the timber network

Log prices in Malaysia began to stabilize, particularly in West Malaysia, where the year-end monsoon has caused widespread flooding and landslides, making it difficult and dangerous for the harvesting of logs. Timber merchants in Sarawak are hopeful that China will increase its imports of logs from the east Malaysian state at the end of the winter season. Wood Resources International recently reported that China’s timber production has substantially increased over the first seven months of 2008, although production was expected to be down during most of the fourth quarter of 2008. Timber merchants from Sarawak have also faced enormous competition from New Zealand, which has increased its export of radiata pine logs to China during third quarter 2008, up about 58% from third quarter 2007 levels. Nevertheless, traders in Sarawak are hopeful production trends in China will turnaround in 2009 and offer promising opportunities.

Malaysia furniture makers take interest in Saudi Arabian markets
Furniture manufacturers continued to take interest in the Kingdom of Saudi Arabia. According to a report by Jones Lang LaSalle, a leading international real estate investment and advisory firm, the Saudi Arabian real estate market is expected to grow substantially over the next four years. The country has had over five years of continued economic growth, with GDP increasing on average 15% annually since 2002.

Despite this news, sawnwood processors and wooden furniture manufacturers were facing sharp challenges, reported the Khaleej Times, as raw material supply continued to tighten and the Gulf Cooperation Council (GCC) countries’ real estate and construction industries began to slow down. Banks in the GCC, especially Dubai and Kuwait were also tightening lending rules and policies as crude oil prices fell below USD50 per barrel.