Japan slowdown hits Malaysian timber

The slowdown in Japan's housing construction sector has hit the earnings of Malaysian timber companies.

The profits of WTK Holdings and Lingui Developments fell sharply last year against that reported in 2006 due to poor demand for timber products from Japan, the key export market for Malaysian timber companies. 

However, there are signs of recovery in demand, which has in turn pushed up prices. Orders for plywood products picked up in February.