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In recent years, American capital has gradually shifted production line factories to Southeast Asia. The unique geographical advantages and low labor costs in Southeast Asia have been favored by Western countries. A series of measures have directly developed industries in the region.

Although the epidemic in the past two years has repeatedly brought considerable troubles to individuals and the country, and has even more impact on the industrial part of human production, the export data of the Malaysian timber industry is still staggering, which can reach 22.02 billion ringgit in 2020 ( (About 53 million U.S. dollars), second only to palm oil and rubber, a decrease of only 2% from the 22.5 billion ringgit in 2019. Among them, more than 50% of wood and wood-related exports come from wooden furniture, builders' joinery and carpentry, and molds.

Looking at the export data of Malaysian wooden furniture alone, in 2019, the export value of furniture was 9.14 billion ringgit, and in 2020 it was 10.63 billion ringgit. By the first eight months of 2021, the export value of furniture has reached 6.6 billion ringgit, compared with 62 million in the same period last year. Billion ringgit increased by 5.2%. According to data from the Malaysian Ministry of Planting and Commodities (MPIC), the export value of wooden furniture this year can exceed 13 billion ringgit.

Malaysia’s wooden furniture industry in the current era has great potential. The recently signed Regional Comprehensive Economic Partnership, the ASEAN Free Trade Area and its seven regional free trade agreements all give the region a large export of wood products in terms of policies. help.

Opportunities and risks coexist. Behind the bright prospects of the Malaysian wooden furniture industry, various risks are waiting for them to resolve.

The main demand for furniture is attributed to different consumer behaviors in different markets (mainly the United Kingdom and the United States). In these markets, it is normal for households and businesses to replace furniture every three to five years.

In fact, the U.S. has surpassed Japan as Malaysia’s largest export market for timber and wood-related products for the second consecutive year since 2019. The U.S. is Malaysia’s largest single furniture market, accounting for 60% of all furniture exports. At the same time, other countries in Southeast Asia also competed in the furniture market. Due to low production costs in Vietnam and other countries, the furniture export rankings have risen rapidly, and Malaysia cannot have an advantage simply by price wars.

At the same time, the national procurement policies and other non-tariff barriers in various importing countries have passed timber legality requirements, import legality verification, eco-labeling, carbon footprint reduction, life cycle assessment, and other obstacles to market access. It can be seen that a simple price war can no longer meet the needs of importing countries, and new compliance requirements for domestic products are particularly important.

Malaysia's timber industry will have to solve these problems head-on, on the one hand, through automation and mechanization in line with the fourth industrial revolution to increase productivity and production capacity. On the other hand, shifting from batch-based original equipment manufacturing to better-value original design manufacturing will increase the profit base of products and the market to increase competitiveness. Simultaneously unified management of domestic timber standardization issues.

In addition, hot issues such as environmental protection can also be used wisely. Customers in the United States, the United Kingdom, and developed countries outside of Europe are becoming more aware and insightful in choosing environmental protection. By increasing the added value of products and emphasizing sustainable development as the future development trend of furniture, they can also win their love.

The development of Malaysia’s timber industry is gradually moving closer to China’s development path. With the recent policies adopted by China for the form of international trade, it is foreseeable that the furniture and timber industry in Southeast Asia will grow stronger. At the same time, Malaysia has more Visionary decision-making and design, given time, can completely replace Vietnam's current position in furniture production in the world.