Malaysia: Trade promotion the key October 06, 2009
The Malaysian minister of international trade and industry
has said that Malaysia will continue to boost its trade
promotional activities to generate growth in the long term.
He added that trade promotional activities were vital and
will eventually generate the desired results in the end
despite of the current global economic slowdown.
He commented that the furniture industry is one of the
industries that is showing signs of recovery with an
improvement in orders. Although prices remain weak, the
Malaysian furniture industry remains competitive and
there are reports of the industry hiring workers again.
ASEAN free trade
The Minister also pointed out that with effect from
January 1, 2010, Malaysia and five other countries in the
Association of Southeast Asian Nations (ASEAN)
grouping – Brunei, Indonesia, the Philippines, Singapore
and Thailand – will be a free trade block that will
eliminate duties on all products within the six countries.
Malaysia has indicated it will eliminate duties on more
than 2,000 items.
China and South Korea are also in the process of deciding
duty eliminations on products within the ASEAN-China
and ASEAN-South Korea Free Trade Agreement. In
addition, the ASEAN-India Free Trade Agreement and the
ASEAN-Australia-New Zealand will come into force at
the same date in 2010.
Market diversification
The chief executive of the Malaysian Timber Council
(MTC) recommended that Malaysian timber companies
producing value-added products should examine
opportunities in the emerging markets of India, Gulf
Cooperation Council countries and S. Asia.
He said that while the global economic crisis has taken its
toll on traditional markets there still viable business
opportunities in the Middle-East where a number of largescaled
construction projects are underway.
Companies which are keen to explore these business
opportunities are encouraged to continue to collaborate
with the MTC by participating in trade shows and
exhibitions organized by the MTC.
Malaysia’s value-added products include mouldings,
builders’ carpentry and joinery and wooden furniture.
The Malaysian timber sector contributes up to 4.5% of the
nation’s gross domestic product annually. West Malaysia
by itself produces more than 5 million cu.m of logs
annually, including rubber wood.
The US and the EU continue to remain two of the main
exports markets for Malaysian timber products. Much now
depends on how quickly the building and construction
sectors in these markets recover.
Sarawak promotion in middle-east
The Sarawak timber sector sustained a 25% drop in the
value of exports in the first half of this year. While
markets in western countries fell badly, it was China, India
and Japan that saved the industry from even greater losses.
Reports indicate that it was the plywood markets that were
the weakest and only imaginative pricing and cost savings
allowed the industry to weather the poor market
conditions.
The local press in Malaysia is reporting that the Sarawak
Timber Industry Development Corporation will send a
delegation to Jeddah, Dubai and Oman to promote
plywood and sawn timber manufactured in Sarawak.
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
167-197 ⇑
Kapur SQ up
206-231
Selangan Batu SQ up
179-216 ⇑
Pen. Malaysia
logs, domestic (SQ)
US$ per m³
DR Meranti
231-250
Balau
297-326
Merbau
322-354
Rubberwood
49-83 ⇑
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
457-509
Kempas 50mmx (75,100 & 125mm)
260-300
Rubberwood
25x75x660mm up
199-249 ⇑
50-75mm Sq.
240-272 ⇑
>75mm Sq.
262-291 ⇑
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
