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Sawn timber is well anchored in Malaysia as an ongoing subsector of the timber industry. In 2012, there were 671 sawmills located in Peninsular Malaysia, 172 in Sabah and 170 in Sarawak. Exports of sawn timber in 2012 amounted to RM 1.22 billion, primarily to Thailand (RM 192 million), Netherlands (RM 115 million), Singapore (RM 96 million), UAE (RM 72 million) and South Africa (RM 58 million) (Forestry Statistics Peninsular Malaysia 2012). Hence, to meet domestic and international demand, Malaysian government has taken initiatives to ensure the continuity of forest resources by joining the International Timber Trade Organisation (ITTO). Malaysia has been registered with ITTO since 1990, thus adhering to strive for an international trade of tropical timber from sustainably managed forests (Samsudin & Heyde 1995). Accordingly, Malaysian forest resources are carefully managed according to the principle of SFM practices to achieve a balance between development and conservation. Thus, timberbased products and services can be obtained SAWN TIMBER MARKET AND THE IMPACT OF SUSTAINABLE FOREST MANAGEMENT PRACTICES IN PENINSULAR MALAYSIA