Kuching, Malaysia: Malaysian plywood manufacturers have proposed higher export cost and freight (C&F) prices for their products shipment to Japan, The Star Online reported.
The proposed price increases for June and July shipment vary among the manufacturers but are generally in the region of US$25 per cubic metre.
One reason cited for the Malaysian manufacturers to mark up the C&F prices was due to the higher costs of logs—the raw material for producing panel products—following the impending imposition of higher timber premium.
The Sarawak state government will raise the premium for hill timber to RM50 per cubic metre from 80 cent per cubic metre—which is a staggering 6,250 percent increase—from July 1, 2017.
The increased premium is for all species of logs harvested from the hill forests and logs of hill species from agri-conversion areas, which is RM3 per cubic metre prior to the revision.
The increased timber premium could generate up to RM300mil a year, and the money will be channelled to the Sarawak Foundation Fund.