Malaysia actually produces export-quality furniture at very low prices, but its people only spend an average of RM120 a year on furniture, says Datuk Dr Tan Chin Huat, Managing Director of the Malaysian International Furniture Fair (MIFF).
Europeans, in contrast, spend an average of 400 euros while Americans on average spend some USD300 a year on furniture. "Furniture in Malaysia is very cheap. You can pay RM1,000 for a piece of furniture here, while the same piece can easily fetch RM1,600 in Taiwan and RM2,500 Hong Kong.
"However, many Malaysians still prefer to buy overseas products. That is why many local manufacturers are forced to export," he told Bernama in an interview on the upcoming MIFF next month.
Also present at the interview were Managing Director of MIECO Manufacturing Datuk Yong Seng Yeow and Jemaramas Jaya Sdn Bhd Chief Executive Officer Roland Law.
GOOD EXPORT POTENTIAL IN ASIA
Tan says although Malaysia produces world-class furniture, a hefty 85 per cent of it are exported.
Statistics from the Ministry of International Trade and Industry show that the United States is the biggest importer of Malaysian-made furniture, with exports to the country totalling RM1,982.7 million between January and October last year. This is followed by Japan (RM573 million), Singapore (RM477 million) and the United Kingdom (RM407 million).
Malaysia's other top furniture export markets within the period are Australia, Canada, the United Arab Emirates, India, Saudi Arabia and Germany.
Tan acknowledges the number of western countries in its top 10 export market. However, he feels that the Asian market should also be explored.
"Traditionally Asian countries tend to export to the west. They rarely look at their Asian neighbours. Actually, there is great potential there.
"China has about 1.3 billion people, and India's population has also reached a billion. There are around 550 million people in the ASEAN region as well."
He therefore urged the industry to explore non-traditional markets as such, and to even go as far as Russia.
"I think there's a good market potential there," he says.
The Malaysian Industrial Development Authority (MIDA) last month revealed that it approved 42 industry projects last year that created employment for 5,163 people. The projects garnered RM218 million in local investments and RM241.2 foreign investments. Of this was an investment of RM443 million on the furniture industry alone.
ADAPTING TO CHANGES
Meanwhile, Yong says the local industry has been able to compete with the rest of the world because of the reliability, quality, competitive pricing of its products.
"We are known for it too," he says.
Malaysia currently ranks number nine in the world in furniture exports.
He says the industry has come a long way from the cottage industry it was 30 years ago. Today, the industry boasts world-class manufacturers.
Aside from the 2009 global financial crisis that has hit the industry hard, the furniture industry today also faces challenges that hardly existed a few decades ago. How does it deal with scarcity of good timber and rising prices of materials like steel?
Tan says it is indeed a problem, but one that is faced by the industry worldwide. He says it is a matter of how fast one can adapt to the changes.
"No doubt, solid wood is depleting. But there are alternative material that can be used, that are also environmentally-friendly."
Yong himself is in a business of recycling waste materials from the industry to produce eco-friendly alternatives like Mieco's wooden panel and chipboard.
"I would say I'm like a "scavenger". Whatever people throw away, I take. This includes raw material like off-cuts and branches, so you can say that my materials are 'green'.
"Today, we can produce a comfortable and sturdy chair using less timber than in the olden days. For example, we can make kitchen worktops using chipboard instead of solid wood. The quality is just as good."
He says the speed at which industry players can adapt to the changes of material, design and even in marketing, also plays an important part in keeping alive in the industry.
KEEPING UP BY GOING GREEN
Going green is also part of keeping up with the changes.
"I would say more local furniture manufacturers are gearing towards that. The government also plays an important role as they have a certain control in stopping the felling of trees."
So does that mean the industry is going green because they have their backs up against the wall? Or is cost affecting their choice?
"It's not just that," says Tan. "The market also plays a part, as more and more people are now looking for environmentally-friendly products."
He says going green is not just about building with "green materials" but also choosing green packaging options.
"Nowadays if you want to export to countries like Japan, they wouldn't like you packaging your products with plastic sheets, because plastic is just so bad for the environment. So you have to ensure that even your packaging materials are green."
MIFF 2011
On about the upcoming MIFF 2011, Tan says it offer a great avenue for the Malaysian furniture industry to showcase their products at a nominal cost of RM550 per square metre.
"Compare this to international fairs where it is much costlier - the Dubai Furniture Fair demands USD750 per square metre, in Russia it's USD1,350 while in Europe you have to pay 700 euros per square metre".
In addition to that, he says, it also brings revenue for the exhibitors and the publicity it will receive will also add extra value to them.
He says MIFF is targeting more than the USD755 million it receives in export sales in last year's fair.
Some 15,000 visitors turned up at last year's fair with the most numbers of visitors from Malaysia, the Asean region, Europe and the Middle East.
This year's fair is the 17th and will be held at the Putra World Trade Centre from March 1 to 5 and the Kuala Lumpur Convention Centre.
Tan says to date 450 exhibitors have confirmed their participation and free shuttle buses and coaches will be provided between the two venues for the convenience of visitors.
0 comments:
Post a Comment