RM28 Billion Target by 2025 for Malaysia’s Timber Exports
Malaysia’s timber exports drive the timber industry’s growth
The timber industry remains a vital sector of Malaysia’s economy and is essential in sustaining its development. Malaysia is actively planning to enhance its timber industry as part of the National Timber Industry Strategic Plan 2021-2025. The overall strategy by MTIB, the Malaysian Timber Industry Board, is to drive exports to reach RM28 billion by 2025. The aim of exponentially growing Malaysia’s timber exports is in line with the National Timber Agrocommodity Policy.
The policy is part of the strategy rollout by the Ministry of Plantation Industries and Commodities. According to the Ministry, timber exports rose 13.79% within the first half of this year to RM13.2 billion.
Malaysia ranks 10th on the global scale for the export of wooden furniture. The industry itself saw an export value of RM22.7 billion in 2021. This is a 3% growth from the previous year’s statistics. Malaysia currently exports to more than 160 countries, including the US, UK, and Singapore.
A Sector with Challenges
According to MTIB, the timber industry continues to face several challenges. These issues include low productivity rates, increasing costs of production, and access to resources such as raw materials. Other challenges hindering growth involve labour shortages and the rising cost of shipping fees. However, MTIB aims to prioritise the sector’s development and will focus on accelerating the growth of Malaysia’s timber exports.
A key component in the strategic plan will focus on developing the domestic sales target. The aim is to promote more local use of wood to drive domestic sales target to reach RM20 billion. MTIB will endeavour to realise these targets with active campaigns and events, which include exhibitions and media promotions.
Potential for Robust Growth
The timber industry continues to experience a surge as international demand for Malaysia’s timber exports maintains its upwards growth. The recovery and rise of the global construction industry are also fuelling the call for such exports. Along with MTIB’s drive to hit RM28 billion by 2025, this sector is heading towards sustainable and exponential expansion.
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