Demand for Malaysian timber and wood products is expected to stay strong thanks to buoyant import markets in China and Japan, according to stockbroker Jupiter Securities Sdn Bhd.
The company said the surge in Chinese demand is being driven by construction projects linked to the 2008 Olympics in Beijing. An estimated US$1bn of the total US$20bn cost of Olympic projects is estimated to be timber related.
The demand is said to be across all product categories, from logs and timber to finished and semi-finished goods.
Malaysian furniture manufacturers are also reported to be running at capacity to meet orders, possibly the result of new tax rules in China which makes Malaysian products more competitive.
Jupiter also said log demand had grown due to lower supply, with wet weather in Sarawak affecting production.
