Timber harvesting activities in Malaysia recorded month-on-month growth in September 2025, after several months of decline.

The latest monthly Global Timber Index (GTI) report, produced by the Global Green Supply Chain Initiative (GGSC) in collaboration with the International Tropical Timber Organisation (ITTO), noted that the increase in timber harvesting may help ease the shortage of logs.

“In September 2025, the GTI-Malaysia index registered 26.2 per cent, a slight increase of 0.1 percentage point from the previous month, was below the critical value (50 per cent) for many months, indicating that the business prosperity of the superior timber enterprises represented by the GTI-Malaysia index shrank from the previous month.

“On a positive note, timber harvesting achieved month-on-month growth after declining for several consecutive months.

“The harvesting and purchase price sub-indexes had both climbed above the critical value of 50 per cent,” the report stated.

The report, however, noted that the remaining ten sub-indexes – production, new orders, export orders, existing orders, inventory of finished products, purchase quantity, inventory of main raw materials, delivery time, employees and market expectation – remained below the critical value.

“Compared to the previous month, the indexes for harvesting, production, existing orders, purchase price, inventory of main raw materials increased by 2.8-15.4 percentage points; the index for delivery time was unchanged from the previous month; and the indexes for new orders, export orders, inventory of finished products, purchase quantity, employees, and market expectation declined by 5.0-11.1 percentage points,” the report said.

GTI-Malaysia enterprises highlighted several challenges, including prolonged log shortages and insufficient demand for export plywood. Imported plywood has also posed difficulties for local manufacturers. Rising costs in labour, raw materials, and ocean freights to the United States, coupled with a weak building sector and slower customer purchases, were other key concerns.

In related news, data from the Malaysia Timber Certification Council (MTCC) showed that as of September 30, 2025, the country’s 5.92 million hectares of forests had been certified under the MTCS-PEFC scheme, covering 26 certified natural forests and 10 certified forest plantations. The data also indicated that 387 timber companies have obtained MTCS-PEFC Chain of Custody certification.

Meanwhile, the timber industry in other countries including Indonesia, China and Ghana remained in expansion territory for several consecutive months, indicating steady growth overall. Ghana’s GTI index stood at 61 per cent, marking nine straight months of growth, while China’s index was at 51.7 per cent, almost sustaining an upward trend over six months except for a slight contraction in July. Indonesia’s GTI index was at 50.1 per cent, slightly above the critical value.

On September 29, US President Donald Trump announced 10 per cent tariffs on imports of softwood timber and lumber, and 25 per cent levies on kitchen cabinets, bathroom vanities and upholstered wooden furniture into the United States, with further increases set for January 1, 2026.

These measures, according to the GTI report, are expected to affect timber markets in many regions, prompting affected countries to explore market diversification.

“For example, in Brazil, the states of Parana and Santa Catarina, heavily reliant on US exports, are the most affected, and there are growing calls among businesses to develop new markets.

“Also, with the newly signed Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA), Indonesia is expanding its presence in the EU market to boost exports of furniture and other products.

“And in Gabon, some enterprises are calling on domestic businesses not to withdraw from the US market but to enhance their competitiveness there,” the report added.

Source:  sarawaktribune.com