Timber industry needs to ensure exports from sustainable, legal sources

Kuala Lumpur: Malaysia's timber industry needs to ensure that the timber exports are from sustainable and legal sources, says Minister of Plantation Industries and Commodities, Datuk Amar Douglas Uggah Embas. He said this would further promote the image of timber products from Malaysia and ensure the country's market share in major importing countries continued to grow.Uggah said this year provided challenges to the industry with the introduction of a number of regulations that required traceability as well as legality to major exporting markets.

"Australia, which accounted for exports of timber products valued at RM900 million in 2014, has implemented its Illegal Logging Prohibition Act (ILPA) 2012 since November 2014," he said at the Timber Export Association Malaysia's 60th Anniversary dinner here.

The text of his speech was read by the ministry's secretary-general, Datuk Himmat Singh.

He said under ILPA, all exporting countries of timber products needed to deposit their regulations relating to licensing of exports.

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"Malaysia has provided its existing timber regulations. In addition, ILPA is aimed at allowing the importers in Australia to address issues of concern regarding legality," he said.

Uggah said besides Australia, the European Union (EU) was also an important export market for timber products with exports valued at RM2.04 billion in 2014.

The EU has implemented the European Union Timber Regulation (EUTR) which required evidence of legality, he said.

He said the EUTR was currently undergoing review to further strengthen the requirements for legality.

"As such, it is important that the industry identify the current requirements under the EUTR that may impede trade and inform the Ministry to enable us to have further discussions with the EU," said Uggah.

Uggah said the US, also a major importer of timber products from Malaysia, has also implemented the Lacey Act to ensure legality of timber products imported into the US, which accounted for RM2.4 billion, or 12 per cent, of the total exports of timber and timber products.

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The timber industry is one of the major contributors to the nation's export earnings, accounting for 17.5 per cent of the total export earnings by the commodity sector and 2.7 per cent of the country's total export earnings.

In 2014, exports of timber and timber products were the third most important commodity after palm oil and rubber. –Bernama

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