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Speaker from YYC

The Timber Exporters’ Association of Malaysia

INSIDE THIS ISSUE

CIR

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L AT I O N I S R

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1. Mr Gerry Lim (Chairman)2. Mr Lee Leh Yew3. Mr Chua Song Fong4. Mr Wong Kar Wai5. Mr Tay Yi Wei6. Mr Chris Tan7. Secretariat: i) Ms Juliana Yu ii) Ms Jaclyn Yap

MEMBERS OF THE NEWSLETTER COMMITTEE

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Volume 42 � October 2018

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In preparation for the implementation of Sales and Service Tax (SST) e�ective 1 September 2018 by its members, TEAM had invited a speaker from YYC Management Sdn Bhd to provide a half day workshop on SST on 18 September 2018.

The session was attended by more than 40 members who came from various states of the Peninsular Malaysia. The speaker gave his brie�ng on the documentation and methods of identifying various HS codes. Several timber related scenarios were used at the session for better understanding by the members present.

Deepavali Greetings Workshop on SST Message from Editor

Congratulations toNew Chairmen

MTIB Consultation on Electronic Import and Export License Applications

National Timber Census Project Visit by Korean Representative on New Regulations

TEAM’s Jakarta Mission

Meeting Minister of MoHR

New Briefs New Members

Trade Enquiries

Donation to the Needy

Happy DeepavaliHappy Deepavali

Light a lamp of Love, Blast a chain of sorrow,

Shoot a rocket of prosperity, and

Fire a flowerpot of happiness.

T�� M�na��n� �n� St�� T��M �i��e� �� H�n�� r� � �� h�p�� n� ��e�e� D��p�v�� .

M�� l��p� � j�� na�� y�� w��l� �n� ��n� y�� g�o� �e�l�� , �e�l�� n� �ro��i��!

Workshop on


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Attendees from various states of Peninsular Malaysia Member posting a question to speaker on SST

Speaker from the Royal Customs Department

Panel Speakers of the Royal Customs Departmentat Q & A session

Members at SST Brie�ng by Customs

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The Association also provided its members with helpful references as follows: 1. The complete information / guidelines are available: https://mysst.customs.gov.my/ 2. Guide on Sales Tax Rates: http://mysst.customs.gov.my/GeneralGuide 3. Relevant SST Exemption forms: http://mysst.customs.gov.my/SSTForms 4. SST queries assistance by Customs: [email protected] or [email protected] 5. For tariff code/HS Code identification (technical division), please visit : Tingkat 4, Blok C, Cawangan Penjenisan, PERTEK, KL or Tingkat 6 Menara Utara, Kastam Putrajaya.

Subsequently, the members were invited to attend another session of SST talk by the Royal Customs Department.

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First off, TEAM is pleased to congratulate YB Wong Tak on his appointment the new Chairman of the Malaysian Timber Industry Board. Secondly, we congratulate Y Bhg Dato’ Low Kian Chuan on his appointment as the new Chairman of the Malaysian Timber Council. We would also like to congratulate Y Bhg Datuk K. Yogeesvaran on his appointment as the new Chairman of the Malaysian Timber Certification Council. We look forward to working with these leaders to forge a brighter future for the timber industry.

While we are hopeful for a brighter future with a new Government in place, Malaysia’s export data for timber and timber-related products continue to remain in the doldrums. According to the Department of Statistics, for the first half of 2018, Malaysia exported timber and timber-related products worth RM10.66bn, a drop of 7.7% year-on-year. The latest available data up to July 2018 also shows a fall in exports of 6.6% year-on-year to RM12.59bn.

Exports from virtually all the sub-sectors fell this year apart from the chipboard/ particle board sub-sector which improved 20.4% year-on-year in the first half of 2018 to RM241.3mn. Worst hit was log export, which fell 24.8% year-on-year to RM565.2mn. This is followed by the builder’s joinery & carpentry sub-sector which fell 14.8% year-on-year to RM524.8mn and the sawn timber sub-sector which fell by 9.5% year-on-year to RM1.76bn.

Going forward, with the economies of the world remaining in a lethargic state, the timber export trade will remain a challenge. The tariff war between the US and China though could provide an opportunity for exporters. We will have to wait and see how this pans out.

Elsewhere, the abolishment of the goods & services tax (GST), and replaced by the Sales & Service Tax (SST) from September 2018, will give some relief to exporters (cash flow wise) given the slowness of the return of GST claims stemming from exported goods. The continued weak ringgit at the RM4.10 level should also help despite the continued high log prices.

RegardsGerry Lim

Message from the Editor

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New Chairmen

Datuk K. Yogeesvaran, MTCC Chairman

TEAM extends its heartiest congratulatory to the newly appointed Chairmen and wish all the newly appointed success in carrying out their new duties. The Association will continue to work closely with the agencies in timber related issues.

Dato’ Low Kian Chuan, MTC ChairmanYB Wong Tack, MTIB Chairman

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MTIB Consultation on Electronic Import and Export License ApplicationsOn 28 August 2018, MTIB organized a discussion session with members of TEAM who are users of the current MTIB Core System (MCS) together with the newly appointed technology provider, MIMOS.

The objective of the session was to obtain feedback and views of the industry members for the preparation of designing a new electronic import and export licence application system for timber industry.

Members present comprised of importers, exporters, forwarding agents, timber graders, kiln drying operators as well as treatment operators. The participants actively participated at the discussion providing input and suggestions for the development of a user friendly and smooth running system.

The new system, to be called iTimber, is targeted to be fully developed by the year 2020. It is hoped that the new system would resolve all existing issues of the MCS.

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National TimberCensus Project

Sometime last year, MTIB appointed UKM Perunding to conduct a census for the national timber industry.

The objective of this project was to collect and analyse data from industry members whether there is any shortage of raw materials, foreign workers as well as exploring the suitable timber species for replanting and planning for mechanization.

UKM Perunding undertook the census earlier this year and sent out survey forms via post or deploying university students to conduct the survey by physically visiting manufacturers after which the data will be compiled and analysed.

All trade associations including TEAM had been urged to support the project by encouraging the members to submit their feedback to UKM Perunding or MTIB for compilation.

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On 27 August 2018, Dr An from Korea

Rural Economic Institute visited TEAM office and met the

President, Mr Lee LY, a Committee Member and the Secretariat of the

Association.

She brought with her a notice from her government on its new regulations on legality which will be

implemented 1 October 2018.

The regulation requires all products importation into the country to be legal. The documents that are

accepted to prove legality include the K2 customs form, or certification like FSC.

Members of the Association had been notify in advance before

implementation.

Visit byKorean Representative on

New Regulations


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TEAM’s Visit to Jakarta, Indonesia

Meeting APKINDO Committee

Courtesy Call to Embassy of Malaysia

Visit to ISWA

Courtesy Visit to Forestry Department

A delegation of 3 Committee Members and the Secretariat visited Jakarta, Indonesia on 23 to 25 July 2018.

The objective of this visit was to touch base with timber related trade associations and agencies from Indonesia to exchange information on current market demand for timber and timber products.

It was part of the effort of the Association to meet the counterparts of neighbouring countries to understand the market demand of the region and to explore ways to work together in strengthening the trade of this region.

YB Kula Segaran chaired the meeting

Mr Lee LY, President of TEAM standing next to

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On 12 July 2018, TEAM as one of the member associations under the Malaysian Timber Industry Forum Association (TIF) attended a meeting with the new Minister of the Ministry of Human Resource, YB Kula Segaran on issues related to foreign workers employment by the timber industry.

Industry members presented the list of issues and recommended appropriate proposals for the review of the Ministry. The President of TEAM, Mr Lee LY, Vice-President, Mr Chua SF and the past president of TEAM, Mr Richard Wong were amongst the attendees at the meeting.

TEAM will continue to engage with the relevant agencies on this issue for the benefit of its members.

Meeting theMinister of MoHR

YB Kula in the front row, centre of the photo

CHINA: ANNOUNCES RETALIATORY TARIFFS ON US WOOD PRODUCTS

China announced USD60 billion in tariffs on U.S. goods in retaliation to the Trump administration’s latest announcement of tariffs on Chinese imports. Many wood products are on China’s list, including hardwood logs, veneer, wood composite panels, various finished wood products and furniture. Hardwood trade associations in the US such as the National Hardwood Lumber Association are very concerned about Trump administration’s tariffs and China’s retaliation. According to the American Hardwood Export Council, last year the US exported USD1.6 billion of hardwood lumber, USD800 million of logs and USD260 million of veneer to China.

Globalwood.org,15 Aug 2018

EU: IMPORTS OF SAWN HARDWOOD

The EU imports of sawn hardwood fell from Cameroon by 8.3% to 124,853 cubic metres, followed by Brazil by 1.6% to 48,939 cubic metre, from Côte d’Ivoire by 12.8% to 17,593 cubic metre , Suriname by 25.2% to 2,690 cubic metres and from Madagascar by 20.6% to 2,915 cubic metres.

In contrast, in the first five months of 2018 EU sawn hardwood imports increased from Malaysia by 21.4% to 78,305 cubic metres , from Gabon by 23.2% to 53,167 cubic metres, from Congo by 6% to 22,973 cubic metres and Myanmar by 45.5% to 4,932 cubic metres.

ITTO/Fordaq, 27 Aug 2018

CHINA: MANUFACTURERS ADJUST TO NEW ENVIRONMENTAL PROTECTION POLICY

According to the Chinese government’s environmental policy called the “Three-Year Plan on Defending the Blue Sky” industrial enterprises in Beijing, Tianjin and Hebei Provinces will be required to present plans to ‘green’ production lines by the end of September 2018.

High risk enterprises including foundries, home furnishing producers, woodbased panel producers, paper makers, and chemical plants in 28 cities will be required to stop production to undertake refurbishment between 1 October 2018 and 31 March 2019.

Forest industry enterprises will be affected by this new policy of environmental protection and face huge challenges.

ITTO/Fordaq, 30 Aug 2018

SWEDEN: SIGNIFICANT FOREST DAMAGE FROM EUROPEAN SPRUCE BARK BEETLE

Swedish forestry cooperative Södra Skogsägarna has announced that infestations of European spruce bark beetle has resulted in about 750,000 cubic metres of its members' forests in Southern Sweden being damaged or dying. The Swedish Forest Agency (Skogsstyrelsen) recently reported that the infestations of the beetle in Southern Sweden are the worst in 10 years, which stems from the bettle having benefitted from the summer heat. Moreover, Södra reports that about 1.5 million cubic metres of forest in Götaland have been affected. This marks the equivalent of about 10% of Södra's total annual timber harvests.

ATL - Lantbrukets affärstidning (PDF), 04 Sep 2018

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GLOBAL/EU: ROMANIA 5TH IN EU AND 11TH WORLDWIDE FOR FURNITURE EXPORTS

Romania ranked 5th in the EU and 11th worldwide for furniture exports in 2017, according to data from both the World Furniture Outlook and The Furniture Industry in Europe. The ranking's top 4 positions were claimed by Germany, China, India, and the US.

Ziarul Financiar, 06 Sep 2018

WEST AFRICA: MEASURES TO LAUNCH INDUSTRIALISATION OF WOOD SECTOR

The African Development Bank has defined strategic taxes and objectives to launch the industrialisation of the wood sector in the countries of the Congo Basin by 2030. The objectives addressed by the bank include the ban of log exports to secure supply and boost the development of local industry, an increase in the rate of log extraction from forests, and an expansion of the forest surface area carried out in a sustainable way adapted to each country.

The bank recommends a strengthened legal status and rules for forest concessions, the strengthening of legislation and institutions, a reduction in tax distortions between the countries, and investment in energy and logistics infrastructure. Finally, the bank suggests the injection of financing by specialised investment funds and local financial institutions and the creation of a new climate of trust between the banking sector and investors in the wood industry. The private wood industry requires investments of EUR 3.30 billion (USD 3.84 billion) for the primary processing sector, and EUR 500 million for the secondary and tertiary processing sectors.

Agence Ecofin, 14 Sep 2018

GLOBAL: PLEDGE TO CONSERVE FORESTS FROM 45 CITIES

A total of 45 global cities will commit to restore and conserve forests, under the Cities4Forests effort. The said cities will get help craft guidelines for sustainable construction materials, paper products, and timber procurement as well to source money to boost degraded areas. Revolve, which is a communications firm, Pilot Design Collective, and World Resources Institute jointly manage the effort. The participating cities include Washington (US), New York City, Seattle, Long Angeles, Toronto (Canada) Sao Paulo (Brazil), Oslo (Norway), Bogota (Colombia), and Addis Ababa (Ethiopia).

Jakarta Globe (The), 16 Sep 2018


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TEAM approved the following applications for membership and would like to extend a warm welcome to them.

_______________________________________________________ _______________________________________________________

1. CBS PRODUCTS SDN BHD 7. HCH TIMBER EXPORT (M) SDN BHD City / State: Pelabuhan Klang / Selangor City / State: Klang / Selangor Tel: (0 86) 316 700 Tel: (0 17) 668 8567 Fax: (0 86) 311 800 Fax: (0 3) 3325 1579 Email: [email protected] Email: [email protected] Products: Briquettes Charcoal Products: Sawn Timber, Mouldings Contact Person : Y Bhg Dato Hii Poh Bing Contact Person: Mr Ng Ee Lim

_______________________________________________________ _______________________________________________________

2. SOONFAR WOODWORKS SDN BHD 8. REDBRIDGE SDN BHD City / State: Pelabuhan Klang / Selangor City / State: Johor Bahru / Johor Tel: (0 16) 826 7200 Tel: (0 7) 353 9478 Fax: (0 89) 749 417 Fax: (0 7) 353 1212 Email: [email protected] Email: [email protected] Products: Sawn Timber, Mouldings, Plywood and Veneer Products: Door Contact Person : Ms Lau Yoke Mooi Contact Person: Mr Go Cheng Hock

_______________________________________________________ _______________________________________________________

3. CLUSTER BIO ENERGY SDN BHD 9. CIPTA BRIQUETTES SDN BHD City / State: Kuala Lumpur / Wilayah Persekutuan City / State: Pelabuhan Klang / Selangor Tel: (0 3) 9108 1827 Tel: (0 86) 316 700 Fax: (0 3) 9108 3827 Fax: (0 86) 311 800 Email: [email protected] Email: [email protected] Products: Wood Pellet Products: Charcoal Contact Person: Mr Rayment Quah Contact Person: Y Bhg Dato Hii Poh Bing

_______________________________________________________ _______________________________________________________

4. DC SYNERGY SDN BHD 10. CCL TIMBER (M) SDN BHD City / State: Kuala Lumpur / Wilayah Persekutuan City / State: Ipoh / Perak Tel: (0 17) 663 5376 Tel: (0 5) 241 0211 Fax: - Fax: (0 5) 255 5982 Email: [email protected] Email: [email protected] Products: Wood Pellets Products: Sawn Timber, Mouldings, Door and Furniture Contact Person : Mr Chai Choy Huat Contact Person: Mr Chong Zheng Wei

_______________________________________________________ _______________________________________________________

5 NINETY S FURNITURE SDN BHD 11. AYUGA AGARWOOD HITEC PLANTATION SDN BHD City / State: Muar / Johor City / State: Petaling Jaya / Selangor Tel: (0 6) 985 8112 Tel: (0 3) 7956 3232 Fax: (0 6) 985 8112 Fax: (0 3) 7956 2030 Email: [email protected] Email: [email protected] Products: Furniture Products: Agarwood Contact Person : Mr Dyven Si Dee Voon Contact Person: Mr Cheah Min Loong

_______________________________________________________ _______________________________________________________

6. HEENA RESOURCES SDN BHD 12. ACE GREEN ENERGY SDN BHD City / State: Klang / Selangor City / State: Klang / Selangor Tel: (0 14) 617 3250 Tel: (0 3) 3291 2224 Fax: Fax: (0 3) 3290 4388 Email: [email protected] Email: [email protected] Products: Sawn Timber Products: Wood Pellets Contact Person : Mr Rafique Shaikh Contact Person: Mr Mohd Yusri Bin Md Yusof

_______________________________________________________ _______________________________________________________

armest regards to newly join members! Welcome ....

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_______________________________________________________ _______________________________________________________

13 RAINBOW PELLET SDN BHD City / State: Kuala Lumpur / Wilayah Persekutuan Tel: (0 3) 6251 1101 / 1102 / 1103 / 1105 / 1106 Fax: (0 3) 6251 1127 / 1128 Email: [email protected] Products: Wood Pellet Contact Person : Mr Wong Chiung Cheng

_______________________________________________________ _______________________________________________________

14. TRIO PAPER MILLS SDN BHD City / State: Simpang Ampat / Pulau Pinang Tel: (0 4) 588 7319 Fax: (0 4) 588 7327 Email: [email protected] Products: Wood Pulp Contact Person : Mr Ng Soon Huat

_______________________________________________________ _______________________________________________________

15. WORLD SUPPLY MART SDN BHD City / State: Sungai Petani / Kedah Tel: (0 5) 805 4340 Fax: (0 5) 805 4341 Email: [email protected] Products: Sawn Timber Contact Person: Mr Veram Mutu A/L Kapparoo

TEAM approved the following applications for membership and would like to extend a warm welcome to them.

armest regards to newly join members! Welcome ....

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Company Name: Linyi Dongli Timber Co., LtdAddress:Gangshang Industrial Park, Yitang Town, Lanshan District, Linyi City, ShandongCountry: ChinaTel. No. : +86 539 215 5636Fax. No. : +86 539 215 5636Mobile No. : +86 139 5399 9239 +86 133 5509 1878Person to Contact: Mr. Li Dong

Company Name :Vietnam Hengye Wooden Furniture Co., LtdAddress:Tỉnh Bình Dương, VietnamCountry: VietnamTel. No. : +84 650 380 0672-673Mobile : +84 162 631 979 (Vietnam) +86 135 0796 3017 (China)Email : [email protected] to Contact: Mr. Zhang Wenguang

Company Name:Dae Il Trading Co., Ltd (대일무역)Address:#201, 26, Yeonghwasa-ro 3-gil, Gwangjin-gu, Seoul KoreaCountry: KoreaTel No. : +82 2 3436 3435Fax. No. : +82 2 6000 5490Mobile No. : +82 10 5303 0084E-mail : [email protected] [email protected] [email protected] to Contact: Mr. Year Hwan Duck

Size: 4’ x 8’，6’ x 8’，6’ x 9’Thickness: 0.9 cm and 1.8 cmPort of Delivery: CNF Qingdao Port

Timber Name: Rubberwood Laminated SquareSize: 50 x 50 mmLength: 850/900/950 mmPort of Delivery: CNF Shanghai

Timber Name: Merbau Size: Length 3,600 mm x Width 140 mm x Thickness 19 mmPort of Delivery: CNF Incheon

Particleboard

Sawn Timber

TRADE ENQUIRIES ...TRADE ENQUIRIES ...

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TRADE ENQUIRIES ...TRADE ENQUIRIES ...

Timber Name: PlywoodSize:1,220 x 2,440 mm Thickness 18 mm

Timber Name: Rubberwood Laminated BoardSize:1,220 x 2,440 mmThickness 8-10 mm

Timber Name: Rubberwood Furniture Components

Port Of Delivery: CNF Incheon

Timber Name: KSK SawntimberLength: 2,000 mmNatural WidthThickness: 50/70 mmPort of Delivery: CNF Dongguan

Timber Name: Gerutu SquareLength: 2,000 mmWidth: 100 mm upThickness: 20 mmNo Finger-joint

Plywood

Sawn Timber

Company Name: Hanyang Furniture Co., Ltd (한양퍼니쳐)Address: 272 Hyudaesegyo-gil, Baebangeup, Asan-si, Chungcheongnam-do, KoreaTel : +82 41 544 3203Fax : +82 41 544 3201Mobile : +82 10 9909 3071Email : [email protected] / [email protected] : www.hyfurniture.co.krContact Person: Mr. I Gang San (이강산)

Company Name: Dongguan UFA Supply ChainAddress: 10-11F, Wanrui Centre, Houjie Avenue,Houjie Town, Dongguan City, Guangdong ProvinceTel : +86 769 8121 1888Fax : +86 769 8121 1888Mobile : +86 139 2576 8555E-mail : [email protected] Person: Mr. Chen Jianjing

Company Name: Xinjiang Yongshun Furniture Co.Address: #2-08, Zone A, 2F, Hualing InternationalTrade Plaza, Urumchi, SinkiangTel : +86 991 5181 629Mobile : +86 135 6588 0576E-mail : [email protected] Person: Mr. Chen Yongshun

The Association was inaugurated on 14 December 1955 initially in the name of The Federation of Malaya Timber Exporters’ Association (FMTEA). Subsequently, after the incorporation of Malaysia it was to cover the then Malaya (more commonly known nowadays as Peninsular Malaysia), Sabah & Sarawak, the Association had its name changed on 10 September 1984 to The Timber Exporters’ Association of Malaysia (TEAM). The Association is governed by a Management Committee consisting of the President, Vice-President, Treasurer, as well as nine other Committee Members, who are elected together with two Honorary Auditors by members at alternate Annual General Meetings for a term of two years.

About Us

19C, 19th Floor Tower 1 Menara PGRM8, Jalan Pudu Ulu, cheras56100 Kuala Lumpur

Telephone: +60 (03) 9284 7443+60 (03) 9284 7445Fax: +60 (03) 9282 6059E-mail: [email protected]

The Timber Exporters’ Association of Malaysiaw w w . t e a m . o r g . m y

The Timber Exporter’Association of MalaysiaThe Timber Exporter’Association of Malaysia

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The Timber Exporters’ Association of MalaysiaPersatuan Pengeksport Kayu Malaysia

Background of company (Summary)

19C, 19th Floor, Tower 1, Menara PGRMNo. 8, Jalan Pudu Ulu, Cheras 56100 Kuala Lumpur, MALAYSIA

Tel: + 60 3 9284 7443, 9284 7445Fax: + 60 3 9282 6059Emial: [email protected]

While every effort has been made to ensure that the information printed is accurate and correct, neither TEAM nor its office, members or employees shall assume any responsibility or be made liable for any inaccuracy and error printed.

Apart from participating in the recent TEAM Golf Fellowship event, the golfers also made contributions through the Association for a charitable cause.

On 20 August 2018, representatives from Yayasan Ozanam and Global Shepherds Bhd were invited to receive the donations from the hands of the President, Mr Lee LY, witnessed by the Golf C h a m p i o n s h i p Sub-Committee.

The golf championship for the year 2018 concluded with a meaningful chapter by taking care of the needy.

Donation to the Needy

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