Today marks a unique global double-header: the International Day of Forests and World Wood Day. For many nations, these are merely dates on the calendar, but in Malaysia, they serve as a profound testament to a national success story—one defined by visionary leadership and an unwavering commitment to sustainable forestry.
With 5.92 million hectares of MTCS/PEFC-certified forests, Malaysia is the top-certified country in Asia1, demonstrating how well-managed forests can support both ecological health and economic growth.
This dual celebration also highlights a broader truth: forests are not only critical to biodiversity and climate stability but are also a strategic economic asset. Malaysia has maintained approximately 54% of its forest cover (17.97 million hectares)2, surpassing the national commitment made at the 1992 Rio Earth Summit3, while its timber and wood-based products generated RM21.5 billion in export value in 2025, contributing to a trade surplus of RM12.61 billion4. Placed within the broader national context, Department of Statistics Malaysia (DOSM) records that Malaysia’s total exports in 2025 reached approximately RM1.6 trillion5, with timber accounting for about 1.3% of overall exports. These figures show that forests, when managed sustainably, provide both environmental protection and tangible economic benefits.
The Malaysian Timber Certification Scheme (MTCS) is key to this success. Run by the MTCC, it was the first tropical forest system in the Asia Pacific to gain international recognition from the PEFC. By certifying both forest management and the supply chain, the MTCS ensures Malaysian timber is sustainably sourced and trusted worldwide. Remarkably, the MTCC has been championing these sustainability standards in the forestry and timber industry sector, since 1999—long before “ESG” became a global buzzword.
Sustainable Forest Management in Action
Forest Management Certification under MTCS is assessed through the MTCS ST 1002:2021 Malaysian Criteria and Indicators for Sustainable Forest Management (MC&I SFM)6. This robust standard ensures that forests are managed in a way that balances environmental protection, social responsibility, and economic viability. This standard is set following the PEFC benchmark standard with consideration of local circumstances of Malaysia and our case, the 3 regions.
As of 13 March 2026, 32.9% (5,928,246 hectares) out of 17,967,520 hectares of Malaysia’s total forest cover, are MTCS/PEFC-certified7. This includes both natural Forest Management Units (FMUs) and Forest Plantation Management Units (FPMUs). Of this certified area, 69.9% is located in Peninsular Malaysia (4,140,134 hectares), 27.9% in Sarawak (1,652,412 hectares), and 2.3% in Sabah (135,700 hectares)7.
Diagram 1: With 5.92 million hectares of certified forest and a growing network of 372 active companies, Malaysia is positioningits timber sector at the intersection of environmental conservation and global economic resilience.
But beyond the numbers, what does a certified forest actually look like? It is a forest that is actively and carefully managed. Within these forests, areas known as High Conservation Value (HCV) sites are identified and protected. These may include habitats for wildlife such as the Malayan sun bear and elephants, rare or threatened ecosystems, critical water catchments, and areas that hold cultural or spiritual importance for local communities.
Sustainable forest management also extends beyond biodiversity. Local communities living in or adjacent to these forests are an integral part of the ecosystem. Under MTCS, they are given priority for employment related to forest operations. Community engagement is also a large part of the principles of the certification in which community gets to raise their concerns and co-exist with the sustainable forest management practices implemented in the forest operation areas. In this way, certified forests continue to provide not only environmental benefits, but also livelihoods and long-term community resilience.
To ensure these standards are consistently upheld, independent third-party audits are conducted annually, with full recertification every five years. These audits go beyond forest practices. They assess legal compliance including regional compliance, top management commitment, labour / work conditions and rights, and community engagements, ensuring a high level of accountability and transparency across all aspects of forest management. In an era of “fake news,” certification provides a transparent, audited trail from forest floor to consumer. The level of transparency is heightened with the need for summaries of forest management plans, monitoring reports and audit summaries which needs to be made public, indicating that certified forest and plantation forest are subject to higher transparency requirements compared to non-certified forests.
Certified forests are sustainably managed under the MTCS, guided by management plans, environmental safeguards, and continuousmonitoring in line with the MC&I SFM Principles.
From Sawn timber to Tissue Paper and Wood Pellets: Bringing Certification to Everyday Life & Greener Energy
While responsible forest management is the foundation, sustainability does not stop at the forest. Timber passes through multiple stages, from harvesting and processing to manufacturing and retail, before reaching the end user. Ensuring that certified material remains traceable throughout this journey is the role of Chain of Custody (COC) certification. COC certification provides assurance that the final product purchased by consumers originates from responsibly managed sources.
Since 2002, MTCS has certified a total of 821 companies, with 372 companies holding MTCS/PEFC COC certification as of 13 March 20268. These certified companies include sawmills, manufacturers, exporters, and downstream producers across the timber and wood-based product value chain.
Thanks to these companies, the scope of certified products has expanded far beyond primary goods such as sawn timber and plywood in early 2000. Today, MTCS/PEFC-certified materials are incorporated into a wide array of downstream and finished goods, including mouldings, doors, builders’ carpentry and joinery, furniture, wood pellets, biomass, paper-based products for printing, F&B and packaging, kitchen cabinets, and disposable hygiene items like tissue paper and diapers. Malaysian hardwood is also known for its durability with water thus claiming the term marine timber.
As a result, certified products are no longer limited to industrial applications, they are part of daily life. Consumers may encounter MTCS/PEFC-certified products through well-known brands such as Vinda, Paseo, PetPet, MamyPoko, PaperOne, Signature Kitchen, Royal Selangor, and more.
From timber and furniture to paper and everyday household items, MTCS/PEFC-certified products ensure that they come fromsustainably managed forests.
Expanding Access to Certification Across the Value Chain
Sustainability expectations have been rising for businesses for over a decade. Bursa Malaysia made sustainability reporting mandatory through amendments to its Listing Requirements in October 2015. The framework has since been progressively strengthened, including enhanced reporting requirements introduced in 2022 and further regulatory upgrades in 2025.
To ensure that sustainable practices are not limited to large corporations alone, MTCS continues to evolve its certification approaches to be more inclusive and accessible across the industry by providing other pathways for participation in certification.
Project certification offers flexibility for companies involved in specific developments, allowing certification to be applied on a project-by-project basis. This is particularly relevant for construction and infrastructure projects where certified timber can be used to meet green building standards or procurement requirements. This provides a verified pathway for key specifiers, including architects, designers, contractors, and engineers, to ensure their projects meet the highest global standards of sustainability. MTCC hopes that these further supports transforming Malaysian timber into urban landmarks throughout the country. We look forward to seeing more buildings, from hotels to public infrastructure, incorporate certified Malaysian timber into their design.
The MTCS/PEFC-certified timber arch at Jalan Sang Guna, named after Tan Sri Lee Lam Thye demonstrates how projectcertification enables the use of locally sustainably sourced timber in urban design and construction. Who says sustainability cannot be stylish?
Group certification, on the other hand, is designed to support small and medium enterprises (SMEs), including smallholders and plantation operators, by enabling them to come together under a single certification framework. Sharing resources and administrative responsibilities makes it more feasible for SMEs to participate.
Certification and the Circular Economy
Certification under MTCS/PEFC does not end with the first use of a product. It also supports the principles of a circular economy, where materials are reused, recycled, and repurposed to extend their lifecycle. Certified recycled products, such as reclaimed wood transformed into furniture or recycled paper turned into packaging or egg trays, remain part of the certified system as long as traceability is maintained.
This approach contributes to what can be described as a “carbon vault,” where carbon stored in wood products continues to be retained even as materials are reused across multiple life cycles9. By extending the value of forest resources beyond a single use, certification helps maximise resource efficiency while supporting climate and sustainability goals.
To better understand how certification is applied in practice, the diagram below illustrates the MTCS/PEFC Chain of Custody system across full product cycle. It traces the journey of timber from MTCS/PEFC-certified forests through various stages of processing and manufacturing, into finished products such as furniture, paper, and packaging. At each stage, certification ensures that products are properly verified and traceable, whether for domestic use or international markets. This includes not only manufacturers, but also traders and exporters.
Even when these entities do not carry out manufacturing activities, they are required to hold Chain of Custody certification when exporting certified timber products, ensuring that traceability is maintained throughout the supply chain. The diagram also reflects how certified products can remain within the system beyond their initial use, supporting recycling and reuse in line with circular economy principles. This continuous chain of assurance underpins the credibility of MTCS/PEFC-certified products in the marketplace.
Diagram 2: The MTCS/PEFC Chain of Custody ensures traceability of certified timber from forest to final product, including recycle product.
Taking Action: Celebrating Forests Through Everyday Choices
The International Day of Forests and World Wood Day are not only moments for reflection; they are a call to action.
As a consumer ‘who has the power of the purse’, choosing products that carry the MTCS/PEFC certification label is one of the simplest and most direct ways to support responsible forest management. So, ask the questions: ‘Is this A4 paper certified? Is this book or magazine printed on certified paper or, is this kitchen cabinet, dining table or door made from MTCS/ PEFC certified timber?’
As business owners, professional specifiers and procurement officers: Update Procurement Policies to explicitly list MTCS/PEFC certification as a mandatory requirement in your organization’s green procurement guidelines. Utilize Project Certification: For architects and engineers, use Project Certification to verify that specific iconic projects—like the Jalan Sang Guna timber arch— with collaboration of DBKL and ThinkCity to meet international green building standards. Simplify ESG Reporting by using MTCS documentation as “verifiable evidence” for Bursa Malaysia’s mandatory sustainability disclosures or your company’s commitment to sustainability, ensuring your supply chain is transparent and audited. And finally, engage with MTCC on how to transition your existing supply chain to include more certified SMEs and plantation operators.
Companies not only meet these reporting obligations but also demonstrate tangible commitment to environmental care, social responsibility, and supply chain transparency not only for the global market but more importantly within our domestic market.
For more information about the Malaysian Timber Certification Scheme (MTCS) or how to obtain certification, please contact the Malaysian Timber Certification Council (MTCC) at [email protected] or visit www.mtcc.com.my.
You can also find answers to common questions and detailed guidance on certification at the MTCC FAQ page: https://mtcc.com.my/faqs/.
About the Malaysian Timber Certification Council
Established in 1998, the Malaysian Timber Certification Council (MTCC) operates the Malaysian Timber Certification Scheme (MTCS). This voluntary national scheme provides independent third-party audits to ensure timber products are sourced from sustainably managed natural forests and plantations. As the first tropical timber certification scheme in the Asia Pacific to be endorsed by the PEFC—the world’s largest forest certification programme—the MTCS ensures Malaysian timber meets global sustainability demands.
Website: https://mtcc.com.my
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Media Contact:
Muhammad Hasif Azizan (Director, Communications & Marketing), email: [email protected]
Prahashini Galadaran (Senior Executive, Market Engagement), email: [email protected]
References:
1 Facts and figures. (n.d.). PEFC – Programme for the Endorsement of Forest Certification. https://www.pefc.org/discover-pefc/facts-and-figures. To access: https://cdn.pefc.org/pefc.org/media/2026-02/7e0d5bbb-922e-4a5f-bc9b-6796b9504b1d/eb326a73-d85a-532e-bb77-0280717ff4eb.pdf
2 Dasar Kepelbagaian Biologi Kebangsaan (DKBK) 2022-2030 (pg 10). (2022) |
3 Aziz, A. R. A. (2023). From Rio Earth Summit to COP26: Malaysia’s pledges, political leadership, policies, administrative apparatus and performance. IOP Conference Series Earth and Environmental Science, 1238(1), 012008. https://doi.org/10.1088/1755-1315/1238/1/012008
4 Malaysian Timber Council. Timber export statistics 2025. https://mtc.com.my/resources-TradeInfo
5 External Trade Statistics, Jan 2021 – Dec 2025. (2026). In dosm.gov.my. Department of Statistic Malaysia.
6 Malaysian Timber Certification Council. (2021). MC&I SFM: Malaysian Criteria and Indicators for Sustainable Forest Management (MTCS ST 1002:2021). https://mtcc.com.my/wp-content/uploads/2022/02/MTCS-ST-1002-2021-MCI-SFM-Final-B5.pdf
7 Malaysian Timber Certification Council. Certified forests. https://mtcc.com.my/certified-forests/
8 Malaysian Timber Certification Council. Chain of custody (CoC). https://mtcc.com.my/chain-of-custody/
9 Halis, R. (n.d.). Carbon store in wood. Universiti Putra Malaysia | Fakulti Perhutanan & Alam Sekitar. https://forenv.upm.edu.my/article/carbon_store_in_wood_products-68118