Timber prices in Malaysia have increased significantly in recent months.

The average price of meranti logs rose 6% last month according to the International Tropical Timber Organisation – taking them to a seven year high.

Plywood prices have also risen – between 3% and 6% in the past month and between 24% and 44% this year – the highest levels in almost four years.

The timber prices have been boosted by the ongoing increase in demand from China and India. In terms of volume, they now represent the largest importers of Malaysian logs, with Japan in third place. However, in terms of value Japan remains the most important importer as it buys higher grade logs.Mala