysia
Furniture and Parts Prices
Malaysia,
Rubberwood, FOB
US$ per piece
Semi-finished dining table solid laminated top
2.5'x4', extension leaf
