Furnitures tough outlook – The Star Online


Published on: 2025-07-23

Intelligence Report: Furniture Sector’s Tough Outlook

1. BLUF (Bottom Line Up Front)

The Malaysian furniture industry is facing significant challenges due to both domestic and global pressures. Key issues include high operational costs, policy burdens, and increased tariffs, which have led to the closure of long-standing manufacturers. Strategic recommendations include advocating for government incentives and policy adjustments to alleviate these pressures and encourage industry automation.

2. Detailed Analysis

The following structured analytic techniques have been applied to ensure methodological consistency:

Adversarial Threat Simulation

While not directly applicable to the furniture industry, understanding adversarial pressures such as international competition can help anticipate market vulnerabilities.

Indicators Development

Monitoring economic indicators such as tariff changes, policy shifts, and operational costs can provide early warnings of industry stress.

Bayesian Scenario Modeling

Probabilistic modeling can be used to predict the impact of policy changes on the industry’s economic viability and potential relocation of businesses overseas.

3. Implications and Strategic Risks

The current pressures on the Malaysian furniture industry could lead to significant economic impacts, including job losses and a weakened supply chain. The relocation of businesses overseas may result in a loss of domestic manufacturing capabilities and economic contributions. Additionally, the focus on the American market exposes the industry to geopolitical risks and trade policy changes.

4. Recommendations and Outlook

  • Advocate for the temporary suspension of the Sales and Service Tax (SST) and a review of electricity tariffs and mandatory contributions to reduce operational costs.
  • Encourage government support for automation initiatives to enhance competitiveness and reduce reliance on foreign labor.
  • Scenario-based projections suggest that without intervention, the industry may continue to decline (worst case), whereas policy adjustments could stabilize and potentially revitalize the sector (best case).

5. Key Individuals and Entities

Steve Ong, Desmond Tan, Datuk Seri Johari Ghani, Datuk Chan Foong Hin

6. Thematic Tags

economic challenges, policy impact, industry automation, international trade

Furnitures tough outlook - The Star Online - Image 1

Furnitures tough outlook - The Star Online - Image 2

Furnitures tough outlook - The Star Online - Image 3

Furnitures tough outlook - The Star Online - Image 4