Malaysia's plywood exports to Japan are expected to increase following the latter's decision to reduce its import tax under the Trans-Pacific Partnership Agreement (TPPA).

Deputy Minister of Plantation Industries and Commodities, Datuk Datu Nasrun Datu Mansur, said the tax cut was a positive development because Japan has never done it for other countries prior to this.

"The TPPA is one of the 13 trade pacts which Malaysia has signed in efforts to strengthen economic cooperation with other countries," he said at the Dewan Rakyat here Monday.

Nasrun said this in reply to a supplementary question from Ahmad Nazlan Idris (BN-Jerantut) on the benefits to the country's wood industry from the participation in TPPA.

He said under the TPPA, Japan has agreed to reduce the tax on plywood only to Malaysia and not other countries.

"With this plywood export is expected to surge," he said.

The TPPA is a trade agreement involving 12 countries – Malaysia, US, Vietnam, Japan, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Peru and Chile.

The agreement is now in ratification process. Meanwhile, Nasrun said, the country's timber exports rose by 6.5 per cent to RM22.14 billion in 2015 from RM20.79 billion in 2014.

"For the January-July period this year, the value of the exports was RM12.52 billion, up 1.6 per cent compared to the same period last year," he said.

The government expected the value of timber exports to increase to RM25.77 billion within five years, he said. – Bernama

(Source: dailyexpress.com.my)