FURNITURE INDUSTRY IN MALAYSIA - STATUS & MARKET

PROSPECTS
By:

Hajah Robiyah Hj. Husin

Malaysian Timber Industry Board
Seminar on Sabah Furniture Industry A Potential Hub for Outdoor
Furniture
th
24 September
Kota Kinabalu, Sabah

SCOPE OF PRESENTATION

Overview/Status of the Malaysias Furniture Industry

Economic Contribution

NATIP Targets 2020 for Furniture Industry

Mills Distribution

Vital Industry Statistics

Global Overview
Malaysian Overview

Products Designs Trends & Market Prospects

Way Forward

Conclusion

ECONOMICCONTRIBUTIONOFTHETIMBERAND
FURNITUREINDUSTRY,2011
Market Size
Total : RM 33.0 billion
Export : RM 20.0
billion
Contribution of
timber to total
Export
2.9 % of
RM 694.6 billion
(Wooden and
Rattan Furniture
31% of RM 20.0
billion)

Source : MTIB, DOSM, MIDA

Domestic : RM 13.0
billion

Employment
211,236 persons
(Furniture 65,032
persons)

Approved
Investments
Wood and wood
products: RM 1.03
billion
Furniture & fixtures:
RM 306.1 million
Total : 1.3
billion

(NATIPTARGETS2020)EXPORTOFTIMBER&
TIMBERPRODUCTS:COMMODITYVSVALUEADDED
Total Malaysia
2010

2011

Commodity (%)

58

58

Value-Added (%)

42

42

NATIP Strategic Thrust 1 :

Industry Structure
Export target RM53billion
VA ratio 60:40

By Region:ValueAdded(%)

Commodity(%)

2010

2011

2010

2011

Pen.Malaysia

74

73

26

27

Sabah

13

12

87

88

Sarawak

97

97

NATIP Gap (%)

Source : MTIB, DOSM

MILLSDISTRIBUTION2011
Sg. Buloh, Selangor
Muar, Johor
Kulim, Kedah

Sawmills
1,007

Peninsular
Malaysia
1,812

Moulding mills
338

Kiln Drying/
Preservation plants
190/98

Fibreboard
15
Plywood/Veneer
mills
125

Total
4,225 mills

Peninsular
Malaysia
3,025
Sabah
492

Others
119

Sarawak
708

Sabah
29

Furniture
plants
2,260

Kota Kinabalu
(KKIP)

Sarawak
419

Kuala Baram Miri

Lanang, Sibu
Damak Laut, Kuching
Kota Semarahan
Source : MTIB, DOSM

GLOBALTRADEOFFURNITURE
1% of world trade of manufactures
2009 (US$95 billion)
decrease of 19% from
2008
2010 (US$106 billion)

2011 (US$116 billion)

2012* (US$122 billion)

2013* (US$128 billion)

* Projected
Sources: WTO, Prometieia, CSIL

GLOBAL:FURNITUREMARKETOUTLOOK,2011

US$412.2billion
WorldConsumption

Source: WTO, CSIL

EU,Norway,Switzerland,Iceland,NorthAmerica
46%
AsiaPacific 44%
7

GLOBAL:MAJORFURNITUREEXPORTINGCOUNTRIES
2011

Source: WTO, CSIL

GLOBAL:MARKETSHAREOFMAJOREXPORTING
COUNTRIES
Percentages

*Rounded to one decimal points

Source: CSIL

GLOBAL:FURNITURECONSUMPTIONOUTLOOKIN
MAJORMARKETS
COUNTRY
China
USA
Germany
Japan
France
Italy
India
UK
Canada
Russia
Australia
Spain
Brazil
South Korea

%
*2012
8
2
0
0
0
-5
7
0
2
5
3
-3
4
3

Overall global growth - 4%

Europe - stable
North America - slow growth
Emerging market economies esp. Asia - fast growth
*forecast
Source :CSIL

*2013
9
2
0
1
0
-3
7
1
2
4
2
-1
5
3

ExportofFurniture(GlobalRanking)2006 2011
Value in USD Billion
2006

2007

2008

2009

2010

2011

No.

World

89.7

World

106.5

World

116.2

World

96.5

World

109.9

World

120.9

1.

China

17.1

China

22.0

China

26.8

China

25.5

China

32.8

China

37.8

2.

Italy

11.1

Italy

12.9

Italy

13.4

Italy

9.8

Italy

10.0

Germany

11.3

3.

Germany

8.0

Germany

10.4

Germany

11.6

Germany

9.2

Germany

9.8

Italy

10.9

4.

Poland

6.0

Poland

7.1

Poland

7.9

Poland

6.3

Poland

7.0

Poland

8.2

5.

Canada

4.5

Canada

4.1

USA

4.1

USA

3.2

USA

3.7

USA

4.1

6.

USA

3.2

USA

3.6

Canada

3.6

Vietnam

3.1

Vietnam

3.7

Vietnam

3.8

7.

France

3.0

France

3.0

Vietnam

3.4

France

2.5

Canada

2.7

Canada

2.8

8.

Denmark

2.5

Vietnam

2.9

France

3.3

Canada

2.3

Malaysia

2.4

Malaysia

2.5

9.

Vietnam

2.4

Denmark

2.8

Malaysia

2.6

Malaysia

2.1

France

2.2

Sweden

2.3

10.

Malaysia

2.2

Malaysia

2.5

Denmark

2.5

Sweden

1.9

Sweden

2.0

France

2.3

Source: CSIL

11

MALAYSIA:EXPORTOFTIMBERPRODUCTS,
2000 2012(JanJun)
RM Billion
25.00
20.00
15.00
10.00
5.00
0.00

RM billion

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
(JanJun)
17.70 14.00 14.34 16.64 19.78 21.45 23.40 22.76 22.79 19.49 20.50 20.03 9.81

Wooden & Rattan Furniture 4.48

3.84

4.24

4.72

5.48

5.89

6.46

6.71

6.95

6.27

6.55

6.22

3.14

Sources : MTIB, DOSM

12

MALAYSIA:EXPORTOFTIMBERPRODUCTSBYREGION
2011
RM Million
12,000

10,000

8,000

6,000

4,000

2,000

Timber Products

Peninsular Malaysia
10,865

Sabah
2,192

Sarawak
6,969

Peninsular Malaysia

Sabah

Sarawak

Note: Wooden & Rattan Furniture

6.12 bn

43 mn

29mn

Note: Wooden & Rattan Furniture

(Jan-Jun 2012)

3.1 bn

21 mn

12mn

Total = RM20.03 billion

Source : MTIB, DOSM

13

MALAYSIA:EXPORTOFTIMBER&TIMBERPRODUCTS
2011&2012(JANJUN)
2011
Veneer
2%
Mouldings
4%
BJC
5%

2012 (Jan-Jun)
Veneer
2%
Mouldings
4%

Others
5%

Fibreboard
5%

Furniture
31%
RM6.23 bn

Fibreboard
6%

Logs
10%
Sawntimber
12%

BJC
5%
Furniture
31%
RM3.14bn

Fibreboard
5%
Logs
8%

Plywood
25%

TOTAL : RM20.03 billion

* Comprising 22 Products.

Others
3%

Sawntimber
12%

Plywood
25%

TOTAL : RM9.81 billion

Source : MTIB, DOSM

14

MALAYSIA:FURNITUREVITALSTATISTICS
MillionofUS$
Ranking**

2011
Production

3,751

18

Exports

2,496

Imports

416

40

Consumptions*

1,671

32

TypesofMalaysianFurnitureExported:
78.3%wooden
0.3%rattan
8.3%metal
0.3%plastics
6.4%seats&parts
6.4%otherfurniture

*Apparentconsumption=Production Exports+Imports
**RankingofMalaysiasamong70countries

RealGrowthofFurnitureConsumption.Forecasts
*2012

*2013

5%

6%

MajorCompetitors:
China
Vietnam
Poland

*Forecasts

MainFurnitureTradingPartnersofMalaysia
Origin of Furniture Imports
China

39.7%

Vietnam

5.5%

Japan

13.4%

Germany

5.5%

Indonesia

8.1%

Taiwan

2.9%

Thailand

5.7%

Italy

2.3%

UnitedStates

3.8%

Singapore

3.1%

Sources: CSIL 2012/2013, MTIB, DOSM

Destination of Furniture Exports

UnitedStates

26.6%

Canada

3.6%

Japan

11.7%

UnitedArab
Emirates

3.4%

Singapore

8.1%

India

3.6%

United
Kingdom

5.3%

France

1.7%

Australia

6.8%

SaudiArabia

1.9%

15

MALAYSIAFURNITUREINDUSTRY
Starperformerofthetimberindustry
Malaysiasfurnitureexportworldranking 8th in2011(allfurniture)

MalaysiaExportvalueofallfurnitureUSD2.5billionin2011

ExportsfromRM2.1billionin1996toRM6.2billionin2011
(woodenandrattanfurniture)

H12012 RM3.14billion(woodenandrattanfurniture)

Woodenfurnitureexportedtoover183countriesin2011

16

MALAYSIASPOSITION TOP10WORLDIMPORTING
FURNITUREMARKETS

Note: Malaysianotwithintop10th position

India,Singapore Malaysia2nd afterChina
Source: CSIL
17

MALAYSIA:EXPORTOFALLFURNITURE
Value in RM

2008

WOODEN FURNITURE

6,921,086,966

6,248,217,943

6,521,646,488

6,201,495,360

-4.9

34,616,349

29,636,368

31,158,474.0

25,051,936

-19.6

ADJUSTED FURNITURE

180,285,560

95,027,995

137,546,563

159,259,256

15.8

MATTRESS

236,285,280

209,678,512

237,029,755

230,897,600

-2.6

29,046,633

25,475,041

26,317,325

21,946,557

-16.6

904,485,593

672,683,422

665,017,694

666,145,287

0.2

77,953,141

74,258,499

88,081,923

86,630,777

-1.6

441,974,001

436,997,096

442,318,925

474,446,286

7.3

46,124,336

24,104,919

26,410,942

23,756,183

-10.1

8,285,016

57,461

64,127

35,827

-44.1

34,769,582

38,395,545

50,123,564

32,475,839

-35.2

8,914,914,465

7,854,534,810

8,225,715,780

7,922,140,908

-3.7

RATTAN FURNITURE

MEDICAL & MEDICAL FURNITURE

METAL FURNITURE
OTHERS FURNITURE
FURNITURE PARTS
PLASTICS FURNITURE
STONE & CERAMIC FURNITUE
VEHICLE SEATS
TOTAL

2009

2010

2011

% Change
2011/2010

TYPE OF FURNITURE

Source: DOSM

18

MALAYSIA:EXPORTSOFWOODEN&RATTANFURNITURE
1996 2012
Value in Billion

Source : MTIB, DOSM

MALAYSIA:EXPORTSOFWOODENFURNITURE
(TOP10)

Destination

United States

2011

2010

% Change

RM '000

RM '000

2011/2010

1,783,969

2,077,488

-14.1

Japan

775,098

607,507

27.6

Australia

418,014

398,689

4.8

United Kingdom

355,443

451,812

-21.3

Singapore

328,228

297,241

10.4

Canada

264,943

303,544

-12.7

United Arab Emirates

200,355

219,181

-8.6

India

155,640

124,198

25.3

Saudi Arabia

118,624

99,511

19.2

Algeria

80,531

50,059

60.9

Others*

1,720,650

1,892,415

-9.1

TOTAL

6,201,495

6,521,646

-4.9

10

* Others include 173 countries

Source: MTIB, DOSM

20

MALAYSIA:IMPORTSOFWOODENFURNITURE(TOP10)
Value in RM
COUNTRY

2007

2008

2009

2010

2011

146,038,443

175,839,018

309,974,659

259,236,361

229,839,572

94.06

CHINA

1,449,350

2,373,334

6,069,209

3,366,177

6,160,797

2.52

SINGAPORE

2,560,612

2,378,871

3,701,404

4,804,180

2,999,852

1.23

237,678

154,927

43,076

783,669

1,447,932

0.59

1,630,515

252,014

903,156

2,409,214

866,434

0.35

228,906

471,106

86,385

1,056,852

455,205

0.19

1,577,797

2,164,756

406,514

667,700

377,411

0.15

THAILAND

ITALY
GERMANY
AUSTRIA
AUSTRALIA

% share

RANK

SLOVAKIA

273,639

0.11

HUNGARY

267,115

0.11

9
10

NETHERLANDS
OTHERS
TOTAL

153,065

369,402

5,719,454

709,696

244,841

0.10

3,312,957

8,897,242

10,766,670

4,481,000

1,409,835

0.58

157,189,323

192,900,670

337,670,527

277,514,849

244,342,633

100.00

Source: MTIB, DOSM

21

MALAYSIA:IMPORTSOFWOODENFURNITUREJAN JUN
2012(TOP10)
Country
TOTAL

JAN - JUN 2012

FOB Val (RM)

% Change
in Val 12/11

% Share

187,858,933

7.8

103,741,104

13.8

55.22

CHINA

INDONESIA

20,780,363

6.8

11.06

VIET NAM

14,661,562

-26.3

7.80

ITALY

7,456,163

-2.8

3.97

THAILAND

7,024,018

98.6

3.74

POLAND

5,858,402

11.3

3.12

SINGAPORE

3,570,433

23.0

1.90

GERMANY

3,126,868

-48.2

1.66

HONG KONG

2,364,738

10.6

1.26

SWEDEN

2,322,458

53.9

1.24

10

Source: MTIB, DOSM

22

SABAH:EXPORTOFALLFURNITURE20102011
Value in RM

Furniture Type

2011

2010

WOODEN FURNITURE

43,105,195

38,295,296

RATTAN FURNITURE

8,023,468

6,229,329

ADJUSTED

1,557,269

704,442

MATTRESS

1,621,450

1,164,941

6,180

METAL

2,281,566

870,482

PARTS

19,658,293

1,565,702

173,871

109,671

VEHICLE

11,514

OTHERS

5,409,795

1,074,292

81,842,421

50,020,335

MEDICAL

PLASTICS
STONE

TOTAL
Source: DOSM

23

SABAH:EXPORTOFWOODENFURNITUREBY
DESTINATION(TOPTEN)2010 2011

DESTINATIONS
WORLD
UNITED KINGDOM
GERMANY
FRANCE
ITALY
NETHERLANDS
USA
POLAND
SWEDEN
SPAIN
GREECE
OTHERS
Source: DOSM

Ranking

1
2
3
4
5
6
7
8
9
10

2011
RM
43,105,195
17,677,922
8,146,977
3,642,988
2,666,710
2,372,294
1,412,777
938,562
843,505
735,305
606,359
4,061,796

2010
RM
38,295,296
17,154,386
7,838,364
2,011,799
1,173,816
1,580,881
2,117,827
298,580
531,337
339,269
859,426
4,389,611

SABAH:EXPORTOFWOODENFURNITUREBY
DESTINATION(TOPTEN)JAN JUN2012
DESTINATIONS

Ranking

WORLD

Jan-Jun 2011
RM
32,897,046

Jan-Jun 2012
RM
21,224,867

UNITED KINGDOM
GERMANY
FRANCE
ITALY

1
2
3
4

6,729,128
1,424,746
391,614
16,744,910

3,556,927
2,699,900
2,260,075
2,082,272

NETHERLANDS
GREECE

5
6

3,021,241
1,434,444

1,901,446
1,820,479

CZECH REPUBLIC
BELGIUM
USA
INDONESIA
OTHERS

7
8
9
10

24,468
0
64,979
0
3,061,516

1,238,255
1,121,413
952,616
847,306
2,744,178

Source: DOSM

PRODUCTSDESIGNSTRENDSBYMAJORMARKETS
CurrentGlobal
Designs
Movement
Green,Sustainable&
HealthyDesigns
(People&Nature)
Transition
Minimalise (Simple&
Minimum)
Multifunction
Multi/Alternative
materials

Europe

USA&
Australia

Middle
East
EastAsia:
Korea,
Japan,
Taiwan&
India

Classic
Designs
(CD)

Contemporary
Designs(CTD)

InBetween/
COMBI
CD&CTD

Modern
Designs
(including
modular
system)
26
26

MARKETTRENDS&DEVELOPMENT
Ongoingglobaleconomicrecession,worstshapesince2009,hangingonChinagrowth.
IMFglobaleconomyforecastreducedto3.3%.Emergingeconomies 5.4%,Advanceeconomies1.2%
USsluggisheconomicgrowth(2.1%4th Qtr).Contractioninconstructionandlowjobcreation/high
unemployment>8%
Eurozone debtcrisisnoteasing,affectingglobalgrowthincludinggrowthintheeconomicsuperstarsofthe
developingworldandemergingmarketsincludingChina,Indiaand Brazil
MiddleEasttensionsespeciallySyriancrisisaffectmarketandpoliticalstabilityintheregion
Increasepressureonlegalityandcertificationofproducts EUTR/EUFLEGTcomingintoforceMarch2013,
AustraliaillegalloggingprohibitionBillinthenearfuture
FSC,PEFCCertification

SoWheretoExportYourFurniture??
TraditionalMarkets:
US(Increasehomebuildingindexin50years)
Japan(Rebuildingaftertsunami)
Singapore
+ve economicgrowth
Australia
EmergingMarkets:
MiddleEast:SaudiArabia,UAE,Bahrain
Africa:Egypt,Algeria,Morocco,SouthAfrica
AsiaPacific:India,Taiwan,Thailand,Indonesia
Russia,Kazakhstan
Chile

27

WAYFORWARD
ActionPlan:HowtoIncreaseMalaysiaFurniture

Export/TransformtheFurnitureIndustry?
Penetrate
globalmarket
throughcorrect
marketing
strategiesvia
importing
agents,direct
buyers&
retailers
(independent
retail/DIY
stores,
hypermarkets&
contract
manufacturing),
hotels,
residential&
publicprojects.

Ongoingstudy
on
targeted/niche
market on
consumer
behaviours,
preferences,
trends&
designs.

Investin
innovations
andR&Dfor
product
designs,
agilityof
production&
technology
management
basedon
Green
Production
Systems&
Chronology
(GPSC)

Establish
roadmapon
designs
(OBM/ODM),
alternative/
new
materials,
bamboo,etc.
ODM/OBM
20%
OEM 80%

Builteffective
global
manufacturing,
supplyand
marketing
distribution
chain/network

Focusonlow
volumebut
highvalue
marketing
strategies. eg:
strong
product
branding,
signature/
premium
product
identity

28

NationalEffortsinPromotingDesignCultureintheMalaysian
FurnitureIndustry
FormulationofFurniture&WoodDesignRoadmap(FWDR),20122020
CommitteeMembers:Gov.Agencies,Timber&FurnitureCouncils& Association,Uni,RIs andDesign
Societies.Secretariat:MTIB
Status tobefinalizedandsubmittedtoMPICforcabinetapproval
Furniture&WoodDesignRoadmap20122020

DesignDatabase
ObjectivesofFWDR

DesignCompetition
MalaysiaMobili Design
Competition2013
13selecteddesigns

DesignStudios&
RapidPrototyping
Centre

ForManufacturers:
Toprovidetheplatformofexperimentationthatwillallowtheindustrytoworkcloserwithlocaldesigners,
especiallyduringtheprototypingprocess.
To promote Malaysian manufacturers production capabilities to the world and elevate their image
throughshowcaseofhighenddesignsandapplicationoftraditional/alternatives/newmaterials.
For Designers:
Toprovideanopportunityofdeveloping/producingtheirowndesignswithmanufacturers.
Attend and showcase their designs at International Prestigious Design show (eg. Milan Design Show
iSaloni (Italy) YoungDesignersSatellites,April2013.
Beexposedtoworldclassdesigncommunitythroughorganizedeventsandmeetings.
For Malaysia:
To create a portfolio of new exciting designs that have international market appeal that can be
manufacturedandmarketedbyMalaysianfurnituremanufacturerswithstrongproductbranding/identity
Toreinforcethenationsfurnitureindustryimageandplaceourselves
asoneofthecountriesrecognizedforgooddesign(green&sustainabledesigns)
29

CONCLUSION

Strategy for Malaysia/Sabah to achieve NATIP 2020

exports and value addition targets.

30

THANK
YOU
31