malaysian furniture industry

7/30/2019 Malaysian Furniture Industry

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FURNITURE INDUSTRY IN MALAYSIA - STATUS & MARKETPROSPECTS

Seminar on Sabah Furniture Industry A Potential Hub for OutdoorFurniture

By:

Hajah Robiyah Hj. Husin

Malaysian Timber Industry Board

24th September

Kota Kinabalu, Sabah


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Overview/Status of the Malaysias Furniture Industry

Economic Contribution

NATIP Targets 2020 for Furniture Industry Mills Distribution

Vital Industry Statistics

Global Overview

Malaysian Overview

2

SCOPE OF PRESENTATIONSCOPE OF PRESENTATION

Products Designs Trends & Market Prospects

Way Forward

Conclusion


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Employment

211,236 persons(Furniture 65,032

persons)

Contribution oftimber to total

Export2.9 % ofRM 694.6 billion(Wooden and

Rattan Furniture31% of RM 20.0

billion)

Market Size

Total : RM 33.0 billionExport : RM 20.0

billion

Domestic : RM 13.0billion

ApprovedInvestments

Wood and wood

products: RM 1.03billion

Furniture & fixtures:RM 306.1 million

Total : 1.3billion

ECONOMICCONTRIBUTIONOFTHETIMBERAND

FURNITUREINDUSTRY,2011

3Source : MTIB, DOSM, MIDA


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(NATIPTARGETS2020)EXPORTOFTIMBER&TIMBERPRODUCTS:COMMODITYVSVALUEADDED

4Source : MTIB, DOSM

2010 2011Commodity (%) 58 58

Value-Added (%) 42 42

Value

Added

(%) Commodity

(%)2010 2011 2010 2011

Pen.Malaysia 74 73 26 27

Sabah 13 12 87 88

Sarawak 3 3 97 97

By Region:-

Total Malaysia

NATIP Strategic Thrust 1 :Industry StructureExport target RM53bill ionVA ratio 60:40

NATIP Gap (%)


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MILLSDISTRIBUTION2011

Furniture

plants

2,260

Sawmills1,007

Moulding mills

338

Kiln Drying/Preservation plants

190/98

Plywood/Veneer

mills

125

Fibreboard

15

Others

119

Sabah

29

Sarawak

419

Peninsular

Malaysia

1,812

Sarawak

708

Sabah

492

Total

4,225 mills

Peninsular

Malaysia

3,025

5

Sg. Buloh, Selangor

Muar, Johor

Kulim, Kedah

Kota Kinabalu

(KKIP)

Kuala Baram Miri

Lanang, Sibu

Damak Laut, KuchingKota Semarahan

Source : MTIB, DOSM


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GLOBALTRADEOFFURNITURE

6

1% of world trade of manufactures

2009 (US$95 billion)decrease of 19% from

2008

2010 (US$106 bill ion)

2011 (US$116 bill ion)

2012* (US$122 bill ion)

* Projected

Sources: WTO, Prometieia, CSIL

2013* (US$128 bill ion)


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GLOBAL:FURNITUREMARKETOUTLOOK,2011

7

US$412.2billion EU,Norway,Switzerland,Iceland,NorthAmerica

46% AsiaPacific 44%

WorldConsumption

Source: WTO, CSIL

GLOBAL : MAJOR FURNITURE EXPORTING COUNTRIES


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GLOBAL:MAJOR

FURNITURE

EXPORTING

COUNTRIES

2011

8Source: WTO, CSIL

GLOBAL MARKET SHARE OF MAJOR EXPORTING


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GLOBAL:MARKETSHAREOFMAJOREXPORTINGCOUNTRIES

9

Percentages

*Rounded to one decimal points

Source: CSIL

*

GLOBAL FURNITURE CONSUMPTION OUTLOOK IN


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GLOBAL:FURNITURECONSUMPTIONOUTLOOKINMAJORMARKETS

%COUNTRY *2012 *2013China 8 9

USA 2 2

Germany 0 0

J apan 0 1France 0 0

Italy -5 -3

India 7 7

UK 0 1Canada 2 2

Russia 5 4

Australia 3 2

Spain -3 -1Brazil 4 5

South Korea 3 3

*forecast

Source :CSIL

Overall global growth - 4%

Europe - stable

North America - slow growthEmerging market economies esp. Asia - fast growth


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ExportofFurniture(GlobalRanking)2006 2011

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

Value in USD Billion

11

MALAYSIA EXPORT OF TIMBER PRODUCTS


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12

Sources : MTIB, DOSM

RM Bil lion

MALAYSIA:EXPORTOFTIMBERPRODUCTS,

2000 2012(JanJun)

0.00

5.00

10.00

15.00

20.00

25.00

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012(Jan-Jun)

RM billion 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 Furni ture 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

MALAYSIA : EXPORT OF TIMBER PRODUCTS BY REGION


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Total = RM20.03 bill ion

Peninsular Malaysia Sabah Sarawak

Timber Products 10,865 2,192 6,969

-

2,000

4,000

6,000

8,000

10,000

12,000

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

MALAYSIA:EXPORTOFTIMBERPRODUCTSBYREGION2011

13

RM Million

Source : MTIB, DOSM

MALAYSIA: EXPORT OF TIMBER & TIMBER PRODUCTS


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Source : MTIB, DOSM

TOTAL : RM20.03 billion

* Comprising 22 Products.

Furniture31%

RM6.23 bn

Plywood

25%

Sawntimber12%

Logs10%

Fibreboard6%

BJC5%

Mouldings4%

Veneer2%

Others5%

2011

Furniture

31%

RM3.14bn

Plywood

25%Sawntimber

12%

Logs

8%

Fibreboard

5%

BJC

5%

Fibreboard

5%

Mouldings

4%

Veneer

2% Others3%

2012 (Jan-Jun)

MALAYSIA:EXPORTOFTIMBER&TIMBERPRODUCTS

2011&2012(JANJUN)

TOTAL : RM9.81 bill ion

14

MALAYSIA: FURNITURE VITAL STATISTICS


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MALAYSIA:FURNITURE

VITAL

STATISTICS

15

2011 Ranking**

Production 3,751 18

Exports 2,496 8

Imports 416 40

Consumptions* 1,671 32

MillionofUS$

*Apparentconsumption=Production Exports+Imports**RankingofMalaysiasamong70countries

RealGrowthofFurnitureConsumption.Forecasts

*2012 *2013

5% 6%

MainFurnitureTradingPartnersofMalaysia

Origin of Furniture Imports Destination of Furniture Exports

Sources: CSIL 2012/2013, MTIB, DOSM

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%

UnitedStates 26.6% Canada 3.6%

Japan 11.7% UnitedArabEmirates

3.4%

Singapore 8.1% India 3.6%

United

Kingdom

5.3% France 1.7%

Australia 6.8% SaudiArabia 1.9%

Types

of

Malaysian

Furniture

Exported:78.3%wooden0.3%rattan8.3%metal0.3%plastics6.4%seats&parts

6.4%other

furniture

MajorCompetitors:

ChinaVietnam

Poland*Forecasts


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Starperformer

of

the

timber

industry

Malaysiasfurnitureexportworldranking 8th in2011(allfurniture)

MalaysiaExportvalueofallfurnitureUSD2.5billionin2011

ExportsfromRM2.1billionin1996toRM6.2billionin2011(woodenandrattanfurniture)

H12012 RM3.14billion(woodenandrattanfurniture)

Woodenfurnitureexportedtoover183countriesin2011

MALAYSIAFURNITUREINDUSTRY

16

MALAYSIAS POSITION TOP 10 WORLD IMPORTING


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MALAYSIA SPOSITION TOP10 WORLDIMPORTING

FURNITUREMARKETS

17Source: CSIL

Note: Malaysianotwithintop10th position

India,Singapore Malaysia2nd afterChina


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MALAYSIA:EXPORTOFALLFURNITURE

TYPE OF FURNITURE 2008 2009 2010 2011

WOODEN FURNITURE 6,921,086,966 6,248,217,943 6,521,646,488 6,201,495,360 -4.9

RATTAN FURNITURE 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

MEDICAL & MEDICAL FURNITURE 29,046,633 25,475,041 26,317,325 21,946,557 -16.6

METAL FURNITURE 904,485,593 672,683,422 665,017,694 666,145,287 0.2

OTHERS FURNITURE 77,953,141 74,258,499 88,081,923 86,630,777 -1.6

FURNITURE PARTS 441,974,001 436,997,096 442,318,925 474,446,286 7.3

PLASTICS FURNITURE 46,124,336 24,104,919 26,410,942 23,756,183 -10.1

STONE & CERAMIC FURNITUE 8,285,016 57,461 64,127 35,827 -44.1

VEHICLE SEATS 34,769,582 38,395,545 50,123,564 32,475,839 -35.2

TOTAL 8,914,914,465 7,854,534,810 8,225,715,780 7,922,140,908 -3.7

Value in RM

% Change2011/2010

Source: DOSM

18

MALAYSIA: EXPORTS OF WOODEN & RATTAN FURNITURE


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Value in Bill ion

Source : MTIB, DOSM

MALAYSIA:EXPORTSOFWOODEN&RATTANFURNITURE

1996 2012

MALAYSIA: EXPORTS OF WOODEN FURNITURE


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Destination 2011 2010 % Change

RM '000 RM '000 2011/2010

1 United States 1,783,969 2,077,488 -14.1

2 J apan 775,098 607,507 27.6

3 Australia 418,014 398,689 4.8

4 United Kingdom 355,443 451,812 -21.3

5 Singapore 328,228 297,241 10.4

6 Canada 264,943 303,544 -12.7

7 United Arab Emirates 200,355 219,181 -8.6

8 India 155,640 124,198 25.3

9 Saudi Arabia 118,624 99,511 19.2

10 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

* Others include 173 countries

(TOP10)

Source: MTIB, DOSM20


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COUNTRY 2007 2008 2009 2010 2011 % share RANK

THAILAND 146,038,443 175,839,018 309,974,659 259,236,361 229,839,572 94.06 1

CHINA 1,449,350 2,373,334 6,069,209 3,366,177 6,160,797 2.52 2

SINGAPORE 2,560,612 2,378,871 3,701,404 4,804,180 2,999,852 1.23 3

ITALY 237,678 154,927 43,076 783,669 1,447,932 0.59 4

GERMANY 1,630,515 252,014 903,156 2,409,214 866,434 0.35 5

AUSTRIA 228,906 471,106 86,385 1,056,852 455,205 0.19 6

AUSTRALIA 1,577,797 2,164,756 406,514 667,700 377,411 0.15 7

SLOVAKIA - - - - 273,639 0.11 8

HUNGARY - - - - 267,115 0.11 9

NETHERLANDS 153,065 369,402 5,719,454 709,696 244,841 0.10 10

OTHERS 3,312,957 8,897,242 10,766,670 4,481,000 1,409,835 0.58

TOTAL 157,189,323 192,900,670 337,670,527 277,514,849 244,342,633 100.00

MALAYSIA:IMPORTSOFWOODENFURNITURE(TOP10)

Value in RM

Source: MTIB, DOSM

21

MALAYSIA : IMPORTS OF WOODEN FURNITURE JAN JUN


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JAN - JUN 2012Country

FOB Val (RM)% Share

TOTAL 187,858,933 7.8

1 CHINA 103,741,104 13.8 55.22

2 INDONESIA 20,780,363 6.8 11.06

3 VIET NAM 14,661,562 -26.3 7.80

4 ITALY 7,456,163 -2.8 3.97

5 THAILAND 7,024,018 98.6 3.74

6 POLAND 5,858,402 11.3 3.12

7 SINGAPORE 3,570,433 23.0 1.90

8 GERMANY 3,126,868 -48.2 1.66

9 HONG KONG 2,364,738 10.6 1.26

10 SWEDEN 2,322,458 53.9 1.24

2012(TOP10)

Source: MTIB, DOSM

% Changein Val 12/11

22


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SABAH:EXPORTOFALL FURNITURE 20102011

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

MEDICAL 0 6,180

METAL 2,281,566 870,482

PARTS 19,658,293 1,565,702

PLASTICS 173,871 109,671

STONE 0 0

VEHICLE 11,514 0

OTHERS 5,409,795 1,074,292

TOTAL 81,842,421 50,020,335

Value in RM

Source: DOSM23

SABAH:EXPORT

OF

WOODEN

FURNITURE

BY


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2011 2010DESTINATIONS Ranking

RM RM

WORLD 43,105,195 38,295,296

UNITED KINGDOM 1 17,677,922 17,154,386

GERMANY 2 8,146,977 7,838,364

FRANCE 3 3,642,988 2,011,799

ITALY 4 2,666,710 1,173,816

NETHERLANDS 5 2,372,294 1,580,881

USA 6 1,412,777 2,117,827

POLAND 7 938,562 298,580

SWEDEN 8 843,505 531,337SPAIN 9 735,305 339,269

GREECE 10 606,359 859,426

OTHERS 4,061,796 4,389,611

DESTINATION(TOPTEN)2010 2011

Source: DOSM

SABAH:EXPORT

OF

WOODEN

FURNITURE

BY


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DESTINATION(TOPTEN) JAN JUN2012

Jan-Jun 2011 Jan-Jun 2012DESTINATIONS RankingRM RM

WORLD 32,897,046 21,224,867

UNITED KINGDOM 1 6,729,128 3,556,927GERMANY 2 1,424,746 2,699,900

FRANCE 3 391,614 2,260,075

ITALY 4 16,744,910 2,082,272

NETHERLANDS 5 3,021,241 1,901,446

GREECE 6 1,434,444 1,820,479

CZECH REPUBLIC 7 24,468 1,238,255

BELGIUM 8 0 1,121,413

USA 9 64,979 952,616

INDONESIA 10 0 847,306

OTHERS 3,061,516 2,744,178Source: DOSM

PRODUCTS DESIGNS TRENDS BY MAJOR MARKETS


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PRODUCTSDESIGNSTRENDSBYMAJORMARKETS

26

Europe

USA&

Australia

Middle

East

ClassicDesigns

(CD)

Contemporary

Designs(CTD)

InBetween/

COMBI

CD&CTD

Modern

Designs

(including

modular

system)

CurrentGlobal

DesignsMovementGreen,Sustainable&HealthyDesigns

(People&Nature)

Transition

Minimalise (Simple&Minimum)

MultifunctionMulti/Alternativematerials

26

EastAsia:

Korea,

Japan,

Taiwan&

India

MARKETTRENDS

&

DEVELOPMENT


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27

Ongoingglobaleconomicrecession,worstshapesince2009,hangingonChinagrowth.

IMFglobaleconomyforecastreducedto3.3%. Emergingeconomies 5.4%,Advanceeconomies 1.2%

USsluggish

economic

growth

(2.1%

4

th

Qtr).Contraction

in

construction

and

low

job

creation/high

unemployment>8%

Eurozone debtcrisisnoteasing,affectingglobalgrowthincludinggrowthintheeconomicsuperstarsofthe

developingworldandemergingmarketsincludingChina,Indiaand Brazil

MiddleEasttensionsespeciallySyriancrisisaffectmarketandpoliticalstabilityintheregion

Increasepressureonlegalityandcertificationofproducts EUTR/EUFLEGTcomingintoforceMarch2013,

AustraliaillegalloggingprohibitionBillinthenearfuture

FSC,PEFCCertification

SoWhere

to

Export

Your

Furniture??

TraditionalMarkets:

US(Increasehomebuildingindexin50years)

Japan(Rebuildingaftertsunami)

SingaporeAustralia

EmergingMarkets:

MiddleEast:SaudiArabia,UAE,Bahrain

Africa:Egypt,Algeria,Morocco,SouthAfrica

AsiaPacific:

India,

Taiwan,

Thailand,

Indonesia

Russia,Kazakhstan

Chile

+ve economicgrowth

WAYFORWARD


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28

ActionPlan:HowtoIncreaseMalaysiaFurniture

Export/Transformthe

Furniture

Industry?

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

globalmanufacturing,

supplyand

marketing

distribution

chain/network

Focusonlow

volumebut

high value

marketing

strategies. eg:

strong

product

branding,signature/

premium

product

identity

NationalEfforts

in

Promoting

Design

Culture

in

the

Malaysian

Furniture Industry


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FurnitureIndustryFormulationofFurniture&WoodDesignRoadmap(FWDR), 20122020

Committee Members:Gov.Agencies,Timber&FurnitureCouncils& Association,Uni,RIs andDesign

Societies. Secretariat:MTIB

Status to

be

finalized

and

submitted

to

MPIC

for

cabinet

approvalFurniture&WoodDesignRoadmap20122020

ObjectivesofFWDR

ForManufacturers:Toprovidetheplatformofexperimentationthatwillallowtheindustrytoworkcloserwithlocaldesigners,

especiallyduring

the

prototyping

process.

To promote Malaysian manufacturers production capabilities to the world and elevate their image

throughshowcaseofhighenddesignsandapplicationoftraditional/alternatives/newmaterials.

ForDesigners:

Toprovideanopportunityofdeveloping/producingtheirowndesignswithmanufacturers.

Attend

and

showcase

their

designs

at

International

Prestigious

Design

show

(eg.

Milan

Design

Show

iSaloni (Italy) YoungDesignersSatellites,April2013.

Beexposedtoworldclassdesigncommunitythroughorganizedeventsandmeetings.

ForMalaysia:

To

create

a

portfolio

of

new

exciting

designs

that

have

international

market

appeal

that

can

be

manufacturedandmarketedbyMalaysianfurnituremanufacturerswithstrongproductbranding/identity

Toreinforcethenationsfurnitureindustryimageandplaceourselves

asoneofthecountriesrecognizedforgooddesign(green&sustainabledesigns)

DesignDatabase

DesignCompetition

MalaysiaMobili Design

Competition2013

13selecteddesigns

DesignStudios&

RapidPrototyping

Centre

29

CONCLUSION


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30

Strategy for Malaysia/Sabah to achieve NATIP 2020exports and value addition targets.


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31

THANKYOU

malaysian furniture industry

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