According to Bernama, the Malaysian government says it is confident the country will be able to achieve a RM10 billion export target for its furniture exports by the end of 2009. The country has already registered RM3.57 billion in furniture exports for the first half of 2009 compared to
RM4.11 for the same period last year.
To further promote its furniture products, Malaysian traders will participate in the upcoming Malaysian Furniture and Furnishings Fair. Its organizing chairman Gan Tai Hwa expects total sales turnover is projected to increase to RM50 million this year compared with RM40 million registered in last year’s fair.
Rubberwood gets a boost from latex demand
The continual usage of rubberwood as the main raw material by the furniture industry has captured the attention of investors, who are now interested in the cultivation of rubber trees on a very large scale. One of the latest joint ventures in the rubber plantation business by the private sector involves Guangdong Guangken Rubber Group, from China, and Bornion Timber Sdn Bhd, from Malaysia, a 12,000 hectare rubber tree forest plantation estate in Sabah with an initial investment of RM230 million.
Rubber experts claimed in The Star that those who have invested in rubber tree plantations could expect an internal rate of return (IRR) of up to 12.8% from rubberwood alone. Over a 15-year period and with latex production factored in, the IRR could reach up to 13.7% in
comparison with other plantation forest species, which yield an IRR ranging from 5.1% to 15%. The IRR of rubber tree plantations is comparable to the IRR of oil palm plantations, which stands at 15.6%.
Companies undertaking new forest plantation projects in Malaysia are provided a 10 year tax holiday beginning the first year the company begins to make a profit. Those involved in reinvestments will receive five years tax free beginning the first year it makes a profit.
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