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of certifcates. in global demand.
The Report says “We know that the government of Sarawak Despite the slow sales this year he said he is confdent
is making real and concerted efforts to protect their forests. that the timber industry can reach the export target of RM28
But the way that MTCS is currently functioning simply cannot billion and domestic sales of RM20 billion by 2025 in line with
guarantee any of the standards they claim to uphold, says the the National Agri-commodity Policy 2021-2030 supported by
report. The system needs to be reformed.” The report lays the National Timber Industry Strategic Plan 2021-2025.

out 15 key recommendations for improving the system with According to him, the domestic market accounts for as
a focus on reforming the grievance procedures. much as 60 percent of the country’s timber sector’s sales
adding that this year Malaysia ranks 14th globally among
Auditor-General’s report highlights forest management wooden furniture-producing countries.
issues
According to the 2022 Auditor-General’s Report the country’s INDONESIA
forestry sector contributed RM6.601 billion to GDP or 0.4 Healthy domestic economy to spur greater plywood
percent of GDP and exports by the timber industry contributed consumption
a total of RM22.744 billion in 2021. The Indonesian Wood Panel Association (Apkindo) believes

The report says “Overall, based on the scope of the audit, that 2024 will see a favourable domestic market situation that
forest management in Malaysia has been done sustainably to will further drive demand for plywood.
provide socio-economic benefts and maintain environmental This message was from Bambang Soepijanto after being
sustainability. However, based on audit samples reviewed in re-elected as the General Chair of Apkindo for the 2023-2028
nine states there were cases where the weakness in forest term at the 9th Apkindo National Conference.
management in development of forest plantations, logging, In his message he highlighted the domestic market
mining and quarry activities within the Permanent Forest Reserve opportunities saying the latest data shows that investment

(HSK) had “posed a negative impact on the environment.” in various sectors grew to IDR1,207 trillion which will drive
To ensure that the objective of Sustainable Forest Management up domestic demand for plywood.
is achieved the report recommends that the Ministry of Natural In addition to private investment the central and regional
Resources, Environment and Climate Change (NRECC), the authorities will invest in the development of the Indonesian
Forestry Department of Peninsular Malaysia and the Forest Capital City (IKN) and this is expected to boost demand for
Departments in Sarawak and Sabah create a database on plywood.
the area of the permanent forest reserve, protected areas
WeBalkans EU
and forest land.

Wood product exports decline
The value of Malaysia’s exports of wood products dropped
19 percent year-on-year to RM14 billion between January
and August this year compared to RM17.3 billion in the same
period last year.
The Malaysian Timber Industry Board (MTIB) chairman
said this was not a surprise as there has been a weakening