MWE 2025: Global Expertise to Move the Timber Industry Forward
In the wake of various geopolitical shifts and moves such as the United States’ trade policy and the European Union Deforestation Regulation (EUDR), the timber industry in Malaysia and across the world has had to pivot and reorient itself to remain viable, competitive, and productive. To that end, the recently concluded Malaysian Wood Expo (MWE) 2025 has brought together timber industry experts from across the globe to share their experiences and showcase their capabilities in their joint commitment to advance the industry together.
First organised by the Malaysian Timber Council (MTC) in 2019, the MWE is one of the Council’s flagship programmes designed to be amongst the region’s most dynamic timber industry trade platforms. Bringing together buyers, sellers, designers, and innovators, MWE 2025 aimed to “… explore opportunities, forge partnerships, and exchange ideas that drive innovation, sustainability, and business growth,” according to MTC’s CEO, Noraihan Abdul Rahman, in her welcoming remarks delivered on behalf of MTC’s Chairman, Datu Haji Zainal Abidin bin Haji Abdullah.
In his keynote speech, Datuk Seri Johari bin Abdul Ghani, Minister of Plantation and Commodities, as well as Acting Minister of Natural Resources and Environmental Sustainability, noted that “Malaysia has earned global recognition for its commitment to sustainable forest management and responsible trade practices.”
“Through continuous innovation, certification, and adherence to international standards, Malaysian timber products have become valued for their environmental integrity, quality, and craftsmanship.” Datuk Seri Johari added.
Datuk Seri Johari, Minister of Plantation and Commodities (centre), officially launching MWE 2025. Photo credit Building & Investment (B&I).
In conjunction with MWE 2025, an inaugural International Timber Conference themed “In the Eye of the Storm” brought together several international and local industry experts to discuss matters of mutual importance, such as U.S. trade policies, the EUDR, and the role of innovations such as artificial intelligence (AI) in the timber industry. Speakers also shared their experiences and perspectives regarding the timber industries and markets across the U.S., Europe, the Middle East, and China. The conference was attended by over 270 participants and saw lively engagement between the conference delegates and the speakers.
Delegates at the MWE 2025 International Timber Conference. Photo credit MTC.
Also in conjunction with MWE 2025 was the start of the Forestry & Industry Experience Programme (FIEP), which brought together several industry and media representatives – including from B&I – on a field trip across the states of Perak and Selangor for a first-hand experience of conservation and timber harvesting activities in various types of forests, as well as factory visits to timber product manufacturers, to better understand the timber industry in Malaysia.
FIEP Participants at MWE 2025. Photo credit MTC.
MWE 2025 was a tremendous success, bringing together 127 exhibitors across 19 countries, including China, Germany, Austria, Uruguay, and Thailand, and having attracted over 1,900 trade visitors across the two days of the Expo. The Incoming Buying Mission (IBM), which facilitated over 350 business meetings between Malaysian exporters and 78 buyers from 27 countries, brought in RM177.6 million in export deals. Meanwhile, thanks to the Inbound Overseas Suppliers Programme (IOSP), which connected 33 Malaysian manufacturers with 18 international raw material suppliers, RM16.9 million worth of raw material orders were generated. In total, MWE 2025 resulted in RM194.5 million in confirmed sales, a significant increase from MWE 2023’s RM180.8 million.
Malaysia Leading the Way in Sustainable Forest Management and Natural Resource Usage
Malaysia’s forests have been placed under sustainable forest management systems for over 120 years, well before the formation of the country itself. The Government of Malaysia is committed and proactive when it comes to setting ambitious goals related to net-zero carbon emissions, environmental sustainability, and climate change mitigation, both in response to global trends and to provide itself a competitive advantage as being amongst the tropical countries that export forest-related natural resources, including timber, to countries and economies that appreciate sustainability.
There are several categories of forests in Malaysia, such as mangrove forests, peatland forests, inland forests, and industrial tree plantations (ITPs), amongst others, each of which has its own specific characteristics and hence, management plan and system. For instance, in the state of Perak, the mangrove forest working plan is separate from the main forest management plan. This is due to the fact that mangrove forests in Perak have had a forest management plan in place since the early 1900s – a plan that has remained largely intact to this day, while receiving regular updates to keep it relevant.
Examples of a mangrove forest (right) and a peatland forest (left). Photo credit Building & Investment (B&I).
One overarching objective that all the forest management plans share is to prioritise conservation and ecological biodiversity above pure economic benefits, while maximising the commercial value of the strictly regulated outputs. For example, the Matang Mangrove forest reserve, widely considered to be the best-managed mangrove forest in the world, has 17.3% of its total area gazetted as protected forests that are not used for timber production. This makes the mangrove forests a haven for various aquatic and avian wildlife, including mudskippers, prawns, cockles, terns, and crested goshawks, which incidentally makes the reserve an ideal location for eco-tourism as well.
Crested goshawks at the Matang Mangrove forest reserve. Photo credit Building & Investment (left) and MTC (right).
Each state forestry department regulates and sets its own limits as to the number of logging licence holders, and the types and quantities of resources harvested; constraints as to which trees may be felled and from where; a requirement to replant felled trees; and an inventory system to ensure all timber comes from legitimate sources. Licence holders are only permitted to fell trees that have been marked by forestry officers and must use reduced-impact logging equipment and techniques.
State forestry departments use advanced technologies such as computerised record-keeping, drones, and satellite imagery to keep tabs on logging activity and timber transport, cooperating with law enforcement and local authorities to mitigate against illegal logging and land clearing. In the case of peatland forests, Internet of Things (IoT) sensors and systems have also been deployed to monitor underground or subsurface hydrology as an early warning system for fire hazards.
IOT sensor deployed in a peatland forest in Selangor. Photo credit MTC.
To ensure more sustainable and steady supplies of timber, Malaysia has long ventured into the setup of ITPs that are likewise strictly licenced, regulated, and monitored – down to the type of trees that may be planted and the requirement to replant native species after the duration of the licence. ITPs are approved only after undergoing a rigorous application process, including environmental impact assessments, and after ensuring the interests of nearby residents.
One of the ITPs in Perak. Photo credit Building & Investment (left) and MTC (right).
Choosing Malaysian Timber Products with Confidence
People and companies looking to source sustainable timber and timber products for their building, construction, or interior decoration projects, and who are worried about increasingly stringent regulatory requirements (e.g. the European Union Deforestation Regulation or EUDR), need look no further than Malaysia’s certified timber and timber products, and can safely choose to buy ‘made in Malaysia’.
When it comes to sourcing timber, Malaysia is well-positioned at the heart of ASEAN, with strong trade links, a credible certification system, and a solid reputation for sustainability. Further, Malaysia’s pursuit of innovations in automation, adoption of technologies related to the Fourth Industrial Revolution (IR4.0), and green manufacturing, facilitating industry players to modernise their operations, reduce costs, and enhance productivity.
As of October 2025, approximately 5.85 million hectares of Malaysia’s forests are certified under the Malaysian Timber Certification Scheme (MTCS), which is the first tropical forest certification scheme in the Asia-Pacific region to be endorsed by the Programme for the Endorsement of Forest Certification (PEFC). This places Malaysia amongst the Top 10 countries globally with the largest PEFC-certified forest area, and the only tropical country on that list.
The MTCS is operated by the Malaysian Timber Certification Council (MTCC). For years, MTCC has worked closely with the various state forestry departments of Peninsular Malaysia to promote sustainable forest management (SFM) through MTCS-PEFC certification. These departments form one of the MTCS-SFM certificate holders’ groups. Since it first started operations in 2000, MTCC has been providing technical support, training, and market access guidance, as it works towards helping achieve Malaysia’s goal of certifying 50% of forest areas (both natural forests and industrial tree plantations) by 2030 under the National Agricommodity Policy (DAKN) 2021-2030 and the National Policy on Biological Diversity 2022-2030.
MTCS covers the entire timber and timber products industry value chain, from the forests themselves through to sales, whether domestic or export. MTCS certifies both that the forests are under a sustainable forest management plan (MTCS ST 1002:2021), and that there is a complete chain of custody from certified forests to point-of-sale (PEFC ST 2002:2020, the PEFC standard that MTCS has decided to adopt).
The two standards operated by MTCC to certify the timber industry supply chain. Picture credit MTCC.
As a PEFC-endorsed scheme, the MTCS has been accepted under the national timber procurement policies of Denmark, the United Kingdom, Germany, Finland, Belgium, Switzerland, France, and New Zealand, as well as the Keurhout System (a valuable and constructive instrument that aims to stimulate the sustainable production of timber) of the Netherlands, as meeting the requirements for sustainable timber.
The rigour and high standards of the MTCS certification process have been validated by the Dutch Timber Procurement Assessment System (TPAS), widely recognised as amongst the most stringent standards in the world. The Government of the Netherlands has validated that MTCS (and hence PEFC) complies with TPAS requirements and will continue to source Malaysian timber and timber products.
As Malaysia seeks to promote not just sustainable Malaysian timber, but also Malaysian woodworking craftsmanship and expertise, industry players in the nation have been hard at work implementing technologies related to IR4.0 and developing their own innovations. For example, Weng Meng Industries, one of Malaysia’s top wooden door manufacturers, has patented technology related to the use of oil palm trunk (OPT) as door cores, and has proof-of-concept of its use in furniture as well.
Examples of products made from OPT. Photo credit Building & Investment (B&I).
Both the Malaysian Government and Malaysian timber industry players will keep working in tandem to ensure that Malaysian timber products come from certified sustainable sources, and that they are manufactured to comply with the highest quality and ethical standards globally.
