1. BENGKEL SISTEM MAKLUMAT
PASARAN TEMPATAN &
ANTARABANGSA
PROSPECTS OF MALAYSIAN
FURNITURE EXPORTS
MD. SILMI ABD RAHMAN
HOTEL SERI MALAYSIA, AYER KEROH MELAKA
29 JULAI 2008

2. MALAYSIA’s TRADE AND
FURNITURE EXPORTS
PERFORMANCE

3. Malaysia’s Total Trade:
2006 : RM1,069.74 billion
2007 : RM1,109.97 billion ( ↑3.7%)
 Total Exports:
2006 : RM588.97 billion
2007 : RM605.15 billion (↑ 2.8%)
 Total Furniture Exports:
2006 : RM8.08 billion
2007 : RM8.55 billion (↑5.8%)
 International Trade Position in 2007:
19th largest exporters (Furniture: 10th largest
world exporters)

4. MALAYSIA’S FURNITURE EXPORTS (2004-2007)
COUNTRY 2004 2005 Growth 2006 Growth 2007 Growth
Value Value (%) Value (%) Value (%)
RM Mil RM Mil RM Mil
TOTAL 7,050.64 7,495.55 6.3 8,080.1 7.8 8,547.77 5.8
MALAYSIA’S FURNITURE IMPORTS (2004-2007)
COUNTRY 2004 2005 Growth 2006 Growth 2007 Growth
Value Value (%) Value (%) Value (%)
RM Mil RM Mil RM Mil
TOTAL 1,032.91 1,254.91 21.5 1,320.78 5.2 1,322.74 0.1

5. TOP 10 FURNITURE EXPORT DESTINATIONS
COUNTRY 2004 2005 Growth 2006 Growth 2007 Growth
Value Value (%) Value (%) Value (%)
RM Mil RM Mil RM Mil RM Mil
TOTAL 7,050.64 7,495.55 6.3 8,080.1 7.8 8,547.77 5.8
USA 2,145.12 2,466.85 15.0 2,551.16 3.4 2,272.37 -10.9
JAPAN 719.30 695.57 -3.3 723.57 4.0 777.38 7.4
AUSTRALIA 628.62 585.62 -6.8 673.71 15.0 716.37 6.3
UK 734.69 621.60 -15.4 608.82 -2.1 598.74 -1.7
SINGAPORE 347.88 308.02 -11.5 326.58 6.0 398.10 21.9
UAE 308.84 252.01 -18.4 313.00 24.2 344.80 10.2
INDIA 107.10 136.67 27.6 231.39 69.3 282.02 21.9
CANADA 225.04 230.66 2.5 271.20 17.6 278.65 2.7
CHINA 63.02 83.05 31.8 136.06 63.8 213.49 56.9
FRANCE 62.75 124.82 98.9 113.42 -9.1 156.22 37.7

6. TOP 10 FURNITURE IMPORT SOURCE
COUNTRY 2004 2005 Growth 2006 Growth 2007 Growth
Value Value (%) Value (%) Value (%)
RM Mil RM Mil RM Mil RM Mil
TOTAL 1,032.91 1,254.91 21.5 1,320.78 5.2 1,322.74 0.1
CHINA 230.94 264.51 14.5 267.78 1.2 324.02 21.0
POLAND 96.68 98.74 2.1 130.61 32.3 114.02 -12.7
ITALY 48.51 50.37 3.8 55.20 9.6 89.85 62.8
THAILAND 57.72 95.58 65.6 80.16 -16.1 86.13 7.4
GERMANY 53.59 55.36 3.3 64.91 17.3 82.92 27.7
JAPAN 37.74 48.11 27.5 49.73 3.4 72.54 45.9
LITHUANIA 24.46 30.18 23.4 43.01 42.5 58.22 35.3
INDONESIA 46.68 59.09 26.6 58.48 -1.0 52.59 -10.1
VIETNAM 49.87 44.52 -10.7 58.70 31.9 47.91 -18.4
USA 32.74 124.23 279.4 81.44 -34.5 36.30 -55.4

7. TYPE OF FURNITURE EXPORTED (2006-2007)
2006 2007
Description Value Share (%) Value Share (%) Change (%)
RM Mil RM Mil
FURNITURE, 6,391.21 79.1 6,661.69 77.9 4.2
WOODEN
Seats With 1,634.51 20.2 1,710.13 20.0 4.6
Wooden Frame
Bedroom 986.30 12.2 978.25 11.4 -0.82
Wooden
Furniture
Kitchen Wooden 604.88 7.4 594.48 7.0 -1.72
Furniture
Office Wooden 388.43 4.8 522.69 6.1 34.6
Furniture
Others – wooden 2,777.09 3.4 2,856.14 3.3 2.9
furniture

8. MALAYSIA’S FURNITURE EXPORT:
OF METAL (2006-2007)
2006 2007
Description Value Share (%) Value Share (%) Change (%)
RM Mil RM Mil
Office Metal Furniture, 697.09 8.6 739.58 8.6 6.1
& Other Furniture
MALAYSIA’S FURNITURE EXPORT:
OF PLASTIC (2006-2007)
2006 2007
Description Value Share (%) Value Share (%) Change (%)
RM Mil RM Mil
Plastic Furniture 47.69 0.6 50.07 0.6 5.0

9. TOP 10 EXPORT DESTINATIONS : SEATS, WITH WOODEN FRAME
(2004 – 2007)
COUNTRY 2004 2005 Growth 2006 Growth 2007 Growth
Value Value (%) Value (%) Value (%)
RM Mil RM Mil RM Mil RM Mil
TOTAL 1,331.76 1,497.69 12.5 1,634.51 9.1 1,710.13 4.6
USA 390.91 418.83 7.1 421.83 0.7 336.54 -20.2
AUSTRALIA 156.98 130.37 -17 173.02 32.7 192.16 11.1
UK 130.16 144.0 10.6 132.79 -7.8 135.88 2.33
JAPAN 104.54 125.7 20.2 118.57 -5.7 114.5 -3.43
FRANCE 8.71 31.81 265 44.63 40.3 78.02 74.8
CANADA 49.68 51.85 4.4 61.42 18.4 62.96 2.5
GERMANY 22.59 35.04 55.1 52.49 49.8 53.98 2.8
NETHERLANDS 56.34 61.40 8.9 70.41 14.7 51.38 -27
SINGAPORE 43.66 36.53 -16.3 39.11 7.1 46.68 19.3
UAE 44.41 36.00 -19 37.22 3.4 44.16 18.7

10. TOP 10 EXPORT DESTINATIONS : METAL FURNITURE
(2004– 2007)
COUNTRY 2004 2005 Growth 2006 Growth 2007 Growth
Value Value (%) Value (%) Value (%)
RM Mil RM Mil RM Mil RM Mil
TOTAL 704.28 693.66 -1.5 697.09 0.5 739.58 6.1
INDIA 16.39 30.79 87.8 65.37 112.3 78.86 20.6
SINGAPORE 72.72 76.51 5.2 68.97 -9.9 76.93 11.5
UK 123.69 90.14 -27.1 72.09 -20 70.72 -1.9
JAPAN 75.02 89.40 19.2 65.16 -27.1 64.14 -1.6
AUSTRALIA 72.51 67.18 -7.4 77.19 14.9 63.68 -17.5
UAE 42.99 40.23 -6.4 52.62 30.8 56.67 7.7
USA 71.95 51.42 -28.5 65.22 27.4 52.44 -20
MOROCCA 7.89 8.23 4.41 6.64 -19.4 44.38 568.2
SAUDI ARABIA 29.86 24.05 -19.4 29.54 22.76 31.18 5.6
ALGERIA 1.90 3.56 87.3 10.91 206.3 16.13 47.9

11. TOP 10 EXPORT DESTINATIONS : KITCHEN FURNITURE, WOOD
(2004-2007)
COUNTRY 2004 2005 Growth 2006 Growth 2007 Growth
Value Value (%) Value (%) Value (%)
RM Mil RM Mil RM Mil RM Mil
TOTAL 649.13 625.79 -3.6 604.88 -3.3 594.48 -1.7
USA 263.85 263.7 -0.1 243.85 -7.5 230.68 -5.4
UK 68.88 51.67 -25.0 46.32 -10.4 33.59 -27.5
AUSTRALIA 55.19 38.25 -30.7 31.85 -16.7 30.22 -5.1
CANADA 33.56 28.06 -16.4 32.5 15.8 26.78 -17.6
UAE 25.41 14.69 -42.2 21.71 47.8 20.17 -7.1
CHILE 7.33 8.44 15.1 11.91 41.1 18.02 51.3
GERMANY 8.86 7.29 -17.8 17.86 145.1 16.56 -7.3
SPAIN 6.76 10.45 54.5 9.82 -6 15.7 59.9
POLAND 0.2 0.71 253.3 4.83 578.4 14.5 200
JAPAN 20.34 18.24 -10.3 11.95 -34.5 11.64 -2.6

12. TOP 10 EXPORT DESTINATIONS : OFFICE FURNITURE OF WOOD
(2004-2007)
COUNTRY 2004 2005 Growth 2006 Growth 2007 Growth
Value Value (%) Value (%) Value (%)
RM Mil RM Mil RM Mil RM Mil
TOTAL 295.65 280.23 -5.2 388.43 38.6 522.69 34.6
INDIA 26.53 34.18 28.8 48.07 40.7 89.23 85.6
UAE 57.68 44.82 -22.3 69.22 54.4 79.46 14.8
USA 11.06 17.41 57.4 47.73 174.2 70.73 48.2
AUSTRALIA 9.75 10.61 8.8 12.23 15.3 36.45 198.1
SINGAPORE 28.12 30.21 7.4 32.24 6.7 35.37 9.7
CANADA 0.92 6.27 581.6 25.3 303.6 31.72 25.4
JAPAN 39.21 17.75 -54.7 16.42 -7.5 23.96 45.9
SAUDI ARABIA 15.19 15.22 0.2 13.26 -12.9 16.88 27.3
UK 17.67 15.65 -11.4 19 21.4 11.49 -39.5
QATAR 4.22 5.92 40.3 11.53 94.7 11.08 -4

13. MATRADE’s SUPPORT
ASSISTANCE

14. GLOBAL NETWORK
Moscow
Rotterdam
London
Toronto Paris
Cologne Budapest
Beijing
New York Seoul Tokyo
Milan ShanghaiOsaka
Los Cairo Dubai Guangzhou Taipei
Miami
Angeles Jeddah Chengdu Hong Kong
Mexico City Ho Chi
Chen Bangkok
Minh Manila
Nairobi nai Singapore
Jakart
Johannesburg a
Sao Paulo Sydney
Santiago
35 Trade Commissioners Offices
3 Marketing Offices
14
Malaysia External Trade Development Corporation

15. TRADE ADVISORY AND SUPPORT
Help Desk
Help Desk
Trade Advisory Services –
Trade Advisory Services –
HQ, Branch, Overseas
HQ, Branch, Overseas
Business Information Centre --KLIA
Business Information Centre KLIA
Briefing & Business Consultation
Briefing & Business Consultation
Sessions Nationwide
Sessions Nationwide
15

16. MATRADE’s SERVICES &
FACILITIES
 MEEC & MTC
 Exhibition Centre
 Business Library
 Publications
 MATRADE Website (
http://www.matrade.gov.my)
 Online Database
Malaysia External Trade Development Corporation

17. MALAYSIA EXPORT EXHIBITION CENTRE,
(MEEC), KUALA LUMPUR,
2nd FLOOR, MENARA MATRADE
17

18. SUPPORT PROGRAMMES
& ASSISTANCE
 MDG (Market Development Grant)
 BPG (Brand Promotion Grant)
 SEF (Services Export Fund)
 Tax Incentives
18

19. PROMOTION PROGRAMMES 2008
• International Trade Fairs 66
• Specialised Marketing Missions 14
• Trade Investment Missions 8
• Incoming Buying Missions 46
• Trade Promotion Visits 63
• Promotion Booths 68
• Roundtable Sessions 11
• Local International Fairs 2
- MIHAS (7-11 May) & INTRADE Malaysia (13-16 Nov 2008)
• Export Training Programmes 42
TOTAL: 320

20. GLOBAL ISSUES AND CHALLENGES
 WORLD ECONOMIC UNCERTAINTY
 USAGE OF ICT
 INCREASE ROLE OF SERVICES
 ASEAN FREE TRADE AREA (AFTA)
 GLOBALISATION AND TRADE LIBERALISATION
 INDUSTRIAL MERGERS
 ABOLITION OF MULTI FIBER AGREEMENT (MFA)
 TRADE AGREEMENTS
 EMERGING OF CHINA AND INDIA’S ECONOMIC
MIGHT
 NON TRADE MEASURES

21. CHALLENGES OF MALAYSIAN FURNITURE:
 The industry must quickly adapt, learn and
foresee obstacles in the near future
 Malaysia designers, exporters and
manufacturers must be capable to produce
good furniture design, in order to increase the
perceive value of furniture by the customers
that need value-for-money furniture.

22. CHALLENGES OF MALAYSIAN FURNITURE:
 Standardization allows Malaysia to produce
furniture products equivalent to other
established standards products.
 New trends in marketing will be introduced to
consumers, public health and safety will be
safeguarded, high quality and value products
are impetus to branding and help to move
towards a higher targeted market.

23. CHALLENGES OF MALAYSIAN FURNITURE:
 To enable companies to produce and market
the same quality product globally and help
gaining entry to new markets.
 With a good lumber grading system capability
the industry understands the importance of
value adding Malaysia furniture products. This
is done by adding esthetical values to the
furniture design

24. STRATEGIES TO PROMOTE MALAYSIAN FURNITURE
 Participation in trade promotion activities related to
furniture
(e.g. Cologne Furniture Fair, MEBEL Russia, MIFF);
 To design the products to reflect market preferences;
 Strengthening the value added activities such as designing,
packaging, marketing and distribution;
 Branding (one of the ways to increase competitiveness, and a
means to differentiate the country and the products and
services offered to the market);
 Malaysian companies should look at new and innovative ways
to conduct business, in particular, companies should intensify
the use of ICT and the internet to promote products and
services as it is an effective means to reach global markets in
situations where travelling is not possible (e.g. website, e-
mail marketing, trade portal, e-market places, virtual trade
exhibition).

25. STRATEGIES TO PROMOTE MALAYSIAN FURNITURE
 Maintain high values both in production, quality and
business ethics;
 Focus on original design and functional furniture;
 Invest in R&D for innovative creation and marketing
techniques
 Emphasis on establishing long term relationship;
 Target on medium to up market segment, where emphasis
is on quality and not quantity

26. MARKET INFORMATION
FURNITURE MARKET IN
THE UNITED KINGDOM

27. FURNITURE MARKET IN THE UK
 UK is a net importer of furniture. In 2006, UK imports of
furniture increased by 6 per cent and Malaysia is one of
the top exporters to UK.
 The UK household furniture sector is well established and
mature markets.
 The furniture market in UK has become more fashion
oriented, which demands more innovation in furniture,
versatility and functionality to suit the changing of
lifestyle.
 The trend to smaller houses has resulted in changes to the
design of new homes. This has significant implications for
the types of furniture being demanded by the consumers.
 Smaller size and more flexible types of furniture are highly
demanded. Bedroom furniture is also a major area of
opportunities.

28. FURNITURE MARKET IN THE UK
 Great opportunities can also be found with furniture parts
and upholstered seating.
 Furniture that can be supplied by flat-packed is of interest
to Malaysian exporters. It applies to children’s bedroom,
home office and shelves, and storage units.
 Malaysian exporters can also tap the market segment for
older affluent group in the UK. In 2005, 20.3 million
people in the UK were aged 50 and over. This group is
looking for products with built-in extras – such as reclining
chairs.
 Malaysian exporters to the UK often being pressured by the
lower/cheaper products from Vietnam and China. To
compete, Malaysian exporters must maintain quality
standard and keep up with the changing trends and
enhancing designs of the furniture.

29. FURNITURE MARKET IN THE UK
 Outsourcing of UK production is providing opportunities for
Malaysian exporters. However, the major opportunities lie
in providing good value, highly designed products to meet
the changing lifestyle need of modern UK households.
 Malaysian exporters should also be looking for
opportunities to sell to big multiples such as B&Q, Home
Base or even Tesco.
 Potential importers, eg:
i) B&Q PLC (www.diy.com)
ii) Focus Do It All (www.focusdoitall.co.uk)
iii) Homebase (www.homebase.co.uk)
iv) Tesco
v) Wickes Building Supplies Ltd

30. MARKET INFORMATION
FURNITURE MARKET IN
SPAIN

31. FURNITURE MARKET IN SPAIN
 The Spanish market has undergone changes in furniture
preferences. The trend is moving towards modern
contemporary style, more practical and convivial
furniture.
 For domestic furniture:
 Increasing demand for kitchen furniture. The main trend in
terms of materials are stainless steel kitchen tops and wooden
cabinets, designed with geometrical and simple lines.
 Contemporary dining table is characterised with simple lines in
rectangular form. The demand is more on light colours,
entirely made of wood or metal feet with glass on top.
 Increasing demand for all types of chairs and relax-seats.
 Rising demand for small furniture, comprising small and low
tables for living room, shelves for DVD and other small
cupboards.

32. FURNITURE MARKET IN SPAIN
 For office furniture:
 Increasing trends for hot-desking (shared facilities) office
furniture
 Higher demands for meeting table due to increasing team work
 Increasing demands for ‘multiplan’ desk with additional levels
for storage purposes
 The pricing can be divided into 3 categories – up market, middle
market and low market.
 The prices of low market can be four times lower than the up
market.
 Among Malaysia’s main weaknesses in the Spanish furniture
market is the lack of awareness of Malaysian product

33. FURNITURE MARKET IN SPAIN
 Malaysian exporters must be aggressive in promotional
efforts in Spain.
 Factors for successful market entry include:
 Awareness
 Pricing
 Effective marketing
 Quality products
 Innovations – designs, materials, functionality
 Improved products
 Compliance with EU Standard
 Potential importers:
 CONFORAMA (www.conforama.es)
 MOBLERONE (www.expomobi.com)

34. CONCLUSION
The Malaysian Furniture Industry:
 must be aware of new standards and
developments to stay ahead of competition
 must collaborate and exchange ideas,
practices and collaboration within the
business community domestically and
internationally.

35. Visit us at:
MATRADE
Menara MATRADE
Jalan Khidmat Usaha
Off Jalan Duta
50480 Kuala Lumpur
Tel: 03-62077077
Faks: 03-62037187
E-mail: info@matrade.gov.my
Website: www.matrade.gov.my

36. THANK YOU