Malaysia is amongst the world’s largest exporters of tropical timber and stands as a major producer and exporter of sawn timber, panel products, flooring, doors and other joinery products. The timber industry is the third most important commodity sub-sector in Malaysia and one of the major revenue contributors to the country’s economy.
Malaysia’s exports of sawn timber increased from RM201.0 million in 1970 to RM2.5 billion in 2021 even though the share slowed down from 3.9 per cent to 0.2 per cent. On the other hand, exports of saw logs declined to RM528.7 million as compared to RM642.7 million in 1970.
The Department of Statistics Malaysia (DOSM) released its ‘Malaysia Trade Statistics Review (MTSR) Vol 1/2022’ today (Dec 21) as an initiative to give an insights of Malaysia’s economic performance.
This MTSR 2022 highlighted the trade of the timber and timber based-products as the nation’s revenue contributor after oil palm and rubber owing to its high percentage of forested land and mega-diversity woodland.
Exports of plywood increased on average 4.5 per cent annually for the period of 1990 until 2021. The strong demand on plywood was influenced by international standards achieved for the United States of America (USA) and Europe market which led the exports of the plywood to increase on average of 4.5 per cent annually from 1990 until 2021.
In fulfilling the demand for intermediate input for this sub-sector, imports of agricultural timber products rose on average of 11.2 per cent annually for the period of 1990 to 2021.
Exports to United States of America and Japan constituted 52.3 per cent from Malaysia’s timber industry products. Exports to the USA amounted RM7.8 billion or 38.3 per cent of total exports of timber industry products, while exports to Japan was valued at RM2.8 billion (14.0% share).
In addition, 59.6 per cent of Malaysia imports for timber industry goods were from China and Indonesia in 2021. Imports from China was valued at RM3.2 billion, represented 47.1 per cent of total imports of timber industry goods, while inbound shipments from Indonesia was RM0.9 billion (12.5% share).
Malaysia’s furniture industry in the mid of 1980s has grown rapidly and evolved from a small-scale to export-oriented industry and worth billions of dollars. Export value of wooden furniture began to record an increase in the value of billions in 1994 until 2021.
Wooden furniture is a major contributor to furniture products. This product recorded export value of RM214.8 million in 1990 and subsequently recorded the highest export value of RM10.6 billion in 2021.
The United States was the top exporter in the country of destination. The contribution of wooden furniture exported to United States kept growing from year to year, with a share of 28.8 per cent in 2011 to 61.8 per cent in 2021, reaching value of RM6.4 billion.
For the period of 1990 to 2021, import value of furniture products recorded an average annual growth rate of 14.7 per cent per annum, which is higher than 8.8 per cent per annum posted by the total imports. Imports of furniture products amounted RM0.07 billion in 1990, and further increase to reach RM5.7 billion in 2021.
