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shipments, order cancellations and buyer-initiated renegotiations. Expanding global reach
FMM has said “the scale and breadth of disruption Malaysia’s furniture industry is expanding its global reach by
highlighted in this survey requires an immediate and coordinated tapping into emerging, high-potential markets such as Chile
Government response. The risk of production stoppage and as part of ongoing efforts to diversify export destinations,
export contraction is real and the window to prevent it is according to Malaysia External Trade Development Corporation
narrowing. FMM has identified twelve recommendations and (Matrade).

calls on the Government to act on all of them without delay. Matrade, in a statement, said Malaysian manufacturers
They span fiscal and tax relief, energy and fuel supply, raw continue to show resilience by adapting to evolving demand
materials and supply chain security and logistics, ports, patterns and positioning themselves in higher value segments,
shipping and crisis governance”. supported by a focus on design, quality and sustainability.
According to Matrade, dining and living room sets remain
Forest harvest area reduced the top-selling furniture categories in Chile with consumers
Under the 13th Malaysian Plan to further protect the forests, showing a clear preference for solid wood products with
the area of annual allowable cut (AAC) in permanent reserved premium finishes. Demand is also rising for “small living”
forests (PRF) has been reduced to 890,000 hectares, down solutions as urban spaces shrink, particularly for apartments

from 1,165,300 hectares in the previous plan. under 40 square metres.
Natural Resources and Environmental Sustainability This has driven interest in multifunctional furniture such as
Minister, Arthur Joseph Kurup, said the reduction of the area extendable tables and sofa beds, Matrade indicated.
would positively impact forest conservation, sustainable forest “Malaysian manufacturers have successfully entered the
management practices as well as the country’s economic mid-to-high end market segment by offering high-quality solid
and social needs. wood furniture that balances premium craftsmanship with
Kurup highlighted that the forestry and agricultural sector attractive pricing. It added that Malaysia is currently Chile’s

contributed over RM6 billion to last year’s gross domestic 10th largest furniture supplier globally and the second largest
product. among ASEAN countries.
He said the Ministry was also working to reduce reliance
on conventional logging and expand into sustainable forest- Carbon pricing could begin this year
based eco-tourism. He said State Governments would be Malaysia’s planned carbon tax marks an important turning point
prioritised for the Ecological Fiscal Transfer for Biodiversity in the country’s climate policy framework, say researchers with
Conservation allocation to streamline online applications and Kenanga Investment Bank (Kenanga Research).
payments for PRF entry permits for eco-tourism purposes.
Kurup also revealed that the Forest Research Institute

Malaysia was also guiding rural communities on environmental storaenso.com
conservation through training programmes and technical support.
“As a result of this guidance local communities will be able
to manage, run businesses and activities that are based on
eco-tourism and recreation in a more systematic, competitive
and sustainable manner without compromising on the forests’
ecosystem,” he said.