Malaysia's timber sector has maintained resilience, achieving exports valued at RM9.03 billion from January to May 2025, despite challenges including US tariffs, a slowing global economy, and rising domestic costs.
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Plantation and Commodities Deputy Minister Datuk Chan Foong Hin highlighted key export products, including wooden furniture worth RM3.9 billion, plywood RM933.8 million, sawn timber RM797.8 million, builders' joinery and carpentry RM560.5 million, and mouldings RM382 million. He noted the industry's commitment to competitiveness despite external pressures.
Chan acknowledged concerns over the European Union Deforestation Regulation (EUDR) and the proposed CITES listing of Shorea species, stressing the ministry's focus on "traceability, transparency and legality" across the timber value chain. Rising domestic costs from the expanded Sales and Service Tax (SST) and US trade tariffs were also highlighted, though overall impact on Malaysia's 2025 trade balance is expected to be minimal.
The ministry, alongside bodies such as the Malaysian Timber Industry Board and the Malaysian Furniture Council, is engaging stakeholders to support compliance, sustain quality, and reinforce Malaysia's position in sustainable timber production.
Chan indicated that the future of the sector will be shaped by "sustainability, digital transformation and evolving consumer lifestyles", with initiatives under the National Agricommodity Policy 2021–2030 promoting productivity, value creation, market development, and inclusivity.
Malaysian manufacturers continue to lead in sustainable practices, supported by the internationally recognised Malaysian Timber Certification Scheme (MTCS).
Source: www.globalwood.org
