Malaysia Eases Ban On Rubber Wood Sawntimber Export

The Government has withdrawn the export ban on certain types of rough sawn rubberwood sawntimber following appeals from the industry. From four categories initially, the new ruling, effective II August 2006, now applies to two categories, one of which comes with a slight amendment.

THE MINISTRY of Plantation Industries and Commodities had on 11 July 2006, announced a ban on the export of four categories of finger-jointed rubberwood sawntimber, namely:

finger-jointed rough sawn rubberwood of thickness and/or
width of more than 2V2 inches;
finger-jointed rough sawn rubberwood with less than two joints; . portions of finger-jointed rubberwood which is shorter than one foot; and
finger-jointed rough sawn rubberwood of more than 10 feet.

The restriction was in response to concern from Malaysian furniture manufacturers of a rubberwood shortage in the country. Both the Malaysian Furniture Industry Council and the Malaysia Furniture Entrepreneur Association, expressed their support for the tightening of the export ban on finger-jointed rubberwood sawntimber.

However, upstream timber players, represented by the Malaysian Rubberwood Trade and Industry Association, appealed against the July 11 decision, saying it had caused the tender price for the felling of rubber trees to plunge and affect their livelihood.

In balancing the needs of both the upstream and downstream players of the rubberwood industry, the Government has taken the middle path by upholding the export ban on two categories of rough sawn finger-jointed rubberwood, instead of the original four.

In a statement from Putrajaya, Plantation Industries and Commodities Minister, Datuk Peter Chin, said the export ban now is imposed only on:

finger-jointed rubberwood of 3V2 inches thickness or more; and
portions of finger-jointed rubberwood which is shorter than one foot

"My ministry and the Malaysian Timber Industry Board (MTIB) will monitor the supply of rubberwood in the domestic market to ensure that it is sold at fair prices," the minister said, adding that the Timber Export Bulletin NO.21/06 issued by MTIB dated 18 July 2006 to reflect the July 11 announcement has been withdrawn with immediate effect.

"I have also directed MTIB to work with the relevant enforcement agencies on this new ruling. Timber exporters and traders are reminded to strictly refrain from smuggling. Stern action will be taken against those who flout this export regulation. On February 11, 2007, six months from now, the Government will review this ruling and tighten the export ban again if the supply situation of rubberwood to local furniture manufacturers does not improve," said Datuk Peter Chin.