SEOUL: Malaysian Timber Industry Board (MTIB) will monitor timber trade between Malaysia and South Korea over the next few months following the imposition of anti-dumping duties by South Korean government.

Chairman Datuk Wilfred Madius Tangau said that on average, the South Korean government had imposed a 10% tariff on Malaysian timber imported into that country.

“Our South Korean counterparts are concerned over the situation.

“In a way, the South Koreans could not get their raw materials at a competitive price while our timber exports to South Korea will be affected,” he told Bernama after a discussion with the Korea Importers Association (KOIMA) here on Wednesday.

The meeting was chaired by Malaysian Plantation Industries and Commodities Minister Tan Sri Bernard Dompok.

Wilfred said that traditionally, South Korea was one of the biggest markets for Malaysian timber commodities, especially in the form of veneer, plywood and sawn timber.

Last year, Malaysia’s exports of timber and timber-related products to South Korea amounted to RM1bil.

The anti-dumping duties on plywood imports from Malaysia, ranging from 5% to 38%, were imposed in January for three years.

Malaysia Timber Council chief executive officer Cheah Kam Huan said KOIMA members were very forthright in making suggestions on how to improve the importation of timber products from Malaysia.

“I think we should do more promotional efforts through specific activities with our South Korean importers, and to get insight into trends happening in the South Korean industry along with the underlying reasons why these trends are changing,” he said.

He said the local timber industry could do more in terms of value adding on the downstream product side, as the industry was already quite familiar on the upstream segment.

“Through branding, the timber industry can leverage on the reputation and sell their products and not so much generating revenue through a low-price strategy.

“If you can sell at a low price, other competing countries can even sell lower. Instead, we can go towards branding and provide quality products and good customer service,” he said. — Bernama

Friday April 15, 2011

Source: biz.thestar.com.my