The Malaysian Timber Council (MTC), forecasts a better year for the country’s timber sector as demand for the commodity recovers in line with the improvement in global economic conditions.
MTC chief executive Datuk Ismail Awang said the terrorist attacks in the US adversely affected the local timber sector. In the first nine months last year, it recorded a 19% decrease in exports of timber and timber-based products as demand eased following the global economic slowdown. In 2000, the industry exported timber products worth M$18bn.
Minister Ismail said Malaysia’s timber industry is still looked strong and could maintain or increase its 5% contribution to the country’s gross domestic product. Malaysia became the world’s 10th largest supplier of furniture in 2000, up from 13th in 1999.
In the first nine months of last year, exports of sawn timber to Europe increased by 45% and demand in Africa is also increasing with near 6% of Malaysia’s plywood destined for the African market. Malaysia is a leading player in timber manufacture and export, for example of 99 timber-based products only one is for the local market. Last year Malaysia exported furniture worth nearly M$6bn, or 3% of the world furniture market.
The government is encouraging the industry to expand exports to other countries including West Asia, China, Turkey and Spain.
