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SATURDAY | JUNE 21, 2025

‘Malaysian timber exports may gain edge in US market’

Bursa forms industry panel to boost cyber defences in stockbroking

KUALA LUMPUR: Malaysia’s timber exports may gain a competitive edge in the US market due to higher tariffs imposed on regional rivals such as Vietnam and Indonesia. Vietnam, once a leading furniture exporter in the region, now faces tariffs as high as 46% compared with Malaysia’s import levy of 24%, Forest Research Institute Malaysia (FRIM) director of forest products division Wan Tarmeze Wan Ariffin said. “US President Donald Trump imposed higher tariffs on Vietnam probably because they’re afraid China might use Vietnam as a manufacturing hub to bypass American trade restrictions,” he told Bernama. The United States is the largest buyer of Malaysian furniture, accounting for over half of furniture exports. However, the tariffs announced on April 2 have been paused for 90 days till early July to allow America’s trading partners to negotiate for lower tariffs. “If they don’t impose high tariffs on Vietnam, China could exploit that route. So, on paper, the advantage actually lies with us (Malaysia),” he said. In 2022, Malaysia exported timber and timber products worth RM7.73 billion to the US. This was an increase from RM3.76 billion in 2018. Malaysia’s timber exports worldwide include furniture, logs, veneer, plywood and medium-density fibreboard. Asked on the challenges faced by the timber industry, Wan Tarmeze said Malaysia’s furniture sector primarily relies on processed wood rather than solid timber, with wood-based materials accounting for up o FRIM director of forest products division cites potentially higher tariffs imposed on regional rivals such as Vietnam and Indonesia.

PETALING JAYA: Bursa Malaysia Bhd has formed a dedicated industry working group to enhance cyber resilience across the Malaysian stock broking ecosystem. The establishment of the industry working group is a coordinated action, moving forward from the unauthorised trades incident on April 24. Bursa Malaysia CEO Datuk Fad’l Mohamed said the industry working group represents a concerted effort to strengthen the cyber resiliency of the country’s trading ecosystem. “The industry recognises that cyber resiliency is not just a technology best practice – it is the cornerstone of a trusted and vibrant capital market. A resilient ecosystem safeguards investor confidence, upholds market integrity, and ensures that our digital infrastructure can withstand and adapt to evolving threats,” he said in a statement yesterday. The industry working group, chaired by Bursa Malaysia chief regulatory officer Julian M Hashim, comprises representatives from four bank backed participating organisations (PO), two non-bank PO and two subject matter experts in the field of cybersecurity. The group held its inaugural meeting on Tuesday, where it finalised its terms of re ference. Its mandate includes assessing current cybersecurity practices and identifying systemic vulnerabilities within the stockbroking eco system, developing industry-wide standards and best practices for information and communi cation technology risk management and incident response and recommending enhance ments to regulatory frameworks and operational protocols to improve cyber resilience. Bursa Malaysia noted that the industry working group targets to finalise its reco mmendation paper within four months, with the subsequent implementation phase focused on the execution of the recommendations. Recognising the diversity in operational complexity across stockbroking firms, consult ation with the industry will be carried out to ensure the recommendation paper is practical and fit for purpose. The establishment of the industry working group is part of a broader commitment to strengthen the industry’s cyber resilience. In recent months, stockbroking firms have adopted precautionary measures such as mandatory password resets, enhanced moni toring of unusual logins, blocking suspicious Internet Protocol addresses, and issuing client alerts to ensure login details are always kept secure. In line with these efforts, Bursa Malaysia, on May 21 sent out a directive to mandate that all stockbroking firms implement multifactor authentication by the end of 2025. This requirement is a critical step towards enhancing the security of investor trading accounts and mitigating the risk of un authorised access.

Malaysia’s timber exports include furniture, logs, veneer, plywood and medium-density fibreboard. – BERNAMAPIC

strong, internationally recognised brands. “Take IKEA for example, which is a Swedish brand while Italy has its own well known brand names, but Malaysia has yet to produce a brand that stands out globally,” Wan Tarmeze said. OEM refers to manufacturing products for other brands, whereas original brand manufacturers (OBM) involves developing and marketing products under one’s own brand name. Wan Tarmeze said that despite the government’s repeated calls for the industry to move from being OEM to OBM, the shift has yet to happen. “The issue is not about identity but branding, and without branding we can’t build value. “The truth is Malaysia tends to shy away from copying, but we should be more open to learning from others, even “stealing” ideas in the sense of adapting best practices and making them our own,” he said. – Bernama

to 85% of inputs in the making of the furniture. Wan Tarmeze said the ongoing Iran-Israel military conflict is not expected to have a direct impact on Malaysia’s timber exports. Nevertheless, post-conflict reconstruction could open up new market opportunities and raise demand for Malaysian timber. “Wars often lead to widespread destruction, but once the situation stabilises, there’s usually a surge in demand for rebuilding – including homes and infrastructure,” he said. When asked how Malaysia can position itself as a high-value timber exporter rather than a volume-based player, he said the shift ultimately depends on the industry players themselves. “This has been a long-standing conversation as Malaysia is still heavily reliant on the original equipment manufacturer (OEM) model, manufacturing timber products for others without having its own

Sector diversity, regulatory strength fuel M’sia IPO pipeline: Baker Tilly PETALING JAYA: Malaysia’s capital market is experiencing a notable upswing in 2025 as Bursa Malaysia is forecasting a significant increase in new public listings, with expect These industries are being buoyed by a combination of government incentives and heightened investor appetite, both of which are contributing to a dynamic and attractive investment environment, the report noted. report said. The structured framework of the Main Market and the ACE Market provides clear pathways for companies at various stages of growth, making Malaysia a practical choice for businesses looking to tap into public capital. Regulatory stability enhances Malaysia’s appeal as a listing destination.

ations set at 60 initial public offerings and a targeted total market capitali sation of RM40.2 billion. According to Baker Tilly Asia Pacific’s latest publication Pathways to the APAC Capital Markets, Malaysia’s momentum builds on a robust 2024, during which 55 companies chose to list and collectively raised RM7.4 billion, marking the highest number of listings in Asean by volume. The sectors represented in

“Malaysia has always punched above its weight when it comes to capital markets,” said Andrew Heng ( pic ), who is the group managing partner of Baker Tilly Malaysia. “As confidence returns to the region post-pandemic and amid geopolitical realignments, we expect more companies to explore IPOs and cross-border listings – and Malaysia

The report also noted that Securities Commission Malaysia and Bursa Malaysia continue to demonstrate strong oversight while remaining open to innovation. Notable steps include progressive moves toward enhanced ESG reporting and the development of alternative fundraising frameworks, ensuring that the market remains secure and forward-looking. These factors collectively position Malaysia’s capital market as a serious contender for companies and investors seeking opportunity and stability in the region, the report said.

will be on their radar,” he said in a statement. One of Malaysia’s key advantages is the relative ease of access it offers to both local and foreign companies seeking to list, the

Malaysia’s listing pipeline is diverse, the report said, adding that companies from consumer goods, healthcare, logistics and technology are showing strong interest in going public.