MTIB is a statutory body accredited to the Ministry of Plantation and Commodities, Malaysia. Established on 1st June 1973 by an Act of Parliament ( Act 105), Malaysian Timber Industry Board (Incorporation ) Act, 1973, it has been accorded as the lead agency to enhance the development of the Malaysian timber industry. It has ten divisions namely the Director-General Office, Trade Development, Industry Development, Licensing & Enforcement, Bumiputera Entrepreneur Development, Strategic Planning, Management Services,  Forest Plantation, WISDEC and FIDEC. It has a total manpower of 471 employees.

MTIB is responsible for initiating development of the various sectors of the timber industry and providing technical, marketing and other forms of assistance to ensure their continued growth within a rapidly industrialising Malaysian economy. As specifically provided by the Act, MTIB objectives include:

1. To further enhance industrialisation and upgrading of the timber industry with emphasis on value-added processing.
2. To promote and improve the markets and marketing of timber products.
3. To facilitate and strengthen the development of SMEs.
4. To develop and promote standard in quality timber products.
5. To foster orderliness in timber trade.

In an effort to coordinate and control the timber industry and trade so that the industry will be able to grow and prosper and in accordance with Section 12 (1), Act 105, MTIB's area of ​​responsibility has been expanded with the following tasks:-

1. To regulate and control the trade in, and the marketing and distribution of, timber; 
2. To promote and improve the trade in, and markets for, timber; 
3. To co-ordinate activities for effective marketing and shipping of timber; 
4. To encourage effective utilization of timber with emphasis on product diversification and to promote improvement and economy in the methods of processing timber; 
5. To provide technical advisory services and training required to assist in the development of existing timber industries and the establishment of new industries; 
6. To assist the timber industries in the marketing of timber; 
7. To organize and assist in the consolidation of the small scale timber industries and the closer integration of the activities of the timber industries generally, so as to achieve greater efficiency in, and secure a stronger base for, the timber industry as a whole; 
8. To gather information on and maintain records of all relevant matters relating to the timber industry; 
9. To implement policies and development programmes to ensure the improvement and viability of the timber industry in Malaysia; 
10. To develop Bumiputera entrepreneurs in the timber industry to be more competitive; 
11. To implement control and monitor export, import, timber in transit and the domestic market; 
12. To carry out research, review and investigation, that are beneficial or appropriate to the carrying out of its functions; 
13. To develop and commercialize research findings for the benefit of the timber industry and to encourage the commercial use of research findings; 
14. To encourage and develop forest plantation activity for the purpose of the development of the timber industry and any other activity related to the development of forest plantation; 
15. To plan and carry out human resource development programmes parallel to the development of the timber industry; 
16. To liaise and co-ordinate with the relevant state Governments and other bodies, including members of any association within and outside Malaysia, in the interest of the timber industry; and 
17. Generally to do everything within the scope of the objectives of this act for the betterment and proper conduct of the timber industry.