Wood Product

The wood-based industry is one of the major revenue contributors to Malaysia’s economy. The major subsectors in the industry are:

  • Sawn timber, veneer and panel products which include plywood, and other reconstituted
    panel products such as particleboard/chipboard/fibreboard;
  • Mouldings and builders’ joinery and carpentry (BJC) such as doors/windows and its
    components panels and flooring board/parquet;
  • Furniture and furniture components

Facts and Figures

Wooden furniture is the main downstream activity of Malaysia’s timber industry and contributes 31% of that industry’s total export value in 2014. Plywood is the second major export product and contributed around 25% of the industry’s total export in 2014.

Export Destination of Wood Products, 2014

  • Rest of The World
  • Singapore
  • South Korea
  • Taiwan
  • India
  • USA
  • Japan

Japan remained as Malaysia’s largest export destination for wood products, with exports amounting to approximately RM4.2 billion in 2014. The whole value chain of Malaysia’s wooden furniture industry is composed of small and medium enterprises. It is among the very few Malaysian industries able to transform raw materials into final products and penetrate the global market.

Malaysia is currently the world’s tenth largest furniture exporter, the third in Asia and second in Southeast Asia. Johor is the largest exporter of wood furniture in Malaysia. Furniture exports from Johor contributed 57% of the RM6.4 billion worth of Malaysian wood furniture exports in 2014. In 2014, there were a total of 957 wooden furniture manufactures in the state where the Muar district is the most successful furniture cluster. The wooden furniture cluster has existed in Muar for more than three decades and currently has around 430 manufacturers.

Export Volume of Wooden Furniture by State, 2014

  • Rest of Malaysia
  • Melaka
  • Negeri Sembilan
  • Pulau Pinang
  • Selangor
  • Johor

Total Export RM6.4 Billion

 

Johor is the largest exporter of wood furniture in Malaysia. Furniture exports from Johor contributed 57% of the RM6.4 billion worth of Malaysian wood furniture exports in 2014.

Figure: Distribution of Wooden Furniture Manufacturers in Johor, 2014