Timber furniture sales cool as demand softens in US, europe
KUALA LUMPUR: Plantation Industries and Commodities Minister Datuk Seri Johari Abdul Ghani foresees Malaysia becoming a global player in the timber and timber-products industry.
Speaking at the opening of the Malaysian International Furniture Fair (MIFF), Johari said the furniture industry is the most dynamic downstream activity in the timber value chain.
As such, it will remain a key driver of timber-industry growth and is also one of the most successful stories of Malaysian small and medium enterprises, he added.
The minister said the furniture industry in Malaysia had grown from a backyard industry into a global business.
He noted that many Malaysian furniture companies are now listed on Bursa Malaysia and the Singapore Stock Exchange.
“Some even have assembly lines outside Malaysia” he added.
The Malaysian furniture industry is heavily export oriented, with 44% of timber-based furniture exported to 186 countries over the past five years.
Malaysian exports of timber and timber products fell by 13.2% to Rm21.9bil in 2022, while furniture exports dipped by 18.1% to Rm9.1bil in 2023.
“The drop in exports is mainly due to a weak housing demand in the United States, which is the biggest buyer of Malaysian furniture, accounting for over half of furniture exports,“the minister said.
According to the World Furniture Outlook 2024 report by Milan-based furniture market research organisation CSIL, despite an expected gradual recovery in 2024, the global furniture industry will be subject to a decline in consumer confidence and weakened demand, particularly in Europe and North America.
On the sustainability front, Johari said, “As a major producer and exporter of tropical timber products, Malaysia has made tremendous efforts to ensure our timber products are sourced from sustainably managed forests.”
The Malaysian Timber Certification Scheme is the first tropical timber certification scheme in Asia-pacific, and illustrates the country’s commitment to sustainability, he added.
The certification was validated in 2009 by the Programme for the Endorsement of Forest Certification, the world’s largest and most comprehensive forest certification system.