Indonesia

Indonesia's coordinating minister for economic affairs urges diversification of furniture export markets

While attending the International Furniture and Craft Fair Indonesia (IFFINA)+ 2026 event in Jakarta, Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto encouraged the Indonesian furniture industry to expand export markets, so as to reduce dependence on specific markets amid intensifying global economic uncertainty.

Airlangga said this move is crucial given that about 60% of Indonesia's furniture exports are currently absorbed by the US market. On the other hand, Indonesia still has opportunities to increase its furniture market share by improving product quality, design and sustainability, strengthening trade promotion, and expanding cooperation networks with international buyers.

The minister said furniture design development must closely follow changes in global market preferences. Current market demand is trending toward products that are highly functional, easy to customize and made with environmentally friendly materials. He pointed out that Indonesia has abundant raw material resources in wood and rattan that can be used to develop products meeting these market demands.

Indonesia's Ministry of Forestry committed to building a more efficient and sustainable forestry business ecosystem

The Ministry of Forestry is actively promoting the transformation of the forestry business ecosystem, with specific measures including: enhancing certainty over operating areas, improving the implementation performance of forest utilization business licenses (PBPH), optimizing the productivity and marketing of forest products, and increasing non-tax state revenue (PNBP).

Indonesian Sawmill and Woodworking Association adopts Idola method to increase wood added value

The Indonesian Sawmill and Woodworking Association (ISWA) called for driving the transformation of the national wood industry through the application of technology and innovative processing techniques, aiming to increase the added value of plantation timber and enhance the competitiveness of Indonesian products in the global market.

Jimmy Chandra, chairman of the ISWA board, noted at the IFMAC-WOODMAC ISWA Seminar held on September 24, 2026, that Indonesia has diverse raw material sources, including teak, rubberwood, mahogany, pine and fast-growing tree species. However, to translate the potential of raw materials into reality, they must be closely integrated with processing technology, user needs and market opportunities.

ISWA is adopting the "Idola" method to accelerate the increase of added value in the national wood processing industry by strengthening modification technologies that can improve product quality and competitiveness. The "Idola" method was developed as a wood modification technological approach aimed at improving material properties, covering strength, dimensional stability, and biological resistance or durability. One goal of developing the method is to upgrade the quality of wood originally in low strength/durability classes (classes 5 to 4) so that it reaches higher strength/durability classes (classes 2 to 1).

Jimmy pointed out that plantation timber still has limitations in terms of natural properties. Therefore, wood modification technology can be used to improve material performance without changing the essential characteristics of the wood.

Malaysia

Malaysia's timber exports reach RM9.4 billion from January to June 2026

The Malaysian timber industry continues to make a significant contribution to exports, with export value reaching RM9.4 billion from January to June 2026, while its average annual total export value exceeds RM20 billion.

Minister of Plantation and Commodities Noraini Ahmad said the ministry is currently working to strengthen product traceability and open new markets to ensure more local products can reach the international market.

She also said the industry is no longer focused solely on timber production and processing. Its scope has expanded to the production of furniture, doors, flooring, building components, interior decorative materials and various lifestyle products.

Malaysian government takes measures to promote timber industry export growth

Malaysia's timber industry is increasingly transforming toward high-value-added products, especially wooden furniture, which is a major contributor to the industry's exports.

The Minister of Plantation and Commodities pointed out that wooden furniture accounts for about 43% of the industry's total export value. Malaysian-made furniture continues to be in strong demand in major markets such as the United States, the Middle East, Australia and ASEAN countries.

To achieve the target of RM32.8 billion in timber industry exports by 2030, the Ministry of Plantation and Commodities is focusing on several key areas, including expanding market access, enhancing the capabilities of small and medium-sized enterprises (SMEs), and strengthening sustainable development practices within the industry.

In addition, the ministry will focus on four specific areas: ensuring a sustainable supply of raw materials, strengthening SME capabilities, cultivating a skilled professional workforce, and promoting innovation and design excellence.

Sabah Forestry Department and EU complete first phase of cooperation to strengthen supply chain traceability

The Sabah Forestry Department and the European Union held a meeting in Kuala Lumpur to summarize the first phase of cooperation under the Sabah Timber Legality Assurance System (TLAS) update program. This also marked the official completion of the first phase of cooperation between the two sides.

The meeting was chaired by EU Ambassador to Malaysia Rafael Daier. Representatives from the EU delegations to Malaysia and Thailand, EU-Malaysia cooperation institutions, the European Forest Institute and others attended. The meeting focused on summarizing the achievements of the first phase of the TLAS update program in strengthening timber legality and traceability in Sabah, including promoting further improvements in Sabah in timber legality, supply chain traceability, deforestation-free production, and environmental and social responsibility, and strengthening relevant capacities through broad stakeholder participation and technical cooperation.

Thailand

Thai cabinet approves amendment to forest utilization regulations, expanding permitted activities from 10 to 16 categories

On September 1, Lalida Pertviwattana, deputy spokesperson of the Thai Prime Minister's Office, announced that the cabinet had in principle approved a draft sectoral regulation submitted by the Ministry of Natural Resources and Environment on permits for the use of forest areas, expanding the types of activities for which permits can be applied in forest protection areas from the original 10 categories to 16 categories. The newly added categories include renewable energy operations, telecommunications, public utilities, waste management, forestry welfare services and other uses that promote economic, social, environmental or security development.

Cabinet approves major expansion of registrable plantation tree species from 58 to 211

Thai Minister of Natural Resources and Environment Suchart Chomklin, after attending the Global Legal and Sustainable Timber Forum 2026 (GLSTF 2026) held in Macao, China, on September 22-23, 2026, pointed out that the global timber industry is increasingly emphasizing the legality, sustainability, transparency and traceability of timber sources. Therefore, Thailand plans to use the insights gained from the forum to develop its economic forest industry and expand trade opportunities.

One important development is that the cabinet has approved a draft ministerial regulation updating the list of tree species under the Plantation Act. This will increase the number of tree species eligible for registration from 58 to 211, making it easier for the public and industry to plant, harvest and trade trees within the legal framework. However, the cabinet's approval does not yet constitute the formal promulgation and implementation of the regulation.

Mr. Suchart said the Ministry of Natural Resources and Environment will promote the cultivation of economic trees on legally designated land while establishing certification and origin verification systems. These measures are intended to enable domestic and foreign buyers to verify the origin of Thai timber and wood products, with particular efforts to help farmers, communities and small-scale entrepreneurs gain access to the certification system.

Rubber Authority of Thailand develops Thai rubber traceability standard

The Rubber Authority of Thailand (RAOT) has developed the Thai Rubber Traceability Standard, establishing a full-chain traceability system covering planting, processing, transportation, sales and other links, with a focus on meeting international market requirements such as the EU Deforestation Regulation (EUDR). RAOT plans to pilot the standard in seven regions nationwide in 2026, expand it to no fewer than 33 groups in 2027, and upgrade it to a national standard in 2028 and align it with international standards such as EUDR and FSC.

At present, 627 rubber farmer institutions are eligible for EUDR sales; 67,000 rubber plots, about 600,000-700,000 rai, have achieved certified traceability and can supply about 160,000 tonnes of EUDR-compliant rubber. EUDR-compliant rubber currently commands a price about 2 baht per kilogram higher than ordinary rubber. RAOT believes that promoting the Thai Rubber Traceability Standard will increase the added value of Thai rubber, consolidate the EU and global markets, expand farmers' income channels through sustainable cultivation and carbon credits, and enhance the international competitiveness of Thailand's rubber industry.

China

Global Legal and Sustainable Timber Forum 2026 successfully held in Macao, China

On September 22-23, the Global Legal & Sustainable Timber Forum 2026 (GLSTF 2026) was successfully held in Macao, China, under the theme 'Innovation and Transformation – Pursuing Avenues for Resilient and Sustainable Global Timber Industries'. The forum brought together over 800 guests from 49 countries and regions worldwide, highlighting its growing global engagement and industry influence. 

Six international and local co-operation outcomes were released during the forum, including the “Action Framework 2026 for Promoting Legal and Sustainable Timber Supply Chains”; the upgrading of the Global Timber Index (GTI) platform to include a new price index to create a comprehensive industry service portal; the official application and operation of the Blockchain-based Timber Traceability System-Trading Platform (BTTS-TP) in Macao; the establishment of the Global Timber Association Network (GTAN); the inauguration of the International Cooperation and Innovation Center for Green Transformation of Global Supply Chain; the initiation of the drafting of the Macao Green Standard Management System & Standard for Biomass Aviation Fuel; and the signing of a co-operation agreement on jointly building a Muslim-friendly market environment in Macao.

China's construction formwork industry shows clear intention to raise prices

In the past two months, the chemical raw materials market has risen across the board, and another wave of sharp increases followed after the holiday. Prices of essential auxiliary materials for formwork production, such as glue and film-coated paper, have been raised one after another, continuously pushing up formwork production costs and increasing pressure on manufacturers.

At the same time, as the weather is pleasant in autumn, basic construction such as housing and bridges is proceeding intensively, and demand for construction formwork has entered the peak season.

With cost pressure combined with continuously released demand, the industry's overall intention to push up prices has clearly strengthened again. At present, several formwork manufacturers have issued price increase notices.