Malaysia: Ministry of Finance may provide rebates to furniture exporters
Malaysia’s Plantation Industries and Commodities
Minister Datuk Peter Chin Fah Kui recently submitted a
proposal to the Ministry of Finance to provide rebates to
Malaysian furniture exporters as the export market
continues to dry up. The BTimes reported the proposal is
modeled on the Chinese government’s decision to give
rebates of between 11% and 13% to a variety of Chinese
furniture exporters. Chin noted the proposal was
important, since the furniture industry provides the highest
added value to the local timber industry.
Mr. Chin also forwarded an appeal to the Ministry of Finance to waive import duties on furniture parts and components. Presently, import duties are imposed on furniture parts and components. However, import duties are not imposed on fully assembled furniture. Thus, prices of Malaysian furniture exports remain uncompetitive in the current market.
Minister Chin added that the ministry was also looking into the possibility of issuing work permits for foreign workers to be exchangeable between different furniture factories. The local furniture industry is highly dependent on cheap foreign labor as it is highly labor intensive and work permits issued are not transferable. This creates an added labor cost to companies as they must bear the cost for new work permit applications.
MIFF flooded with constructive messages
According to Bernama, Deputy Ministry of International Trade and Industry Jacob Dungau Sagan said the Malaysian furniture industry should target higher end markets to weather the global economic downturn, during his remarks at the recent Malaysian International Furniture Fair (MIFF) 2009. He noted that Malaysia’s total furniture trade stood at RM10.17 billion at end 2008, a 3% increase over 2007. Furniture exports stood at RM8.7 billion, an increase of 2% compared to 2007 levels.
Although it was hoped MIFF 2009 would generate sales of at least the same amount as in 2008, the publication Furniture Today reported that massive floods hit the area surrounding the venue late in the day on 3 March 2008. Despite the floods, almost all exhibitors were moved into another exhibition center unaffected by the floods the next day and the fair continued. MIFF 2009 was set to be held from 3—7 March 2009, at the Putra World Trade Center (PWTC) and MATRADE Exhibition and Convention Center (MECC).
Mr. Chin also forwarded an appeal to the Ministry of Finance to waive import duties on furniture parts and components. Presently, import duties are imposed on furniture parts and components. However, import duties are not imposed on fully assembled furniture. Thus, prices of Malaysian furniture exports remain uncompetitive in the current market.
Minister Chin added that the ministry was also looking into the possibility of issuing work permits for foreign workers to be exchangeable between different furniture factories. The local furniture industry is highly dependent on cheap foreign labor as it is highly labor intensive and work permits issued are not transferable. This creates an added labor cost to companies as they must bear the cost for new work permit applications.
MIFF flooded with constructive messages
According to Bernama, Deputy Ministry of International Trade and Industry Jacob Dungau Sagan said the Malaysian furniture industry should target higher end markets to weather the global economic downturn, during his remarks at the recent Malaysian International Furniture Fair (MIFF) 2009. He noted that Malaysia’s total furniture trade stood at RM10.17 billion at end 2008, a 3% increase over 2007. Furniture exports stood at RM8.7 billion, an increase of 2% compared to 2007 levels.
Although it was hoped MIFF 2009 would generate sales of at least the same amount as in 2008, the publication Furniture Today reported that massive floods hit the area surrounding the venue late in the day on 3 March 2008. Despite the floods, almost all exhibitors were moved into another exhibition center unaffected by the floods the next day and the fair continued. MIFF 2009 was set to be held from 3—7 March 2009, at the Putra World Trade Center (PWTC) and MATRADE Exhibition and Convention Center (MECC).