The major source of income of the town of Bahau was timber industry which has contributed to the growth of the town in the past few decades. The cultivation of palm oil and rubber also had a significant impact on the town's economy and today, a prominent estate in the town are the IOI group, Sime Darby (Golden Hope), KLK and small holder is speeding up.
In addition, industry in the town is also currently growing. Bahau's industrial area is located near Taman Kwang Hup. Car workshops, mechanics, spare-parts and accessories shops dominate the business in town because of the flourishing timber trade around the area. Hence, trailers and lorries usually frequent the town for repairs
