Recently, Malaysia’s Ministry of International Trade and Industry stated that Malaysia will benefit from the blockchain technology of China’s Preferential Certificate of Origin (PCO) system. In the future, goods exported from Malaysia to China will be handled more efficiently and safely, thereby facilitating trade, which will promote the development of Malaysia's export industry to China.
As of 2022, China has been Malaysia's largest trading partner for 14 consecutive years. According to statistics, the bilateral trade volume in 2022 will reach 203.6 billion US dollars, of which Malaysia's exports to China will also exceed 200 billion ringgits (45.152 billion US dollars) for the first time, a year-on-year increase of 9.4%.
As one of the major exporters of tropical timber, Malaysia's main target markets are concentrated in Asia. At the end of last year, the Sarawak government of Malaysia stated that before 2030, the export revenue of wood products will be increased to RM8 billion per year. "This export target focuses on the production of high value-added products, such as furniture, engineered wood products (engineered wood and plywood, etc.) and some bamboo products, which requires strengthening research and product development." There is still a lot of room for development in China's timber and furniture export industries.
Although the system has not yet had a significant impact on the timber trade between the two countries, after the electronic system is adopted between companies in the two countries, it will become possible to simplify the customs clearance process and reduce storage costs at Chinese ports, which will be beneficial to the timber import and export industry. It's good news.
On the whole, China still has a large demand for imported timber. With the help of blockchain technology, the cost and price of wooden products exported from Malaysia to China are expected to decrease in the future. By then, the competitiveness of Malaysian timber in the Chinese market will increase. or will increase.