Sarawak Timber Market Hit By Export Reduction

Shah Alam, Malaysia: According to The Star Online, state authorities’ reduction in logs export quota and tightening of timber harvesting activities, coupled with sluggish plywood market, have negatively impacted Sarawak-based timber firms’ bottom lines while slashing the state government’s foreign exchange earnings.

Last year, Sarawak’s export receipt from logs and timber products slumped by 17.5 percent to RM5.94 billion from RM7.2billion in 2015, according to figures from Sarawak Timber Industry Development Corp.

The value of exported logs fell by 21 percent to RM1.4billionfrom RM1.78billion year-on-year while that of plywood dropped by 10 percent to RM2.94billionfrom RM3.27billion.

Logs and plywood products made up 23 percent and 49 percent respectively of total export revenue in 2016. Other main exported timber products were lumber, fibreboard and veneer.

Timber companies are currently only allowed to export up to 30 percent of their log productions under a revised state policy which was enforced in June last year.

For many years, Sarawak had maintained logs exports up to 40 percent of total production but this was revised upward to 50 percent in 2014.

 

FDMAsia About Us

For almost 30 years, FDM Asia has been the publication of choice for woodworking professionals in Asia Pacific, providing the latest news and expert insights of a diverse range of topics including process technologies, furniture production, panels manufacturing, raw materials handling and sustainability issues.

We have one of the most comprehensive woodworking database and e-media programme to assist you in your e-marketing and give you an exclusive opportunity to connect to our 25,152 online subscribers.