Sheam SatkuruSheam SatkuruMTC LondonMTC London26 January 200726 January 2007

MALAYSIA’S TIMBER INDUSTRY & MALAYSIA’S TIMBER INDUSTRY & TIMBER PRODUCTSTIMBER PRODUCTS

UK34%

France5%

Ireland4%Italy

5%

Netherlands24%

Belgium7%

Germany7%

Total EU Trade : RM 2.77 Billion

Others15%Australia

4%

Taiwan5%

China8% ASEAN

10%

EU13%

US16%

Japan22%

West Asia7%

Source: Malaysian Timber Industry Board

Malaysia: Major Timber Markets - 2005

Plywood26%

Furniture27%

Others5%

Moulding3%

Fibreboard5%

BJC8%

Logs12%

Sawntimber16%

Malaysia: Export Share of Major Timber Products - 2005

Source: Malaysian Timber Industry Board

MALAYSIA‘S INTEREST IN FLEGT VPA?

•Malaysia recognised as advanced in SFM (ITTO)

•To assert the dedication and sincerety of the Federal Government to prove that all timber produced in Malaysia is legal and sustainable

•National timber certification scheme (MTCC) already operational to this end

•To maintain and enhance market access

VPA NEXT STEPS

• Both parties to develop common understanding on working definition of Legality

• Malaysia to propose that existing mechanisms in Malaysia to be used as basis for the timber licensing system under the VPA

• Malaysia fully supports a participatory process and multistakeholder consultations

• Malaysia to develop a proposal for stakeholder consultations to support the VPA process

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