Furniture Exports To The US To Grow 20 Pct Over Next Three Years

KUALA LUMPUR, July 17 (Bernama) -- The export of Malaysian furniture to the United States is expected to grow at least 20 per cent year-on-year (y-o-y) over the next three years amid the on-going US-China trade war. Malaysian Furniture Council (MFC) former president Chua Chun Chai said the growth was due to trade diversion as US buyers had opted to buy furniture directly from Southeast Asia countries, including Malaysia following the trade spat. He shared the projection during a press conference on the positive impact of the US-China trade war on Malaysian furniture exporters here Wednesday. Data released by the Malaysia External Trade Development Corporation (Matrade) shows that Malaysia’s furniture exports to the US surged 20.8 per cent y-o-y to RM1.55 billion (RM4.11 = US41) for the period of January-May this year, while its total furniture exports increased 9.6 per cent y-o-y to RM4.14 billion. Elaborating further, Chua said he was optimistic that the 20 per cent growth projection was achievable if issues such as shortages in foreign labour and raw materials, especially rubberwood, were well-handed. However, he believed the approved entry of 20,000 foreign workers for the local furniture industry by the government recently was sufficient to increase production capacity to meet the increasing demand, particularly from the US. “It will also help achieve the (total) exports target of RM12 billion by 2021,” he said. Chua said prospect for the local furniture industry was bright, given that the supply chain had moved out from China to Southeast Asia countries. “About 600 small and medium-sized enterprises (SMEs) or 20 per cent of some 3,000 furniture industry players have benefited from the current US-China trade war,” he said. Meanwhile, Matrade chief executive officer Wan Latiff Wan Musa said furniture exports decreased by 3.0 per cent y-o-y to RM9.83 billion in 2018, with the US accounting for 34.4 per cent worth RM3.38 billion, followed by Singapore (8.1 per cent worth RM797.8 million) and Japan (7.6 per cent worth RM743.0 million). “Other than the traditional markets, we will continue to expand our furniture footprints into other markets, such as Middle East countries, and South Asian countries like India and Bangladesh, as well as African countries,” he added. -- BERNAMA