logo
Malaysia timber trade hits RM9.95 bln in Q1 2025, eyes RM4 bln furniture exports by 2030

Malaysia timber trade hits RM9.95 bln in Q1 2025, eyes RM4 bln furniture exports by 2030

Borneo Post20-07-2025
Zainal (seated centre) joins members of the newly installed SFIA 2025-2028 committee for a group photo.
KUCHING (July 20): Malaysia's total trade value for timber and timber products, including exports and imports, reached RM9.95 billion in the first four months of this year, said Sarawak Timber Industry Development Corporation (STIDC) general manager Zainal Abidin Abdullah.
He said exports contributed RM7.18 billion, signifying a strong demand for Malaysian timber products, while imports stood at RM2.767 billion, reflecting healthy domestic use and a well-connected supply chain.
Wooden furniture took the lead in exports, bringing in RM3 billion, followed by plywood (RM742.5 million), sawn timber (RM582.5 million), and fibreboard (RM210 million).
'Last year, our timber exports reached RM22.9 billion, a solid 4.9 per cent increase from the previous year. This steady growth shows how resilient and adaptable our industry truly is,' Zainal said during the Sarawak Furniture Industry Association's (SFIA) 17th committee installation dinner held at Borneo Convention Centre Kuching on Friday.
He said Sarawak's timber export earnings reached RM2.84 billion last year, a slight decrease from RM3.14 billion in 2023.
'More than numbers, these achievements underscore the timber industry's important role not only in driving Malaysia's economy but also in creating jobs and supporting communities, especially in rural areas,' he said.
According to Zainal, innovation in design remains vital as Sarawak adapts to changing market trends, while efforts to expand market access through trade fairs and export programmes are opening doors worldwide.
However, he pointed out that material shortages are a significant hurdle, with Malaysia importing up to 60 per cent of its raw materials like timber, hardware, and fabrics.
'Sarawak, despite its rich timber resources, often exports raw wood rather than finished products, limiting value-added opportunities.
'In addition, our industry relies heavily on foreign workers, which affects skills retention and innovation. Locally, there is a shortage of skilled craftsmen and designers, which slows productivity and the adoption of new technologies,' he added.
Zainal also said Sarawak faces competition from emerging markets, such as China and Vietnam, while limited access to advanced technology and a small domestic market restrict growth.
He added that environmental regulations and concerns about deforestation add further complexity, requiring sustainable practices that can be costly and difficult to implement.
'Despite these challenges, there is great potential for Sarawak's furniture industry, which can carve out a stronger position in the global market by investing in skills development, innovation, and sustainable practices,' he emphasised.
On STIDC, Zainal said a comprehensive Furniture Industry Blueprint has been developed to map out a clear, strategic pathway for the sector's growth, encompassing product development, supply chain strengthening, and market expansion.
'In collaboration with the SFIA, STIDC is actively compiling a detailed database of member companies and their offerings, which will serve as a foundation for this blueprint.
'Through joint brainstorming sessions, we aim to establish a robust and integrated supply chain that supports our ambition to achieve RM4 billion in furniture export revenue by 2030,' he added.
Meanwhile, SFIA president Leo Chiang said the furniture industry in Sarawak is facing an increasingly complex landscape, shaped by global and local shifts.
'Challenges – including the US tariffs affecting exports, Malaysia's expanded SST (Sales and Services Tax) raising operational costs, and the introduction of FWTA (Foreign Workers Transformation Approach) in Sarawak – add intense pressure and demand closer collaboration with stakeholders.
'Now, more than ever, we must work together to stay resilient and competitive,' he stressed.
Chiang also said they look forward to even closer cooperation with STIDC in shaping policies, facilitating training, supporting innovation, and promoting Sarawak-made furniture on the global stage.
'We must also remain committed to developing our SMEs (small and medium enterprises), uplifting design capabilities, embracing sustainable practices, and grooming the next generation of industry players,' he added.
*Editor's note: This article has been amended for accuracy. lead stidc timber trade Zainal Abidin Abdullah
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Techstore secures RM7.7m contract from Royal Malaysian Customs for RTS Link project
Techstore secures RM7.7m contract from Royal Malaysian Customs for RTS Link project

The Sun

time8 minutes ago

  • The Sun

Techstore secures RM7.7m contract from Royal Malaysian Customs for RTS Link project

PUCHONG: Enterprise IT services provider, TechStore Bhd, via its wholly-owned subsidiary, Tech-Store Malaysia Sdn Bhd, has accepted a letter of award (LoA) from the Royal Malaysian Customs Department for the provision of leasing and training services for four units of baggage scanner machines and two units of body scanner machines with accessories for RM7.7 million. The equipment will be deployed at the Woodlands North Customs, Immigration, and Quarantine (CIQ) in Singapore, as part of the RTS Link between Malaysia and Singapore. TechStore managing director Tan Hock Lim said the RTS Link represents a significant advancement in cross-border transportation infrastructure connecting Malaysia and Singapore. 'The award reflects the government's trust in our capabilities to deliver reliable enterprise IT systems for high-security border control and inspection,' he said in a statement. The LoA further expands TechStore's involvement in the RTS Link project, which encompasses design consultation for depot equipment and service vehicles, uninterruptible power supply, and the RTS enterprise resource planning work packages, as well as the project for fit-out works for Malaysian agencies at Woodlands North CIQ. 'Our growing portfolio in key national railway projects continues to reinforce TechStore's standing as a trusted enterprise IT partner in the sector. 'Beyond the RTS Link, we are involved in major initiatives such as the LRT Kelana Jaya Line, LRT Ampang Line, MRT Kajang Line, and the ongoing LRT3. 'With the government's increasing push toward public transport digitalisation, we see growing demand for integrated, secure, and localised enterprise IT solutions. 'Our group remains focused on deepening our subject matter expertise, and is targeting larger and more complex transportation projects in Johor and Penang, in line with our strategy to support the digital transformation of Malaysia's transport ecosystem,' Tan said. The group's unbilled order book remains healthy at RM135.3 million as of May 31, 2025, supported by a robust job pipeline with a tender book totalling RM1.2 billion. To recap, TechStore was listed on the ACE Market of Bursa Malaysia on February 18, 2025 and has successfully raised a total of RM25.0 million in proceeds to accelerate its growth plans and enhance its capacity to undertake larger-scale projects.

Xiaomi Malaysia to grow premium smartphone segment
Xiaomi Malaysia to grow premium smartphone segment

The Sun

time21 minutes ago

  • The Sun

Xiaomi Malaysia to grow premium smartphone segment

XIAOMI Technologies Malaysia Sdn Bhd (Xiaomi Malaysia), which has opened the brand's biggest Southeast Asian retail outlet at The Exchange TRX, Kuala Lumpur, is growing its premium smartphone segment as competition heats up, while expanding its product lines and categories. 'We are paying more attention to the premium segment. The entry segment is hard to survive as its margin is more competitive,' Xiaomi Malaysia country manager Eddie Huang told a media interview after launching its latest outlet yesterday. He said the brand's entry segment makes up the larger chunk of its sales locally. In China, Xiaomi is bigger in the middle and premium segments. 'Investing in retail outlets and improving our after-sales service can help us to increase sales in the premium segment. 'Our mission is to make Xiaomi's technology accessible for everyone. We have a full range of products, from entry segment to premium segment, from smartphones to tablets. Before this, we focused on the entry segment, but now we try to do more things, such as going into the premium segment and different product lines,' he explained, adding that home appliances is its new product line this year. He said although Xiaomi has a strong online business in the Malaysian market, offline sales still constitute the majority of sales here. 'For premium models especially, most consumers need to experience (the product). This is why we have a retail outlet at TRX, and this outlet has the most SKUs here. Consumers can experience all products in one space.' It plans to grow its physical presence in Malaysia to 85 outlets by year-end, from 77 outlets currently. It also wants to increase its smartphone market share in the country, from 18% in the first quarter of 2025. 'We hope to improve our average selling price, invest more in retail outlets and sell more premium models,' said Huang. Redefining tech retail Xiaomi's new retail outlet at The Exchange TRX is its second retail outlet in Malaysia and the biggest retail outlet under its new retail business model in Southeast Asia. Following the success of its first new retail outlet at IPC Shopping Centre, this latest addition sees Xiaomi delivering a premium and hands-on retail experience. With over 250 displayed stock keeping units (SKUs) and more than 500 SKUs of Xiaomi devices available for purchase, the 2,700 sq ft outlet offers the widest range of Xiaomi products in Malaysia, spanning smartphones, AIoT devices and smart home solutions. This is also Xiaomi's first new retail outlet in Malaysia to offer on-site after-sales support, where customers can receive expert assistance directly from trained Xiaomi specialists. The outlet showcases the brand's innovative range of products that aims to elevate smart living lifestyle. Conceptualising Xiaomi's upgraded strategy 'Human × Car × Home', this new outlet promises a refined retail experience where fans and shoppers alike can explore Xiaomi's smart ecosystem that seamlessly integrates personal devices and smart home products. 'After the success of the first new retail outlet at IPC Shopping Centre, we are providing an even more holistic retail experience to our customers with the opening of our second new retail outlet. 'This outlet reflects our mission to make the latest innovative technology accessible to everyone, and also enhancing customer experience through retail design and customer service. Malaysia is a key market that continues to inspire our growth,' said Huang.

Nam Cheong unveils Malaysia's first purpose-built multi-purpose support vessel at IEW 2025
Nam Cheong unveils Malaysia's first purpose-built multi-purpose support vessel at IEW 2025

Borneo Post

time38 minutes ago

  • Borneo Post

Nam Cheong unveils Malaysia's first purpose-built multi-purpose support vessel at IEW 2025

Abang Johari (right) with Leong during the showcase of SKG 520 at IEW 2025 held here recently. KUCHING (July 28): Nam Cheong Group, Malaysia's largest offshore support vessel (OSV) builder and a leading integrated marine solutions provider, has unveiled the SKG 520, the country's first purpose-built multi-purpose support vessel (MPSV) owned by a Malaysian and Sarawakian company. The SKG 520 was showcased at the International Energy Week (IEW) 2025 held here recently and has attracted strong interest from key government leaders and industry players. The group in a statement said the SKG 520 is designed to serve both traditional oil and gas as well as the fast-growing renewable energy sectors. It features five modular configurations tailored for specific offshore operations, offering versatility. These include a geotechnical drilling rig for seabed surveys, a remote-operated vehicle system for underwater inspections, an air diving module for subsea work, a survey suite equipped with streamers and sonars, and a walk-to-work gangway for safe personnel transfer to offshore platforms. Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg toured the SKG 520 exhibit at IEW, joined by Deputy Minister of Energy and Environmental Sustainability Datuk Dr Hazland Abang Hipni. The group added that its innovation stems from its success in retrofitting vessels for emerging energy markets. The SKG 520 concept draws from the SK Eonik, which was upgraded for offshore wind support and is now on a 2+2 year charter in Japan. This track record highlights Nam Cheong's global reach and adaptability. Group CEO Leong Seng Keat said the vessel reflects Nam Cheong's drive for engineering excellence and future-ready solutions. 'The SKG 520 is a testament to Nam Cheong Group's unwavering commitment to engineering excellence and our proactive approach in addressing the evolving demands of the global energy landscape. 'As Sarawak positions itself as a leader in the green hydrogen economy and offshore renewables, the SKG 520 stands ready as a versatile, purpose-built asset, proudly owned by a Malaysian and Sarawakian company, to support these critical developments both locally and internationally,' he said. Founder Tan Sri Datuk Tiong Su Kouk added that the vessel represents decades of shipbuilding progress rooted in Sarawak. 'The SKG 520 embodies our legacy of innovation and adaptability, showcasing the advanced capabilities of our Miri Dockyard and our skilled workforce. 'This vessel is not just a new build; it is a symbol of our dedication to providing integrated marine solutions that are truly future-ready,' he added. The SKG 520 will undergo its formal naming ceremony in August. MPSV nam cheong offshore support vessel OSV

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store