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ITTO TROPICAL TIMBER MARKET REPORT

The woodworking landscape remains challenging, and companies are urged to transform to
overcome regulatory, economic and operational hurdles. ITTO tells us more about what is happening
in markets across the globe.

MALAYSIA “There are critical labour gaps in both upstream and in

Sabah timber industries call for support to remain specialised downstream areas,” he said, noting that the sector
competitive still relies heavily on foreign workers.
The Sabah Timber Industries Association (STIA) has called on Tan added that the industry urgently needs major
the State Government to strengthen support for the timber investments in both upstream and downstream segments
sector amid rising structural challenges and mounting pressure to introduce new technology and automation that can offset
to remain competitive and sustainable. workforce challenges.
STIA president, Tan Peng Juan, said the industry is at a In a related development the Sabah Forestry Department
critical crossroads. “Industry players are concerned that without has announced the publication of three new books related
decisive action the timber sector, which supports thousands to forest plantation development, Guidelines for Selecting

of livelihoods and contributes significantly to the national Candidate Plus Trees (CPT) for Forest Plantation Species,
economy, may struggle to sustain itself in the years ahead”. Photo Collection of Candidate Plus Trees (CPT) of Local
He emphasised that Sabah’s timber industry remains a Forest Plantation Species in Sabah and Photo Collection of
vital economic contributor generating employment, supporting Candidate Plus Trees (CPT) of Exotic Forest Plantation
rural communities and producing significant export revenue. Species in Sabah.
“In 2024, Sabah’s forest product exports generated RM1.13 These publications mark another significant step in
billion, underscoring the sector’s continued relevance” strengthening the management of tree genetic resources to

The road ahead for industrial tree plantations will not be support the advancement of the state’s forest plantation sector.
easy and the industry cannot overcome the challenges without
strong and sustained government support, he said. Sarawak wood pellet exports up 60%
Another major concern is the industry’s changing workforce Sarawak’s timber industry recorded exports valued at RM1.87
landscape. billion as of the third quarter of 2025 according to Deputy
Minister of Natural Resources and Urban Development, Len
© 2019 State of Michigan to the same period last year pointing out that logs contributed
Talif Salleh.
He highlighted the growth in the timber sector compared

RM310 million, an increase of three percent compared to the
same period in 2024 while wood pellet exports also rose 60
percent to RM97 million, up from RM60 million during the
same period in 2024.
He added that Japan remained the top importer with a
value of RM1.17 billion, followed by India (RM 299 million),
Middle East countries (RM 105 mil), Taiwan (RM 77 million)