KUALA LUMPUR:Speculation is growing that Malaysia’s exports of tropical logs will decline further as logging volume continues to fall in a key region in the Southeast Asian country due to tougher environmental regulations and bad weather.
The state of Sarawak, in northwestern Borneo, in July 2017 cut its export quota to 20% of total logging volume, down from 30% previously.
“I have not heard that it was decided by the [local] government. But such rumors are spreading among local exporters,” said the president of a Tokyo-based lumber trading company, referring to rumors that Sarawak will cut its export quota to 10% of production volume as early as July, eventually banning exports entirely.
While the possible second quota reduction in a year is widely seen as a continuation of Sarawak’s current policy, an official at a major Japanese trading house said the anticipated move is aimed at allocating more logs to domestic plywood makers, who are suffering from a shortage of unprocessed wood.
Tropical logs imported from Malaysia and elsewhere are used for home interiors and plywood.
Japan’s imports of tropical wood from Sarawak have been sliding for a while. According to the Japan Lumber Importers’ Association, imports fell 24% in 2017 from a year earlier to 40,689 cu. meters.
