Business Of Timber Companies in Malaysia

The timber industry in Malaysia is a large contributor to the country’s economy, with the sector accounting for approximately 8 percent of Malaysia’s GDP in 2016. The industry employs around 1.6 million people and is a major source of export earnings, with timber and timber products worth RM22.4 billion (US$5.6 billion) exported in 2016.

The vast majority of Malaysia’s timber companies are small and medium-sized enterprises (SMEs), with only a handful of large corporations operating in the sector. The top five timber companies in Malaysia by revenue are Sime Darby Berhad, IOI Corporation Berhad, TA Ann Holdings Berhad, Kretam Holdings Berhad, and Samling Group of Companies.

The timber industry in Malaysia is highly regulated, with the Malaysian Timber Industry Board (MTIB) overseeing all aspects of the sector. Timber companies must obtain a license from the MTIB in order to operate, and are subject to strict environmental and forestry regulations.

Despite the challenges, the timber industry in Malaysia continues to thrive, with strong demand from both domestic and international markets. The sector is expected to grow at a compound annual rate of 4.6 percent between 2016 and 2021, driven