Cash In On Rising Demand For Timber Products In Us Uk Says Zuraida

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Zuraida Kamaruddin says news of the demand for timber products in the US and the UK should be ‘music to the ears of Malaysian producers’.PETALING JAYA: Malaysia should capitalise on the surge in demand for timber products in the US and the UK, plantation industries and commodities minister Zuraida Kamaruddin said.
Zuraida noted that demand for Malaysian timber-based products, especially furniture, grew in early 2020 as many people around the world began working from home, leading to a rise in home construction, repairs and re-modelling.
In a statement, she said news of the demand for timber products in the US and UK should be “music to the ears of Malaysian timber producers.
She said sanctions on Russian timber products to the US had led to American importers seeking alternative material, especially plywood.

Describing the current market sentiments for Malaysian timber in the US as “bright”, Zuraida said the ongoing trade dispute between the US and China had also left Malaysia and Indonesia as the only timber source options for the world’s largest economy.
While she noted that the UK was a strong supporter of the US sanctions on Russian timber, she said this had “severely affected” the timber market in the UK and the European Union (EU).
As of Jan 1, changes in the UK customs regulations following the UK’s exit from the EU’s Customs Union and Single Market framework meant that the Malaysian timber industry stood to benefit from duty-free exports, and could often avoid the need to claim preferential rates of duty.
“Like in the case of the US, Malaysia is prepared to work closely with the UK to address the country’s shortage of timber and timber products by sourcing and value-adding from third countries, especially PEFC-certified timber products,” she said, referring to the Programme for the Endorsement of Forest Certification.
However, she said shipments from Malaysia had been slow since the shortage of logs from natural forest had left local sawmills struggling to fulfil the increasing amount of orders.
Zuraida also said exporters had to cope with heavy port congestion because of factors such as a lack of containers and insufficient vessel space.
She said the transshipment of timber products had been identified as a potential medium-term solution, with the US-based International Wood Products Association (IWPA) eager to speak to Malaysian timber industry leaders on the issue.
Malaysia recorded RM22.7 billion in timber exports in 2021, a 3.1% rise from the RM22.02 billion it posted in 2020. - FMT

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