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Children's Furniture Enterprises Note: Malaysia Bans Rubber Wood Exports
The reading: Minister of Planting Industry and the original product, Ma Shouqiang, said: “We hope to see Malaysia's furniture exports further increase after the embargo on the export of rubber wood is effected on July 1. Our goal is to make Malaysian furniture in 2020. The export value reached 12 billion ringgit."
Malaysia: The government hopes that domestic furniture manufacturers' export output value will reach RM 12 billion by 2020. At present, the Malaysian government has completely banned the export of rubber wood.
Ma Shuqiang, Minister of Planting Industry and Raw Products, said: “We hope to see Malaysia's furniture exports further increase after the embargo on the export of rubber wood is effected on July 1. Our goal is to make Malaysia's furniture exports in 2020. To reach 12 billion ringgit."
Last year, Malaysia’s furniture exports totaled 9.53 billion ringgit, a 4.2% increase from the 9.14 billion ringgit in 2015. Malaysia's furniture exports in the first quarter of this year amounted to 2 billion ringgit, a year-on-year increase of 6.3%. Malaysia is currently the eighth largest furniture exporter in the world.
Over the past 20 years, the Malaysian government has been periodically implementing and lifting the export ban on rubber wood in order to balance the needs of domestic timber mills and furniture manufacturers.
The mills say that the timber prices on the export market are high, and furniture manufacturers say they need to buy large quantities of wood at reasonable prices to meet the needs of orders. Last year, the Malaysian timber factory exported about 300 million ringgit worth of rubber wood to Vietnam and China.
When Ma Shuangqiang was appointed Minister of Planting Industry and Raw Products last year, he promised to promote the government's policy of encouraging downstream production and processing activities to contribute to the Malaysian economy.
Most of the rubber trees in Malaysia are planted by Kobayashi. A rubber tree can produce latex for about 25 years, after which its productivity drops sharply, so farmers often use more productive clones to replant rubber trees.
The plant will process the rubber trees that have been eliminated into wood and then export or sell them to domestic furniture manufacturers for processing into floors, wood-based panels or furniture.
Muar is Malaysia's largest furniture hub and accounts for two-thirds of Malaysian furniture exports.
Ma Shuqiang estimated that with the implementation of the rubber wood export ban, the raw material costs of wooden furniture manufacturers will be reduced.
At present, domestic rubber wood has ushered in a new wave of price increases, and prices for all specifications are now raised by 5% to 10%. The rubber wood in Hainan area was affected by environmental protection, and the production line was almost suspended. The inventory under the market supply was not much, and it is currently out of stock.
The import of rubber wood is caused by multiple factors:
First, the impact of the tropical storm Sanka in Thailand recently has brought about heavy rainfall in 44 northeastern and northern provinces, which has led to a substantial reduction in the local timber export rate in Thailand;
Second, Indonesia is in the dry season. Forests and peatlands are very easy to catch fire. The fire spreads seriously and the destruction rate of wood increases.
Thirdly, the Vietnamese authorities passed a decision to increase tariffs on all wood by 25%, and the cost of rubber wood imports has risen significantly.
Not long ago, the length of the Hong Kong Port of Guangzhou, which was 65/75/90/100 and 7.5*7.5 in size, was quoted at 2,800 yuan.
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