KUCHING: Malaysia has started producing wood-plastic composite (WPC) materials as the global demand has been growing.
These WPC materials are made from wood and plastic waste that can be recycled, according to Malaysian Timber Industry Board (MTIB).
As this kind of material is waterproof, states that are often struck by floods, including Sabah, Sarawak and Pahang, are the key target markets in the country, reported Global Timber Index (GTI)-Malaysia Index in its November 2024 publication.
The demand for WPC materials is growing with an estimated global market value amounting to US$7.5 billion in 2023, said MTIB.
Meanwhile, in another development, GTI-Malaysia index reported that Sabah is working on turning some 400,000 hectares of degraded forests into industrial timber plantations.
As of October 2024, a total of 180,901 hectares have been successfully restored and converted. According to the state’s action plan on the plantation, rubber, acacia, batai, laran and red mahogany (Eucalyptus pellita) would be among the main species.
In Sarawak, GTI-Malaysia reported that Deputy Premier Datuk Amar Awang Tengah Ali Hasan had said Sarawak is planning furniture parks in Demak Laut, Kuching and Tanjong Manis in Mukah Division to position itself as a competitive furniture production hub.
Last month, the Malaysian timber industry remained relatively sluggish.
“In November, the GTI-Malaysia index registered 18.8%, a decrease of 4.0 percentage points from the previous month, was below the critical value (50%) for 25 consecutive months, indicating that the business prosperity of the superior timber enterprises represented by the GTI-Malaysia index shrank from last month, and the contraction had become more significant.
“As for the eleven sub-indexes, only the purchase price index was at the critical value of 50%, while the remaining two indexes were all below the critical value. Compared to the previous month, the index for harvesting increased by 14.3 percentage points; the index for production, purchase quantity, inventory of main raw materials, and delivery time were unchanged from the previous month; and the indexes for new orders, export orders, existing orders, inventory of finished products, purchase price, and employees declined by 5.0-15.0 percentage points,” said the latest monthly publication.
Meanwhile, the GTI Report for November 2024 showed positive signs for the overall trend of global timber production and trade: the GTI indices for Ghana (59.6%) and Thailand (50.3%) both rose above the critical value (50%), indicating an overall uptrend in the timber sectors of the two countries.
As compared to October 2024, the GTI indices for Gabon (39.4%) and Mexico (35.5%) increased by 4.0 and 1.6 percentage points respectively, suggesting an easing in downward trend of their timber sectors.
“Due to factors such as the new year effect, the GTIs for China (49.7%), Republic of Congo (45.7%), Brazil (35.8%) and Malaysia (18.8%) were below the critical value, thus indicating that the timber sectors in these countries remained relatively sluggish.”
Added the GTI Report: “The GTI sub-indices also showed encouraging signs on the supply and/or demand sides of some countries. In Africa, Ghana’s timber supply became active, with both harvesting and production volumes increasing compared to the previous month. In Asia, Thailand saw an increase in new orders, particularly from the export market, and China’s export orders continued to show a positive trend. In Latin America, the decline in orders for Mexico had eased.”
In November, GTI pilot countries made encouraging progress in sustainable forest management.
“On November 6, during the 12th session of the Ghana-EU Joint Monitoring and Review Mechanism (JMRM) of the Voluntary Partnership Agreement (VPA), Ghana’s Minister of Lands and Natural Resources announced that Ghana had set June 30, 2025 as the date to deliver its first consignment of FLEGT-Licensed timber to the EU, and this milestone would make Ghana the first country in Africa to issue the FLEGT licences.
“In the Republic of Congo (ROC), International Tropical Timber Technical Association (ATIBT) launched the project “Private Sector Support for the Domestic Timber Market” (ASP-MIB).
Financed by the European Union Delegation to the tune of 2 million euros over 4 years, this project aims to structure and valorise the domestic wood value chain by encouraging the use of legal and sustainable wood in the domestic timber market.
“Besides, Brazil officially launched the country’s Platform for Climate Investments and Ecological Transformation (BIP). The platform was created to mobilise national and international capital in support of the Brazilian government’s Ecological and Climate Transformation Plans, and will initially focus efforts on nature-based and bioeconomy solutions, including restoration and sustainable management of native vegetation, efforts to reduce deforestation, etc,” said an overview of the GTI Index.
