Required Report - public distribution

**Date:** 7/5/2005

**GAIN Report Number:** MY5028

MY5028

**Malaysia**

**Solid Wood Products**

**Annual**

**2005**

**Approved by:**

![](media/image1.wmf)Jonathan Gressel

U.S. Embassy, Kuala Lumpur

**Prepared by:**

Raymond Hoh

**Report Highlights:**

2004 was a banner year for U.S. wood exports to Malaysia. Imports of
U.S. temperate hardwood lumber rose 55% and retained the position as the
top supplier. Imports of U.S. softwood lumber also rose 17.5% although
Finland overtook the U.S. as the Number 1 supplier. The 2005 outlook for
U.S. wood is bright as the Malaysian furniture and flooring industries
set to further expand in the overseas market.

The Malaysian timber industry performed very well in 2004. Exports of
logs and lumber rose 1.2% and 2% respectively. Overall export earnings
from timber products chalked up an impressive 21% growth. The 2005
outlook is optimistic with the industry expecting a 10% growth in export
earnings in 2005. On June 28 2005, Malaysia imposed a ban on exports of
rubberwood to assure supplies to the domestic furniture industry.
Previously, small amount of rubberwood were exported under quota.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Kuala Lumpur \[MY1\]

\[MY\]

Table of Contents

[**Executive Summary 3**](#executive-summary)

[Production 6](#production)

[Market Section 8](#market-section)

[Trade Section 18](#trade-section)

[Tropical Hardwood Logs PS&D Table
26](#tropical-hardwood-logs-psd-table)

[Tropical Hardwood Logs Import Trade Table
27](#tropical-hardwood-logs-import-trade-table)

[Tropical Hardwood Logs Export Trade Table
28](#tropical-hardwood-logs-export-trade-table)

[Tropical Hardwood Lumber PS&D Table
29](#tropical-hardwood-lumber-psd-table)

[Tropical Hardwood Lumber Import Trade Table
30](#tropical-hardwood-lumber-import-trade-table)

[Tropical Hardwood Lumber Export Trade Table
31](#tropical-hardwood-lumber-export-trade-table)

[Temperate Hardwood Lumber PS&D Table
32](#temperate-hardwood-lumber-psd-table)

[Temperate Hardwood Lumber Import Trade Table
33](#temperate-hardwood-lumber-import-trade-table)

[Hardwood Veneer PS&D Table 34](#hardwood-veneer-psd-table)

[Hardwood Veneer PS&D Table 34](#__RefHeading___Toc108325591)

[Hardwood Veneer Import Trade Table
35](#hardwood-veneer-import-trade-table)

[Hardwood Veneer Export Trade Table
36](#hardwood-veneer-export-trade-table)

[Hardwood Plywood PS&D Table 37](#hardwood-plywood-psd-table)

[Hardwood Plywood Import Trade Table
38](#hardwood-plywood-import-trade-table)

[Hardwood Plywood Export Trade Table
39](#hardwood-plywood-export-trade-table)

# Executive Summary

2004 is the banner year for U.S. wood exports to Malaysia. Total U.S.
export earnings soared 30% to an all-time record of US\$39 million. In
term of volume, Malaysian imports of U.S. temperate hardwood lumber rose
55% and accounted for 60% of the Malaysian temperate hardwood import
market. Imports of U.S. softwood lumber also rose 53%, reflecting a
sharp increase in overseas demand for softwood furniture. Imports from
Finland made formidable inroads and overtook the US as the top softwood
supplier to Malaysia.

The Malaysian timber industry performed very well in 2004. Overall
export earnings from timber products rose 21% to US\$5.2 billion in
2004. In terms of volume, the increase in exports of lumber (+17%) more
than offset the drop in exports of logs (-6.4%). Plywood exports rose
15% reflecting stronger demand from Japan while veneer exports recorded
a drop during the year. The furniture sector fared better, chalking up
an impressive 16% growth in export earnings.

Malaysia\'s total round-wood production and lumber rose 1.2% to 21.8
million cubic meters (cum) and 2% to 4.9 million cum respectively in
2004. Malaysia's plywood production rose 8.4% to 4.4 million cum while
veneer production recorded a small drop during the year.

The outlook for log production in 2005 is more optimistic with the GOM's
expectation of a 10 percent increase in export earnings from timber
products. The furniture industry plans to hold two trade shows a year to
cater for growing overseas demand. The expanding furniture and flooring
sectors present abundant opportunities for U.S. wood products. Post
foresees another growth year for U.S. wood albeit at slower rate in
2005. However in face of growing competition, American wood suppliers
must move more aggressively into the Malaysian market in order to
increase market share.

Table below shows that the timber product sector remained as the
country's third commodity export earner after petroleum products and
palm oil/palm based products

Malaysia\'s Export Earnings by Major Commodities

(RM billion)

  ------------------------- ---------------- --------------- -------------
                            2002             2003            2004

  Total Exports of which,   354.4            398.8           480.7

  Petroleum Products        18.3             23.9            33.8

  Palm Oil/Palm Based       20.8             27.7            29.1
  Products                                                   

  Timber Products           15.3             16.3            19.8

  Rubber                    2.5              3.6             5.2
  ------------------------- ---------------- --------------- -------------

Note: Exchange rate pegged at US\$1.00 = RM3.80 since Sept. 1998

Malaysia: Export of Major Timber Products, January-December 2003-2004

(FOB Value in RM million)

  ------------- ------------ ------ ------- ------- --------- ------- ------- -------
  PRODUCTS      Peninsular          Sabah           Sarawak           Total   
                Malaysia                                                      

                2003         2004   2003    2004    2003      2004    2003    2004

  Logs          na           4      312     381     1689      1685    2001    2070

  Lumber        1051         1327   470     664     784       852     2305    2843

  Plywood       193          250    1172    1614    2700      3781    4065    5645

  Veneer        14           17     132     131     212       223     358     371

  Molding       359          409    166     141     69        96      594     646

  Dressed       199          na     64      na      na        na      263     0
  Timber                                                                      

  Woodchips     na           na     na      na      18        na      18      0

  Chipboard     86           142    11      17      5         37      102     196

  M.D.          848          877    na      na      131       144     979     1021
  Fibreboard                                                                  

  Wooden Frame  101          113    3       2       na        na      104     115

  Building      677          845    7       26      120       225     804     1096
  Joinery                                                                     

  Wooden        4545         5339   109     75      16        25      4670    5439
  Furniture                                                                   

  Rattan        53           48     na      na      na        na      53      48
  Furniture                                                                   

  Other Timber  na           208    na      28      na        40      0       276
  Products                                                                    

  Grand Total   8126         9579   2446    3079    5744      7108    16316   19766
  ------------- ------------ ------ ------- ------- --------- ------- ------- -------

Source: Monthly timber bulletin of Malaysian Timber Industry Board

Note: Exchange rate pegged at US\$1.00 = RM3.80 since Sept. 1998

Key Economic Indicators for Malaysia

(Value in US\$ million unless otherwise specified)

  ------------- ------------------------------- ----------- ----------- -----------
                                                2003        2004(e)     2005(f)

  Income,                                                               
  Production,                                                           
  Employment:                                                           

                Population (millions)           25.1        25.6        26.1

                GDP in 1987 Prices              60,967      65,232      69,116

                Percent Growth                  5.3%        7.0%        5.95%

                GDP at Current Prices           97,809      108,367     114,778

                Percent Growth                  10.4%       10.8%       5.92%

                Per Capita GDP (Curr. US\$)     3,905       4,236       4,393

                Official Unemployment Rate      3.6%        3.5%        3.4%

                                                                        

  Money and                                                             
  Prices:                                                               

                Inflation (CPI)                 1.2%        1.4%        2.5%

                Average Commercial Rate (BLR)   6.0%        5.98%       \-

                                                                        

  Balance of                                                            
  Payments:                                                             

                Merchandise Exports (FOB)       104,969     123,116     135,276

                Merchandise Imports (CIF)       83,617      102,132     112,526

                Exchange Rate (avg., per US\$)  3.80        3.80        3.80

                                                                        
  ------------- ------------------------------- ----------- ----------- -----------

Sources: Bank Negara Annual Report 2004/05, Ministry of Finance Economic
Report 2004/05

and US Embassy Estimates.

Note: Exchange rate pegged at US\$1.00 = RM3.80 since Sept. 1998

# Production

-The Forest Resource Base

Natural Forest

The total area of natural forest in Malaysia at the end of 2004 was
estimated to be 17.7 million hectares (MH) or 54% of the total land
area. The proportion of forested land is higher in Sabah and Sarawak
than in Peninsular Malaysia. Approximately, 5.8 million hectares are
located in Peninsular Malaysia, 8.0 MH in Sarawak and 3.9 MH in Sabah.

Of the total natural forest, Malaysia has a total of 14.2 million
hectares of forested land designated as the Permanent Forest Estate
(PFE) which is under sustainable management. Approximately 11.1 million
hectares of the Permanent Forest Estate are production forest with the
remaining 3.1 million hectares being protected, non-commercial forest.

Plantation Forests

Total planted forests in the country amounted to about 244,000 hectares
by the end of 2004. Malaysia aims to double its planted forest to
500,000 hectares and the plan will include the participation of the
private sector, government-linked companies and state governments. Under
the current negotiation of a free trade agreement between Malaysia and
New Zealand, the GOM seeks to draw on the expertise of New Zealand in
forest plantation.

The State of Sabah leads in forest plantation with an area of 110,000
hectares. The three companies namely, Sabah Forest Industries, Sabah
Softwoods Sdn.Bhd, and Safoda accounted for 90 percent of the planted
area.

Sarawak has planted about 60,000 hectares with fast growing exotics and
indigenous tree species. The Sarawak State Government set a target to
establish about 1.4 million hectares of planted forest in the next 20
years but the progress has been slow. Investment incentives were given
in the form of pioneer status, investment tax allowance, agriculture
allowance, low annual land rental and reduced annual fee for planted
forest license.

Planted forest in Peninsular Malaysia recorded a slight increase to
74,310 ha in 2004. In order to promote the rubberwood-based furniture
industry, the GOM is undertaking the planting of 25,000 ha of rubber per
year for 15 years. For this purpose, the GOM has established a Rubber
Forest Plantation Fund with an initial allocation of US\$52.6 million in
the form of soft loans. The GOM is also encouraging the planting of a
new specie, 'Kenaf', from the hibiscus family, in replantation project
for production of fiberboard.

Sustainability of the Forest Resources

The Malaysian timber certification scheme, operated by the Malaysian
Timber Certification Council (MTCC), continued to make some progress in
2004. To date, eight states have been awarded the Certificates for
Forest Management and nearly 40 timber companies have been given permits
to use the MTCC logo to provide assurance of sustainable and legal
source of forest products to buyers of Malaysian timber products.
Denmark, the United Kingdom and the Netherlands have accepted the MTCC
scheme as one of its accepted certification schemes in its Environmental
Guidelines for Purchasing Tropical Timber. MTCC has on-going cooperation
with other international timber certification schemes and is a member of
the Program for the Endorsement of Forest Certification Schemes (PEFC).

Timber Products

\--Production Trends

Malaysia\'s total round-wood production rose 1.2 percent to 21.8 million
cubic meters (cum) in 2004, mainly due to a small increase in opening of
forestland in Peninsula Malaysia as well as in the state of Sabah for
logging. Log output in the state of Sarawak was marginally down as its
Forest Department became a corporation that involved some major
reorganizations. The production of lumber for the whole of Malaysia rose
nearly 2 percent to 4.9 million cum in 2004. Malaysia's plywood
production increased by 4.3 percent to 5 million cum. However, veneer
production recorded a drop during the year, reflecting weaker overseas
demand for Malaysian veneers.

The outlook for log production in 2005 is more optimistic with an
expected further increase in overseas demand for log and timber
products. The GOM expects a 10 percent increase in export earnings from
wood products in 2005 in anticipation of stronger overseas demand,
particularly from China, the Middle East and Eastern European countries.
The expected increase in log output will have a strong positive impact
on output of lumber and plywood in 2005 and 2006.

# Market Section

\--Construction Sector

Industry Outlook

The Malaysian construction sector contracted by 1.9 percent in 2004
compared to a 2 percent growth in 2003. Lower civil engineering
activities offset the expansion in the residential and commercial
sectors. Government expenditure in infrastructure projects slowed due to
the completion of several privatized projects under the Eighth Malaysian
Plan (2001-2005) and lower Government investment in new large
infrastructure.

The decline in civil engineering activity was partially mitigated by
higher construction in the oil and gas sector following the discovery of
several new oil fields offshore the state of Sabah. On going
construction activities in the civil engineering sector was largely for
power generation plant, roads, airports and sewerage projects. In April
2005, the GOM announced plans to spend US\$4.4 billion to modernize its
railways and launch other projects during the Ninth Malaysian Plan
(2006-2010).

Strong demand for residential property resulted in a 6 percent growth in
incoming supply of new houses in the first nine months of 2004. In line
with it's effort to provide affordable houses to the low-income group,
the Government has allocated US\$205 million for the construction of the
construction of 21,000 low-cost houses in 2005.

Construction activity in the commercial sector recovered in 2004, driven
largely by higher demand for office and retail space. Both completed
office and retail space recorded increases in 2004 (see table for
details).

Market Impediments

Given the fact that Malaysia is one of the largest producers of hardwood
in the world, U.S. wood products are unlikely to penetrate into the
Malaysian construction sector. Moreover, Malaysia is in close proximity
to timber-rich countries like Indonesia and Papua New Guinea.

Market Opportunities

Unless the timber resources in Malaysia, Indonesia and P.N.Guinea are
exhausted, market opportunities for U.S. wood products in the
construction sector are extremely limited.

\--Furniture/Interiors Sector

Industry Outlook

The Malaysian furniture/interiors sector showed another strong
performance in 2004. A total office area of 221,500 sq meters was
completed in and around Kuala Lumpur during Jan-Sept 2004, a sharp
increase from 2003. With the completion of several new shopping
complexes, the retail sector also recorded an addition of 265,000 sq
meters over the same period. The condominium and apartment sector showed
a similar trend with 14,626 units completed during the first 9 months of
2004. In addition, 235 new hotels/resorts with an additional 6,755 rooms
were completed throughout Malaysia in 2004. At least 12 hotels
(including Hyatt and Four Seasons) are expected to be completed around
Kuala Lumpur and Putra Jaya during 2005/06. The GOM is on track in
building a new Administrative Center at Putrajaya. To date, most of the
main government buildings, 2 hotels, residential units and a shopping
mall have been completed. In the pipeline are commercial projects,
diplomatic chanceries, sport and recreational components, and two more
hotels. Next to Putrajaya is Cyberjaya, the new 'intelligent' city which
is the base for international multimedia companies. Recently completed
projects in Cyberjaya include the Multimedia University, NTT R&D Center,
Shell Company, DHL Center and up-scale homes. All these developments
provide opportunities for the expansion of the furniture/interiors
sector and the increased use of US hardwood.

Malaysia is also fast becoming a base for engineered solid hardwood
flooring for the domestic as well as overseas market. Ultraviolet-cured
urethane coating system is used to form a durable and wear-resistance
protection to the boards. Manufacturers are turning to use temperate
hardwood and softwood veneer for the top layer.

**Supply of Office Space, Retail Space, Condominiums and**

**Apartments in Klang Valley 1/**

+----------+----------+----------+----------+----------+-------------+
|          | Office   |          | Retail   |          | C           |
|          | Space    |          | Space    |          | ondominiums |
|          |          |          |          |          | &           |
|          |          |          |          |          | Apartments  |
+----------+----------+----------+----------+----------+-------------+
|          | Square   | O        | Square   | O        | Units       |
|          |          | ccupancy |          | ccupancy |             |
|          | Meters   |          | Meters   |          |             |
|          | added    | rate (%) |          | rate (%) |             |
|          |          |          | added    |          |             |
+----------+----------+----------+----------+----------+-------------+
| 1994     | 192,808  | 94.3     | 117,340  | 98.5     | 9,331       |
+----------+----------+----------+----------+----------+-------------+
| 1995     | 362,851  | 94.9     | 341,091  | 96.1     | 17,822      |
+----------+----------+----------+----------+----------+-------------+
| 1996     | 296,742  | 95.5     | 136,964  | 92.8     | 14,568      |
+----------+----------+----------+----------+----------+-------------+
| 1997     | 869,394  | 94.9     | 362,574  | 90.5     | 5,473       |
+----------+----------+----------+----------+----------+-------------+
| 1998     | 1        | 79.9     | 364,027  | 61.7     | 14,380      |
|          | ,158,776 |          |          |          |             |
+----------+----------+----------+----------+----------+-------------+
| 1999     | 265,645  | 76.2     | 89,787   | 76.6     | 9,547       |
+----------+----------+----------+----------+----------+-------------+
| 2000     | 1        | 76.9     | 218,562  | 78.5     | 5,466       |
|          | ,374,452 |          |          |          |             |
+----------+----------+----------+----------+----------+-------------+
| 2001     | 134,826  | 74.7     | 24,096   | 79.7     | 17,067      |
+----------+----------+----------+----------+----------+-------------+
| 2002 2/  | 374,750  | 77.9     | 210,657  | 77.7     | 20,465      |
+----------+----------+----------+----------+----------+-------------+
| 2003 2/  | 169,548  | 80.0     | 507,637  | 77.9     | 21,335      |
+----------+----------+----------+----------+----------+-------------+
| 2004 3/  | 221,532  | 81.9     | 265,324  | 79.6     | 14,626      |
+----------+----------+----------+----------+----------+-------------+
| 1/       |          |          |          |          |             |
| Refers   |          |          |          |          |             |
| to Kuala |          |          |          |          |             |
| Lumpur & |          |          |          |          |             |
| Selangor |          |          |          |          |             |
| D. E.    |          |          |          |          |             |
+----------+----------+----------+----------+----------+-------------+
| 2/       |          |          |          |          |             |
| Revised  |          |          |          |          |             |
+----------+----------+----------+----------+----------+-------------+
| 3/       |          |          |          |          |             |
| J        |          |          |          |          |             |
| an-Sept. |          |          |          |          |             |
+----------+----------+----------+----------+----------+-------------+
| Source:  |          |          |          |          |             |
| NAPIC,   |          |          |          |          |             |
| V        |          |          |          |          |             |
| aluation |          |          |          |          |             |
| and      |          |          |          |          |             |
| Property |          |          |          |          |             |
| Services |          |          |          |          |             |
| De       |          |          |          |          |             |
| partment |          |          |          |          |             |
+----------+----------+----------+----------+----------+-------------+

Malaysia is within the top 10 exporters of furniture in the world. The
demand for Malaysian furniture exports increased significantly, with
export earnings rising 16 percent to RM5.4 billion (US\$1.4 billion) in
2004. The United States remains the largest single market for Malaysian
wooden furniture (34%), with export earnings increasing by 17 percent.
With the exceptions of the Singapore and Saudi Arabia, exports to most
other major countries recorded increases.

The industry is more optimistic for 2005. Besides the annual Malaysian
International Furniture Fair (MIFF) 2005, held in Kuala Lumpur in early
March 2005, two other furniture shows 'piggybacked' on MIFF. The GOM now
intends to have two buying seasons in a year (namely March and
September) but have only one fair instead of three running concurrently.
The GOM expects Malaysia's furniture export earnings to exceed US1.6
billion in 2005.

**Malaysia: Exports of Wooden Furniture**

(in million RM)

  --------------------- ---------------- ---------------- -----------------
                        2002             2003             2004

  U.S.A.                1,508            1,577            1,844

  Japan                 556              497              578

  United Kingdom        448              495              556

  Australia             274              357              505

  U.A. Emirates         130              186              239

  Canada                174              186              205

  Singapore             225              319              188

  Saudi Arabia          99               126              107

  Ireland               51               57               84

  Netherlands           37               57               79

  Others                672              813              1,054

  \--Total              4,174            4,670            5,439
  --------------------- ---------------- ---------------- -----------------

Exchange rate pegged at US\$1.00 = RM3.80

Malaysian imports of temperate hardwood lumber rose 60 percent in 2004
reflecting the sharp increase in overseas demand for Malaysian furniture
and the expansion of engineered solid hardwood flooring sector. Imports
from the U.S. showed a 55 percent jump to 33,179 cum in 2004 compared to
a drop of 25% in 2003. Imports from the U.S. accounted for 60% of
Malaysia's total temperate hardwood import market in 2004. Australia
made significant inroads in 2004 and emerged as the second top supplier.
Germany, Canada and Denmark were the other top traditional competitors.
New emerging competing countries include France and Bulgaria. In value
terms, exports of U.S. logs and lumber to Malaysia recorded a 39% and
38% increase respectively.

Imports of softwood lumber also rose 17.5 percent in 2004, reflecting a
sharp increase in overseas demand for softwood furniture. Imports from
the U.S. increased by 53 percent while Finland, with a surge in exports
to Malaysia overtook the U.S. as the top softwood supplier. Decreases in
imports from New Zealand, Germany and Canada were partially offset by
increases from emerging contenders such as China, Bulgaria and Estonia.

Malaysia: Imports of Temperate Hardwood Lumber

(Cubic meter)

  --------------------- ---------------- ---------------- ----------------
                        **2002**         **2003**         **2004**

  U.S.A.                28,636           21,388           33,179

  Australia             999              763              4,705

  Canada                3,743            2,579            3,611

  Germany               8,832            4,834            3,275

  Denmark               3,914            1,283            3,197

  China                 506              388              2,041

  South Africa          0                788              984

  Austria               2,613            834              701

  Netherlands           0                300              690

  Belgium               589              438              674

  Ukraine               0                387              624

  France                0                0                562

  Finland               0                0                391

  New Zealand           0                0                272

  Bulgaria              0                0                172

  Sweden                149              0                119

  U.K.                  0                233              0

  Romania               0                222              0

  **\--Total**          **49,981**       **34,437**       **55,197**
  --------------------- ---------------- ---------------- ----------------

Malaysia: Imports of Temperate Softwood Lumber

(Cubic Meter)

  ---------------------- --------------- ---------------- ----------------
                         **2002**        **2003**         **2004**

  U.S.A.                 2,900           3,111            4,767

  Finland                4,280           3,524            5,684

  New Zealand            4,369           3,580            1,604

  Germany                352             1,339            850

  Canada                 1,608           1,422            783

  China                  0               0                601

  Bulgaria               0               0                358

  Austria                0               0                318

  Brazil                 496             110              282

  Denmark                0               228              214

  South Africa           305             39               194

  Netherlands            0               0                107

  Estonia                0               0                102

  Sweden                 1,412           96               0

  Italy                  403             52               0

  **\--TOTAL**           **16,125**      **13,501**       **15,864**
  ---------------------- --------------- ---------------- ----------------

Market Impediments

Lack of knowledge of U.S. hardwood and softwood is still a constraint,
especially the technical application of popular U.S. hardwoods in making
furniture and flooring in Malaysia. Lack of linkage between Malaysian
importers/users and US wood suppliers is often cited as another
constraint. There is also still a need to reach a wider range of
potential users such as housing, shopping, restaurants and hotel/resort
developers.

Market Opportunities

Much of the success of the Malaysian furniture industry is directly
attributable to coupling cheaper native woods, such as rubberwood and
particleboards, with high-value veneers from the U.S. Strong increases
in market share of U.S. temperate hardwood veneer and hardwood logs in
past years confirms this trend. As Malaysia moves into the top ten
furniture exporters in the world, the U.S. wood industry, if properly
positioned, would largely benefit from the development.

The American Hardwood Export Council (AHEC) has done a commendable job
of increasing the awareness of U.S. hardwoods in Malaysia. In 2004/05,
its main activities were participating in a major furniture show in
Kuala Lumpur, conducting 3 seminars - one each for the furniture
manufacturers, interior designers and architects and holding two
regional 'Greater China and S.E.Asia' conferences involving
speakes/panelists from Malaysia.

The newly opened Kuala Lumpur Convention Center (KLCC) on June 15.
Touted as one of the best convention facilities in the region, KLCC used
American red alder veneer panels to grace the walls of all the V.I.P.
and executive boardrooms. The paneling was funded under a Quality
Samples Program. The KLCC\'s Project Team was extremely pleased with the
outcome and mentioned that the Malaysian Prime Minister used one of
these rooms for his press interview during the first exhibition event.
This was indeed an achievement for American hardwood in view of the
strong pressure to use Malaysian wood throughout the project. This was
only made possible due to a post-initiated EMO project to take a team of
the KLCC decision makers (including architects and interior designers)
to the States to see and appreciate the applications of U.S. hardwoods
in large scale, convention and hospitality settings in July 2003.

For the coming year, Post recommends the following:

1\. Continue to conduct technical seminars in Malaysia on a yearly basis
in order to increase the level of technical knowledge and application of
U.S. hardwoods in making furniture and flooring. Another Pan Asian
Architectural Seminar should be scheduled for Kuala Lumpur in late 2006
or early 2007.

2\. That AHEC bring another team of present/potential U.S. wood
users/buyers to the States for an exposure/buying mission, probably to
coincide with the Lumber and Building Material Expo or the International
Builders' Show. This might address the constraint of the lack of a
large, existing distribution network in Malaysia.

3\. That AHEC works together with Post to conduct a tour of buildings
around Kuala Lumpur that had incorporated U.S. wood in their interiors.
The target group could consist of specifiers and journalists.

4\. Encourage U.S. wood suppliers to team up with AHEC to participate at
trade shows in order to increase their visibility in the local market
and to make direct contact with local furniture manufacturers.

The following event will provide opportunities for U.S. trade
associations and firms to learn more about, and to be involved in the
Malaysian furniture market

Date: March 7-11, 2006

Event: Malaysian International Furniture Fair (MIFF) 2006

Venue: Kuala Lumpur Convention Center

MIFF is developing into a premium international furniture fair in the
region and had received full accreditation since November 2000 from the
Union des Foires Internationales (UFI), the world\'s leading authority
on trade fairs. This export‑oriented exhibition, showcasing the latest
designs for the world‑wide market, represents the largest collection of
Malaysian furniture for the global market. It accounts for about 40
percent of Malaysia\'s total annual furniture exports. AHEC (S.E.Asia)
was the only foreign timber association to have the privilege of
participating in MIFF 2005. (For details, please e‑mail
info@miff.com.my)

Without concerted marketing efforts, U.S. market share will be slowly
eroded by aggressive competitors, i.e. Australia, Germany and Canada for
hardwood; and Finland, New Zealand, Germany, Canada and the Eastern
European countries for softwood.

\--Materials Handling Sector

Industry Outlook

Materials handling is very much tied to the manufacturing sector. In
2004, manufacturing output recorded a 12.7 percent growth. The
electronic and wood & wood product sectors recorded the strongest
growth.

Manufacturing Production: Selected Indicators (1993=100)

  ----------------------------- ---------- ---------- ---------- ----------
                                Index                 Change in  
                                                      %          

                                2003       2004       2003       2004

  Radio and television sets     134.4      133.3      -14.6      -14.8

  Electronics                   351.3      439.0      15.1       25.0

  Manufacture of office,        156.6      144.5      -11.1      -7.7
  computing and accounting                                       
  machinery                                                      

  Manufacture of refrigerating, 180.6      177.3      11.6       -1.8
  exhaust, ventilating and                                       
  air-conditioning machinery                                     

  Textiles and wearing apparel  109.0      96.2       -2.2       -11.7

  Wood and wood products        99.5       112.2      0.9        12.7

  Food Products                 183.0      188.5      8.8        3.0

  Beverages                     147.3      144.5      20.8       -1.9

  Tobacco Products              153.8      157.7      3.9        2.6
  ----------------------------- ---------- ---------- ---------- ----------

Market Impediments

Malaysia has an ample supply of low-priced timber for making packaging,
pallets, and crates. Furthermore, there are plenty of saw tailings and
palm fibers for this sector.

Market Opportunities

For the near term, market opportunities for US products are nil.

\--Export Sector

Competitor Activities

The Malaysian Timber Council (MTC) together with the Malaysian Timber
Industry Board (MTIB) in Peninsular Malaysia, the Sarawak Timber
Industry Development Corporation (STIDC), and the Timber Association of
Sabah are involved in efforts to promote the use of Malaysian timber
products.

Malaysian Timber Council now has three regional marketing offices
located in London, Shanghai and Dubai.

For the near term, MTC is giving more attention to China (in view of it
being the venue of the 2008 Olympic), Japan (a re-awakening market with
prices for wooden products trending upwards), Saudi Arabia & the Middle
East (with its current construction boom) and Poland (with a growing
joinery and flooring sector).

The following table provides a list of fairs and exhibitions that MTC
planned to participate in 2005.

  -------------------- --------------------------------------------------
  **International      
  Trade Fairs 2005**   

  Date                 Event

  January 15-18        DOMOTEX 2005, Hannover, Germany

  January 26-28        SURFACES 2005, Las Vegas, U.S.A.

  March 22-24          DOMOTEX ASIA Shanghai, P.R. China

  April 29- May 3      INTERZUM 2005, Cologne, Germany

  May 4-8              ARCHITECT 2005, Bangkok, Thailand

  October 12-16        INTER-FURN 2005, Mumbai, India

  **Trade Missions     
  2005**               

  April                Ministerial Mission To New Zealand, Australia

  November/December    Ministerial Mission To U.A.E.

  **Promotion Booths   
  2005**               

  **MTC Highquarter**  

  February 10-12       Lumber and Building Material Expo 2004, Boston
                       U.S.A.

  June 5-8             Designbuild Australia 2005, Sydney, Australia

  August 12-14         CONSTRUCT 2005, Colombo, Sri Lanka

  **MTC London         
  Branch**             

  January 17 - 22      BAU 2005, Munich, Germany

  January 25 - 28      BUDMA 2005, Poznan, Poland

  March 16 - 20        SAIEDUE 2005, Bologna, Italy

  April 5 - 9          CONSTRUMA 2005, Budapest, Hungary 

  September 4 - 6      SPOGA 2005, Cologne, Germany

  September 20 -24     FOR ARCH 2005, Prague, Czech Republic

  November 9 - 10      MADERALIA 2005, Valencia, Spain 

  November 7 - 12      BATIMAT 2005, Paris, France

  **MTC Shanghai       
  Branch**             

  February 25- March 2 KyungHyang, Seoul, South Korea

  July 6-9             China International Building & Decoration Fair,
                       Guangzhou, China

  September 13-16      China International Floor Coverings & Carpet Fair,
                       Beijing, China

  November 3-6         Beijing International Furniture, Woodworking
                       Machinery & Wood Products Exhibition, Beijing,
                       China

  November 8-11        Japan Home & Building Show, Tokyo, Japan

  **MTC Dubai**        

  April 4 - 7          REBUILD IRAQ 2005, Amman, Jordan

  June 7 - 11          PROJECT LEBANON 2005, Beirut, Lebanon

  June 16 - 20         INTERBUILD CAIRO, Cairo, Egypt

  September 18 - 21    PROJECT QATAR, Doha, Qatar

  November 28-December INDEX 2005, Dubai, UAE
  2                    

  November 28-December Tehran International Construction & Building Fair,
  1                    Iran

  December 11 - 15     SAUDIBUILD, Riyadh, Saudi Arabia
  -------------------- --------------------------------------------------

+---------+------------------------------------------------------------+
| **Tec   |                                                            |
| hnology |                                                            |
| Study   |                                                            |
| Mission |                                                            |
| 2005**  |                                                            |
+---------+------------------------------------------------------------+
| March   | Technology Study Mission to China                          |
| 20-26   |                                                            |
|         | In conjunction with WoodMac China 2005, Furnitek China     |
|         | 2005 & WoodBuild China 2005, Shanghai, plus industry       |
|         | visits                                                     |
+---------+------------------------------------------------------------+
| January | Technology Study Mission to Germany                        |
| 15-18   |                                                            |
|         | In conjunction with LignaPlus 2005, Hannover & Interzum    |
|         | 2005, Cologne                                              |
+---------+------------------------------------------------------------+

For details or updates, please visit website:
[www.mtc.com.my/fairs2005.htm]{.underline}

Trade Policy

On June 28 2005, the GOM imposed a ban on exports of rubber-wood lumber
in an effort to ensure adequate supply of rubber-wood to the domestic
furniture manufacturers. Malaysia exported 764,000 cum of rubber-wood in
2004, mainly to China, Hong Kong and Taiwan.

# Trade Section

Malaysia: Exports of Tropical Hardwood Logs, 2003

(1,000 cubic meters)

+---------------------+-------------+-----------+----------+-----------+
|                     | #######     | ###       | ######   | ###       |
|                     | Pen. M\'sia | ### Sabah |  Sarawak | ### Total |
+---------------------+-------------+-----------+----------+-----------+
|                     |             |           |          |           |
+---------------------+-------------+-----------+----------+-----------+
| India               | 0           | 88        | 1,276    | 1,364     |
+---------------------+-------------+-----------+----------+-----------+
| Japan               | 0           | 187       | 1,148    | 1,334     |
+---------------------+-------------+-----------+----------+-----------+
| China               | 0           | 158       | 1,159    | 1,317     |
+---------------------+-------------+-----------+----------+-----------+
| Taiwan              | 0           | 27        | 673      | 700       |
+---------------------+-------------+-----------+----------+-----------+
| Vietnam             | 0           | 130       | 202      | 332       |
+---------------------+-------------+-----------+----------+-----------+
| South Korea         | 0           | 22        | 117      | 139       |
+---------------------+-------------+-----------+----------+-----------+
| Hong Kong           | 0           | 7         | 97       | 104       |
+---------------------+-------------+-----------+----------+-----------+
| Thailand            | 0           | 18        | 41       | 59        |
+---------------------+-------------+-----------+----------+-----------+
| Indonesia           | 0           | 49        | 0        | 49        |
+---------------------+-------------+-----------+----------+-----------+
| Philippines         | 0           | 27        | 6        | 33        |
+---------------------+-------------+-----------+----------+-----------+
| Pakistan            | 0           | 8         | 15       | 23        |
+---------------------+-------------+-----------+----------+-----------+
| Bangladesh          | 0           | 4         | 3        | 7         |
+---------------------+-------------+-----------+----------+-----------+
| Saudi Arabia        | 0           | 0         | 3        | 3         |
+---------------------+-------------+-----------+----------+-----------+
| South Africa        | 0           | 2         | 0        | 2         |
+---------------------+-------------+-----------+----------+-----------+
| Kuwait              | 0           | 1         | 0        | 1         |
+---------------------+-------------+-----------+----------+-----------+
| \--TOTAL            | 0           | 727       | 4,742    | 5,468     |
+---------------------+-------------+-----------+----------+-----------+

Malaysia: Exports of Tropical Hardwood Logs, 2004

(1,000 cubic meters)

+-------------------------+----------+----------+---------+---------+
|                         | Pen.     | Sabah    | Sarawak | Total   |
|                         | M\'sia   |          |         |         |
+-------------------------+----------+----------+---------+---------+
|                         |          |          |         |         |
+-------------------------+----------+----------+---------+---------+
| ######## Japan          | 0        | 203      | 988     | 1,191   |
+-------------------------+----------+----------+---------+---------+
| India                   | 0        | 6        | 1,171   | 1,178   |
+-------------------------+----------+----------+---------+---------+
| China                   | 10       | 328      | 807     | 1,145   |
+-------------------------+----------+----------+---------+---------+
| Taiwan                  | 0        | 11       | 725     | 736     |
+-------------------------+----------+----------+---------+---------+
| Vietnam                 | 0        | 176      | 261     | 437     |
+-------------------------+----------+----------+---------+---------+
| Indonesia               | 0        | 135      | 0       | 135     |
+-------------------------+----------+----------+---------+---------+
| South Korea             | 0        | 18       | 108     | 125     |
+-------------------------+----------+----------+---------+---------+
| Thailand                | 0        | 62       | 23      | 86      |
+-------------------------+----------+----------+---------+---------+
| Hong Kong               | 0        | 15       | 32      | 47      |
+-------------------------+----------+----------+---------+---------+
| Pakistan                | 0        | 0        | 15      | 15      |
+-------------------------+----------+----------+---------+---------+
| Philippines             | 0        | 12       | 1       | 13      |
+-------------------------+----------+----------+---------+---------+
| British Virgin Islands  | 0        | 4        | 0       | 4       |
+-------------------------+----------+----------+---------+---------+
| Singapore               | 1        | 0        | 2       | 3       |
+-------------------------+----------+----------+---------+---------+
| North Korea             | 0        | 2        | 0       | 2       |
+-------------------------+----------+----------+---------+---------+
| Switzerland             | 0        | 1        | 0       | 1       |
+-------------------------+----------+----------+---------+---------+
| \--TOTAL                | 11       | 974      | 4,133   | 5,118   |
+-------------------------+----------+----------+---------+---------+

Malaysia: Exports of Tropical Hardwood Lumber, 2003

(1,000 cubic meters)

+----------------------+------------+----------+----------+----------+
|                      | Pen.       | Sabah    | #        | ######   |
|                      | M\'sia     |          | ######## | ## Total |
|                      |            |          |  Sarawak |          |
+----------------------+------------+----------+----------+----------+
| U.S.A.               | 3          | 3        | 1        | 7        |
+----------------------+------------+----------+----------+----------+
| Thailand             | 270        | 88       | 316      | 674      |
+----------------------+------------+----------+----------+----------+
| Taiwan               | 18         | 40       | 150      | 207      |
+----------------------+------------+----------+----------+----------+
| Netherlands          | 144        | 44       | 4        | 193      |
+----------------------+------------+----------+----------+----------+
| China                | 60         | 9        | 84       | 153      |
+----------------------+------------+----------+----------+----------+
| Singapore            | 101        | 4        | 47       | 152      |
+----------------------+------------+----------+----------+----------+
| Philippines          | 0          | 11       | 106      | 117      |
+----------------------+------------+----------+----------+----------+
| Japan                | 36         | 40       | 21       | 97       |
+----------------------+------------+----------+----------+----------+
| Hong Kong            | 42         | 33       | 17       | 92       |
+----------------------+------------+----------+----------+----------+
| South Korea          | 10         | 20       | 52       | 82       |
+----------------------+------------+----------+----------+----------+
| Yemen Rep. of        | 11         | 1        | 67       | 79       |
+----------------------+------------+----------+----------+----------+
| Others               | 237        | 132      | 134      | 503      |
+----------------------+------------+----------+----------+----------+
| \--TOTAL             | 932        | 423      | 999      | 2,354    |
+----------------------+------------+----------+----------+----------+

Malaysia: Exports of Tropical Hardwood Lumber, 2004

(1,000 cubic meters)

  ------------------- ------------- ------------ ------------ ------------
                      Pen. M\'sia   Sabah        Sarawak      Total

  U.S.A.              19            5            2            26

  Thailand            320           144          316          781

  Taiwan              20            38           170          227

  China               116           12           76           203

  Netherlands         142           55           2            200

  Singapore           110           5            50           165

  Japan               44            86           19           150

  Philippines         0             20           94           114

  Yemen Rep. of       8             0            99           106

  South Africa        14            65           26           105

  Others              337           137          211          685

  \--TOTAL            1,131         566          1,064        2,761
  ------------------- ------------- ------------ ------------ ------------

Malaysia: Exports of Tropical Hardwood Veneer, 2003

(1,000 cubic meters)

  ------------------- ------------- ------------ ------------ -------------
                      Pen. M\'sia   Sabah        Sarawak      Total

  U.S.A.              0             1            0            1

  South Korea         0             69           58           126

  Taiwan              1             21           56           78

  Philippines         0             12           65           77

  Hong Kong           0             4            57           61

  Japan               0             20           32           52

  China               1             6            39           46

  Thailand            0             0            5            5

  Denmark             0             0            5            5

  Saudi Arabia        0             0            3            3

  Australia           1             1            0            3

  Other\'s            3             1            1            5

  \--TOTAL            6             135          321          462
  ------------------- ------------- ------------ ------------ -------------

Malaysia: Exports of Tropical Hardwood Veneer, 2004

(1,000 cubic meters)

  ----------------- ------------ ------------- ------------- -------------
                    Pen. M\'sia  Sabah         Sarawak       Total

  U.S.A.            0            0             0             0

  South Korea       0            66            61            127

  Taiwan            1            15            77            92

  Philippines       0            10            43            53

  Japan             0            20            28            48

  China             0            4             22            26

  Hong Kong         0            2             13            15

  Thailand          0            0             7             7

  Australia         1            0             0             1

  Other\'s          3            2             19            24

  \--TOTAL          5            120           269           394
  ----------------- ------------ ------------- ------------- -------------

Malaysia: Exports of Tropical Hardwood Plywood, 2003

(1,000 cubic meters)

  -------------------- ------------- ------------ ------------ ------------
                       Pen. M\'sia   Sabah        Sarawak      Total

  U.S.A.               4             209          181          394

  Japan                3             285          1,486        1,775

  South Korea          4             209          292          505

  Taiwan               4             96           136          237

  Hong Kong            2             24           99           125

  Egypt                0             57           34           91

  Singapore            38            17           29           85

  U.K.                 32            8            44           84

  Mexico               0             41           37           78

  China                0             1            69           71

  Thailand             6             35           26           67

  Others               60            39           161          260

  \--TOTAL             155           1,022        2,594        3,771
  -------------------- ------------- ------------ ------------ ------------

Malaysia: Exports of Tropical Hardwood Plywood, 2004

(1,000 cubic meters)

  ------------------- ------------- ------------- ------------ -------------
                      Pen. M\'sia   Sabah         Sarawak      Total

  U.S.A.              4             282           242          529

  Japan               2             413           1,637        2,053

  South Korea         0             204           207          411

  Taiwan              3             136           185          323

  United Kingdom      65            13            91           168

  China               0             1             113          115

  Hong Kong           0             19            63           82

  Singapore           30            11            27           68

  Thailand            15            30            17           62

  Yemen Rep. of       0             0             25           25

  Others              62            198           253          513

  \--TOTAL            182           1,306         2,860        4,348
  ------------------- ------------- ------------- ------------ -------------

# Tropical Hardwood Logs PS&D Table

  ---------------- -------------- ---------- ---------- ---------- ---------- ----------
  **PSD Table**                                                               

  **Country**      **Malaysia**                                               

  **Commodity**    **Tropical                                      1000 CUBIC 
                   Hardwood                                        METERS     
                   Logs**                                                     

                   2004           Revised    2005       Estimate   2006       Forecast

                   USDA Official  Post       USDA       Post       USDA       Post
                   \[Old\]        Estimate   Official   Estimate   Official   Estimate
                                  \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]

  **Market Year                   01/2004               01/2005               01/2006
  Begin**                                                                     

  Production       22500          21793      22000      22700      0          23000

  Imports          100            68         100        70         0          75

  TOTAL SUPPLY     22600          21861      22100      22770      0          23075

  Exports          5650           5118       5700       5220       0          5320

  Domestic         16950          16743      16400      17550      0          17755
  Consumption                                                                 

  TOTAL            22600          21861      22100      22770      0          23075
  DISTRIBUTION                                                                
  ---------------- -------------- ---------- ---------- ---------- ---------- ----------

## Tropical Hardwood Logs Import Trade Table

  -------------------- -------------- -------------------- --------------
  **Import Trade                                           
  Matrix**                                                 

  **Country**          Malaysia                            

  **Commodity**        Tropical                            
                       Hardwood Logs                       

  Time Period          Jan-Dec        Units:               1000 CUM

  Imports for:         2003                                **2004**

  U.S.                                U.S.                  

  Others                              Others               

  Burma                29             Burma                51

  Indonesia            18             Philippines          7

  Solomon Island       10             Thailand             3

  P. New Guinea        4              Indonesia            2

  Philippines          1              P. New Guinea        2

  Singapore            1              Singapore            1

                                                            

                                                            

                                                            

                                                            

  Total for Others     63                                  66

  Others not Listed                                        2

  Grand Total          63                                  68
  -------------------- -------------- -------------------- --------------

## Tropical Hardwood Logs Export Trade Table

  --------------------- ---------------- ---------------- ----------------
  **Export Trade                                          
  Matrix**                                                

  **Country**           Malaysia                          

  **Commodity**         Tropical                          
                        Hardwood Logs                     

  Time Period           Jan-Dec          Units:           1000 CUM

  Exports for:          2003                              **2004**

  U.S.                                   U.S.              

  Others                                 Others           

  India                 1364             Japan            1191

  Japan                 1334             India            1178

  China                 1317             China            1145

  Taiwan                700              Taiwan           736

  Vietnam               332              Vietnam          437

  South Korea           139              Indonesia        135

  Hong Kong             104              South Korea      125

  Thailand              59               Thailand         86

  Indonesia             49               Hong Kong        47

  Philippines           33               Pakistan         15

  Total for Others      5431                              5095

  Others not Listed     37                                23

  Grand Total           5468                              5118
  --------------------- ---------------- ---------------- ----------------

# Tropical Hardwood Lumber PS&D Table

  ---------------- -------------- ---------- ---------- ---------- ---------- ----------
  **PSD Table**                                                               

  **Country**      **Malaysia**                                               

  **Commodity**    **Tropical                                      1000 CUBIC 
                   Hardwood                                        METERS     
                   Lumber**                                                   

                   2004           Revised    2005       Estimate   2006       Forecast

                   USDA Official  Post       USDA       Post       USDA       Post
                   \[Old\]        Estimate   Official   Estimate   Official   Estimate
                                  \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]

  **Market Year                   01/2004               01/2005               01/2006
  Begin**                                                                     

  Production       4900           4857       5200       5080       0          5235

  Imports          600            548        700        600        0          650

  TOTAL SUPPLY     5500           5405       5900       5680       0          5885

  Exports          2800           2761       3000       2520       0          2280

  Domestic         2700           2644       2900       3160       0          3605
  Consumption                                                                 

  TOTAL            5500           5405       5900       5680       0          5885
  DISTRIBUTION                                                                
  ---------------- -------------- ---------- ---------- ---------- ---------- ----------

## Tropical Hardwood Lumber Import Trade Table

  ------------------- ---------------- ----------------- -----------------
  **Import Trade                                         
  Matrix**                                               

  **Country**         Malaysia                           

  **Commodity**       Tropical                           
                      Hardwood Lumber                    

  Time Period         Jan-Dec          Units:            1000 CUM

  Imports for:        2003                               **2004**

  U.S.                                 U.S.               

  Others                               Others            

  Indonesia           516              Indonesia         413

  Thailand            25               Thailand          109

  Burma               4                Philippines       13

  Philippines         4                Burma             8

                                       Brazil            2

                                       Cambodia          2

                                       Ghana             1

                                                          

                                                          

                                                          

  Total for Others    549                                548

  Others not Listed                                       

  Grand Total         549                                548
  ------------------- ---------------- ----------------- -----------------

##  

## Tropical Hardwood Lumber Export Trade Table

  -------------------- -------------- ------------------- ----------------
  **Export Trade                                          
  Matrix**                                                

  **Country**          Malaysia                           

  **Commodity**        Tropical                           
                       Hardwood                           
                       Lumber                             

  Time Period          Jan-Dec        Units:              1000 CUM

  Exports for:         2003                               **2004**

  U.S.                 7              U.S.                26

  Others                              Others              

  Thailand             674            Thailand            781

  Taiwan               207            Taiwan              227

  Netherlands          193            China               203

  China                153            Netherlands         200

  Singapore            152            Singapore           165

  Philippines          117            Japan               150

  Japan                97             Philippines         114

  Hong Kong            92             Yemen Rep. Of       106

  South Korea          82             South Africa        105

  Yemen Rep. Of        79             South Korea         86

  Total for Others     1846                               2137

  Others not Listed    501                                598

  Grand Total          2354                               2761
  -------------------- -------------- ------------------- ----------------

# Temperate Hardwood Lumber PS&D Table

  ---------------- -------------- ---------- ---------- ---------- ---------- ----------
  **PSD Table**                                                               

  **Country**      **Malaysia**                                               

  **Commodity**    **Temperate                                     1000 CUBIC 
                   Hardwood                                        METERS     
                   Lumber**                                                   

                   2004           Revised    2005       Estimate   2006       Forecast

                   USDA Official  Post       USDA       Post       USDA       Post
                   \[Old\]        Estimate   Official   Estimate   Official   Estimate
                                  \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]

  **Market Year                   01/2004               01/2005               01/2006
  Begin**                                                                     

  Production       0              0          0          0          0          0

  Imports          50             55         60         60         0          65

  TOTAL SUPPLY     50             55         60         60         0          65

  Exports          0              0          0          0          0          0

  Domestic         50             55         60         60         0          65
  Consumption                                                                 

  TOTAL            50             55         60         60         0          65
  DISTRIBUTION                                                                
  ---------------- -------------- ---------- ---------- ---------- ---------- ----------

## Temperate Hardwood Lumber Import Trade Table

# 

  --------------------- --------------- ---------------- ----------------
  **Import Trade                                         
  Matrix**                                               

  **Country**           Malaysia                         

  **Commodity**         Temperate                        
                        Hardwood Lumber                  

  Time Period           Jan-Dec         Units:           CUM

  Imports for:          2003                             **2004**

  U.S.                  21388           U.S.             33179

  Others                                Others           

  Germany               4834            Australia        4705

  Canada                2579            Canada           3611

  Denmark               1283            Germany          3275

  Austria               834             Denmark          3197

  South Africa          788             China            2041

  Australia             763             South Africa     984

  Belgium               438             Austria          701

  China                 388             Netherlands      690

  Ukraine               387             Belgium          674

  Netherlands           300             Ukraine          624

  Total for Others      12594                            20502

  Others not Listed     455                              1516

  Grand Total           34437                            55197
  --------------------- --------------- ---------------- ----------------

#  

# Hardwood Veneer PS&D Table

  ---------------- -------------- ---------- ---------- ---------- ---------- ----------
  **PSD Table**                                                               

  **Country**      **Malaysia**                                               

  **Commodity**    **Hardwood                                      1000 CUBIC 
                   Veneer**                                        METERS     

                   2004           Revised    2005       Estimate   2006       Forecast

                   USDA Official  Post       USDA       Post       USDA       Post
                   \[Old\]        Estimate   Official   Estimate   Official   Estimate
                                  \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]

  **Market Year                   01/2004               01/2005               01/2006
  Begin**                                                                     

  Production       605            485        560        500        0          510

  Imports          0              29         0          35         0          40

  TOTAL SUPPLY     605            514        560        535        0          550

  Exports          450            393        400        400        0          405

  Domestic         155            121        160        135        0          145
  Consumption                                                                 

  TOTAL            605            514        560        535        0          550
  DISTRIBUTION                                                                
  ---------------- -------------- ---------- ---------- ---------- ---------- ----------

##  

## Hardwood Veneer Import Trade Table

## 

  --------------------- --------------- ------------------ ----------------
  **Import Trade                                           
  Matrix**                                                 

  **Country**           Malaysia                           

  **Commodity**         Hardwood Veneer                    

  Time Period           Jan-Dec         Units:             1000 CUM

  Imports for:          2003                               **2004**

  U.S.                  4               U.S.               7

  Others                                Others             

  China                 7               China              8

  Germany               4               Germany            5

  Canada                1               Taiwan             2

  Taiwan                1               Canada             1

  Philippines           1               New Zealand        1

                                        Singapore          1

                                        Finland            1

                                                            

                                                            

                                                            

  Total for Others      14                                 19

  Others not Listed                                        3

  Grand Total           18                                 29
  --------------------- --------------- ------------------ ----------------

##  

## Hardwood Veneer Export Trade Table 

  --------------------- ---------------- ---------------- ---------------
  **Export Trade                                          
  Matrix**                                                

  **Country**           Malaysia                          

  **Commodity**         Hardwood Veneer                   

  Time Period           Jan-Dec          Units:           1000 CUM

  Exports for:          2003                              **2004**

  U.S.                  1                U.S.              

  Others                                 Others           

  South Korea           126              South Korea      127

  Taiwan                78               Taiwan           92

  Philippines           77               Philippines      53

  Hong Kong             61               Japan            48

  Japan                 52               China            26

  China                 46               Hong Kong        15

  Thailand              5                Thailand         7

  Denmark               5                Australia        1

  Saudi Arabia          3                                  

  Australia             3                                  

  Total for Others      456                               369

  Others not Listed     5                                 24

  Grand Total           462                               393
  --------------------- ---------------- ---------------- ---------------

# 

#  

# Hardwood Plywood PS&D Table

## 

  ---------------- -------------- ---------- ---------- ---------- ---------- ----------
  **PSD Table**                                                               

  **Country**      **Malaysia**                                               

  **Commodity**    **Hardwood                                      1000 CUBIC 
                   Plywood**                                       METERS     

                   2004           Revised    2005       Estimate   2006       Forecast

                   USDA Official  Post       USDA       Post       USDA       Post
                   \[Old\]        Estimate   Official   Estimate   Official   Estimate
                                  \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]

  **Market Year                   01/2004               01/2005               01/2006
  Begin**                                                                     

  Production       4600           4977       4700       5130       0          5280

  Imports          2              3          2          2          0          3

  TOTAL SUPPLY     4602           4980       4702       5132       0          5283

  Exports          3850           4348       3900       4490       0          4600

  Domestic         752            632        802        642        0          683
  Consumption                                                                 

  TOTAL            4602           4980       4702       5132       0          5283
  DISTRIBUTION                                                                
  ---------------- -------------- ---------- ---------- ---------- ---------- ----------

##  

## Hardwood Plywood Import Trade Table

  --------------------- ----------------- --------------- ---------------
  **Import Trade                                          
  Matrix**                                                

  **Country**           Malaysia                          

  **Commodity**         Hardwood Plywood                  

  Time Period           Jan-Dec           Units:          1000 CUM

  Imports for:          2003                              **2004**

  U.S.                                    U.S.             

  Others                                  Others          

  Indonesia             1                 China           2

                                                           

                                                           

                                                           

                                                           

                                                           

                                                           

                                                           

                                                           

                                                           

  Total for Others      1                                 2

  Others not Listed                                       1

  Grand Total           1                                 3
  --------------------- ----------------- --------------- ---------------

##  

## Hardwood Plywood Export Trade Table

  -------------------- ----------------- ----------------- ---------------
  **Export Trade                                           
  Matrix**                                                 

  **Country**          Malaysia                            

  **Commodity**        Hardwood Plywood                    

  Time Period          Jan-Dec           Units:            1000 CUM

  Exports for:         2003                                **2004**

  U.S.                 394               U.S.              529

  Others                                 Others            

  Japan                1775              Japan             2053

  South Korea          505               South Korea       411

  Taiwan               237               Taiwan            323

  Hong Kong            125               United Kingdom    168

  Egypt                91                China             115

  Singapore            85                Hong Kong         82

  United Kingdom       84                Singapore         68

  Mexico               78                Thailand          62

  China                71                Yemen Rep. Of     25

  Thailand             67                Saudi Arabia      17

  Total for Others     3118                                3324

  Others not Listed    260                                 495

  Grand Total          3772                                4348
  -------------------- ----------------- ----------------- ---------------