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>Industries>Manufacturing>Wood-Based and Furniture

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.

Wood & Wood Products

2022

22

Approved Projects

RM229.8 mil

Approved Investments

Foreign Investment RM74.3 mil (32.3%)

Domestic Investment RM155.5 mil (67.7%)

791

Job Opportunities

For more statistics, please click here.

Furniture & Fixtures

2022

34

Approved Projects

RM501.7 mil

Approved Investments

Foreign Investment RM174.7 mil (34.8%)

Domestic Investment RM327 mil (65.2%)

1,484

Job Opportunities

For more statistics, please click here.

Adopting Modern Design and Technologies


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.

Government Support

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:

  • Industry4WRD Intervention Fund
  • Domestic Investment Strategic Fund (DISF)
  • Automation Capital Allowance (ACA)
  •  

Under the Promotion of Investments Act (PIA), 1986 the incentives offered are as follows:

  • Pioneer Status (PS) with income tax exemption of 70% of statutory income for 5 years. OR
  • Investment Tax Allowance (ITA) of 60% of qualifying capital expenditure incurred within a period of 5 years. The allowance can be offset against 70% of statutory income in the year of assessment.

Companies in this industry are also eligible for Reinvestment Incentives under the PIA 1986:

  • Pioneer Status (PS) with income tax exemption of 70% of statutory income for 5 years. OR
  • Investment Tax Allowance (ITA) of 60% of qualifying capital expenditure incurred within a period of 5 years. The allowance can be offset against 70% of statutory income in the year of assessment.

Talent Availability and Capabilities

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.

Get Started

MIDA provides comprehensive support to your business as you consider the competitive and comparative advantages Malaysia has to offer for your investment. Explore our dedicated resources, wide range of facilities or consultation services to assist you in expanding your operations here.
Learn more about the essential forms and guidelines to help you get started on your journey in Malaysia’s manufacturing sector.
Company can submit application and track the application status online via MIDA InvestMalaysia portal at investmalaysia.mida.gov.my
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