Timber exporters face licence revocation over violations
KUALA LUMPUR: Timber exporters who fail to comply with regulations risk having their permits revoked, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
He said companies must ensure their products contain at least 60 per cent local value-added content, even if some raw materials are imported.
"I have informed the industry that if they want to export our timber products (even when some materials are imported), these imports are only allowed as input, not finished goods.
"You cannot simply take a ready-made product, place it in a container, change the certificate of origin at the port, and export it. That is not acceptable," he said at an event here today.
The Malaysian Timber Industry Board (MTIB) appreciation event also featured the launch of the book Anatomi dan Pengecaman Kayu Malaysia (Malaysian Wood Anatomy and Identification).
Currently, MTIB issues 60-day export permits per shipment for timber-based products. Importation is only allowed for raw materials, not finished items.
Johari added that companies found violating MTIB rules have been blacklisted in the past.
"There have been cases before. If MTIB catches them, they will no longer be allowed to export. That means they've manipulated timber products for export and that is not allowed," he said.
Meanwhile, Johari said the timber industry remains a major contributor to Malaysia's agri-commodity sector, not only in export value but also in employment, having created around 180,000 jobs across processing, furniture manufacturing, logistics, and marketing.
"This development proves that the timber industry remains one of the key pillars of the national agri-commodity sector, with strong prospects for continued global growth," he said.
Timber and furniture exports rose 4.9 per cent in 2024 to RM22.9 billion. Malaysia now exports to over 182 countries, with top markets including the United States (RM6.5 billion), China (RM3.4 billion) and Japan (RM2.8 billion).
Imports also increased 13.2 per cent year-on-year to RM8.5 billion.
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