MTC: Timber players shifting focus to export markets

MARAN: Malaysian timber players are shifting their focus towards export markets in view of the encouraging overseas demand.

The move is supported by the Malaysian Timber Council (MTC), a government agency tasked with promoting and marketing timber products overseas.

According to statistics compiled by the Malaysian Timber Industry Board, the total export value for Malaysian wood products and furniture in 2018 stood at RM22.3 billion.

MTC disclosed that sales worth RM34.66 million were generated during the International Furniture Expo in China last September, while the India Wood 2019 International Trade Fair last February generated RM1.27 million in sales.

Among the domestic timber producers, Maran Road Sawmill Sdn Bhd has managed to penetrate the European market.

Its sawmill manager, Ng Kok Shong, explained that the company managed to carve a niche in Europe by obtaining various certifications.

Currently, it is able to produce about 10,000 tonnes of timber annually with 75% of its products sold overseas.

Despite the success in the export market, the company has to contend with raw material supply constraint, which is plaguing the industry.

Ng said the company imports 65% of its raw materials from certified sources in Congo, Cameroon and Canada, with the rest from the Programme for the Endorsement of Forest Certification-certified local producers.

“One of the main concerns with local timber sources is the seasonal supply constraint due to the monsoon season.”

Its business development manager, Lau Keng Sin, highlighted that the company is facing a 13% labour shortage in its moulding operations alone. Of its 180-strong workforce, 68 are foreign workers.

“To address this problem, we are pursuing for more automation in our plant to reduce labour demand,” he said.

Mentakab Veneer and Plywood Sdn Bhd is another industry player that is grappling with labour shortage as 80% of its manpower is made up of foreign workers.

“With enough manpower, we are able to produce about 70,000 cubic metres per annum of veneer and plywood but right now we are only able to produce less than 50,000 annually,” said executive director Datuk Low Eng Chin.

The bulk of its sales are generated overseas, with over 90% of its revenue coming from more than 20 countries.

“Due to our overseas focus, we have nine different certifications that enable us to accept orders from a number of countries,” said Low.