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ITTO TROPICAL TIMBER MARKET REPORT

Growing concerns over potential trade barriers in the future are pushing Southeast Asia markets
to look for new trade partners. Market conditions remain challenging, especially with the global
economy still showing tardiness. ITTO tells us the latest in the tropical timber market.

MALAYSIA Minister, Johari, reported Bumiputera entrepreneurs also
Cautious optimism on GDP outlook recorded a notable rise with exports totalling RM44.03 million,
Malaysia’s economic forecast for 2025 is being maintained up 33 percent from the previous year. However, Bumiputera
for now amid the uncertainties surrounding global trade and entrepreneurs still account for less than one percent of the
implications US tariffs will have on the country’s exports as total export value.
well as how they will shape supply chains across the world. The main products produced by Bumiputera entrepreneurs
Analysts expressed cautious optimism on the country’s are sawnwood and wooden furniture.
economic growth with the Socio-Economic Research Centre Most Bumiputera-owned businesses in the timber industry

(SERC) estimating gross domestic product (GDP) growth are still classified as small or micro enterprises, reflecting
at five percent for this year, the mid-point of government ongoing challenges in expanding within the sector.
forecasts of 4.5 percent to 5.5 percent, with domestic demand While there are many opportunities small or micro enterprises
supporting growth. can pursue, he said, the lack of a reliable supply chain holds
Timber the third largest contributor to commodity them back.
exports The Minister suggested small or micro enterprises need to
Malaysia's wood product exports rose almost five percent collaborate with well-established and successful companies

in 2024 to RM22.9 billion, up from RM21.85 billion in 2023 that are already part of the existing supply chain.
according to the Ministry of Plantation and Commodities. Johari said the national timber agencies, the Malaysian
Under the National Agricommodity Policy 2030, the Timber Industry Board (MTIB) and the Malaysian Timber
Ministry aims to reach a timber export target of RM28 billion Council (MTC) are continuously working to enhance Bumiputera
by 2025. Minister, Datuk Seri Johari Abdul Ghani, said the competitiveness and involvement in the timber industry.
timber industry is the third largest contributor to commodity
exports after palm oil (RM114 billion) and rubber (RM33 billion). Furniture industry and AI
A leading Malaysian manufacturer of sofas and cabinets is set
to increase production by as much as 30 percent next year as
Wikimedia Commons the company shifts towards artificial intelligence technologies.

A company representative and also Deputy Secretary-General
of the Malaysian Furniture Council said the adoption of smart
factory technology, incorporating Fourth Industrial Revolution
(IR 4.0) methods set to add value to the company’s furniture
brand, particularly in customer service.

Expanding wood products certification scheme
The Sarawak Timber Association (STA), in its latest STAReview,