THE ECONOMIC IMPACT OF SAWNTIMBER EXPORT LEVY REMOVAL ON THE PENINSULAR MALAYSIA'S ECONOMY

• Main Authors: Ahmad Fauzi Puasa (Author), Md Nasir Shamsudin (Author), Mohd Shahwahid Haji Othman (Author), Zakariah Abdul Rashid (Author), Alias Radam (Author)
• Format: Manuscript Book
• Language: English
• Published: Serdang, Selangor Penerbit Universiti Putra Malaysia 2010
• Subjects: Timber > Economic Aspects > Malaysia; Lumber Trade > Malaysia
• Online Access: Click Here to View Status and Holdings.

 The global demand for wood-based products will continue to grow in line with the increase of population and economic development especially in many developing countries. Despite this reason, the production of this primary industry has declined slowly in the last decade. The Malaysian wood-based supply has faced a deficit starting from 1995 in which from that year onwards, wood-based products moved from a state of resource surplus to one of deficit in Malaysia. The Malaysian Government has imposed an export levy on wood-based products including sawntimber when they realized the problem in raw materials supply faced by local furniture manufacturing industries. This is to ensure an adequate supply of raw materials for the local manufacturers. However, the imposition of the export levy has indirectly suppressed the domestic wood market prices, which has eventually reduced the sawmillers' income. The Government has overlooked the root problem faced by the sawmilling industry, i.e. the suppression of domestic prices. If the Government is not sensitive towards this problem, the sawmilling industry will eventually shrink due to insufficient supply of raw materials, in spite of the export levy. Based on this problem, the main objective of this study is to determine the effects of the sawntimber export levy removal and its implication on the Peninsular Malaysia economy.