A study on the relationship between forex rate, timber export and production volume of timber with prices performance of Malaysia timber / Azlan Said

This study is undertaken to investigate the relationship of exchange rate volatility, changes in export and production towards the prices performance of Malaysian timber. There are two objectives that the researcher needs to measure. Firstly, to study the relationship of exchange rate volatility (in terms of three currencies) towards the price performance of Malaysian timber whether has positive or negative relationship. Second, to find out thus timber export and production volume of timber can influence on the price of Malaysian timber. In this study, the researcher decided to take timber price focusing on unit value (cubic meters) as dependent variable, while the importer's currency exchange rate as independent variables that include three currencies (USD, JPY, and GBP). For this study, secondary data are used and the data involved are price of Malaysia timber, exchange rate of main importer of timber from Malaysia which United State, Japan and Great Britain currencies and production and export of Malaysia timber as independent variables. The entire data are taken based on the monthly basis from January 1995 until the year August 2003.At the end of the study; the researcher results show that the exchange rate fluctuations and export of timber have a positive relationship with the performance of Malaysian timber price. Meanwhile production has inverse relationship with the Malaysia price of timber.