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Malaysian timber exports keep showing toughness a long-standing reputation for quality values that TEAM has
Malaysia’s timber exports continue to show resilience, achieving consistently upheld,” he added.
a total value of RM9.03 billion from January to May this year Chan also addressed domestic concerns over the expanded
despite headwinds such as the US’ imposition of tariffs, a Sales and Service Tax (SST) and US trade tariffs, which have

slowdown in the global economy and other external challenges, raised costs and eroded competitiveness. The SST, he said,
according to The Sun Malaysia. has increased operational expenses by 8–12 percent, which
Plantation and Commodities Deputy Minister Datuk Chan has pushed up prices across the supply chain and particularly
Foong Hin said the main export products during this period affected small and medium enterprises.
were wooden furniture worth RM3.9 billion, plywood RM933.8 “Although export products aren’t directly taxed, rising production
million, sawn timber RM797.8 million, builders’ joinery and costs are starting to erode Malaysia’s long-standing export strength.
carpentry RM560.5 million, and mouldings RM382 million. Meanwhile, US trade tariffs may reduce export volumes and
“Nevertheless, the industry continues to strive for better results profit margins, although economists believe the overall impact
despite the challenges faced, to maintain the competitiveness of on Malaysia’s 2025 trade balance will be minimal,” he said.

Malaysia’s timber exports,” he said at a Timber Exporters’ Association To mitigate these effects, Chan said, the ministry, along with
of Malaysia (TEAM) anniversary event recently that drew over 400 agencies such as the Malaysian Timber Industry Board, the Malaysian
attendees, including representatives from government agencies, Timber Council, TEAM, and the Malaysian Furniture Council, are
industry councils, international buyers and trade partners. actively engaging stakeholders to identify challenges, ease compliance
Chan acknowledged the industry’s concerns over the European burdens, and protect the timber sector’s global standing.
Union Deforestation Regulation (EUDR), which demands a high “These efforts include gathering industry feedback and
level of supply chain transparency and verification. supporting businesses in maintaining high standards of quality

In response, he said that the ministry is working closely and sustainability. The ministry encourages unity and innovation
with relevant agencies to ensure full compliance throughout the among industry players to ensure Malaysian timber products
entire timber value chain, with a strong focus on traceability, continue to be valued worldwide,” he said.
transparency and legality. Looking ahead, Chan said the domestic timber industry’s
The ministry has also been engaging with industry stakeholders, future will be shaped by three major trends—sustainability,
including TEAM, on other developments such as the proposed digital transformation and evolving consumer lifestyles.
listing of the Shorea species under Appendix II of the Convention “Through the National Agricommodity Policy 2021–2030, we
on International Trade in Endangered Species or CITES. are addressing these challenges via five key thrusts: sustainability,
“While this listing poses compliance and operational productivity, value creation, market development, and inclusivity.”

challenges, it also presents an opportunity for Malaysia to Chan emphasised that global consumers now place strong
reinforce its position as a leader in sustainable and verified emphasis on environmentally responsible products, adding that
timber production,” Chan said. Malaysian manufacturers are already at the forefront of sustainable
He noted that the global timber trade has become practices, backed by internationally recognised certification such
increasingly competitive, with neighbouring countries such as the Malaysian Timber Certification Scheme (MTCS).
as Indonesia and Vietnam recording strong growth over the MTCS is the first tropical timber certification in the Asia-
past two decades. Pacific to be endorsed by the Programme for the Endorsement

“Nevertheless, Malaysia continues to maintain its edge of Forest Certification (PEFC), the world’s largest forest
through adherence to legal frameworks, professionalism and certification system.