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Wood-Based and Furniture
The Malaysian wood products industry has been transforming progressively from a primary product exporter to a higher value-added product exporter over the past three decades. In recent years, the global push for sustainable and eco-friendly practices has driven industries to innovate and adapt new applications to remain relevant.
Foreign Investment RM128.8 mil (32.8%)
Domestic Investment RM264.2 mil (67.2%)
For more statistics, please click here.
Foreign Investment RM222.4 mil (52.9%)
Domestic Investment RM197.9 mil (47.1%)
For more statistics, please click here.
To boost export rankings, the wood-based and furniture industries must adopt modern and advanced technologies to improve production efficiency, develop sophisticated products, and decrease reliance on foreign labor. This entails promoting innovation, knowledge-intensive sectors, technical breakthroughs, and design and development initiatives.
MIDA encourages industry players to prioritize creativity and innovation in their production processes, elevating from original equipment manufacturer (OEM) to original design manufacturer (ODM) or own-brand manufacturer (OBM) roles to enhance value chain positioning.
Malaysian manufacturers have started to raise capital expenditures for technological investments despite the associated high costs, enabling them to start venturing into automation and Industry 4.0.
The Government continues to encourage more local companies to produce high value-added products and leverage on automation as well as invest in the upskilling of their talents. Some of the available incentives for companies in this industry include:
Under the Promotion of Investments Act (PIA), 1986 the incentives offered are as follows:
Companies in this industry are also eligible for Reinvestment Incentives under the PIA 1986:
The Malaysian Timber Industry Board (MTIB) provides various resources and training programs to enhance talent availability and capabilities within the wood-based industry. Their initiatives include the Wood Industry Skills Development Centre (WISDEC), which offers training and skill development programs, and the Fibre and Biocomposite Centre (FIDEC), which focuses on research and development. Additionally, MTIB supports talent through seminars, workshops, and certification schemes aimed at improving industry standards and workforce skills.
The Engineer Placement and Internship Programme (EPIP) was launched in March 2021. MTC is working with institutions of higher education and the six national timber associations to attract more knowledge and talents to the timber industry in its quest for IR 4.0.
These efforts demonstrate Malaysia’s dedication to workforce development and industry progress.
