The production of non-coniferous sawnwood in Malaysia has been on a declining trend since 2013, with a significant drop in output from 4.738 million cubic meters in 2013 to 1.7794 million cubic meters in 2023. The year-on-year variations highlight a consistent decrease, especially marked in 2020 with a 32.56% drop, and an 8.05% decline in 2023 relative to 2022. The compounded annual growth rate (CAGR) over the past five years (leading up to 2023) stands at -12.35%, indicating a sharp contraction in production capacity.
Future projections suggest a continuation of this downward trend, with forecasts predicting a further decline to 1.0273 million cubic meters by 2028, which implies an average annual decrease of -8.77% over the next five years and an overall reduction of 36.82% compared to 2023 production levels.
Factors to watch for future trends include:
- Changes in global timber demand and their influence on Malaysia's export markets.
- Government policies and sustainability practices impacting logging and production quotas.
- Technological advancements that may improve yield or reduce costs within the industry.