Malaysia: Hopes high for MIFF 2010 February 04, 2010
The organizing chairman of the Malaysian International
Furniture Fair (MIFF) 2010, projected that this year’s
exhibition will draw over 20,000 visitors and generate
sales over US$710 million.
The secretary-general of the Malaysian International Trade
and Industry Ministry has reported that furniture exports
rose over the first three quarters of 2009 in comparison
with the same period in2008.
Exports to Japan rose by around 9% to RM569million, to
UK by 6% (RM429.2million) and to the Netherlands by
8.5% (RM101.3million).
However, exports to traditional markets, e.g., Australia,
India, the US and the Middle-East declined substantially,
because of competition from manufacturers in China,
Indonesia and Vietnam.
Both Indonesia and Vietnam are major exporters of natural
rubber and the old rubber plantations when cleared
provide ample rubberwood logs for their furniture
industries.
Design and branding challenge
The challenge facing the Malaysian furniture industry,
apart from global branding, is product design. However,
the industry is handicapped by the lack of trade schools
and training facilities that are common in Europe and N.
America.
Countries such as Italy, Germany and Sweden, major
furniture producers, have extensive training capacity for
the furniture industries.
These schools not only produced highly-skilled graduates
for the local furniture industry but also outstanding
product designs.
Expanding exports
Homeritz Corporation based in the southern state of Johor
West Malaysia, is an integrated designer, manufacturer
and exporter of a wide range of home furniture including
dining chairs and bed frames. The company is working
towards expanding its exports to both North America and
South America.
Homeritz is set to be the first upholstered home furniture
company to be listed in the Malaysian stock exchange if
plans for the February 2010 listing go through.
Between 2005 and 2009 the company posted an
accumulated growth of almost 30%. In tandem with this
the company’s workforce also increased significantly, a
welcome development in these difficult times in the labour
market.
Tax system impacts fibre costs
A number of oil palm plantation companies in Sarawak,
are also wood product manufacturers and depend to some
extent on oil palm fibres as a source of raw material for
their manufacturing mills e.g., MDF.
Oil palm planters, especially those operating in Sarawak,
are urging that the industry be subjected to a more realistic
system of taxation, particularly for those with fresh crops
and are not yet in production. Presently, the latter are
subjected to high taxation, cess fees and levies imposed by
both the federal and state government.
Any increase in plantation costs for companies will
eventually increase the cost of raw material supply for
their wood products manufacturing entities.
Malaysia Log Prices Malaysia
Log Prices
Sarawak
log,
FOB
US$
per m³
Meranti SQ up
227-251
Small
211-242
Super small
203-227 ⇑
Keruing SQ up
216-228
Small
196-226 ⇑
Super small
174-204 ⇑
Kapur SQ up
206-231
Selangan Batu SQ up
185-222 ⇑
Pen. Malaysia
logs, domestic (SQ)
US$ per m³
DR Meranti
233-252
Balau
298-327
Merbau
323-355
Rubberwood
58-92 ⇑
Keruing
216-232
Peninsular
Malaysian
meranti
logs
are
top
grade and are used for scantlings for
the EU. Their prices are higher than Sarawaks.
Malaysia
Sawnwood Prices
Malaysia
Sawnwood,
FOB
US$
per
m³
White Meranti A & up
281-311
Seraya Scantlings (75x125 KD)
432-445
Sepetir Boards
250-272
Sesendok 25,50mm
345-363
Kembang Semangkok
294-317
Malaysian
Sawnwood,
domestic
US$ per m³
Balau (25&50mm,100mm+)
325-345
Merbau
452-504
Kempas 50mmx (75,100 & 125mm)
260-300
Rubberwood
25x75x660mm up
205-255 ⇑
50-75mm Sq.
245-277 ⇑
>75mm Sq.
267-296 ⇑
Malaysia Plywood Prices
Malaysia
ply
MR
BB/CC,
FOB
US$
per m³
2.7mm
404-466
3mm
384-414
9mm & up
330-402
Meranti ply
BB/CC, domestic
US$ per m³
3mm
329-420
12-18mm
313-342
Other
Malaysia Panel Prices
Malaysia,
Other
Panels,
FOB
US$
per m³
Particleboard Export 12mm & up
226-249
Domestic 12mm & up
212-229
MDF Export
15-19mm
279-310
Domestic 12-18mm
270-288
Malaysia
Added Value Product Prices
Malaysia,
Mouldings,
FOB
US$
per m³
Selagan Batu Decking
529-539
Red Meranti Mouldings 11x68/92mm x 7ft up
Grade A
544-557
Grade B
497-506
Malaysia
Furniture and Parts Prices
Malaysia,
Rubberwood, FOB
US$ per piece
Semi-finished dining table solid laminated top
2.5'x4', extension leaf
