Tropical lumber trade plays an of import function in the resource-based socio-economic development of Malaysia. Malaysia is a tropical state located North of the Equator within latitudes 1o to 7o North and longitudes 100 O to 119 Os east. The state has two parts: one is West Malaysia ( Peninsular Malaysia ) and another is East Malaysia ( Sabah and Sarawak ) by the South China Sea. The entire land country is about 32.8 million hectares with 13.1 million hectares in Peninsular Malaysia, which comprises 11 provinces and the Federal Territory of Kuala Lumpur, and 19.7 million hectares in East Malaysia, which consists of two big provinces, Sabah and the Federal Territory of Labuan ( 7.4 million hectares ) , and Sarawak ( 12.3 million hectares ) .
The entire country of woods in Malaysia was estimated to be 19.48 million hectares or 59.34 % of the entire land country, with the proportion of forested land being higher in Sabah and Sarawak than in Peninsular Malaysia at the terminal of 2005. Malaysia has a entire country of 16 million hectares of dipterocarp forest, of which 14.29 million hectares are designated as Permanent Forest Estate ( PFE ) or forest modesty. Approximately 11.18 million hectares of the PFE are production woods with the staying 3.11 million hectares being protection woods. 1.8 million hectares located outside the PFE are designated as national Parkss and wildlife sanctuaries [ 4 ] .
Primary lumber merchandises ( Logs, sawnwood, veneer and plyboard ) , and secondary processed wood merchandises ( SPWP ) develop the tropical lumber markets. Log markets monetary value is vary widely, where the species and single log quality have a broad value graduated table. Still, there are marked differences by species and class in sawnwood and veneer. Plywood has become a much more standardised merchandise, because the procedure enhances the qualities even more, with the composite construction and the gum. Finally, by presenting procedure and design features into the SPWP class conveying extra value to the end-user [ 11 ] .
Many developing states efforts to increase lumber merchandises trade in primary lumber merchandises and secondary processed wood merchandises toward exporting secondary value-added merchandises [ 2 ] . The focal point of this survey is to better understand the Malayan lumber market for primary tropical lumber merchandises and secondary processed wood merchandises. The manufacturers provide the tropical lumber merchandises information and guidelines about the chances, restraints, and features these merchandises face in the Malayan market place. Since the production and topical lumber merchandises addition in international trade and environment, the universe economic system is turning [ 9, 7 ] . The globalisation of trade and market kineticss in environment has been paved in the World Trade Organization procedure, including the trade in forest wood merchandises and services.
The three of import merchandising blocs- the Pacific Rim, North America and Western Europe are in the wood merchandises trade. The major importers are chiefly industrialised states within each trading axis. Europe accounts more than one-half of planetary wood merchandises imports and Canada, Japan and the United States remain imports over 25 per centum ( FAO 1994 ) . Industrial roundwood, sawnwood and woodpulp exports to Canada and the United States and paper merchandises export to European states. In recent old ages, there has been increasing the portion of planetary imports chiefly logs and semi-finished wood merchandises peculiarly in Asia, for export oriented processing industries. The dominant universe exporters of non-coniferous wood based panels, logs and sawnwood have been emerged by Indonesia and Malaysia and wood mush and paper merchandises have been turned into Brazil, Chile and the freshly industrializing states of Asia [ 1 ] .
The Malayan economic system recorded growing from 1970 to 1997, with the exclusion of the brief recession in the mid 1980s. From 1970 to 1980, the economic growing rate was 8.3 per cent slowed down 5.9 per cent from 1989 to 1990, because of the mid 80s recession. But the unexpected sustained high growing rate of 9 per cent from 1990 until the fiscal crisis of 1997. The singular economic enlargement was increasingly led by fabricating. Over the last three decennaries, the growing and structural transmutation of the economic system occurred within the model of a broad trade and investing government every bit good as the extended industrial policies. Industrial development anticipates the overall attack to go on, but a displacement towards more market-based policies was evident in the industrial policy accommodations introduced since the late 1980s [ 8 ] .
Malaysia continued to liberalise its policies on international trade and foreign investing during the period of 2000-2005. Indeed, trade severally, was on mean tantamount to 86 % and 110 % of GDP during this period. Although down from the high degree of 7 % of GDP between 1990 and 1997, influxs of foreign direct investing ( FDI ) , were still about 3 % of GDP during the period 1999-04. As a consequence, Malaysians economic system achieved a steady growing rate following the trade liberalisation and to the full recovered from the Asiatic fiscal crises in 1997-98 [ 12 ] .
Harmonizing to 7th Malayan Plan, Malaysia ‘s entire trade in the Southern states expanded by 18.7 per cent with its portion increasing from 13.9 per cent in 1995 to 18.1 per cent in 2000. In 1990, the entire Malayan exports was RM79.64 billion RM185.32 billion in 1995, RM 373.27 billion in 2000 and RM 533.79 billion in 2005 [ 10 ] .
The aims of this survey are to obtain the development of tropical lumber market in Malaysia and analyse the current province of its lumber trade. Malayan lumber trade has been altering drastically in recent old ages under the influences of the international lumber trade and the state ‘s new scarcenesss of utile forest resources.
MATERIALS AND METHODS
The survey is conducted in University Kebangsaan Malaysia, Bangi since July, 2008 to June, 2009. The information for analysis is perceived from International Tropical Timber Organization member state in Malaysia. The important uses for acquired informations are log production, log exports, processed exports, entire exports, log, sawnwood, veneer and plyboard imports and exports, and their monetary values. The corresponding results are demonstrated from the analysis of collected informations.
Exports of Primary Tropical Timber Merchandises: From Table 1, we can see that the ITTO bring forthing parts comprised to modify the composing of lumber exports for 2006 to 2008. Tropical lumber exports of ITTO manufacturers decreased dramatically from over 60 % in the 1980s to 24 % in 2008. Merely Africa persisted to tropical log exports volume compared to primary merchandises and with log exports made up 20 % of Africa ‘s log production and 46 % of Africa ‘s entire export volume in 2008. Log exports were substituted with the export of secondary processed primary merchandises in the Asia Pacific part. Asiatic log exports made up over a fifth of entire Asiatic export volume in 2008. Production and entire primary merchandise exports have a little fraction in tropical log exports of Latin America. Entire roundwood tantamount export volume as a per centum of log production decreased from 1.2 % to 1.1 % in Latin America and from 11.0 % to 10.2 % in Asia-Pacific, but increased from 17.7 % to 19.7 % in Africa ( Table 1 ) . Entire ITTO manufacturer member exports ( rwe ) of tropical primary merchandises have been worsening since 2006 and reduced significantly in 2008.
Table 1: Composition of Exports by Producing Regions, 2006-2008 ( 1000 M3 roundwood equivalent )
Beginning: [ 5 ] .
Imports of Primary Tropical Timber Products: Major ITTO importers are defined as those with imports of at least 100000 M3 of one or more tropical merchandises have changing dependance on tropical lumber. Taiwan P.O.C. is the most dependent of the major consumer importers on tropical, compared with non-tropical, timber, with a important proportion of its log, veneer and plyboard imports of tropical beginning. However, the tropical part of plyboard imports in all the major ITTO importers declined in 2007, with the exclusion of China, France, Italy, Portugal and Spain and reflecting the increasing importance of deals in universe plyboard production and trade ( Table 2 ) .
Table 2: Tropical Proportion of Entire Imports by Major ITTO Importers, 2007 ( % )
Republic of Korea
Beginning: [ 5 ] .
Tropical Timber Price Trends in Malaysia: Real number ( 1990 ) FOB monetary value tendencies for most primary tropical lumber merchandises and species exports of two West African and five Southeast Asiatic logs species every bit good as domestic monetary value tendencies for Malayan rubberwood logs. Price tendencies of West African logs showed some instability but rose continuously to new highs in 2007. The betterment of log monetary values in euros reflected greater demand ; and increasing log export limitations in the part, with log quota systems being implemented in the Republic of Congo and Gabon in 2007 ( ITTO MIS, 2009 ) .
In Malaysia, selangan batu and kapur log monetary values rose steadily and aggressively in 2006-2007, from $ 146/m3 and $ 132/m3 in January 2006 to $ 204/m3 and $ 254/ M3 in January 2008. In 2007, selangan batu monetary values good surpassed the old high degrees of the 1990 ‘s, making record degrees in October 2006. Monetary values were driven up by limited supplies and strong demand in China and India. After October 2007, monetary values remained comparatively stable but eased somewhat ( except for a monetary value spike in January 2008 ) reflecting initial deceleration of demand in all major markets.
Malayan sawnwood monetary values in the UK market rose steadily from 2002 to 2007. Malayan sawmills of an of import beginning of natural stuff, the secondary processing industries in Malaysia expanded and the steady, successful crackdown on illegal logging in Indonesia besides limited log supplies to the sawmills. Monetary values remained stable in British lbs, although lifting in US dollars, with monetary values at year-end diminishing somewhat to $ 517/m3 in 2006 and 2007. Monetary values rose well in early 2008, making a extremum of $ 638/m3 in mid-2008, with Asiatic providers to the EU benefiting, compared to African providers, from the failing of the US dollar during this period.
Real ( 1990 ) FOB monetary value tendencies are the most of import for assorted classs and thicknesses of Malayan plyboard. The focal point of this analysis is on Indonesian monetary values which are normally closely correlated with Malayan monetary values for Southeast Asiatic plyboard. Monetary values for 2.7 millimeter, 3 millimeter and 6-18 millimeter panels rose steadily from 2004 to mid-2007 chiefly due to supply-side restraints – with turning log supply jobs ( in Indonesia and Malaysia ) and constrictions in cargos, assisted by robust demand in the USA and the UK [ 6 ] .
Trade and Prices of Secondary Processed Wood Products in Malaya: Secondary processed wood merchandises ( SPWP ) play an progressively of import function in Malayan tropical wood sectors. The primary classs of tropical secondary processed wood merchandises in trade are wooden furniture and parts, builder ‘s woodwork, other secondary processed wood merchandises, moldings, cane and bamboo furniture and parts. Secondary processed wood merchandises trade tendencies in 2007 were similar to those in 2006. Wooden furniture and parts is the major SPWP merchandise of ITTO manufacturer and consumer states and constitutes around 60 % of trade between them, followed by builder ‘s woodwork, other SPWPs, moldings, and cane and bamboo furniture and parts.
Exports of secondary processed wood merchandises: Secondary processed wood merchandises are now a really important portion of exports of many tropical lumber bring forthing states. During the 1990s the chief commercial push of the taking tropical lumber exporting states was to develop secondary processing industries. Malaysia has been one of the largest exporters of high quality tropical secondary processed wood merchandises trade to the universe market. Malaysia ‘s major lumber merchandises consumers are all in Asia, particularly China, Taiwan P.O.C. , India and Japan.
Imports of secondary processed wood merchandises: Secondary processed wood merchandises are now a really important portion of imports of many tropical lumber devouring states. In ITTO consumer member states, the imports of wooden furniture and parts totaled $ 48.8 billion in 2007. Malaysia was an of import tropical importer of wooden furniture and parts, with India ‘s imports leaping about 40 % as a consequence of rapid economic growing and consumer demand during 2007.
Malaysia was one of the largest wooden furniture exporters among ITTO tropical producers.Malaysia ‘s wooden furniture market was the largest market in Japan, UK, USA and Australia. Particularly, rubberwood and particleboard have been utilized by the wooden furniture production of Malaysia, doing it cost competitory relation to other manufacturers. In recent old ages, Malaysia ‘s furniture industry has organized a figure of carnivals and exhibitions in order to advance variegation of markets and merchandises.
Production, Trade and Prices of Primary Tropical Timber Products in Malaya
Production: In Fig. 1, we can see that ITTO manufacturer member states, the production of tropical industrial roundwood ( logs ) totalled 143.2 million M3 in 2007, a year-on-year addition of 4.8 % . Log production in 2008 remained at 143.7 million M3. The production of Malayan tropical industrial roundwood ( logs ) totalled 21.3 million M3 in 2007 and 24.4 million m3in 2004. Malayan log production has been worsening since 2004 and reduced significantly in 2007 and 2008 with the full execution of sustainable forest direction. Under the Ninth Malaysia Plan ( 2006-2010 ) log production is anticipated to worsen increasingly to 2010 with more domestic wood processing into exportable value added merchandises.
From Fig. 1, ITTO manufacturer member states, the production of tropical sawnwood totalled 41.3 million m3in 2007 and decreased marginally from 2006 degrees, although sawnwood production is anticipated to hold increased marginally by 42.4 million M3 in 2008. The production of Malayan tropical sawnwood totalled 4.9 million M3 in 2004 grew to 5.2 million M3 in 2005. But, Malayan sawnwood production has been worsening since 2005 and reduced significantly in 2007.
In ITTO manufacturer member states, the production of tropical veneer totalled 2.5 million m3in 2007. Veneer production figures should non include veneer used in domestic plyboard production and hence represent the veneer production traded internationally is really little. In bring forthing states, veneer production increased by 8.0 % in 2007 and is estimated to hold increased to 2.9 million M3 in 2008.The production of Malayan tropical veneer totalled 0.64 million M3 in 2004 grew to 0.67 million M3 in 2005. But, Malayan veneer production has been worsening since 2005 and reduced significantly in 2007 ( Fig. 1 ) .
In Fig. 1, ITTO manufacturer member states, the production of tropical plyboard totalled 13.5 million M3 in 2007 and about the same degree in 2006, although plyboard production is anticipated to hold remained comparatively unchanged in 2008. The production of Malayan tropical plyboard totalled 5.5 million M3 in 2007 and 4.7 million M3 in 2004. Malayan plyboard production has been increasing since 2004 and increased significantly in 2007 and 2008 with the full execution of sustainable forest direction. Under the authorities ‘s Third Industrial Master Plan ( 2006-2020 ) , Malaysia ‘s wood based industries including plyboard have been targeted to increase increasingly to 2020 with more domestic wood processing into exportable value added merchandises.
Fig. 1: Malayan Production of Tropical Timber, 2004-2008
Exports: In Fig. 2, ITTO manufacturer member states, the exports of tropical logs totalled 13.0 million M3 in 2007 and the exports of Malayan tropical logs totalled 5.2 million M3 in 2004 grew to 5.7 million M3 in 2005. But, Malayan log exports have been worsening since 2005 and reduced significantly in 2007. Malaysia ‘s major log clients are all in Asia, particularly China, India, Taiwan P.O.C. and Japan. In recent old ages, tropical logs have been processed domestically, although the wood processing industry would be badly impacted by the economic downswing in major export markets in 2008-2009.
From Fig. 2, ITTO manufacturer member states, the exports of tropical sawnwood totalled 11.6 million M3 in 2007, the same degree as 2006. The exports of Malayan tropical sawnwood totalled 3.2 million M3 in 2004, the same degree as 2006 decreased to 2.4 million M3 in 2005 and 2.8 million M3 in 2007. In this paper, we see that Malayan sawnwood exports are diminishing and increasing twelvemonth by twelvemonth and representing 26 % of entire ITTO manufacturer member exports. Malaysia ‘s major sawnwood clients were China, Taiwan P.O.C. , Republic of Korea, Japan, USA, France and Belgium.
In Fig. 2, ITTO manufacturer member states, the exports of tropical veneer totalled 1.1 million M3 in 2007 and the exports of Malayan tropical veneer totalled 415000 M3 in 2007. Malaysia ‘s veneer exports decreased from 2004 to 2006 and recovered in 2007. Malaysia accounted for 42 % of the ITTO manufacturer member veneer exports. Malaysia ‘s major veneer clients were Republic of Korea, China, Japan, Taiwan P.O.C. and Philippines.
From Fig. 2, we can see that ITTO manufacturer member states, the exports of tropical plyboard totalled 9.7 million M3 in 2007 and the exports of Malayan tropical plyboard totalled 5.1 million M3 in 2007. Malaysia ‘s plyboard exports increased from 2004 to 2006, as the same degree as 2007. Malaysia accounted for 42 % in 2003 to over 58 % in 2007 in the ITTO manufacturer member plyboard exports. Malaysia ‘s plyboard exports are chiefly to the Republic of Korea, the USA, and Taiwan P.O.C. and Japan.
Fig. 2: Malayan Exports of Tropical Timber, 2004-2008
Imports: In Fig. 3, ITTO manufacturer member states, the imports of tropical industrial roundwood ( logs ) totalled 13.5 million M3 in 2007 and the imports of Malayan tropical industrial roundwood ( logs ) totalled 89000 M3 in 2004 and 4000 m3in 2007. Malayan log imports has been worsening since 2004 and reduced significantly in 2007 and 2008 with the full execution of sustainable forest direction.
From Fig. 3, we can see that ITTO manufacturer member states, the imports of tropical sawnwood totalled 8.0 million M3 in 2007 and the imports of Malayan tropical sawnwood totalled 618000 M3 in 2007 and 1million M3 in 2004. Malayan sawnwood imports has been worsening since 2004 and reduced significantly in 2007 and 2008 with the full execution of sustainable forest direction.
In ITTO manufacturer member states, the imports of tropical veneer totalled 0.9 million M3 in 2007 and the imports of Malayan tropical veneer totalled 2000 M3 in 2004. Malaysia imported tropical veneer at the same measure from 2004 to 2007 except 2005 ( Fig. 3 ) . Many importing states seems veneer and plyboard are the same merchandises and do non distinguish between the assorted types of veneer and plyboard in trade statistics.
In ITTO manufacturer member states, the imports of tropical plyboard totalled 0.9 million M3 in 2007 and the imports of Malayan tropical plyboard totalled 2000 M3 in 2004. Malaysia imported tropical plyboard at the same measure from 2004 to 2007 except 2005 ( Fig. 3 ) . Malaysia got benefits from the EU plyboard markets with the GSP duty rates because Malaysia ‘s nearest rival manufacturer state Indonesia was non given discriminatory import duties on plyboard come ining the EU. Many importing states seems veneer and plyboard are the same merchandises and do non distinguish between the assorted types of veneer and plyboard in trade statistics. Harmonizing to ITTO, Japan is the biggest importer of tropical plyboard in 2007.
Figure 3: Malayan Imports of Tropical Timber, 2004-2008
From Fig. 4, we see that log monetary values rose bit by bit from July 2008 to November 2008 and after November log monetary values declined or stabled. But Rubber wood monetary values rose from July to December and declined or stabled from January 2009 to June 2009.
Figure 4: Malayan Log Monetary values
We see that sawnwood monetary values rose bit by bit from July 2008 to November 2008 and after November sawnwood monetary values declined or stabled ( Fig. 5 ) .
Fig. 5: Malayan Sawnwood Monetary values
From Fig. 6, we can see that plyboard monetary values rose bit by bit from July 2008 to November 2008 and after November plyboard monetary values declined or stabled.
Fig. 6: Malayan Plywood Monetary values
The imports of Malayan secondary processed wood merchandises totaled $ 259 million and the highest imports of wooden furniture and parts totalled $ 153 million in 2007 ( Fig.7 ) .
Fig. 7: Malayan secondary processed wood merchandises imports, 2007.
The exports of Malayan secondary processed wood merchandises totalled $ 2.6 billion and the highest exports of wooden furniture and parts totalled $ 1.9 billion in 2007 ( Fig. 8 ) .
Fig. 8: Malayan secondary processed wood merchandises exports, 2007.
Tropical lumber merchandises are an of import function in the forestry sector and take a major participant in Malaysia ‘s economic growing on tropical lumber market. Logs are the chief merchandises among primary tropical lumber merchandises. But every twelvemonth Malayan log production is traveling down from old twelvemonth. Although Malaysia is one of the largest exporters of high quality tropical lumber merchandises, she is to import of some tropical lumber merchandises particularly sawnwood. Malayan sawnwood import is traveling down because Malaysia produced a big sum sawnwood production. That ‘s why Malaysia is non merely import sawnwood merchandises but besides export sawnwood merchandises that is the good symbol of a state. Primary tropical lumber merchandises are one of the earning beginnings. Malaysia earns a big sum from tropical lumber exports particularly plywood exports. We can see that Malayan lumber monetary values grew from July 2008 to December 2008 but, After December 2008 to June 2009 lumber monetary values declined or stabled.
Secondary processed wood merchandises ( SPWP ) are an of import function in Malayan tropical wood sectors. Wooden furniture is the chief merchandises among secondary processed wood merchandises. Malaysia ‘s wooden furniture market was really attractive in Japan, USA, UK and Australia.
The development of primary tropical lumber merchandises and secondary processed wood merchandises are leting the usage of a wider scope of tropical wood species in furniture and other SPWPs production in ITTO manufacturer states and consequent additions in production and exports. The part of SPWPs to the forest sectors of ITTO manufacturers and other developing states will go on to turn quickly in coming old ages, with corresponding decreases in production and particularly exports of primary tropical lumber merchandises.
In decision, tropical lumber markets increased in demand for primary tropical lumber merchandises and secondary processed wood merchandises with lumber monetary values in several major markets. Many tropical states are now looking to secondary processed wood merchandises to drive their forest sector export. Tropical lumber markets are straight influenced by big differences in pay rates and other costs of production between manufacturers and consumers.
Fiscal aid provided by the Research University Grant ( GUP ) UKM-GUP-ASPL-07-06-011, Institute for Environment and Development, University Kebangsaan Malaysia is appreciatively acknowledged.