03/03/2025

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SCAN ME

MONDAY | MAR 3, 2025

Promising future for timber industry

o Sector poised for long-term growth as Malaysia’s commitment to sustainability will enhance competitiveness and align with global shifts towards responsible sourcing

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

in cutting-edge technologies, improve operational efficiencies, and prioritise sustainable practices. “Together with a forward-thinking regulatory frame work, Malaysia’s timber sector is well positioned to thrive in a rapidly evolving global marketplace.” Malaysian Timber Association president George Yap expressed optimism about the industry’s long term prospects although acknow ledging short-term challenges in 2025. “The timber industry is on the rise from 2025 onwards. From sunset industry to sunrise,” Yap told SunBiz . He attributed this growth to the global shift towards renewable materials, with timber being one of the most sustainable options. Yap highlighted that timber’s circularity is well-established and easily scalable. “At the end of its lifecycle, timber products can be easily recycled and upcycled.” He said the circularity of timber is much established, and easily scalable. Yap noted that tree plantations have become a hot topic, particularly in Malaysia’s timber industry. He said the country is well-positioned for this, benefiting from abundant sunlight, rainfall and fertile soil compared to other nations. “The value and revenue potential of tree plantations are vast, spanning timber products, paper and pulp, biomass for energy, ESG conser vation efforts, and possibly carbon credits.” On the short-term outlook, Yap pointed to challenges such as China’s housing overbuild, which has weakened demand and led Chinese players to enter the Malaysian

PETALING JAYA: Malaysia’s timber industry is poised for long-term growth amid rising global demand for renewable materials and increased investment in tree plantations. Member of Parliament for Julau, Sarawak, Datuk Larry Soon said the Malaysian timber industry is poised for a challenging yet promising future beyond 2025. “With global demand for sustainable and renewable materials on the rise, the timber sector holds significant potential,” he told SunBiz . Soon said Malaysia’s abundant natural resources, coupled with tech nological advancements in sus tainable forestry practices, position Malaysia as a leading player in the global timber market. However, he said that navigating geopolitical and economic uncer tainties will require resilience and strategic adaptation. “Rising pro duction costs and global trade tensions pose real challenges, but they also present an opportunity for innovation.” By diversifying export markets and strengthening partnerships, parti cularly with emerging economies, Soon said, Malaysia can mitigate the risks of over-reliance on traditional markets. Furthermore, Malaysia’s commit ment to sustainability through initiatives such as the Malaysian Timber Certification Scheme will enhance the industry’s competi tiveness and align with global trends favouring responsible sourcing, he added. Soon said the industry must invest

Malaysia’s abundant natural resources, coupled with technological advancements in sustainable forestry practices, position Malaysia as a leading player in the global timber market, Julau MP Larry Soon says. – BERNAMAPIC

“Our focus for the convenience stores segment remains on the expansion of our 7-CAFe store format, which is essential for broadening our product selections, enhancing in store customer experience, and driving growth in the fresh food category. A notable accomplishment to date includes the opening of 65 7 CAFe stores in 4Q 2024,” said the company. It added that its ongoing initiatives include continuing the establishment of 7-CAFes beyond Klang Valley, expanding into high-potential areas, and strengthening its partnership with their Japanese counterpart to broaden fresh food offerings, while maximising commissary production yields through the adoption of best operational practices and discipline. on land use, labour rights and human rights. The regulation officially takes effect on Dec 30, 2025, for large and medium-sized companies, while smaller enterprises will have until June 30, 2026, to comply. This presents a challenge for Malaysia, as it is one of the five largest timber and palm oil exporters to the EU. If Malaysia is classified as a “high risk” country under the EUDR, Malaysian timber imports will face stricter due diligence and increased customs checks, particularly affecting exporters from Sarawak. Despite global challenges, Malaysia’s timber industry saw a 4.9% increase in exports in 2024, reaching RM22.9 billion compared to RM21.85 billion in 2023, according to the Plantation and Commodities Ministry.

Malaysia. However, in the long run, we can overcome it, as Malaysia’s compliance standards are significantly better compared to other timber producing countries supplying the EU,” he said. The EUDR, which came into force on June 29, 2023, aims to curb deforestation by regulating imports of commodities such as timber, palm oil, soy and coffee. It replaces the EU Timber Regulation and imposes stricter compliance requirements on businesses exporting to the EU. Under the new regulation, com panies must ensure that their products do not originate from recently deforested land or con tribute to forest degradation. Additionally, EU importers will be required to trace commodities back to the specific plot of land where they were produced and comply with laws

market, increasing competition. “Malaysia’s raw material supply is scarce. That’s why industry players are engaging with policymakers to establish a clear direction for long term tree plantation development. With a solid policy in place, financial institutions can support the sector with confidence,” he said. Additionally, Yap said the China US trade war may push Chinese investors to set up operations in Malaysia. “Malaysian players may face challenges, but overall, Malaysia’s timber trade could see growth in the US market,” he added. As for the European Union (EU) market, Yap highlighted uncertainties surrounding the European Union Deforestation Regulation (EUDR), which will be enforced by the end of this year. “In the short term, this will impact

7-Eleven Malaysia fourth-quarter 2024 revenue rises to RM745.5m PETALING JAYA: Convenience store chain 7-Eleven Malaysia Holdings Bhd recorded revenue of RM745.5 million in fourth quarter ended Dec 31, 2024, an increase of RM51.2 million or 7.4% compared to RM694.3 million achieved in the corresponding quarter of the previous year. affordably priced Ready-To-Eat packed meals, prepared with high-quality locally sourced ingredients which had contributed positively to the Fresh Food sales participation as compared to a classic store in 4Q-2024,” the company said in a statement. Operating expenses recorded a normalised profit after tax from continuing operations amounting to RM9 million against a loss after tax in last year’s same quarter. The convenience stores recorded revenue of RM2,925.5 million for the year ended Dec 31, 2024, an increase higher store rental costs and utilities as a result of a broadened retail network, increase in store depre ciation, and including IT and non-IT maintenance expenses.

Excluding the corporate exercise expenses which comprise share of losses and impairment losses of the investment in joint ventures and tax expenses arise from the corporate investments, the group recorded a normalised profit after tax from continuing operations amounting to RM53.2 million against the loss after tax last year. Comenting on prospects, 7-Eleven Malaysia said the country’s retail sector demonstrated resilience in 4Q 2024, driven by robust growth in overall investment activities, goods exports, tourism and household spending.

of RM142 million or 5.1% compared to RM2,783.6 million in the previous year. This revenue growth was accompanied by a gross profit of RM902.7 million, up RM36.7 million or 4.2%, maintaining a stable gross profit margin of 30.9%. Operating expenses for the convenience stores increased by RM19.3 million or 2.1%. This rise is attributed to

decreased by RM35.6 million or 12.2%, primarily due to lower staff cost, reduced spending on media advertising and lower professional fees in 4Q 2024. Excluding corporate

The growth in revenue was mainly driven by the net addition of 69 new stores compared to the corres ponding quarter last year, along with the boost in sales from year-end holiday season, leading to a higher average per store day. As compared to the same quarter of the previous year, 7-Eleven Malaysia rolled out 289 7-CAFe store formats, driving up the total count to 536 7-CAFe stores in 4Q 2024. “We introduced a range of

exercise expenses which comprise share of losses and impairment losses of

the investment in joint ventures and tax expenses arise from the corporate investments, the group