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To mitigate the impact the MTA has proposed a targeted fabrikasimf
fuel support mechanism, including a subsidy quota and called
for diesel prices to be capped to provide immediate relief and
stabilise the supply chain.
At the same time, the timber and furniture sector continues
to face acute labour shortages, with some mills operating

at just 60 percent capacity due to delays in workers quota
approvals.
MTA also said the industry faces escalating recruitment
costs, including agent fees, levies, compliance, medical review of the Minimum Wage Order 2024 by September this
screening and accommodation. Together with a multi-tier levy year. Representing about 760 members, the MFC is calling
system these are squeezing already thin margins, particularly for more “business-friendly policies”.
for small and medium enterprises. The MFC also urged the government to adopt a more
“These pressures are also limiting reinvestment in automation stable and consistent policy framework for foreign worker
and long-term productivity improvements,” it added. The employment aligned with industry needs.

Association called for a fast-tracked and one-stop recruitment The appeal comes at a time of growing strain within
system to reduce delays and costs. Malaysia’s furniture sector which is facing what industry
players describe as a “triple squeeze”, rising labour costs,
Fire resistant doors from oil palm trunk weakening global demand and intensifying competition from
A Malaysian company has been recognised by the Malaysia regional manufacturers.
Book of Records (MBR) for developing the country’s first Since 2023 the export value of wooden furniture has
fire-resistant door made from oil palm trunk (OPT) biomass. appeared to stagnate around RM 9-10 billion annually. That can

The MBR said the pioneering innovation transformed be traced back to the impact of some domestic and issues
agricultural waste into a high-performance building material, such as volatile global demand, shifting US trade policies and
marking a significant step forward in sustainable manufacturing geopolitical tensions in the Middle East.
and green construction solutions. These have disrupted supply chains and pushed up input
It noted that Malaysia, as one of the world’s largest palm costs, particularly for upstream suppliers such as sawmills
oil producers, managed approximately 5.6 million hectares and particleboard manufacturers, said MFC.
of plantations, which accounted for about 17 percent of the
nation’s land use. Furniture Park to drive added value processing
A proposed furniture park aimed at strengthening Sarawak’s

Furniture makers call for business-friendly policies timber industry and attracting investment would be developed
It has been reported that the Malaysia Furniture Council in Kuching before expanding to Tanjung Manis, said Deputy
(MFC) has urged the government not to raise the minimum Premier Awang Tengah Ali Hasan.
wage saying any further increase could add to cost pressures He said the project, spearheaded by Sarawak Timber
already weighing on the industry. Industry Development Corporation (STIDC), had been approved
The government is expected to make a decision on whether under the 13th Malaysia Plan (13MP).
to revise or retain the minimum wage after completing a The furniture park initiative is part of the state government’s