08/03/2011 (FORDAQ) - In terms of consumer spending on furniture, Europeans and Americans spent an average of US$540 and US$300 per year respectively. However, Malaysians spent only an average of US$40 per year. Although Malaysian furniture is of international standards, most Malaysians prefer imported furniture over domestic products.

Consequently, some 85% of furniture manufactured in Malaysia are for exports. According to trade statistics, the US remained the largest market accounting for RM1.98 billion of Malaysian furniture exports from January to October 2010, followed by Japan (RM573 million), Singapore (RM477 million) and the UK (RM407 million).

Other important export destinations include Australia, Canada, Germany, India, the UAE and Saudi Arabia. Asian is emerging as an important market for Malaysian furniture exports on account of population reaching 1.3 billion in China, 1 billion in India and 550 million in the ASEAN economic zone.

Tight supplies of rubberwood and palm fibres
Prices of Malaysian timber products continue to climb across the board in line with other commodity prices. Rubberwood prices remain buoyant as natural rubber futures prices breached US$6.44 per kg in the Tokyo commodity exchange TOCOM.

Similarly, with crude palm oil futures prices within the range of RM3,600 per tonne, the supply of palm fibres, an important component of most panel products, has become tighter.

According to an analyst, supplies of rubberwood and palm fibres will remain tight if high price levels of natural rubber and palm oil are maintained in the international markets.

Malaysia Log Prices