The red meranti
Kuala Lumpur, Malaysia - Malaysia aims to export more timber products to the European countries, Plantation Industries and Commodities Minister, Datuk Peter Chin, said Monday.
He said a delegation from the European Union (EU) would be coming here on Jan 16 to commence negotiations on the proposed partnership on the supply and promotion of timber products.
Chin said he hoped the negotiations would be finalised within a year and a set of procedures would be established for the export of timber products to EU, the biggest market for Malaysian sawn timber.
He said Malaysian timber products still faced obstacles in the EU market as some buyers are reluctant to use red meranti on reports that it was non-durable.
"However, based on a study by the Timber Research and Development Association, a reputable UK institution, the dark red meranti can be very durable in Europe," he said.
To meet the changing expectations in the European market, Chin said it was important that industry players be aware of the latest developments and changes in the marketplace.
"One very important and pertinent issue is the extension of the CE Mark to cover timber destined for structural use. Up to now, the CE Mark, which refers to a fitness for purpose mark, is only applicable to wood-based panel products and flooring material.
"But as of Sept 1 this year, timber meant for structural use will also have the bear the CE Mark. This implies that sawn timber exported to Europe will have to qualify for the CE Mark if they are to be used for construction," he said.
Chin said in order to maintain its market share, the industry would have to remain vigilant, proactive and innovative of the requirements in the marketplace.
"Today the industry faces many challenges such as dwindling raw material supply, escalating labour costs and rising consumer expectations. However, I am convinced that the timber industry is resilient enough to overcome the challenges and emerge stronger than ever," he said.
In 2005, Malaysia's exports totaled RM21.5 billion and are expected to increase by about five percent to RM23.6 billion in 2006.
Major markets for timber products are the EU countries, Japan and the US.
Chin called for the merger of the Malaysian Furniture Industry Council (MFIC) and the Malaysia Furniture Entrepreneur Association (MFEA) to promote greater efficiency and competitiveness in the furniture industry.
MFIC president, Richard Lee, said the members of both association had agreed to the merger.
"The objectives of the merger will be to promote joint collaborative efforts to tackle issues such as concerns on the supply of raw materials and to obtain better rates for marketing in exhibition overseas.
"Another major goal is to create a strong branding for the industry," he said.