Malaysia’s furniture industry has renewed its call for stronger government support and more industry-friendly policies as businesses grapple with mounting global economic uncertainty, rising operating costs and softer external demand.
MFC President Desmond Tan Boon said the Malaysian furniture industry is navigating one of its most challenging business environments in recent years, citing geopolitical tensions, weakening global demand, uncertainty surrounding United States tariff policies and rising domestic business costs.
While reaffirming the industry’s support for the government’s economic agenda, he urged policymakers to carefully evaluate the impact of new regulations and policies on the sector’s competitiveness.
Desmond also stressed that a stable and consistent foreign labour policy remains essential for the industry’s long-term sustainability, calling for a review of the proposed 4:1 local-to-foreign worker ratio, which he described as impractical for the labour-intensive furniture manufacturing sector.
As one of the 21 priority industries identified under the New Industrial Master Plan (NIMP) 2030, he said the furniture industry should continue receiving policy support to enhance its competitiveness and reinforce its role as one of Malaysia’s key export sectors.
Responding to the industry’s concerns, Sim reaffirmed the government’s commitment to supporting the continued growth and transformation of Malaysia’s furniture industry.
He announced that the government has, in principle, approved several strategic initiatives aimed at strengthening the sector. These include inviting Malaysian furniture companies to participate in the MADANI Digital Trade Platform to expand access to international markets, establishing a dedicated Furniture Industry Hub within the Muar Furniture Industrial Park, and setting up a special task force to address unfair competition from imported products and illegal business activities.
According to Sim, these measures are intended to create a more level playing field for legitimate local manufacturers while enhancing the industry’s long-term competitiveness.
