The Ministry of International Trade and Industry is urging the timber sector in Sarawak, as the state with the largest timber resource, to consider expanding investment in the furniture industry. This, says the Ministry, could lead to a higher return on investments. The Ministry added that, while Malaysia exported RM8 billion worth of furniture in 2010, Sarawak’s share was a mere RM20 million of the total. The Sarawak Timber Industry Development Corporation (STIDC) hoped that its planned establishment of extensive plantations will provide resources for the furniture industry in Sarawak to take off.
Risk of credit squeeze looms in Malaysia and across Asia
According to Nomura International (Hong Kong) Ltd, the Malaysian economy is expected to recover in the second half of 2012 and fourth quarter 2012 growth of up to 7.3%. Growth in the third quarter 2011 is projected at 5.8% and fall to around 4% in the final quarter of the year. The exposure of Malaysian banks to European banks reportedly stood at US$50 billion in June 2011 excluding investments by HSBC and Standard Chartered baks, both of which have significant operations in Malaysia. European banks with large overseas exposure may tighten credit lines and lessen their exposure in Asia which could lead to tighter credit conditions and net capital outflows from Asian countries.
Government spending led growth may be unsustainable in the long term
The current GDP growth achieved in Malaysia was driven by public sector investment with one-third of this coming from direct government spending. This, say analysts is unsustainable in the long term. As a result there is not much room for expansionary fiscal policy in Malaysia for 2012 due to the relatively high public-debt-to-GDP ratio of 55%, the second highest in Asia. The outlook for the Malaysian timber industry in 2012 remains uncertain as prices of timber and wood products remain weak mainly because of poor housing starts in major export markets.
Malaysia Log PricesLog Export Prices (Sarawak)
Sarawak log, FOB | US$ per m³ |
Meranti SQ up | 265-292 |
Small
|
253-286 |
Super small
|
255-279 |
Keruing SQ up | 247-259 |
Small
|
238-271 |
Super small
|
227-251 |
Kapur SQ up | 239-265 |
Selangan Batu SQ up | 244-278 |
Domestic log Prices | |
Pen. Malaysia logs, domestic (SQ) | US$ per m³ |
DR Meranti | 283-302 |
Balau | 325-355 |
Merbau | 378-409 |
Rubberwood | 106-140 |
Keruing | 247-263 |
Peninsular Malaysian meranti logs are top grade and are used for scantlings for the EU. Their prices are higher than Sarawaks. |
Export Sawnwood Prices
Malaysia Sawnwood, FOB | US$ per m³ | |
DR Meranti | 412-448 ▼ | |
White Meranti A & up |
308-338 ▼
|
|
Seraya Scantlings (75x125 KD) |
448-460 ▼
|
|
Sepetir Boards |
276-305 ▼
|
|
Sesendok 25,50mm |
362-380 ▼
|
|
Kembang Semangkok |
343-372 ▼
|
|
Domestic Sawnwood Prices | ||
Malaysian Sawnwood, domestic |
US$ per m³
|
|
Balau (25&50mm,100mm+) |
344-364 ▼
|
|
Merbau |
485-537 ▼
|
|
Kempas 50mmx (75,100 & 125mm) |
289-329 ▼
|
|
Rubberwood | 25x75x660mm up |
236-287 ▼
|
50-75mm Sq. |
275-307 ▼
|
|
>75mm Sq. |
297-327 ▼
|
Export Plywood Prices
Malaysia ply MR BB/CC, FOB | US$ per m³ |
2.7mm |
443-504 ▼
|
3mm |
425-455 ▼
|
9mm & up |
377-447 ▼
|
Domestic Plywood Prices | |
Meranti ply BB/CC, domestic | US$ per m³ |
3mm
|
369-459 ▼
|
12-18mm
|
352-381 ▼
|
Other Panel Export and Domestic Prices
Malaysia, Other Panels, FOB | US$ per m³ |
Particleboard Export 12mm & up |
262-285
|
Domestic 12mm & up
|
253-267
|
MDF Export 15-19mm |
313-345
|
Domestic 12-18mm
|
305-324
|
Export Added Value Product Prices
Malaysia, Mouldings, FOB | US$ per m³ |
Selagan Batu Decking |
574-586 ▼
|
Red Meranti Mouldings 11x68/92mm x 7ft up | |
Grade A
|
568-601 ▼
|
Grade B
|
543-553 ▼
|
Export Furniture and Parts Prices
Malaysia, Rubberwood, FOB | US$ per piece | |
Semi-finished dining table solid laminated top 2.5'x4', extension leaf |
78-94 ▼
|
|
As above, Oak Veneer |
84-98 ▼
|
|
Windsor Chair |
77-79 ▼
|
|
Colonial Chair |
75-80 ▼
|
|
Queen Anne Chair (soft seat) | without arm |
74-86 ▼
|
with arm |
77-87 ▼
|
|
Chair Seat 27x430x500mm |
63-68 ▼
|
|
Rubberwood Tabletop | US$ per m³ | |
22x760x1220mm sanded & edge profiled | ||
Top Grade
|
634-664 ▼ | |
Standard
|
617-633 ▼ |