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Malaysia: Minister seeks to raise plantation productivity
03/09/2009 - 14:39
The Malaysian Minister of Plantation Industries and Commodities, Mr. Bernard Dompok, said Malaysia needs to maximize major plantation crop yields. Oil palms, rubber trees and cocoa trees accounting for the bulk of the crops, which the Minister is seeking to raise yields without expanding Malaysia’s existing planted land area. According to Bernama, he said the Ministry would encourage ‘better planting materials, good agricultural practices (GAP) and enhanced research and development (R&D)’.

Currently, more than 70% of available agricultural land is already planted with oil palms. The national crude palm oil (CPO) yield stands at 4 tons per hectare annually. However, some plantations are able to obtain a yield of 6 to 7 tons per ha. A study conducted by the Malaysian standard organization, SIRIM Bhd, revealed that 2.65 million hectares of oil palm trees could yield up to 7 million tons of oil palm trunks and 26.2 million tons of oil palm fronds annually. Oil palm fronds are a rich source of fiber for the manufacture of MDF and other panel products. The Minister continues to be hopeful that the national CPO yield can be raised to 6 tons per hectare, thus obviating the need to plant another 2 million hectares of oil palms.

Rubber trees have historically been a popular plantation species in Malaysia. The current yield of natural rubber latex in Malaysia is 1.4 tons per hectare annually, compared to Thailand, which has shown higher yields at 1.8 tons per hectare per annum. Currently, there are 1.24 million hectares of rubber trees in Malaysia. However, the Malaysian Rubber Board (MRB) has launched the latest high-yield clone, RRIM 3001, that could yield 2 tons of natural rubber latex per hectare per year. The MRB is also working on creating future rubber clones that could yield at least 2.0 m³ of rubberwood per tree to meet the demands of the Malaysian furniture industry.

For timber under the country’s forest plantation programme, the Ministry is looking to produce 75 million m³ of timber by 2020 to meet the raw material requirements of the Malaysian timber industry. Soft commodities accounted for RM112.43 billion of the country's exports in year 2008, or 17 % of Malaysia's total exports.

Malaysia Log Prices
Malaysia Log Prices
Sarawak log, FOB US$ per m³
Meranti SQ up 226-250
Small
210-241
Super small
200-224
Keruing SQ up 216-228
Small
190-220
Super small
166-196
Kapur SQ up 206-231
Selangan Batu SQ up 178-215

Pen. Malaysia logs, domestic (SQ) US$ per m³
DR Meranti 231-250
Balau 297-326
Merbau 319-352
Rubberwood 47-81
Keruing 214-230
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
280-311
Seraya Scantlings (75x125 KD)
437-450
Sepetir Boards
249-271
Sesendok 25,50mm
346-364
Kembang Semangkok
294-317

Malaysian Sawnwood, domestic
US$ per m³
Balau (25&50mm,100mm+)
325-345
Merbau
570-509
Kempas 50mmx (75,100 & 125mm)
260-300
Rubberwood 25x75x660mm up
197-247
50-75mm Sq.
238-270
>75mm Sq.
260-289


Malaysia Plywood Prices
Malaysia ply MR BB/CC, FOB US$ per m³
2.7mm
408-470
3mm
386-416
9mm & up
332-404
Meranti ply BB/CC, domestic US$ per m³
3mm
381-422
12-18mm
315-344


Other Malaysia Panel Prices
Malaysia, Other Panels, FOB US$ per m³
Particleboard Export 12mm & up
226-249
Domestic 12mm & up
211-228
MDF            Export 15-19mm
281-313
Domestic 12-18mm
270-288


Malaysia Added Value Product Prices
Malaysia, Mouldings, FOB US$ per m³
Selagan Batu Decking
531-541
Red Meranti Mouldings 11x68/92mm x 7ft up
Grade A
546-559
Grade B
499-508


Malaysia Furniture and Parts Prices
Malaysia, Rubberwood, FOB US$ per piece
Semi-finished dining table solid laminated top 2.5'x4', extension leaf
58-74
As above, Oak Veneer
65-79
Windsor Chair
57-59
Colonial Chair
55-60
Queen Anne Chair (soft seat) without arm
55-63
with arm
55-64
Chair Seat 27x430x500mm
43-48
Rubberwood Tabletop US$ per m³
22x760x1220mm sanded & edge profiled
Top Grade
551-583
Standard
536-554


(ITTO's Tropical Timber Market Report)
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