MALAYSIAN TIMBER EXPORTERS TRYING TO CORNER INDIAN MARKET

By P. Vijian

NEW DELHI, Nov 16 (Bernama) -- As traditional timber importing markets are
wilting under the economic slowdown, Malaysian exporters are turning to India,
which has constantly shown signs of healthy import trends.

Last year, Malaysia exported timber and timber products to India worth
US$362.8 million (RM1.3 billion), a robust 17.1 per cent jump compared to the
previous year.

"India is Malaysia's third largest importer of timber and timber products
after Japan and the United States. When our traditional markets are down, India
has shown a positive growth," said Tham Sing Khow, senior director of the
Malaysian Timber Council's trade promotion and marketing division.

"India is potential market for us, it has a large population, its economy is
developing fast and (people's) income is also on the rise," he told Bernama.

India's ban on most domestic logging plus the rising prosperity of the
middle-class Indians continue to fuel demand for timber and wood-based products,
making it the second largest importer of tropical logs in the world after China.

India industries imported timber and wood-based products worth over US$1.4
billion (RM4.9 billion) last year.

Indian importers procured timber logs worth US$263 million (RM920 million)
from Malaysia, mainly from Sarawak and imported wooden furniture worth US$44.8
million (RM156.8 million) in 2008.

Malaysia, the world's second largest supplier of tropical hardwood sawn
timber after Brazil, is also inviting Indian businessmen to invest in the sector
at home, Tham said.

"Indian investors can come to Malaysia to set up companies or invest in
existing plants (factories) and we can share our resources with them," he said.

In 2008, Malaysia's total exports of timber and timber-based products
amounted to US$6.6 billion (RM23 billion).

The council was currently on a timber trade mission to three major Indian
cities -- Delhi, Mumbai and Chennai.

-- BERNAMA