Business analysts predict a boom in the wood product manufacturing sector in Malaysia. The reaction of Russia in banning wood product exports to what are deemed as “unfriendly countries” will mean such countries will be looking for alternative suppliers.
While most of Russia’s timber exports are of softwoods, alternative suppliers of hardwoods, such as Malaysia and other South East Asian shippers, could benefit.
In related news, the Minister for Plantation Industries and Commodities, Datuk Zuraida Kamaruddin, said the government is targeting an export value for wood-based products, including wooden furniture, at RM$19 billion (US$235 million) by 2025 under the National Agri-commodity Policy (DAKN) 2021-2030.
The minister added that the wooden furniture industry has great potential with rising demand from key markets. Malaysia, the world’s 10th biggest exporter of furniture and furniture parts, recorded an export value of $10.41bn last year with five main export destinations being the US, Japan, Singapore, the UK and Australia.