KUALA LUMPUR, May 31 (Bernama) -- The Malaysian timber industry chalked notable gains in exports for the first quarter of 2022 as global demand for timber products grew. The impact of the Russia-Ukraine war on supply chains worldwide not only created a demand for Malaysian timber-based products but also affected the prices of commodities worldwide, including timber that increased year-on-year.

Malaysia’s total trade of timber and timber products from January to March (Q1) 2022 increased by 10.1% from RM7.89 billion in the same corresponding period in 2021 to RM8.69 billion in 2022.

Malaysia’s export of timber and timber products from January to March this year increased by 8.2% to RM6.54 billion compared to RM6.04 billion in the same period in 2021. Wooden furniture remained the highest contributor with RM3.1 billion or 47.3% in exports in Q1 2022 followed by plywood with RM896.5 million or 13.7% and sawntimber with exports of RM640.9 million (9.8%).

The top three export destinations for Malaysia’s timber and timber products were the United States (34.8%), Japan (14.8%) and China (9.0%). Malaysia’s exports of wooden furniture were mainly to the United States (59.3%) followed by Japan (5.6%) and Singapore (4.4%).

“We are pleased that the timber industry is showing such dynamism in exports. Our industry members are resolute, and the government has also created an environment for the industry to thrive,” said the Malaysian Timber Council (MTC) Chairman Madam Hajah Norrida Yusoff.

Hajah Norrida said the recent trade visits to the US and Europe as well as the Ministry of Plantation Industries and Commodities’ agri-commodities promotional efforts to the Middle East have opened business opportunities for Malaysian timber-based manufacturers.

“Businesses are the engines of our economy and a conducive climate for trade is vital for these manufacturers to flourish,” she said.

There was also an increase in the imports of timber and timber products in Q1 2022. The imports increased by 16.4% from RM1.8 billion in Q1 2021 to RM2.1 billion in Q1 2022. Malaysia imported the most from China (37.5%) followed by Indonesia (20.2%) and Vietnam (8.6%).

Among the raw materials imported were sawntimber (RM218.6 million) and veneer (RM127.2 million) which increased by 54.1% and 57.1%, respectively, year-on-year.

However, there was a drop in imports for particleboard/chipboard and logs, at RM101.1 million and RM48.8 million, respectively, which represent a decline of 22.8% and 21.8%, respectively, year-on-year.

“Augmenting raw material supply and securing alternative sources of raw material are crucial for the industry. We have been implementing programmes to assist our industry players to meet their production needs where possible,” said the MTC CEO Mr. Muhtar Suhaili.

“MTC has also been actively conducting its nationwide Roadshows with recent visits to Sabah and Sarawak for potential collaborations in augmenting raw materials from these two States for timber-based manufacturers in the Peninsular apart from sharing the programmes and services that MTC has to grow their businesses,” he added.

CAPTIONS:
 
1. MTC CEO Mr. Muhtar Suhaili receiving a token of appreciation from the Deputy Chief Minister of Sarawak YB Datuk Amar Haji Awang Tengah Ali Hasan during a courtesy call which was part of MTC’s Roadshow to Sarawak from 26-28 May 2022. -  https://mtc.com.my/i/MTC with Awang Tengah.jpg
 
2. Infographics on Timber Exports in Q1 2022. -  https://mtc.com.my/i/image001.jpg
 The Malaysian Timber Council (MTC) was established in January 1992 to promote the development and growth of the Malaysian timber industry globally. MTC's main objectives are to promote the Malaysian timber trade and develop the market for timber products globally, to promote the development of the industry by upgrading the industry's manufacturing technology base, to augment the supply of raw materials, to provide information services and to protect and improve the Malaysian timber industry's global image. Further information on the Council’s activities can be obtained from www.mtc.com.my.

Issued by the Malaysian Timber Council

SOURCE: Malaysian Timber Council

FOR MORE INFORMATION PLEASE CONTACT:
Name: Lau Hi Lar
Strategic Planning & Corporate
Communications Division           
Tel:  03-92811999 ext 500  
Email : lau@mtc.com.my

Name: Sharmila V
Strategic Planning & Corporate
Communications Division
Tel: 03-92811999 ext 501
Email : sharm@mtc.com.my

--BERNAMA