Malaysia produces timber mainly in the form of saw logs, sawn timber, fibreboard, plywood, mouldings and veneer sheets.
The development of the Malaysian timber industry is in line with the National Timber Industry Policy (NATIP) which outlines the integrated planning of the national timber industry development for the period 2009-2020.
NATIP aims to shift the structure of an industry that is focused on the production of upstream products to companies that emphasize the production of value-added downstream products at a ratio of 60:40
In Malaysia, cocoa is one of the most valued and important commodities traded globally. The cocoa cultivated area in 2018 was 15,007 hectares. The cocoa processing and manufacturing sector has contributed 0.1% of the total national GDP. Malaysia is reputably known as the second largest processing centre in Asia and the seventh biggest grinder of cocoa beans in the world.
Malaysian cocoa and cocoa products have grown rapidly in the global markets and have extensive market coverage to more than 100 market destinations worldwide. The export earnings from cocoa and cocoa products registered at RM5.551 billion in 2018. The cocoa butter remained the major contributor to the total export earnings accounted for 28.3% followed by re-export of cocoa beans (25.7%), chocolate (18.6%), cocoa powder (18.6%), cocoa paste (7.9%) and cocoa cake (0.8%).
In 2018, there were 51 chocolate and chocolate confectioneries manufacturers companies in Malaysia and 216 chocolate entrepreneurs have registered with the Malaysian Cocoa Board (MCB). Overall, the chocolate industry has contributed RM1.03 billion export earnings in 2018.
Known as the "King of spices", Pepper or Piper Nigrum is one of the most valued and important commodities traded globally including Malaysia. In 2018, the cultivation area of pepper by smallholders in Malaysia covered 17,437 hectares of which 98% of the cultivation is in Sarawak and 2% in Sabah and Peninsular Malaysia with total production of 31,073 metric tonnes.
Currently, Malaysia is the sixth largest pepper producer in the world. In 2018, Malaysia has exported 11,713 metric tonnes of pepper worth RM201 million to Japan, China, Hong Kong, South Korea, Taiwan and Singapore. Malaysian pepper is also exported to other countries for instance Europe, Americas, Australia and New Zealand.
Kenaf has been identified as short-term crops with commercial potential and a 'New Sources of Growth'. Through the enforcement of the National Kenaf and Tobacco Board (LKTN) 2009 [Act 692], LKTN is responsible for ensuring viable kenaf plants grown as cash crops and new crop alternatives to tobacco. The Government through LKTN provides support and special assistance to former tobacco farmers and small farmers, especially in Terengganu, Pahang and Kelantan.
LKTN has continued its five (5) major activities such as Integrated Kenaf Industrial Park (1KIP), Kenaf Plus-Plus, Satu Kenaf Untuk Rakyat (1KUR), Program Industri Kenaf Rakan Rakyat (IKRaR), Bicara Kenaf dan Skim Pendapatan Rakyat melalui Kenaf (SPARK). The programs implemented to empower the development of the kenaf industry in the upstream, middle and downstream levels.
The program also aims to assist smallholders and smallholder households in line with the government's commitment to increase household income especially for the B40s. In addition, a total of 14 research and development (R & D) studies were conducted through strategic collaboration with public and private institutions throughout 2018.
Due to the energy crisis in 1973-1974, the Government has introduced a range of policies to improve the energy security. Previously, the Malaysian energy policy was focused on the use of oil and gas. However, a policy on Renewable Energy was introduced in year 2001 to find alternatives to existing energy sources.
As a measure to enhance energy security, the government has encouraged the palm oil industry to conduct research on biofuels potential while providing assistance to the same. As a result, in 2006, the National Biofuels Policy has been launched to provide a framework and road map towards facilitating the development of biofuels sector.
Meanwhile, in 2007 the Malaysian Biofuels Industry Act 666 was enacted to streamline the licensing and regulate the country's biofuels industry. This Act came into effect on August 1, 2008.