Wood in the rough market in Malaysia

Earlier Report Observations

From 2018 to 2023, the volume of Malaysia's wood in the rough market remained stable, fluctuating between 10 500 and 10 900 thousand tons. In contrast, the market value showed more pronounced movements, falling from 3 425 million US dollars in 2018 to 2 634 million in 2021, then recovering to 3 606 million in 2023. The initial decline in value coincided with constraints in raw material supply and a lack of innovation in the sector, as noted in 2018.

The post-2021 recovery in market value was supported by the growth of the biocomposite segment, including products like plywood, particleboard, and wood-plastic composites. By 2022, biocomposites accounted for 19% of the country's wood export value, and the presence of numerous manufacturing facilities bolstered domestic production. Additionally, from January 2022, the expansion of MyTLAS certification to all export markets enhanced the competitiveness of Malaysian wood, allowing producers to command higher prices internationally, which contributed to the sharp rise in market value in 2023.

Throughout the period, the industry actively pursued new markets such as Oceania and India and diversified exports despite challenges like US tariff rates. By 2024, wood industry exports reached RM22.9 billion, with an emphasis on high international standard compliance and support for Bumiputera companies strengthening sector resilience. Although global demand softness in 2023 temporarily affected exports, the shift toward higher-value-added products and certification helped offset these effects.

Production wood in the rough in Malaysia

In kind, 2018-2021, K t

Top producers of wood in the rough, 2018-2021

World map of production of wood in the rough, 2018-2021

Malaysia's production of wood in the rough has declined for the third consecutive year. In 2021, the country produced 11,139 thousand tonnes, showing minimal change compared to 2020.

Annual dynamics of production in Malaysia in kind, 2018-2021, K t

In value, 2018-2021, M $ US

Malaysia's production of wood in the rough has declined for the third consecutive year. In 2021, the output was valued at 2,708 million US dollars, representing a 1.2% reduction year-over-year. Between 2018 and 2021, production decreased by 25.1%, which equates to an annualized rate of 9.2%.

Annual dynamics of production in Malaysia in value, 2018-2021, M $ US

Exports wood in the rough from Malaysia

Exports in kind, K t

After a two-year decline, Malaysia's exports of wood in the rough increased in 2021. Exports reached 525.0 thousand tonnes, marking a 6.3% rise compared to the previous year. Between 2018 and 2021, exports decreased by 26.3%, with an annualized rate of 9.7%. The lowest volume was recorded in 2020 at 493.8 thousand tonnes, which also saw the largest decline of 25.3%.

Annual dynamics of product's exports from Malaysia in kind, 2018-2021, K t

From 2018 to 2021, India, Asia (not elsewhere specified), and Indonesia were the leading destinations for Malaysia's exports of wood in the rough in kind. India accounted for 68.0% of exports, Asia (not elsewhere specified) for 11.1%, and Indonesia for 9.8%, together making up 88.9% of total flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Malaysia in kind, 2018-2021

Exports in value, M $ US

After a two-year decrease, Malaysia's exports of wood in the rough in value terms increased in 2021. Exports totalled 127.6 million US dollars, showing a moderate advance of 5.3% compared to 2020. Over the period 2018-2021, exports decreased by 44.3%, with a compound annual growth rate (CAGR) of -17.7%. The lowest value was recorded in 2020 at 121.2 million US dollars, which also experienced the largest decline of 33.9%.

Annual dynamics of product's exports from Malaysia in value, 2018-2021, M $ US

From 2018 to 2021, India, Indonesia, and Asia (not elsewhere specified) remained the main markets for Malaysia's exports of wood in the rough in value terms. India accounted for 65.0% of exports, Indonesia for 13.8%, and Asia (not elsewhere specified) for 9.1%, collectively representing 87.8% of total flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Malaysia in value, 2018-2021

Imports wood in the rough to Malaysia

Imports in kind, K t

The data shows irregular changes, indicating a volatile market environment. Imports reached their peak in 2018 and dropped to their lowest point in 2020, with a 4.8-fold difference between these years. In 2021, Malaysia imported 12.7 thousand tonnes of wood in the rough, amounting to a sharp rise of 80.2% year-over-year. The minimum volume was recorded in 2020 at 7.0 thousand tonnes, which also saw the largest decline of 55.8%.

Annual dynamics of product's imports to Malaysia in kind, 2018-2021, K t

Over 2018–2021, Germany, Suriname, and the United States were the top suppliers of wood in the rough to Malaysia in kind. Germany accounted for 22.4% of imports, Suriname for 20.2%, and the United States for 13.5%, with their combined share reaching 56.1% of total imports.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Malaysia in kind, 2018-2021

Imports in value, M $ US

Malaysia's imports of wood in the rough in value terms increased for the second consecutive year. In 2021, imports came to 53.8 million US dollars, corresponding to a steep rise of 53.8% year-over-year. Over the period 2018-2021, imports increased by 38.7%, with a compound annual growth rate (CAGR) of 11.5%. The lowest value was recorded in 2019 at 21.8 million US dollars, which also experienced the largest decline of 43.8%. The largest increase was recorded in 2020 at 60.5%.

Annual dynamics of product's imports to Malaysia in value, 2018-2021, M $ US

Throughout 2018–2021, Australia dominated the country structure of imports in value terms, accounting for 73.7% of total flows, while other destinations had relatively small shares.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Malaysia in value, 2018-2021