Timber companies in Sarawak, Malaysia, have reported strong exports of logs and plywood this year due to a spike in demand for new houses in Japan. Source: Lesprom
However, analysts expect the increase in Japanese consumption tax from 5% to 8% to impact demand for new homes in the short-term which will mean stock levels of wood products in Japan will be adjusted down, ITTO reported.
India was the major buyer of logs from Sarawak in 2013.
Log exporters in Sarawak are closely watching to see if the new government can deliver economic growth, increased investment and control of inflation all of which would improve prospects for increased exports from Sarawak.
Analysts are generally positive on prospects for log exports to India this year.
