Malaysia was once one of China’s major timber and timber product suppliers. However, since 2010, Malaysia seemed to take on a negligent manner with Chinese market, which can be shown in data. From 2010 to 2015, Malaysian exportation of timber to China has dropped by a staggering 58%. But recently, Malaysia’s wood industry is endeavoring to again establish an intimate partnership with China.
- China is the Key to Malaysia’s Expansion of Timber Product Exportation
Fueled by the development of urbanization, China’s demand for timber products is predicted to be on a rapid increase in the next five years. According to an conservative estimation, by 2020, China’s annual importation of logs will be up to 82 million m³, and timber 52 million m³. What’s more, a blanket ban on cutting natural forest has been proposed and will be in full implementation next year. If this factor is taken into account, China’s market demand for logs and timber will be even bigger — from 180 to 200 million m³.
- Malaysia Taking China’s Timber Market Seriously
With such an opportunity presenting itself, it is a pity not to take advantage of it. Now the Malaysian wood industry has acknowledged China as one of their most important oversea timber market.
Recently, Datuk Seri Wee Jeck Seng, Chairman of Malaysian Timber Council (MTC), revealed in an interview, “China has a big population and many tiered markets. Starting from last year, we’ve been working on having more business-matching sessions and using new approaches through portals to penetrate the market.” In order to better communicate with Chinese market, MTC has set up a branch office in Guangzhou City, Guangdong Province.
Besides MTC, other Malaysian associations have also sprung in to action to tap into Chinese market. For example, last year Malaysian Wood Industries Association (MWIA), The Timber Exporters’ Association of Malaysia (TEAM) and Guangdong Timber Industry Association have signed “Malaysia—Guangdong Timber Cooperation” Memorandum of Understanding to establish a timber strategy union in charge of exploring Chinese market. The agreement also proposed that Guangdong should be Malaysia’s timber distribution platform and help promote Malaysian timber products.
- Multiple Logs and Timber Suppliers
However, just because China is now vigorously facilitating cooperation with Malaysia, doesn’t mean that China will cease the trading of logs and timber with other countries. In fact, China is more inclined to import wood from various sources. Data shows that the countries, from which China annually imports most logs and timber, include Russia, New Zealand, America, Papua New Guinea, Canada, Thailand, Solomon Islands, Indonesia, etc, which means that as long as you have quality logs or timber with reasonable prices, China is more than happy to establish partnership with you.
For businessman who is interested in China timber market, the 6th South China International Wood & Wood Products Fair 2017 (Wood South China 2017) will not let you down. Located in Guangdong, one of China’s biggest distribution bases and consumers of timber and timber products, Wood South China 2017 will be your best portal to enter Chinese market.
If you are interested in attending Wood South China 2017, please contact us through the information listed below.
The 6th South China International Wood & Wood Products Fair 2017 (Wood South China 2017)
Date: May 12th-14th, 2017
Venue: Poly Word Trade Center Expo
Ooversea organizer: Jacob Kong (Mr.)