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THURSDAY | MAR 5, 2026

Malaysia targets RM32.8b timber exports by 2030 o Locally-made furniture highly sought after in key markets: Minister

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

KUALA LUMPUR: Malaysia targets RM32.8 billion in timber exports by 2030, up from about RM20 billion currently, driven by growing demand for Malaysian-made furniture. Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said the ministry is working together with key agencies, the Malaysian Timber Industry Board, the Malaysian Timber Council and the Malaysian Timber Certification Council to realise this. “We are resolute in our mission to help the industry access new markets, adopt sustainable practices and elevate the global stature of Malaysian furniture,” she said in her opening speech read by MPC deputy secretary-general Datuk Razali Mohamad at the Malaysian International Furniture Fair (MIFF) 2026 opening ceremony yesterday. She highlighted that her ministry has set the ambitious targets under the National Agri-Commodity Policy 2030 (DAKN 2030) and the New Industrial Master Plan (NIMP) 2030. Noraini said the country’s wooden furniture exports have grown, reflecting the industry’s resilience and adaptability amid a competitive global environment. “Today, Malaysian-made furniture continues to be highly sought after in key markets such as the US, the Middle East, Australia and across Asean. “This is a clear testament to the quality, craftsmanship, and reliability that define our local manufacturers.” Noraini said the performance has reinforced the timber industry’s position as the third-largest contributor to Malaysia’s commodity exports. “Overall, Malaysia’s timber and upgrading legality framework to meet a future in which exporters must prove not just legality but also exact geolocation and deforestation-free sourcing, or risk losing access to key markets. “In the future, everyone is asking about ESG,” said Sunita Muhamad of the Malaysian Timber Industry Board (MTIB). “So we are upgrading Malaysia Timber Legality Assurance System (MTLAS) to include ESG elements, geolocation and scientific naming.” Her remarks come as the European Union moves towards full enforcement of its Deforestation-Free Regulation (EUDR) by end-2026, requiring exporters to provide precise geographic coordinates of where timber was harvested, alongside proof that products are not linked to deforestation. At the centre of Malaysia’s response is the MTLAS, a government-backed framework its timber Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com KUALA LUMPUR: Malaysia is

Endorsement of Forest Certification.” She said these certifications position Malaysia favourably to access ESG-sensitive markets like the European Union and Japan, thereby preserving the county’s long-term competitiveness. “Malaysia’s certified exporters are perfectly positioned to capture these premium opportunities, paving the way for sustainable growth beyond short-term tariff headwinds.” The minister said Malaysia is actively championing alternative sustainable materials. Noraini noted the industry has successfully transformed agricultural waste into high-value resources by expanding bamboo cultivation and utilising oil palm trunk biomass. “It is highly encouraging to see MIFF exhibitors integrating these sustainable approaches into their designs, proving that environmental responsibility and commercial innovation can go hand in hand.” The Malaysian International Furniture Fair, now in its 32nd edition, serves as a platform that connects international buyers and sellers while supporting Malaysian manufacturers as they navigate a market landscape marked by rising costs, evolving export policies, and growing demand for sustainable and well-designed products. MIFF generated an estimated US$1.31 billion (RM5.2 billion) in on-site sales last year. Wooden furniture led exports at RM9.9 billion, followed by plywood and sawn timber. With annual export values hovering between RM22 billion and RM23 billion and thousands of SMEs dependent on the sector, maintaining market access is seen as critical. “Maintaining international market access is not merely regulatory. It is an economic strategy. MTLAS protects national interest,” Sunita said. As ESG benchmarks become embedded into trade policies, Malaysia is positioning its government-backed legality system as a competitive advantage, offering buyers state-assured traceability in a market increasingly wary of deforestation-linked supply chains. “MTLAS is more than compliance,” Sunita said. “It ensures Malaysian timber remains trusted, compliant and globally competitive.” With deforestation-free rules reshaping the global timber trade, Malaysia’s bet is clear: turn regulatory pressure into a structured, tech-driven export shield before enforcement deadlines become trade barriers.

Razali delivers the opening speech on behalf of Noraini at the Malaysian International Furniture Fair yesterday. – BERNAMAPIC

Sustainability. “I am pleased to note that many of our manufacturers now hold internationally recognised certification, such as the Malaysian Timber Certification Scheme, endorsed by the Programme for the

preferences are shifting and trade dynamics are changing, as evidenced by recent tariff measures that have created headwinds for global exports. “Yet, we have a powerful shield against these challenges:

timber-based product exports are valued at over RM20 billion annually, with wooden furniture now accounting for an impressive 43.1% of our total timber exports,” she said. Noraini said consumer

MTIB positions MTLAS as shield against tightening global timber rules

“So far, we have issued about 150 MTLAS-EUDR certificates to the EU, and they have been accepted,” she said. The enhanced system integrates forest concession mapping with harvesting documentation, backed by a centralised database under MTIB. Cross-verification among agencies and digitalised inspection records aims to strengthen due diligence processes and risk profiling of operators. Companies are categorised into risk levels, and exporters must submit due diligence statements for screening. For non-compliance, enforcement is corrective but firm. “Normally, we issue a warning letter and educate them on what needs to be fulfilled. But if you want to export to regulated markets, compliance is mandatory,” Sunita said. The strategic push comes as timber remains Malaysia’s third-largest export commodity after palm oil and rubber. In 2024, timber exports rose 4.9% year-on-year to RM22.9 billion, rebounding from a dip in 2023.

data that can be mapped digitally, going beyond traditional documentation stating only the state or district of origin. “They want to know exactly where the trees were harvested. You must provide coordinates,” she said. Malaysia’s existing traceability mechanism includes the removal pass issued by the Forestry Department upon the exit of logs from concession areas. This document accompanies timber throughout the supply chain, from the forest to the mill to the export point. MTLAS integrates enforcement across nine government agencies and is anchored by seven key Acts that cover forest management, harvesting licences, mill operations, worker welfare, environmental safeguards, and community considerations. “Every single step is regulated and documented,” Sunita said. As part of preparations for EUDR enforcement, MTIB has introduced an enhanced MTLAS-EUDR framework and conducted trial runs since September 2025 to familiarise exporters with the new requirements.

designed to safeguard export access in increasingly regulated markets. “MTLAS is not a certification scheme. It is a government legality assurance system, and it is voluntary. Usually, buyers request it,” Sunita said during a briefing at the Malaysian International Furniture Fair 2026 yesterday. While voluntary, the system has become a de facto entry pass for exporters shipping to the EU. “If you do not comply, we will not allow you to export, especially to destinations like the EU. That is a high risk for the company,” she said. Since its introduction in 2013, more than 150,000 MTLAS certificates have been issued, with over 150 companies currently using the system. Initially designed for EU bound shipments, demand has widened. “After a few years, many companies requested MTLAS to export to the US, Japan, Australia and the UK,” Sunita said. The shift reflects tightening global scrutiny. Under the new EU rules, exporters must submit geolocation