Malaysia has strong potential to develop presswood pallet production, thanks to its rich natural resources and growing manufacturing industry.
Abundant Coconut Fiber Resources
Malaysia is a major coconut-producing country. According to FAOSTAT, Malaysia produced about 1,190,000 tons of coconuts in 2021. The coconut husk makes up around 30% of the total coconut weight. From each ton of husk, about 40–50% of coconut fiber (coir) can be extracted.
That means Malaysia generates approximately 160,000 to 170,000 tons of coconut fiber per year. This fiber is cheap, renewable, and environmentally friendly, making it an excellent raw material for producing presswood pallets.
High Domestic Demand for Pallets
Malaysia is home to many manufacturing and export-oriented enterprises. The local pallet demand is very high, with an estimated 3 million pallets needed every month.
Producing molded presswood pallets locally can reduce costs, shorten lead times, and meet the growing demand from logistics, food, electronics, and furniture industries.
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Competitive Market Advantage
In Malaysia, solid wood pallets cost around $4.5–$7 for local markets, and $12–$15 for export markets. In contrast, presswood pallets made from coconut fiber are expected to have much lower production costs. This gives presswood pallets a strong price advantage, especially for exporters looking to reduce shipping expenses.
Functional and Environmental Benefits
Presswood pallets offer many unique benefits:
- No need for fumigation (ISPM 15 compliant)
- Durable and reusable
- Lightweight and space-saving (nestable design)
- Made from agricultural waste (zero deforestation)
These features make them ideal for companies with green goals and international shipping needs.
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Sustainable and Social Impact
The presswood pallet project is a sustainable and eco-friendly solution. It aligns with Malaysia’s environmental protection policies and supports the country’s green development goals.
In addition, the project can help create jobs, promote rural resource utilization, and build a circular economy.
A Growing Global Trend
In Europe and America, presswood pallets are already widely used, and their market share is increasing each year.
However, in Southeast Asia — including Malaysia and Indonesia — this industry is still in its early stages. With rising demand for sustainable packaging, the growth potential is huge.
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Presswood Pallet Prices and Market Trends: A Global Overview (2025)
Let’s Build the Future Together
At PalletsBiz, we are committed to helping Malaysian customers launch and grow their presswood pallet production. With our advanced machines and full-service support, we help entrepreneurs and investors create value while contributing to sustainability.
Let’s work together to build a cleaner, greener future.
Please click the following link to check:
What Are the Requirements to Set Up a Presswood Pallet Production Line?
