KUALA LUMPUR: Malaysia's timber exports are likely to hold up at RM22 billion as global demand remain stable.
"So far, in the first five months of this year, we posted RM9.13 billion in timber exports, the bulk of it contributed by wood and rattan furniture," said Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong.
Malaysia is one of the world's top tropical timber producers, of which the furniture sector is its star performer, being among the world's Top 10 producers.
“The timber, plywood and furniture-making sector has tremendous potential for growth. We want to press on with value adding our commodity from the current 40 per cent of exports to 60 per cent. We want to encourage more skills training in woodwork design and carpentry,” Mah said.
The minister was speaking to reporters after his working visit with his officials stationed at the Malaysian Timber Industry Board (MTIB) and Malaysian Timber Council here today.
Also present at the media briefing were Deputy Minister of Plantation Industries and Commodities Datuk Datu Nasrun Datu Mansur, Plantation Industries and Commodities Ministry secretary-general Datuk M. Nagarajan, MTIB director general Datuk Dr Jalaluddin Harun, MTIB chairman Anyi Ngau.
In 2006, timber exports achieved a record high of RM23.44 billion. Since then, it had shrunk and stagnated at RM20 billion, for many years.
Asked if this year's timber exports are likely to surpass last year's RM22.15 billion, he replied, "We hope so, the industry is working hard and MTIB will embark on more promotional efforts."
Other inflationary pressures on timber prices are brought on by costlier fuel, foreign worker levy and wages.
Effective March 18, 2016, the Home Ministry announced foreign worker levy rates for manufacturing and construction workers (category 1) amounted to RM1,850 per year while plantation and agriculture workers (category 2) cost RM640.
Two months later, the government gazetted the Minimum Wages Order 2016. So, from 1st July 2016, the monthly minimum wage increased from RM900 to RM1,000 for peninsular Malaysia and from RM800 to RM920 for Sabah, Sarawak and Labuan.
These factors, to a certain extent, contribute to cost escalation in timber evacuation and transport.
Under the National Timber Industry Policy, Mah said the sector targets an export revenue of up to RM53 billion by 2020.