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Malaysia: Furniture manufacturers resist foreign worker levy hike
08/04/2009 - 08:39
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
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
559-591
Standard
544-562


(ITTO's Tropical Timber Market Report)
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