Panasonic Housing Solutions Co. Ltd. is exploring new investment opportunities in Malaysia to expand its production of medium-density fibreboard (MDF) made from palm biomass.
Developed under its PALM LOOP initiative, the company’s MDF panels are produced by converting oil palm trunks and other palm oil by-products into sustainable materials suitable for furniture and construction use.
Panasonic has already commercialised MDF boards containing 10% palm biomass, with the remaining 90% derived from rubberwood. In response to growing interest from stakeholders and investors, the company is working to increase the biomass content.
Mohd Erman Syazwan Che Fauzi, Procurement Malaysia Housing Solutions Centre Manager
Through ongoing research and development, Panasonic has successfully created pilot boards containing between 30% and 50% palm biomass, as well as experimental versions made entirely from palm-based materials. He shared these developments during the recent Malaysian International Furniture Fair 2026.
Further investment is expected to support project expansion, reduce production costs through scaling, and accelerate R&D efforts. For Panasonic, increasing production capacity is key to lowering costs while steadily raising the proportion of biomass used in its MDF products.
Looking ahead, the company aims to attract investment into the sector and ultimately achieve fully biomass-based MDF production. It is also collaborating with government agencies to enhance traceability systems, ensuring that biomass materials are sourced sustainably.
Panasonic is currently engaging with local furniture manufacturers to promote the adoption of its eco-friendly MDF boards. By expanding partnerships and increasing biomass usage, the company hopes to drive wider adoption of sustainable materials while creating added value from palm oil industry waste.
In the longer term, Panasonic is considering exporting its biomass-based MDF products, although its immediate priority remains supporting the growth and sustainability of Malaysia’s furniture industry.
