Strong ringgit will not affect furniture sales and exports
KUALA LUMPUR: The strengthening of the ringgit against the US dollar in the past couple of weeks will not affect sales and exports of furniture at this year’s Malaysian International Furniture Fair (MIFF).
According to the organisers, export sales expected to be generated from the fair, which will take place between March 8 and 11, would be close to US$1 billion (RM3.92 billion), up 4-5% compared with US$948 million in 2017.
MIFF founder and chairman Datuk Tan Chin Huat said while the import and export of furniture over the past two years had been hard to predict due to the fluctuation in currencies globally, he did not expect buyers’ purchasing power to differ much this year.
“When our currency devalued previously, people thought we got more business, but then again, you have to consider that we had to pay more for raw materials.
“So yes, the currency does play an important role, but this should not affect the industry, and our sales. They (buyers) have to prepare themselves.
“The volume of furniture purchased and used by international buyers is based on the number of pieces bought (not the value). This is why I said even if the price fluctuates a bit, buyers will still buy, maybe even slightly more,” he told a press conference to announce the 2018 MIFF, the largest industry trade show in Southeast Asia.
This year’s four-day event will showcase furniture products from over 600 local and international exhibitors from 13 countries at the Putra World Trade Centre and Malaysian International Trade and Exhibition Centre.
Tan said in recent years, international buyers have turned to Malaysia for good quality and design furniture, regardless of the price, unlike previously where the country was known for cheap furniture.
Meanwhile, MIFF general manager Karen Goi revealed that about 40% of the total amount of furniture exported from Malaysia for any given year was transacted during MIFF.
She said this year’s preregistered attendees have risen by 10%, with some 20,000 visitors from 133 countries already registered for the exhibition.
“Based on the trend of buyers, a lot are from emerging markets like Southeast Asia, with quite a number from Africa are also coming to the show,” she said.
Goi said other than home furniture, which makes up 59% of the total items exhibited, office furniture also contributes a significant number with 26%, a figure relatively higher than most other furniture fairs.
Other side events that will take place concurrently include the MIFF Furniture Design Competition, Furniture Excellence Award and Industry Seminar Series. – By Amar Shah Mohsen