KUCHING, Nov 23 — The state timber industry has been experiencing a downward trend since early 2020, partly due to the impact of the Covid-19 pandemic that has affected the current global economy, Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan said today.
He said tight supply of logs, the rising cost of production, uncompetitive pricing and trade barriers such as the imposition of the anti-dumping of plywood products into South Korea are other factors contributing to the downward trend.
“The state timber industry export performance is expected to earn about RM 3.7 billion in 2020, a decrease by 18 per cent from RM 4.5 billion for 2019,” he said during a media briefing on the status and performance of the timber industry during the Covid-19 pandemic.
He said the pandemic has disrupted the production of mills, with a lack of supply and demand for timber products in domestic and overseas markets reported.
Awang Tengah, who is also the state’s Second Minister of Urban Development and Natural Resources, said the export value of logs and timber products for the period from January to October 2020 dropped by 19 per cent to RM 3.1 billion from RM 3.8 billion compared to the same period last year.
“Subsequently, the export volume for logs and timber products for January to October 2020 declined by 18 per cent to 2.2 million cubic metres from 2.6 million cubic metres during the same period last year.
“In term of product, plywood is a major export in 2020, with a value of RM1.6 billion, a drop by 16 per cent from RM 1.9 billion compared to the similar period in 2019,” he said, adding that plywood export comprised 52 per cent of the total export value of Sarawak timber and timber products.
He said the export volume of Sarawak’s plywood declined by 10 per cent at 847,141 cubic metres during the first ten months of 2020 compared to 941,217 cubic metres during the corresponding period in 2019.
