Page 16 - FDMAsia Jul/Aug 2026

14 FOCUS JUL/AUG 2026 FDM ASIA | www.fdmasia.com

ITTO TROPICAL TIMBER MARKET REPORT

Months into the Middle Eastern conflict, Asian countries have been resilient so far and are finding
opportunities for growth. Digitalisation is fast-becoming a requirement, not just to stay competitive,
but also to meet regulatory compliance. ITTO shares the latest around the region.

more industry-friendly policies to strengthen the long-term
Wikimedia Commons competitiveness of one of Malaysia’s key export industries.

Malaysian Furniture Council (MFC) President, Desmond
Tan Boon Hai, said the Malaysian furniture industry is facing
one of its most challenging periods as geopolitical tensions,
slowing global demand, uncertainties over US tariff policies
and rising domestic operating costs continue to impact
business confidence.
While reaffirming MFC's support for the Government's
economic agenda, he urged policymakers to carefully assess

the impact of new measures on industry competitiveness. Tan
also stressed that a stable and consistent foreign labour policy
MALAYSIA remains critical to the industry's long-term growth.
Indicators point to broadly resilient growth Responding to the industry’s concerns, Deputy Minister
Bank Negara Malaysia kept interest rates (overnight policy of Investment, Trade and Industry, Sim Tze Tzin, reaffirmed
rate, OPR) unchanged at 2.75 percent, extending its pause the Government’s continued commitment to supporting the
in monetary policy after a 25 basis point cut in July 2025. growth and development of Malaysia’s furniture industry.

The move was widely anticipated. In a statement the Bank He announced that the Government has, in principle,
said “at the current OPR level the Monetary Policy Committee approved several strategic measures, including inviting
considers the monetary policy stance to be appropriate and Malaysian furniture companies to participate in the MADANI
consistent with the outlook of continued price stability and Digital Trade Platform to facilitate international market
sustainable economic growth”. expansion; establishing a Furniture Industry Hub within the
The Bank said the latest indicators continue to point to Muar Furniture Industrial Park and forming a special task
broadly resilient global growth, underpinned by robust expansion force to address unfair competition from imported products
in the technology sector, alongside improving supply conditions and illegal business activities, thereby creating a more level
and prices of key commodities. playing field for legitimate local businesses.

It said a sustained de-escalation of the Middle East conflict
would further improve global supply chain conditions. Carving out a digital future in marketing
The Malaysian timber industry is carving out a new digital
Furniture Council calls for industry-friendly policies future with the successful completion of the AI Revolution in
Against the backdrop of increasing global economic uncertainty Timber and Furniture Marketing Workshop.
and rising business costs the Malaysian furniture industry This intensive two-day programme, held in Kuala Lumpur,
has renewed its call for stronger government support and was specifically designed to move the industry beyond traditional