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Steven Depolo Timber Legality System strengthening workshop
Ensuring effective compliance with regulations is paramount
in establishing a sustainable timber business and fostering
credibility with government agencies.

Therefore, government agencies such as Malaysian Timber
Industry Board (MTIB) are entrusted with the responsibility of
developing and implementing stringent regulations that optimise
outcomes by maximising compliance levels.
In light of this the Licensing and Inspectorate Division is
engaged in the drafting of the Malaysian Timber Industry Board
Regulations (Issuance of Timber Export and Import Permits),
The review of the Malaysian Timber Certification Scheme designed to enforce MTIB's role as a regulatory authority in
(MTCS) standards, particularly MTCS ST 1002:2021 Malaysian the timber sector.

Criteria and Indicators for Sustainable Forest Management and To ensure that the new regulations are pertinent to the
MTCS ST 1003:202 Group Forest Management Certification current permit issuance procedure MTIB recently held the first
Requirements, is a crucial process to ensure their continued of the MTIB Timber Legality System Strengthening Workshop
relevance, credibility and alignment with international best Series.
practices in sustainable forest management and certification.
This review is mandated by MTCS ST 1001:2021 Standard GDP growth forecast 4.4 percent
Setting Procedures for Forest Management Certification Standards, MIDF Research considers domestic demand will continue to

which requires a periodic revision of all standards under the be the key driver of Malaysia’s economic growth in the first
scheme at least every five years or sooner if necessary. quarter of 2025 underpinned by steady growth in private
It also reflects the need to address evolving environmental, consumption and a sustained rise in the services sector.
social and economic challenges, as well as stakeholder A healthy labour market, employment growth with high labour
expectations at both national and international levels. force participation, increased tourist arrivals (and spending)
Furthermore, alignment with the Programme for the will be positive fundamentals supporting Malaysian growth.
Endorsement of Forest Certification (PEFC) requirements,
particularly PEFC ST 1001:2017 Standard Setting Requirements INDONESIA
and PEFC GD 1007 Endorsement and Mutual Recognition Import rules for forest products relaxed

of Certification Systems and their Revision, is essential to The Indonesian government is highlighting the benefits of its
maintain MTCS’s endorsement status and ensure compatibility new import deregulation policy particularly for forest products.
with the latest PEFC benchmark standards. On 2 July 2025, the Minister of Forestry, Raja Juli Antoni,
The MTC website says, “through this review the MTCC aims stated that this policy aims to provide legal certainty, facilitate
to enhance the effectiveness, clarity, and implementability of investment and create jobs.
its standards while strengthening stakeholder confidence and The policy, a collaborative effort between the Forestry,
international recognition. In line with that, MTCC is soliciting Trade and Finance Ministries, is the first phase of Indonesia's

feedback on the existing standards, particularly MTCS ST strategy to boost global competitiveness. It relaxes import
1002:2021 and MTCS ST 1003:2021”. rules for 10 commodities with forest products being the