KUALA LUMPUR, April 30 (Xinhua) -- Surging diesel prices are crippling Malaysia's timber supply chain, prompting the Malaysian Timber Association (MTA) to seek urgent government intervention as the industry grapples with a "triple burden" of fuel cost volatility, expanded sales and service tax (SST), and acute labor shortages.

Diesel, the sector's operational backbone, now costs over 5.32 ringgit (1.34 U.S. dollars) per liter in Peninsular Malaysia and as high as 5.95 ringgit in parts of East Malaysia, sharply increasing costs from logging and transport to processing, the association said in a statement on Wednesday.

It also noted that in remote areas, diesel is essential for power generation, leaving operators highly exposed to price shocks.

"With near-total dependence on diesel, the industry has no buffer against price volatility," it said.

It added that limited access to subsidized schemes further widens the cost gap, squeezing margins, inflating log prices, and intensifying pressure on upstream operators. ■