Chairman’s Statement

On behalf of the board of directors of the Malaysian Timber Council, I am pleased to present the MTC annual
report for the year 2010.

The economic recovery of 2010 provided a relief, especially after the upheaval of major financial markets in 2008 which spilled into most of 2009. Malaysia’s exports of timber and timber products recovered to RM20.5 billion in 2010, but this is still 10% short of the RM22.79 billion achieved in 2008, which reflects the underlying weaknesses still subsisting in the country’s major timber markets.

MTC’s investments returned a more solid performance in 2010, partly due to a comeback from a lower base in 2009. Additionally, thanks to the local investment industry’s general conservativeness towards exotic securitised debt products and the likes, Malaysia was spared from the debilitating effects of a systemic market meltdown.

In terms of the Council’s activities, I am proud to report that our MTC Global WoodMart (MGW) made its highly successful debut in 2010. Something that made me even prouder is the deep commitment and unwavering dedication shown by the Council’s staff, whose strong teamwork contributed to the MGW 2010’s huge success. It was highly satisfying to witness this esprit de corp which has obviously become part of the MTC working culture.