FURNITURE INDUSTRY SET TO GROW THIS YEAR

KUALA LUMPUR, Feb 7 (Bernama) -- The Malaysian furniture industry is
projected to grow at two to seven percent this year despite the global financial
crisis.

The increased demand from upper middle class consumers who are willing to
pay higher prices for quality Malaysian furniture as well as higher demand from
export markets will boost growth, said the Ministry of International Trade and
Industry (MITI).

Malaysian furniture manufacturers have gained a competitive edge due to
declining competition from China, the ministry said in a statement Friday.

It added that the decline in Chinese competition was largely due to the cost
differential of five to nine percent on labour, land and raw materials between
Malaysia and China.

The local furniture industry recorded a growth of 1.7 percent in 2008, for
a total trade of RM8.37 billion in the first 10 months of 2008, MITI said.

Exports in the January to October 2008 period totalled RM7.17 billion, for a
growth of 1.2 percent from the same period in 2007.

MITI has also began targeting new and niche markets overseas, with the aim
of further expanding exports of Malaysian-made furniture.

Focus markets will include the countries of the Commonwealth of Independent
States (CIS) and Russia. (US$1=RM3.61)
-- BERNAMA