MALAYSIAN PLYWOOD EXPORT TO JAPAN MAY INCREASE THIS YEAR

KUALA LUMPUR, April 18 (Bernama) -- Malaysia's export of plywood to Japan is expected to increase when reconstruction work and related activities take place in the earthquake and tsunami-hit country, beginning second quarter of this year, the Senate was told Monday.

Deputy Finance Minister Donald Lim Siang Chai said this was in lieu of Malaysia being the main supplier of plywood for Japan's market.

"The export of liquefied natural gas (LNG) is also expected to increase due to a shortage in supply at their nuclear plants," he said in reply to Senator Abdul Rahim Abdul Rahman during question time.

Abdul Rahim had wanted to know the impact on the Malaysian economy, in relation to Japan's earthquake, tsunami and nuclear accidents, as well as the uprising in several countries in the Middle East.

Lim said the disasters that hit Japan would have little impact on the Malaysian economy this year, as the outflow of retained earnings from Japanese companies in Malaysia would help their parent companies in Japan to deal with the crisis.

"The move will, inadvertently, reduce Japan's investments in Malaysia. The number of Japan's tourist arrivals will also decline after the country's economy was badly affected by the disasters," he said.

Meanwhile, Lim said the political unrest in the Middle East and North Africa was expected to bring about minimal impact as Malaysia's trade with the affected countries comprised less than two per cent from the total trade.

"However, the political unrest will affect the world's crude oil price as there is a shortage in supply.

"The government is always monitoring the world's crude oil price so that proactive measures could be taken as the price hike can also increase the inflation rate in the country," he added.

Lim said the impact of Japan's disasters and the political unrest in the Middle East on Malaysia was minimal and could be balanced by the stable domestic economic growth and the increase of trade between Malaysia and other countries in the region.

"With the ongoing economic transformation programme, including strategies underlined in the 10th Malaysia Plan, Government Transformation Programme and Economic Transformation Programme, the government is confident the Malaysian economy will see an encouraging growth this year," he added.