Malaysia: Furniture manufacturers resist foreign worker levy hike April 08, 2009
Malaysian furniture manufacturers appealed to the federal
government not to increase the levy on foreign workers
under the second stimulus plan, reported The Star. The
federal government had earlier announced that the current
levy imposed on foreign workers would be doubled in
order to create more employment opportunities for local
workers.
According to the president of the Malaysia Furniture
Entrepreneurs Association, Mr. Desmond Tan, the levy
would have an adverse effect on the furniture
manufacturing sector as most local workers are not keen to
take up employment in furniture production lines.
Furniture manufacturing is very labor intensive in
Malaysia and its survival dependent on foreign workers.
Mr. Tan said the government should reduce or abolish the
levy altogether as the global recession continues to bite
deeper into the industry.
Call for second stimulus plan to aid furniture sector
Furniture manufacturers in Muar, a major furniture
manufacturing zone with 200 factories in the state of
Johor, called on the federal government to put the second
stimulus plan of RM60 billion to work as soon as possible.
The Star reported that some manufacturers were beginning
to reduce working hours as well as cut production as a
result of the slowdown. RM15 million has been set aside
for the timber sector’s utilization and will be managed by
the Malaysian Timber Industry Board (MTIB).
FRIM area to be declared a national heritage
The Forest Research Institute of Malaysia (FRIM) and the
486 ha of man-made forest surrounding the institute will
be recognized as a national heritage in 2009, according to
its Director-General, Dr Abdul Latif Mohmod. As noted in
The Star, 15 million trees from 2,500 species are growing
in the institute’s man-made forests. The new
categorization of the forests will enable FRIM to further
enforce protection of its resources under federal laws.
Prices remain weak as timber market struggles
Prices of Malaysian timber products continue to be weak
as doubts over the second stimulus plan continue to affect
the private sector. According to local news sources, a bulk
of the stimulus package will be used to upgrade schools,
police-stations and mosques. Another portion may be used
to rescue government-linked companies. Some experts
fear not much of the funds from the second stimulus plan
may eventually filter down to the private sector, especially
to small and medium-sized industries.
Malaysia Log Prices Malaysia
Log Prices
Sarawak
log, FOB
US$
per m³
Meranti SQ up
230-254
Small
211-242
Super small
199-224
Keruing SQ up
217-229
Small
187-218
Super small
161-192
Kapur SQ up
207-232
Selangan Batu SQ up
178-215
Pen. Malaysia
logs, domestic (SQ)
US$ per m³
DR Meranti
232-251
Balau
300-327
Merbau
326-361
Rubberwood
41-77
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
282-313 ⇓
Seraya Scantlings (75x125 KD)
458-473⇓
Sepetir Boards
251-273 ⇓
Sesendok 25,50mm
357-375 ⇓
Kembang Semangkok
296-319
Malaysian
Sawnwood, domestic
US$ per m³
Balau (25&50mm,100mm+)
338-358
Merbau
483-535⇓
Kempas 50mmx (75,100 & 125mm)
266-306
Rubberwood
25x75x660mm up
194-244
50-75mm Sq.
236-268
>75mm Sq.
258-287
Malaysia Plywood Prices
Malaysia
ply MR BB/CC, FOB
US$
per m³
2.7mm
417-479 ⇓
3mm
393-423 ⇓
9mm & up
338-410 ⇓
Meranti ply
BB/CC, domestic
US$ per m³
3mm
389-430 ⇓
12-18mm
323-352 ⇓
Other
Malaysia Panel Prices
Malaysia,
Other Panels, FOB
US$
per m³
Particleboard Export 12mm & up
230-253
Domestic 12mm & up
215-232
MDF
Export 15-19mm
285-317
Domestic 12-18mm
274-292
Malaysia
Added Value Product Prices
Malaysia,
Mouldings, FOB
US$
per m³
Selagan Batu Decking
551-561 ⇓
Red Meranti Mouldings 11x68/92mm x 7ft up
Grade A
567-580 ⇓
Grade B
518-527 ⇓
Malaysia
Furniture and Parts Prices
Malaysia,
Rubberwood, FOB
US$ per piece
Semi-finished dining table solid laminated top
2.5'x4', extension leaf
