With a total rubberwood export ban, Malaysia hopes that furniture manufacturers can hit RM 12 billion by 2020

According to the New Straits Times, with a total ban on rubberwood exports implemented, the Malaysian government hopes that local furniture manufacturers will be able to hit RM12 billion (US$2.79 billion) in exports by 2020.

“We hope to see Malaysia’s furniture exports further improve following the ban on rubberwood exports effective on the 1st of July,” Plantation industries and Commodities Minister Datuk Seri Mah Siew Keong, said at the Muar Furniture Association’s 35th anniversary dinner in Muar, Johor, the largest furniture hub in Malaysia, accounting for around two-thirds of the nation’s furniture exports, over the weekend. “Our target is for Malaysia’s furniture exports to reach RM12 billion by 2020. In the first quarter of this year, Malaysia’s furniture exports amounted to RM2 billion (US$47 million), 6.3 per cent higher than in the same period last year.”

In 2016, Malaysia’s total furniture exports came up to RM9.53 billion (US$2.22 billion), 4.2 per cent more than the RM9.14 billion (US$2.13 billion) seen in 2015, making the nation the globe’s eighth-largest furniture exporter.

Over the past twenty years, the Malaysian government has intermittently imposed and lifted rubberwood export bans in order to balance the contending demands of furniture makers and local sawmillers.

In 2016, local sawmillers exported an estimated RM300 billion (US$69.83 billion) worth of rubberwood to China and Vietnam.

With the ban in effect, Mah is anticipating raw materials to be more competitively available for wooden furniture producers and manufacturers.

 

Source: New Straits Times