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sustainability-directory.com furniture.
Tan added the industry hopes the government can renegotiate
tariffs on Malaysian-made furniture with Washington though
such efforts ultimately depend on a bilateral agreement.
On domestic challenges he said the government could
provide more immediate support by reviewing policies that

have significantly raised operating costs for furniture makers.
“These include the expansion of the sales and service tax
(SST), mandatory EPF contributions (a national retirement fund)
for foreign workers, minimum wage adjustments, recalibrated
petrol and electricity tariffs and the multi-tier levy on foreign
Delayed tariff hike offers limited relief workers due to take effect this year,” he said.
The decision by the US to delay higher tariffs on selected Tan warned that the multi-tier levy, introduced to encourage
furniture products offers limited relief to Malaysian manufacturers the hiring of local workers by making foreign labour more
amid rising domestic costs and weak demand especially in expensive may not achieve its intended outcome.

the US, say exporters. “The reality is that the industry may not be able to afford
The US has postponed planned tariff increases on the new levy while locals continue to shun jobs in timber
upholstered furniture, kitchen cabinets and vanities, keeping sector,” he said, warning that prolonged pressure could put
the current 25 percent rate in place. the wider furniture, timber and export industries at risk.
Tariffs on certain upholstered wooden products were He urged the government to consider exemptions from
previously set to rise to percent on 1 January, while duties costly policies and provide fast-track financial assistance to
on kitchen cabinets and vanities were due to increase to 50 companies badly affected.

percent. “These measures would give firms time to adjust, including
In April last year, the US announced sweeping -tariffs on expanding their design offerings, improving their manufacturing
imports from nearly all countries around the world, including processes, and speeding up delivery times to remain competitive
Malaysia. Malaysian exports were initially subjected to a 25 globally,” he said.
percent tariff but an Executive Order signed by the US President Kuala Lumpur and Selangor Furniture Association honorary
in August 2025 reduced these to 19 percent. president, Matthew Law, said weak US consumer demand
However, new 25 percent tariffs which affected kitchen continues to impact the industry. “The residential sector shows
cabinets and upholstered furniture were imposed in September no improvement” he said.
and took effect in October.

Malaysian Furniture Council president, Desmond Tan Boon Ensuring industry’s survival and long-term alignment
Hai, said the change does not significantly improve Malaysia’s with global sustainability expectations
competitiveness as the same tariff rate was imposed on many The Sabah Timber Industries Association (STIA) has called
other countries. on the State Government to introduce measures which are
For some local manufacturers, Tan said, the extension of deemed necessary to ensure the industry’s survival and
the 25 percent tariff would have only a modest impact as long-term alignment with global sustainability expectations.
it mainly affects kitchen cabinets, vanities and upholstered The measures are: