A high level delegation from the Malaysian timber trade met with representatives of the UK hardwood sector last week to discuss boosting business in the recession.
The delegates from the Timber Exporters Association of Malaysia (TEAM, www.team.org.my) were led by the organisation’s president George Tan and their London meeting was organised in conjunction with the London Hardwood Club and The Timber Trade Federation (TTF).
“It has been a tough year for our members, who account for around 70% of sawn timber exports from Malaysia,” said Mr Tan. “Malaysia’s total exports of all commodities, including timber, are down 25% in the 12 months to January and exports of timber and wood products in January itself were 60% down on the same month in 2008.
“The fall in our sawntimber exports to the UK in 2008 was less, around 7.4% in volume and 8.5% in value, but we still felt it was important to visit to talk to trading partners and discuss how we can work together to reverse the downward trend and improve trade.”
The TEAM mission, he added, had also included meetings with timber traders in the Netherlands, Malaysia’s biggest hardwood export market by value.
The UK delegates at the meeting acknowledged that business remains challenging.
“Basically there is still too much wood chasing not enough customers,” said Frank Cosentino of UCM Timber plc. “Most sectors are affected and there are knock on effects from one to the next. For instance as less freight is being transported, fewer trucks are being sold which means less demand for keruing for truck floors.”
TTF president John White suggested greater promotion of the Malaysian timber ‘brand’, particularly given progress made by the industry on environmental certification, with the Malaysian Timber Certification Scheme expected to be accredited to the international PEFC scheme soon.
“Malaysian timber has an increasingly good story to tell and there are opportunities to work the ‘brand’” he said.
Nick Hornsey of Timber Connection said that winning over specifiers was key to increasing Malaysian hardwood sales.
“You need to target the architects, along the lines of The American Hardwood Export Council’s marketing activity,” he said. “You have to drive demand.”
Other UK delegates said that it was also important for the Malaysian industry to address the competitiveness of their main export species to the UK, meranti, against sapele.
Mr Tan said he would relay comments from the meeting back to TEAM members and he urged continuing communication between the UK and Malaysian timber industries.
