Page 24 - FDMAsia JulAug 2024

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TROPICAL TIMBER MARKET REPORT

The woodworking industry continues to face challenging prospects as companies look to stay
competitive amidst a sluggish economy. On top of that, stakeholders are pushing for a rethink or
at least a delay in the enforcement of EUDR, ITTO shares the latest topics.

MALAYSIA Achieving net zero requires a collaborative effort - PM
Sarawak to reduce log harvest Malaysian Prime Minister, Anwar Ibrahim, has said achieving
The Sarawak State government, through the Forest Department net zero requires a collective effort and a shift in mindset
will, according to Deputy Premier Awang Tengah Ali Hasan, because adopting environmental, social and governance
reduce annual log harvests to about two million cubic metres (ESG) practices requires more than just regulatory compliance.
and ensure adherence to forest management certification criteria. He said it is crucial to recognise that achieving net zero
In this regard, the Premier emphasised the importance requires a collaborative effort involving the government, the
of aligning the state’s forest management with international private sector and all Malaysians. Anwar urged all stakeholders,

standards which would allow timber products to be marketed including businesses, civil society and individuals to actively
competitively globally. participate in achieving a sustainable and secure future for
The State government has said it aims to boost income the next generation.
from forest and the Premier called on all parties involved He added, Malaysia has taken a progressive stance
to collaborate towards realising the State’s Sustainable towards decarbonisation and the larger sustainability agenda
Development Goals (SDGs) and to back the reduction of and the government has implemented policies aimed at
greenhouse gas emissions by 45 percent by 2030. reducing carbon emissions, promoting social equity, creating

Hasan called on forest license holders in Sarawak to new growth opportunities in the green economy and ensuring
actively engage in forest restoration programmes, particularly transparent governance.
in degraded areas. These efforts are crucial for creating
economic opportunities in carbon trading, agro-forestry and Challenging prospects in international furniture market
ecotourism, he said. The outlook for the furniture industry in Malaysia remains
challenging with, it appears, few opportunities to increase
Oregon State University furniture exports lies in Malaysia’s largest export destination,
exports in the second half of the year.
Analysts suggest the main reason for the stagnant trade in

the US. Existing home sales in the US fell to the lowest
levels in 13 years in October 2023 as high mortgage rates
and lack of homes for sale drove buyers from the market.
In addition, home re-sales, which account for a significant
part of housing sales, were 15 percent lower year-on-year
in October 2023.
The weak housing market in the US contributed to the

slump in furniture exports, in particular, wooden furniture exports.
Most wooden furniture manufacturers in Malaysia export their