- 1. BENGKEL SISTEM MAKLUMAT PASARAN TEMPATAN &
ANTARABANGSAPROSPECTS OF MALAYSIANFURNITURE EXPORTS MD. SILMI ABD
RAHMANHOTEL SERI MALAYSIA, AYER KEROH MELAKA 29 JULAI 2008
2. Malaysias Total Trade:2006 : RM1,069.74 billion2007 :
RM1,109.97 billion ( 3.7%) Total Exports:2006 : RM588.97
billion2007 : RM605.15 billion ( 2.8%) Total Furniture Exports:2006
: RM8.08 billion2007 : RM8.55 billion (5.8%) International Trade
Position in 2007:19th largest exporters (Furniture: 10th
largestworld exporters) 3. MALAYSIAS FURNITURE EXPORTS
(2004-2007)COUNTRY2004 2005Growth2006Growth2007Growth ValueValue
(%) Value (%) Value (%) RM Mil RM MilRM MilTOTAL 7,050.64
7,495.556.3 8,080.1 7.8 8,547.775.8MALAYSIAS FURNITURE IMPORTS
(2004-2007)COUNTRY2004 2005Growth2006Growth2007Growth ValueValue
(%) Value (%) Value (%) RM Mil RM MilRM MilTOTAL 1,032.91
1,254.9121.51,320.785.2 1,322.740.1 4. TOP 10 FURNITURE EXPORT
DESTINATIONS COUNTRY2004 2005Growth2006Growth2007Growth
ValueValue(%)Value(%)Value (%)RM Mil RM MilRM MilRM
MilTOTAL7,050.64 7,495.556.3 8,080.1 7.8 8,547.775.8USA2,145.12
2,466.8515.02,551.163.4 2,272.37-10.9JAPAN719.30
695.57-3.3723.574.0 777.387.4AUSTRALIA628.62
585.62-6.8673.7115.0716.376.3UK 734.69 621.60
-15.4608.82-2.1598.74-1.7SINGAPORE347.88 308.02 -11.5326.586.0
398.1021.9UAE308.84 252.01 -18.4313.0024.2344.8010.2INDIA107.10
136.6727.6231.3969.3282.0221.9CANADA 225.04 230.662.5
271.2017.6278.652.7CHINA
63.0283.0531.8136.0663.8213.4956.9FRANCE62.75
124.8298.9113.42-9.1156.2237.7 5. TOP 10 FURNITURE IMPORT SOURCE
COUNTRY2004 2005Growth2006Growth2007Growth
ValueValue(%)Value(%)Value (%)RM Mil RM MilRM MilRM
MilTOTAL1,032.91 1,254.9121.51,320.785.2 1,322.740.1CHINA230.94
264.5114.5267.781.2 324.0221.0POLAND96.6898.742.1
130.6132.3114.02-12.7ITALY
48.5150.373.855.209.689.8562.8THAILAND57.7295.5865.6 80.16 -16.1
86.137.4GERMANY 53.5955.363.364.9117.3 82.9227.7JAPAN
37.7448.1127.5 49.733.472.5445.9LITHUANIA 24.4630.1823.4 43.0142.5
58.2235.3INDONESIA 46.6859.0926.6 58.48-1.0 52.59-10.1VIETNAM
49.8744.52 -10.7 58.7031.9 47.91-18.4USA 32.74 124.23 279.4 81.44
-34.5 36.30-55.4 6. TYPE OF FURNITURE EXPORTED (2006-2007)
20062007Description ValueShare (%)ValueShare (%) Change (%) RM Mil
RM MilFURNITURE, 7,088.3 87.77,401.2786.6 4.4 WOODEN Seats
With1,634.5120.21,710.1320.0 4.6Wooden FrameOffice Metal 697.098.6
739.588.66.1 Furniture, &Other FurnitureKitchen Wooden
604.887.4 594.487.0 -1.72Furniture Bedroom
986.3012.2978.2511.4-0.82Wooden Furniture Office Wooden 388.434.8
522.696.1 34.6 FurnitureOthers wooden2,777.093.4 2,856.143.32.9
furniture 7. MALAYSIAS FURNITURE EXPORT: OF METAL (2006-2007) 2006
2007Description Value Share (%) ValueShare (%) Change (%)RM MilRM
MilOffice Metal Furniture, 697.098.6 739.58 8.66.1& Other
FurnitureMALAYSIAS FURNITURE EXPORT: OF PLASTIC (2006-2007)2006
2007DescriptionValueShare (%)Value Share (%) Change (%)RM MilRM
MilPlastic Furniture 47.690.650.07 0.6 5.0 8. TOP 10 EXPORT
DESTINATIONS : SEATS, WITH WOODEN FRAME(2004 2007) COUNTRY2004
2005Growth2006Growth2007Growth ValueValue(%)Value(%)Value (%)RM Mil
RM MilRM MilRM MilTOTAL1,331.76 1,497.6912.51,634.519.1
1,710.134.6USA390.91 418.837.1 421.830.7 336.54-20.2AUSTRALIA156.98
130.37-17 173.0232.7192.1611.1UK
130.16144.010.6132.79-7.8135.882.33JAPAN104.54125.720.2118.57-5.7
114.5-3.43FRANCE 8.7131.8126544.6340.3
78.0274.8CANADA49.6851.854.461.4218.4 62.962.5GERMANY
22.5935.0455.1 52.4949.8 53.982.8NETHERLANDS 56.3461.408.970.4114.7
51.38-27SINGAPORE 43.6636.53 -16.3 39.117.146.6819.3UAE
44.4136.00-1937.223.444.1618.7 9. TOP 10 EXPORT DESTINATIONS :
METAL FURNITURE (2004 2007) COUNTRY20042005 Growth 2006 Growth 2007
GrowthValueValue (%) Value (%) Value(%) RM Mil RM MilRM MilRM
MilTOTAL704.28 693.66-1.5697.090.5 739.586.1INDIA16.3930.79
87.865.37112.378.86 20.6SINGAPORE72.7276.51 5.2 68.97 -9.976.93
11.5UK 123.69 90.14-27.172.09 -20 70.72 -1.9JAPAN75.0289.40
19.265.16-27.164.14 -1.6AUSTRALIA72.5167.18 -7.477.19 14.963.68
-17.5UAE42.9940.23 -6.452.62 30.856.67 7.7USA71.9551.42-28.565.22
27.452.44 -20MOROCCA 7.89 8.23 4.41 6.64-19.444.38568.2SAUDI ARABIA
29.8624.05-19.429.5422.7631.18 5.6ALGERIA 1.90 3.56
87.310.91206.316.13 47.9 10. TOP 10 EXPORT DESTINATIONS : KITCHEN
FURNITURE, WOOD (2004-2007) COUNTRY 2004 2005 Growth 2006 Growth
2007 GrowthValueValue (%) Value (%) Value(%) RM Mil RM MilRM MilRM
MilTOTAL649.13 625.79-3.6604.88-3.3594.48-1.7USA263.85 263.7
-0.1243.85-7.5230.68-5.4UK 68.8851.67-25.046.32-10.433.59
-27.5AUSTRALIA55.1938.25-30.731.85-16.730.22 -5.1CANADA
33.5628.06-16.4 32.5 15.826.78 -17.6UAE25.4114.69-42.221.71
47.820.17 -7.1CHILE 7.33 8.44 15.111.91 41.118.02 51.3GERMANY 8.86
7.29-17.817.86145.116.56 -7.3SPAIN 6.7610.45 54.5 9.82-615.7
59.9POLAND0.20.71253.3 4.83578.4 14.5
200JAPAN20.3418.24-10.311.95-34.511.64 -2.6 11. TOP 10 EXPORT
DESTINATIONS : OFFICE FURNITURE OF WOOD(2004-2007) COUNTRY 2004
2005 Growth 2006 Growth 2007 GrowthValueValue (%) Value (%)
Value(%) RM Mil RM MilRM MilRM MilTOTAL295.65
280.23-5.2388.4338.6522.6934.6INDIA26.5334.18 28.848.07 40.789.23
85.6UAE57.6844.82-22.369.22 54.479.46 14.8USA11.0617.41
57.447.73174.270.73 48.2AUSTRALIA 9.7510.61 8.8 12.23
15.336.45198.1SINGAPORE28.1230.21 7.4 32.24 6.7 35.37 9.7CANADA0.92
6.27581.6 25.3303.631.72 25.4JAPAN39.2117.75-54.716.42 -7.523.96
45.9SAUDI ARABIA 15.1915.22 0.2 13.26-12.916.88 27.3UK
17.6715.65-11.4 19 21.411.49 -39.5QATAR 4.22 5.92 40.311.53
94.711.08-4 12. GLOBAL NETWORK MoscowRotterdam LondonTorontoParis
Cologne BudapestBeijingNew YorkSeoul Tokyo MilanShanghaiOsaka Los
Cairo Dubai GuangzhouTaipeiMiamiAngeles JeddahChengduHong Kong
Mexico CityHo ChiChen BangkokMinhManila Nairobinai
SingaporeJakartJohannesburga Sao Paulo Sydney Santiago35 Trade
Commissioners Offices3 Marketing Offices 12Malaysia External Trade
Development Corporation 13. MATRADEs SERVICES & FACILITIES
Business Library Online Database Publications MATRADE
Website(http://www.matrade.gov.my) Malaysia External Trade
Development Corporation 14. SUPPORT PROGRAMMES& ASSISTANCE MDG
(Market Development Grant) BPG (Brand Promotion Grant) SEF
(Services Export Fund) Tax Incentives 14 15. Trade Advisory &
SupportHelp DeskHelp DeskTrade Advisory Services Trade Advisory
Services HQ, Branch, Overseas HQ, Branch, OverseasBusiness
Information Centre --KLIABusiness Information Centre KLIA Briefing
& Business Consultation Briefing & Business Consultation
Sessions Nationwide Sessions Nationwide 15 16. PROMOTION PROGRAMMES
2008 International Trade Fairs66 Specialised Marketing Missions14
Trade Investment Missions 8 Incoming Buying Missions46 Trade
Promotion Visits 63 Promotion Booths 68 Roundtable Sessions11 Local
International Fairs 2- MIHAS (7-11 May) & INTRADE Malaysia
(13-16 Nov 2008) Export Training Programmes42TOTAL: 320 17. GLOBAL
ISSUES ANDCHALLENGES 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 INDIAS ECONOMICMIGHT NON TRADE MEASURES 18. 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. 19. 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. 20. 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 21. STRATEGIES TO PROMOTE
MALAYSIAN FURNITURE Participation in trade promotion activities
related tofurniture(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 ameans to differentiate
the country and the products andservices offered to the market);
Malaysian companies should look at new and innovative waysto
conduct business, in particular, companies should intensifythe use
of ICT and the internet to promote products andservices as it is an
effective means to reach global markets insituations where
travelling is not possible (e.g. website, e-mail marketing, trade
portal, e-market places, virtual tradeexhibition). 22. STRATEGIES
TO PROMOTE MALAYSIAN FURNITURE Maintain high values both in
production, quality andbusiness ethics; Focus on original design
and functional furniture; Invest in R&D for innovative creation
and marketingtechniques Emphasis on establishing long term
relationship; Target on medium to up market segment, where
emphasisis on quality and not quantity 23. CASE STUDYFURNITURE
MARKET IN THE UNITED KINGDOM 24. CASE STUDY FURNITURE MARKET IN THE
UKUK 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. 25. CASE STUDY
FURNITURE MARKET IN THE UKGreat 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 childrens 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. 26. CASE STUDY FURNITURE MARKET IN THE
UKOutsourcing 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 27. CASE STUDYFURNITURE
MARKET IN SPAIN 28. CASE STUDY FURNITURE MARKET IN SPAINThe 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 interms of materials are
stainless steel kitchen tops and woodencabinets, designed with
geometrical and simple lines. Contemporary dining table is
characterised with simple lines inrectangular 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 lowtables for living room, shelves for DVD and other
smallcupboards. 29. CASE STUDY FURNITURE MARKET IN SPAINFor office
furniture: Increasing trends for hot-desking (shared facilities)
officefurniture Higher demands for meeting table due to increasing
team work Increasing demands for multiplan desk with addidtional
levelsfor storage purposesThe 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
Malaysias main weaknesses in the Spanish furniture market is the
lack of awareness of Malaysian product 30. CASE STUDY FURNITURE
MARKET IN SPAINMalaysian 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 StandardPotential importers: CONFORAMA
(www.conforama.es) MOBLERONE (www.expomobi.com) 31. 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. 32. Visit us
at:MATRADEMenara MATRADEJalan Khidmat UsahaOff Jalan Duta50480
Kuala LumpurTel: 03-62077077Faks: 03-62037187E-mail:
[email protected]: www.matrade.gov.my 33. THANK YOU
