Latest news with #MalaysianTimberIndustryBoard
Free Malaysia Today
24-04-2025
- Business
- Free Malaysia Today
M'sia's timber products still desirable in US despite tariffs, says Johari
Plantation and commodities minister Johari Ghani said his ministry is closely monitoring the issue of some exporters manipulating the certificate of origin for timber products. KUALA LUMPUR : Malaysia's timber exports remain desirable in the US market despite the newly imposed tariffs, says plantation and commodities minister Johari Ghani. He attributed the continued demand to Malaysia's reputation for high-quality timber products and competitive prices. 'Despite the tariff, which is currently at 10%, exports are still strong due to the good quality and design of our products. People are willing to pay the price,' he told reporters after attending the Malaysian Timber Industry Board appreciation ceremony here today. In 2022, Malaysia exported timber and timber products worth RM7.73 billion to the US. This was a steady increase from RM3.76 billion in 2018. On April 2, US president Donald Trump imposed a blanket tariff of 10% on imports and added 'reciprocal tariffs' on countries with large trade surpluses with the US. Malaysia was hit with a 24% tariff – lower than Vietnam (46%), Cambodia (49%) and Indonesia (32%). Trump subsequently paused the implementation of these tariffs for 90 days, except for China which faces a steep levy of 145%. Johari also addressed concerns over companies attempting to manipulate trade routes by changing the certificate of origin of timber products for export. He said his ministry was actively monitoring the issue, and warned that timber exports must contain at least 60% local added value, even if some materials are sourced from abroad. He said only raw timber materials could be imported for processing, with certificates of origin granted only if substantial local value is added. Johari also cautioned that failure to curb such practices could jeopardise the credibility of legitimate Malaysian exporters amid escalating global trade tensions. In February, it was reported that the export value of timber products increased 4.9% to RM22.9 billion last year, compared to 2023. The timber industry was the third-largest export contributor for agricommodity products after palm oil (RM114.4 billion) and rubber (RM33.7 billion).
New Straits Times
24-04-2025
- Business
- New Straits Times
Timber exporters face licence revocation over violations
KUALA LUMPUR: Timber exporters who fail to comply with regulations risk having their permits revoked, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. He said companies must ensure their products contain at least 60 per cent local value-added content, even if some raw materials are imported. "I have informed the industry that if they want to export our timber products (even when some materials are imported), these imports are only allowed as input, not finished goods. "You cannot simply take a ready-made product, place it in a container, change the certificate of origin at the port, and export it. That is not acceptable," he said at an event here today. The Malaysian Timber Industry Board (MTIB) appreciation event also featured the launch of the book Anatomi dan Pengecaman Kayu Malaysia (Malaysian Wood Anatomy and Identification). Currently, MTIB issues 60-day export permits per shipment for timber-based products. Importation is only allowed for raw materials, not finished items. Johari added that companies found violating MTIB rules have been blacklisted in the past. "There have been cases before. If MTIB catches them, they will no longer be allowed to export. That means they've manipulated timber products for export and that is not allowed," he said. Meanwhile, Johari said the timber industry remains a major contributor to Malaysia's agri-commodity sector, not only in export value but also in employment, having created around 180,000 jobs across processing, furniture manufacturing, logistics, and marketing. "This development proves that the timber industry remains one of the key pillars of the national agri-commodity sector, with strong prospects for continued global growth," he said. Timber and furniture exports rose 4.9 per cent in 2024 to RM22.9 billion. Malaysia now exports to over 182 countries, with top markets including the United States (RM6.5 billion), China (RM3.4 billion) and Japan (RM2.8 billion). Imports also increased 13.2 per cent year-on-year to RM8.5 billion.
