Innovative approaches to enhancing sustainability in the engineered wood processing industry in Malaysia

The growing demand for engineered wood products (EWP) in Malaysia has intensified wood processing activities, raising sustainability and environmental concerns. This study aims to identify innovative strategies to strengthen sustainability practices in the Malaysian EWP industry. A mixed-methods approach was employed, combining a survey of 67 stakeholders, semi-structured interviews with 11 experts and site assessments of five manufacturing companies to capture current practices, barriers and enabling factors. The survey indicates moderate adoption of sustainability practices. A majority of firms practiced waste minimization and use of recyclable wood (65%), adopted energy conservation policies (55%), utilised wood waste for fuel or feedstock (55%) and applied emission control systems (55%). In contrast, adoption of advanced measures was lower, with 35% incorporating solar energy and 15% applying lifecycle assessment (LCA). The analysis revealed four key innovation pathways: (i) resource management and waste reduction, (ii) energy efficiency and emissions reduction, (iii) technological innovation and adoption and (iv) circular economy and sustainable sourcing. Implementation challenges were grouped into four categories: financial, technical, operational and institutional, highlighting limited investment, weak policy support and shortages of skilled professionals. The study emphasizes that strengthening institutional capacity, establishing credible policy anchors, enhancing technical expertise, capacity-building through training and research and stakeholder collaboration are critical to accelerating sustainability adoption. The study highlights key gaps in the adoption of sustainability and innovation in the EWP industry. The findings establish an evidence base to strengthen policies, industry practices and stakeholder collaboration, supporting actionable strategies toward a more sustainable and competitive EWP sector.