News
Industry News
News on timber industry in Asia - February 2026

Indonesia

Indonesia Strengthens Forestry Governance through SVLK+

On February 25, Mr. Ristianto Pribadi, Director General of Public Relations and International Cooperation for Indonesia, stated that in the current global trade environment, Indonesia is strengthening the implementation of its Timber Legality and Sustainability Verification System (SVLK+). This system serves as a strategic tool, designed not only to guarantee timber legality but also to ensure sustainability, end-to-end traceability, compliance with environmental standards, and transparent, digitally integrated supply chain governance.

Key enhancements of SVLK+ include: (1) Integrated Digital Traceability, which records the entire production process from upstream to downstream within an electronic system that allows for independent, real-time verification; (2) Integration of Sustainability Functions (S-PHL), meaning integration with sustainable forest management certification to ensure verification scope covers sustainability practices in addition to legality; (3) Public Transparency and Accountability, providing broader access to information and strengthening the role of independent assessment and verification bodies accredited by the National Accreditation Committee (KAN); (4) Compatibility with Global Standards, through continuous adjustments to ensure alignment with major global market regulations, including due diligence requirements and anti-deforestation criteria.

Indonesia Shares Experiences on Combating Illegal Logging at International Forum

From February 4-5, 2026, the 29th APEC Expert Group on Illegal Logging and Associated Trade (EGILAT) Plenary was held in Guangzhou, China.

At the meeting, the Indonesian delegation, led by the Ministry of Forestry, highlighted that its Timber Legality Verification System (SVLK) serves as a primary preventive tool ensuring the legality and traceability of timber supply chains from upstream to downstream. This system is recognized for enhancing the credibility of Indonesian forest products in the global market while simultaneously protecting businesses that adhere to legal requirements.

Beyond preventive measures, Indonesia also shared its experiences in implementing a "track the money" approach to tackle money laundering linked to forestry crimes. This method emphasizes tracing financial flows and recovering assets to dismantle the economic incentives driving illegal logging.

Indonesia Plans Full Launch of Carbon Market by Mid-2026

The Indonesian government plans to fully launch its national carbon market by the end of June 2026, with large-scale trading expected to commence the following month.

Mr. Hashim Djojohadikusumo, Special Envoy of the President for Climate and Energy, indicated that this timeline aligns with Presidential Regulation Number 110 of 2025 concerning Carbon Economic Value Instruments and National Greenhouse Gas Emission Control. This regulation establishes the economic value of carbon emissions, covering mechanisms for carbon credit trading, a carbon unit registration system, safeguards against double counting, and linkages between domestic and international carbon markets.

Mr. Hashim stated that the government is working to integrate several carbon registry systems into a unified national framework to enhance transaction efficiency and accountability.

 

Malaysia

Sabah Launches Upgraded Timber Verification System to Meet International Standards

Sabah's Chief Minister, Datuk Patinggi Tan Sri (Dr.) Haji Hajiji bin Haji Noor, announced that Sabah has launched an upgraded timber verification system designed to ensure its exported products meet international standards for legality, zero deforestation, and sustainability.

The system, named the "Sabah Timber Legality Assurance System Plus" (TLAS+), is the first framework in the country to integrate legality verification, zero-deforestation rules, and voluntary sustainability standards into a single structure.

Reportedly, the system incorporates digital traceability, geolocation monitoring, and enhanced social and environmental safeguards to ensure timber products are legal, traceable, and sourced without contributing to deforestation or forest degradation.

Sarawak to Implement Carbon Levy Starting This Year

At the 2026 Asean Sarawak Business and Economic Forum, a Deputy Minister from Sarawak's Ministry of Energy and Environmental Sustainability stated that Sarawak will begin imposing a carbon levy this year as a key measure to drive decarbonization and green transition.

The Sarawak government, referencing Singapore's model, has set an emissions threshold; entities exceeding this threshold will be subject to the levy, primarily impacting heavy industry. Authorities conducted data inventory and simulation exercises last year to understand emission profiles across various sectors.

The Deputy Minister highlighted that approximately 62% of Sarawak's land is forest-covered. Sarawak's revenue stream has shifted from past reliance on logging to now promoting carbon trading, viewing carbon markets as a vital solution for addressing climate change.

Current carbon markets are divided into compliance and voluntary markets. ASEAN primarily operates on voluntary markets with relatively low prices, approximately one-third of those in compliance markets, where carbon prices can reach around USD 100 per tonne. Consequently, Sarawak is actively promoting the establishment of its own emissions trading system to gain access to compliance markets and enhance carbon value.

Sabah to Establish Dedicated Carbon Governance and Climate Change Agency

Last year, Sabah passed several laws related to carbon emissions, including the Forest (Amendment) Enactment 2025 and the Climate Change and Carbon Governance Enactment 2025.

Sabah's Chief Conservator of Forests, Frederick Kugan, indicated that the state is in the process of establishing a dedicated carbon governance and climate change agency. Future policies and projects will be reviewed by a council formed under this new framework.

 

Thailand

Thai Forest Industry Organization Promotes Export of Premium Teak

The Deputy Director and Acting Director of the Forest Industry Organization (FIO) revealed that the FIO has adopted proactive marketing strategies to export plantation-grown teak to overseas markets. This initiative aims to increase national revenue and enhance the competitiveness of Thai teak exports in high-demand international markets with strong purchasing power.

To date, the FIO has sold over 9,000 cubic meters of teak from its plantation stock, valued at no less than 50 million Baht. The FIO has charted its future direction to increase the proportion of teak exports, targeting an annual export volume of at least 30,000 cubic meters, with a minimum value of 300 million Baht.

Thai Forest Industry Organization Outlines Teak Sales Strategy for 2026

On February 24, the Deputy Director and Acting Director of the Forest Industry Organization (FIO) convened a meeting with relevant section heads to formulate teak policy guidelines and sales strategies based on the 2026 harvest plan.

The meeting's primary agenda involved reviewing and preparing for teak sales in accordance with the 2026 harvest plan, aiming for efficient, transparent, and market-oriented management of timber resources aligned with the organization's strategy.

On the same day, the FIO Deputy Director and members of the Timber Pricing Committee conducted site visits to plantations to inspect the timber according to established standards and determine selling prices.

They also provided technical guidance on logging operations and management. The areas designated for maintenance of mature teak plantations include the Mae Chang, Mae Mao, and Mae Mai plantation sites. Relevant officials were instructed to uphold quality standards in teak planting and maintenance to ensure their sustainable development.

Thai Ministry of Natural Resources and Environment Chairs Meeting on Forest Land Use Permits

On February 2, the Permanent Secretary of Thailand's Ministry of Natural Resources and Environment, Dr. Raveewan Phuridej, chaired a meeting aimed at overseeing the issuance process for forest land use permits, including reviewing the progress and outcomes of various initiatives within the relevant legal framework.

The meeting received an overview of forest land use permits from various agencies, covering permits related to national forest reserves and those under the 1941 Forest Act, as well as land use/agricultural permits issued under the policy of "allocating land for community livelihoods". This includes areas under the jurisdiction of the National Land Commission (NLC) and watershed areas classified as Class 1 and 2. Discussions also encompassed past performance, challenges encountered, approval processes and procedures for forest land use permits, and potential amendments to laws and regulations to better reflect current realities.

Dr. Raveewan Phuridej emphasized the need for the Royal Forest Department to expedite the issuance of forest land use permits across all units. This requires enhanced communication, public relations efforts, and ensuring consensus among officials and government agencies to guarantee compliance with laws and regulations, aligning with the long-term principles of forest conservation and sustainable utilization.

 

China

APEC Expert Group on Illegal Logging and Associated Trade Holds 29th Meeting

The 29th APEC Experts Group on Illegal Logging and Associated Trade (EGILAT) Plenary was recently convened in Guangzhou, China. The meeting brought together approximately 50 representatives from 14 APEC member economies and relevant international organizations, including the International Tropical Timber Organization (ITTO) and the Asia-Pacific Network for Sustainable Forest Management and Rehabilitation. Discussions focused on pressing issues such as combating illegal logging and promoting trade in legally sourced forest products.

The Chinese delegation outlined its initiatives and achievements in planning and advancing large-scale land greening efforts from the perspective of harmonizing humanity and nature, as well as its measures to rigorously combat illegal deforestation in accordance with the law. The delegation systematically presented updates on the revision of the Forest Law and strengthened law enforcement, the progress made in building high-tech supervision systems, experiences and practices in sharing policy information through international exchanges, and relevant work plans for the 15th Five-Year Plan period (2026-2030).

EGILAT serves as a specialized mechanism within the APEC framework dedicated to promoting the legal production and trade of forest products, holding two meetings annually. According to the 2026 work plan adopted at this meeting, an APEC Ministerial Meeting on Forests is scheduled to be held in China this year, with the 30th EGILAT Plenary convening concurrently.

China's Wood Industry Responds to EUDR

Confronting the challenges posed by the EU Deforestation Regulation (EUDR), Chinese wood enterprises are actively exploring multiple response strategies. These include supply chain restructuring, technological empowerment through enhanced traceability, advancement of certification systems, and strengthened industry collaboration. According to data from the General Administration of Customs, China's exports of wood and wood products to the European Union reached approximately USD 18.7 billion in 2025, with major categories including furniture, plywood, and wooden building materials.

National Standard for Senior-Friendly Furniture Design Takes Effect in China

Effective February 1, 2026, the recommended national standard, Guidelines for the Design of Senior-Friendly Furniture, was officially implemented. This standard establishes general principles for designing furniture suitable for the elderly, provides guidance on design elements and implementation, and outlines relevant characteristics and information regarding the needs of older users.

The implementation of this national standard marks a significant transition for China's senior-friendly furniture sector from conceptual advocacy into a new phase of standardized and refined development. It not only provides furniture manufacturers with clear design and production specifications but also offers consumers—particularly the elderly and their families—an authoritative reference for selecting genuinely safe and suitable furniture products. The standard is expected to drive quality improvements and industrial upgrading within the silver-haired economy.

Sigh Up for Emails

Copyright © 2002-2025 GGSC