The Malaysian Timber Industry Board (MTIB) is projecting a 4% decline in exports of timber and timber products for 2018 — falling short of the National Timber Industry Policy (NATIP) target of RM23 billion — before picking up again this year.
Speaking to reporters at a timber market performance outlook event, MTIB deputy director general Norchahaya Hashim said the value of the exports of timber and timber products is projected to contract 4% to RM22.30 billion in 2018, from RM23.21 billion in in 2017.
The projected decline in 2018, she said, is due to slower demand from key markets resulted from the global economic slowdown, US-China trade war, the US economic sanctions on key medium-density fibreboard importer Iran, political instability in the Middle East, as well as slower domestic construction growth.
"We have a two-prong strategy. We will capitalise on free-trade agreements (FTAs) Malaysia signed with the 13 countries to make our products more competitive, and try to diversify our [export] markets such as India and other Oceania countries," she said, when asked about efforts made to boost demand for Malaysian timber going forward.
There is also ongoing effort to push for the use of alternative raw materials such as oil palm trunk in addressing the issue of an inadequate supply of raw materials, among others, she added.
Between January and November last year, Malaysian timber exports totalled at RM20.45 billion. Of this, RM11.07 billion were commodity products and RM9.37 billion were value-added.
The NATIP has projected Malaysia to export RM25 billion worth of timber and timber products by 2020.
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