Wood-Based and Furniture
Malaysia is a vital player in the global tropical wood and wood products market and ranks as the leading global exporter of wooden furniture. Over the past two decades, Malaysia’s wood-based industry has significantly contributed to the country’s economic growth, encompassing activities such as sawn timber, veneer, panel products, mouldings, builder joinery, carpentry, furniture, and components.
Foreign Investment RM74.3 mil (32.3%)
Domestic Investment RM155.5 mil (67.7%)
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Foreign Investment RM174.7 mil (34.8%)
Domestic Investment RM327 mil (65.2%)
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To boost export ranking, the wood-based and furniture industry must adopt modern and advanced technologies to improve production efficiency, develop sophisticated products, and decrease reliance on foreign labour. This entails promoting innovation, knowledge-intensive sectors, technical breakthroughs, and design & development initiatives.
MIDA promotes industry players to prioritise 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) initiated the Wood Industrial Skill Development Centre (WISDEC) to cultivate woodworking, furniture design, and wood crafting talents. WISDEC collaborates with TVET institutions, government agencies, and training centres, also overseeing the Malaysia Skills Competition (CPM).
Public universities like Universiti Malaysia Sabah offer a Wood Technology and Industry programme covering wood basics, timber identification, processing, management, and marketing. It focuses on creating products like paper, fibreboard, particleboard, and plywood through processing. The programme also addresses wood quality improvement through drying and preservation techniques.
These initiatives showcase Malaysia’s commitment to developing its workforce for industry advancement.