New Zealand and Malaysia have agreed to expand bilateral trade value by 50% by 2030. On his first official visit to Malaysia earlier this month, NZ Prime Minister Chris Luxon met with Malaysia’s PM, Datuk Seri Anwar Ibrahim, marking a significant step further to strengthen the already robust ties between the two nations.
Both PMs explored avenues for deepening bilateral relations, with a particular focus on expanding trade, investment, and defence cooperation with the potential for Malaysia to increase imports of New Zealand wood products to satisfy an insatiable demand for downstream products such as furniture.
Malaysia is New Zealand’s second-largest trading partner, with a trade volume of US $2.54 billion. Malaysia exports wooden furniture to 160 countries, mostly the US, Japan, Singapore, Australia, and the United Kingdom, with current figures placing the trade at US $44.5 billion.
Malaysia’s furniture industry is adapting to meet changing needs
To remain relevant and keep up with evolving markets, Malaysia’s furniture sector will require a production re-examination and re-invention involving increasing local skilled expertise, new technologies, and product quality and standardisation.
In addition, deep dives into the needs of specific markets would allow Malaysian furniture and joinery manufacturers to explore untapped demand in niche areas unfilled by other products.
Efforts to develop the national timber and timber products market are strengthened by the commercialisation of ‘Made-in-Malaysia’ brands for the international market, particularly for high-value-added products.
Total forestry product exports from New Zealand in 2023-24 topped $6.65 billion, 54% of which went to China. The value of sawn timber and sleeper exports reached $973 million.
Chris Luxon, who assumed his premiership in November last year, acknowledged Malaysia’s incredible growth story: “There is so much New Zealand can learn from Malaysia, such as its exceptional success in attracting foreign investment,” Mr Luxon said.
“We are working together on e-certification and new customs cooperation to ensure smooth flows at the borders and strengthen our education links and our youth exchanges so that the next generation of Kiwis and Malaysians have that same close relationship that we enjoy.
Mr Anwar said Malaysia and New Zealand had agreed to enhance collaboration in trade, investments and research, particularly in the halal industry.
