The production of wood-based panels in Malaysia has shown a significant decline from 2013 to 2023. Specifically, the production value in 2023 stood at 3.2426 million cubic meters, reflecting a year-on-year decrease of 5.7% from 2022 and recording a Compound Annual Growth Rate (CAGR) of -5.54% over the last five years. The downward trend has been consistent with fluctuations, such as a notable drop of 11.81% in 2020, followed by a marginal decrease of 3.02% in 2021, and a steady level in 2022 before continuing its decline in 2023. Forecasts indicate further declines, with production expected to reach 2.3508 million cubic meters by 2028, representing a forecasted five-year CAGR of -5.14% and an overall decrease of 23.19% from 2023.
Future trends to watch include the potential impact of economic factors, government policies on sustainable forestry, advancements in manufacturing technology, and shifts in international market demand for wood-based panels. These factors could influence the direction of the industry and potentially alter the current downward trend.
