The Malaysian state of Sarawak is redirecting its forestry sector toward biomass production and carbon markets as it moves to reduce traditional timber exports, with wood pellet shipments already up 60% year on year.
Sarawak Premier Abang Johari Tun Openg confirmed the export reduction in his Gawai Dayak 2026 address, framing it as part of a broader green economy transition under the state's Post-Covid-19 Development Strategy 2030 framework. Rather than retreating from forestry, the government is encouraging downstream industries built on planted forests that can simultaneously produce biomass and function as carbon sinks.
The shift comes as the state's overall timber export earnings have softened, falling to around RM2.84 billion in 2024 from RM3.14 billion a year earlier. However, wood pellet exports climbed sharply through the first three quarters of 2025, reaching RM97 million — a 60% increase — with Japan accounting for the majority of trade at RM1.17 billion ahead of India.
Underpinning the strategy is an extensive reforestation programme: Sarawak had planted more than 50 million trees by August 2025 and restored around 137,000 hectares of degraded forest, representing roughly 69% of its 200,000-hectare target for 2030.
The state has also become the first in Malaysia to implement forest carbon licences, and more than 1.5 million hectares of Sarawak forest now carry Forest Management Certification under the PEFC system — positioning the region to meet the sustainability credentials increasingly demanded by international biomass buyers.
