Market Information Service

Towards greater transparency in the tropical timber markets

The ITTO Tropical Timber Market (TTM) Report, an output of the ITTO Market Information Service (MIS), is published in English every two weeks with the aim of improving transparency in the international tropical timber market. The TTM provides market trends and trade news from around the world, as well as indicative prices for over 400 tropical timber and added-value products.


 

 

1-15 October 2010


Top story

New tax incentives to promote forest plantations

A new tax incentive regime will soon be in place to promote the development of large-scale forest plantation projects in Malaysia. The incentive is planned to cover both planting and harvesting phases.

The tax incentive will allow plantation companies to offset the costs during the planting period against the income from the harvest. The costs can be fully deducted from the aggregate income during the first 10 years of a new forest plantation project, and 5 years for an expanded forest plantation project.

In addition, forest plantation companies are allowed to claim a reinvestment allowance for approved plantation projects. The allowance will be credited through the Exempt Income Accounts for the purpose of declaring dividends. Dividends received by holding companies will not be subjected to taxation.
(see details on page 4)


Also in this issue

  • Ghana issues more permits in second quarter
  • Intensified innovative R&D required to meet 2020 export target in Malaysia
  • Lack of legally defined border status of forests in Indonesia
  • Domestic Indian plywood prices revised upwards
  • Brazilian furniture notches hefty export gains
  • Guyana mulls negotiating the VPA with EU
  • Strong Yen pushes CIF prices down 
  • Timber imports through Zhangjiagang sea port post robust growth
  • European Council votes to implement Illegal Timber Law
  • UNECE forecasts very slow recovery from recession in Europe
  • African log imports into Nordenham hit record lows
  • Impact of the US housing market on the woodworking industry

Data Snapshot


Foreign Direct Investment in ASEAN countries

 

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Foreign Direct Investments (FDI) in ASEAN (the Association of Southeast Asian Nations) countries were hard hit by the global financial crises in 2008-09. The impact was most striking in 2009 when the total FDI in ASEAN countries fell 20% from 2008 and plunged 47% from the pre-crisis level in 2007.

The global financial crises started a trend which has reportedly been firming during 2010: the market focus has shifted from developed countries to ASEAN countries, which have been more tempting investment environment with higher expected returns. Increased FDI in ASEAN countries has strengthened their currencies against the US dollar and Euro, hampering also tropical timber product exports. However, FDIs offer long-term benefits for the receiving countries and their industries in terms of improved competitiveness.  
 
 

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