Malaysian timber exports may gain edge in US market, says FRIM forest products director
KUALA LUMPUR: Malaysia's timber exports may gain a competitive edge in the US market due to higher tariffs imposed on regional rivals such as Vietnam and Indonesia.
Vietnam, once a leading furniture exporter in the region, now faces tariffs as high as 46% compared with Malaysia's import levy of 24%, Forest Research Institute Malaysia (FRIM) director of forest products division Wan Tarmeze Wan Ariffin said.
'US President Donald Trump imposed higher tariffs on Vietnam probably because they're afraid China might use Vietnam as a manufacturing hub' to bypass American trade restrictions,' he told Bernama.
The United States is the largest buyer of Malaysian furniture, accounting for over half of furniture exports.
However, the tariffs announced on April 2 have been paused for 90 days till early July to allow America's trading partners to negotiate for lower tariffs.
'If they don't impose high tariffs on Vietnam, China could exploit that route. So, on paper, the advantage actually lies with us (Malaysia),' he said.
In 2022, Malaysia exported timber and timber products worth RM7.73 billion to the US. This was an increase from RM3.76 billion in 2018.
Malaysia's timber exports worldwide include furniture, logs, veneer, plywood and medium-density fibreboard.
Asked on the challenges faced by the timber industry, Wan Tarmeze said Malaysia's furniture sector primarily relies on processed wood rather than solid timber, with wood-based materials accounting for up to 85% of inputs in the making of the furniture.
Wan Tarmeze said the ongoing Iran-Israel military conflict is not expected to have a direct impact on Malaysia's timber exports. Nevertheless, post-conflict reconstruction could open up new market opportunities and raise demand for Malaysian timber.
'Wars often lead to widespread destruction, but once the situation stabilises, there's usually a surge in demand for rebuilding – including homes and infrastructure,' he said.
When asked how Malaysia can position itself as a high-value timber exporter rather than a volume-based player, he said the shift ultimately depends on the industry players themselves.
'This has been a long-standing conversation as Malaysia is still heavily reliant on the original equipment manufacturer (OEM) model, manufacturing timber products for others without having its own strong, internationally recognised brands.
'Take IKEA for example, which is a Swedish brand while Italy has its own well-known brand names, but Malaysia has yet to produce a brand that stands out globally,' Wan Tarmeze said.
OEM refers to manufacturing products for other brands, whereas original brand manufacturers (OBM) involves developing and marketing products under one's own brand name.
Wan Tarmeze said that despite the government's repeated calls for the industry to move from being OEM to OBM, the shift has yet to happen.
'The issue is not about identity but branding, and without branding we can't build value.
'The truth is Malaysia tends to shy away from copying, but we should be more open to learning from others, even 'stealing' ideas in the sense of adapting best practices and making them our own,' he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
2 hours ago
- New Straits Times
Bernama chairman Wong Chun Wai named National Journalism Laureate
KUALA LUMPUR: Malaysian National News Agency (Bernama) chairman Datuk Seri Wong Chun Wai was named the National Journalism Laureate at the Malaysian Press Institute (MPI)-Petronas Journalism Awards ceremony held last night. Wong, 64, brings over four decades of journalistic experience, having begun his career as a junior reporter at The Star in Penang in 1984. He then climbed the ladder to serve in various positions at its headquarters in Petaling Jaya. Wong is the 14th recipient of the prestigious award, joining the ranks of past luminaries, including the first recipient, the late Tan Sri Abdul Samad Ismail of Utusan Melayu (1988), the late Tan Sri Lee Siew Yee of the New Straits Times (1992), and Datuk Ishak Muhammad or Pak Sako (1995). Other notable past recipients include Tan Sri Johan Jaaffar, Datuk Kadir Jasin, Adibah Amin, the late Datuk Ahmad Rejal Arbee, the late Tan Sri Zainuddin Maidin and Datuk CC Liew. Wong said he felt "small and humbled" to be among these luminaries. The award was presented by Higher Education Minister Datuk Seri Dr Zambry Abdul Kadir. Apart from journalism, Wong has also held corporate leadership roles, serving as group chief editor, managing director, and chief executive officer of Star Media Group (SMG). In 2023, he was appointed Bernama chairman. He had earlier served as a member of its Board of Governors (2004–2010) and as a member of its Supervisory Council (2010–2014). He continues to write analysis pieces for Bernama. Wong remains a columnist for The Sunday Star, where his popular "On The Beat" column has run since 1997, despite no longer being with SMG. Over the years, Wong has delivered numerous exclusives, including interviews with the late physicist Stephen Hawking and former US President Bill Clinton. In 2003, he won the MPI Best Feature Award for his investigative piece on Malaysians undergoing terrorist training in Afghanistan. He was also the first Malaysian elected into the Paris-based World Editors Forum and served as Chairman of the Asia News Network with over 21 media affiliates. "This is an honour for me and certainly the pinnacle of my journalism journey," he said. He advised journalists to go beyond standard news writing by dabbling in news analysis and commentaries. Wong is also the author of 'Penang's History, My Story', published in 2014 by The Star, and translated into Bahasa Melayu by Universiti Sains Malaysia. He has served as an adjunct professor at Universiti Kebangsaan Malaysia, his alma mater. "My advice to fellow journalists is never to stop writing. "I wish to commend my fellow veterans like Tan Sri Johan Jaaffar, Datuk Seri Azman Ujang, Datuk Yong Soo Heong, Datuk Kadir Jasin and Datuk Kuik Cheng Kang who still write, whether regularly or occasionally. "Old journalists should never fade away, but continue writing," he added. The veteran journalist has also embraced digital platforms such as Instagram, X (formerly Twitter) and YouTube to share his views. Wong said he strongly advocates for the engagement of professionally trained journalists, emphasising that "we have undergone years of training, and are better equipped to understand legal boundaries and the sensitivities of Malaysia's multi-racial society." "More importantly, the established media is accurate and we take responsibility for what we publish," he said. Wong dedicated the award to all journalists, particularly veterans and seniors, for their tireless service to the profession. -- Bernama
New Straits Times
2 hours ago
- New Straits Times
Iran-Israel war 'reaching point of no return'
ISTANBUL: The escalating Iran-Israel confrontation is quickly reaching "the point of no return", Turkish President Recep Tayyip Erdogan said on Friday, as Washington mulled the prospect of entering the war. Iran and Israel have been at war for eight days after Israel, saying the Islamic republic was on the brink of acquiring a nuclear weapon, launched a massive wave of strikes on its arch-rival, triggering an immediate response from Tehran. "Unfortunately, the genocide in Gaza and the conflict with Iran are quickly reaching the point of no return. This madness must end as soon as possible," Erdogan said, warning the consequences could affect the region, Europe and Asia "for many years." "It is imperative that fingers are removed from the triggers and buttons before more destruction, bloodshed, civilian casualties and terrible disaster occurs, that could affect our region, as well as Europe and Asia for years to come," he said. His remarks were made at an Organisation of Islamic Cooperation (OIC) youth forum in Istanbul ahead of a gathering of OIC foreign ministers at the weekend. Among those due to attend was Iranian Foreign Minister Abbas Araghchi, with the ongoing crisis with Israel likely to feature high on the agenda at the two-day talks. Erdogan had earlier warned the war could spark a surge in migration in a phone call with German Chancellor Friedrich Merz. "The spiral of violence triggered by Israel's attacks could harm the region and Europe in terms of migration and the possibility of nuclear leakage," he said, warning the conflict had "raised the threat to regional security to the highest level." Despite the ongoing bombardments, a Turkish defence ministry source said on Thursday there had been "no increase" in numbers crossing the country's border from Iran. The Turkish authorities have not released any figures. AFP correspondents at the main Kapikoy border crossing near the eastern Turkish city of Van reported seeing several hundred people crossing in both directions, with a customs official saying the numbers were "nothing unusual." During a visit to the frontier on Wednesday, Defence Minister Yasar Guler said "security measures at our borders have been increased."
Barnama
3 hours ago
- Barnama
Ties Within BRICS Strengthening, Mutual Trade Growing
ST. PETERSBURG, June 20 (Bernama-RIA Novosti) -- Russian President Vladimir Putin said on Friday that ties within BRICS are strengthening and mutual trade is growing, with the trade turnover of the participating countries already exceeding US$1 trillion. "Special attention is being paid to strengthening ties within BRICS. The mutual trade turnover between our countries has already exceeded US$1 trillion and continues to grow. All of these are elements of a global growth platform. 'And they are based on the key principles of BRICS. And this is consensus, parity, and consideration of interests towards each other," Putin said at a plenary session of the 2025 St. Petersburg International Economic Forum (SPIEF), Sputnik/RIA Novosti reported.
