Tuesday 23 September 2014

Johor - The State in Malaysia best known for furniture manufacturing

Due to renown of foreign furniture manufacturers right here in Malaysia, most people would find it startling that the furniture industry in Malaysia is highly export-oriented. More than 90% of its production exported to, as of 2011, more than 180 countries, with the United States of America (USA) being the largest importer of Malaysian-made furniture. Other prominent importers of Malaysian furniture include Japan, Australia, Singapore, United Kingdom (UK), Canada, India, Saudi Arabia and Russia.


Statistics courtesy of Malaysian Furniture Promotion Council (MFPC)

Sitting at the center of this highly export-oriented industry, which made Malaysia the 8th largest exporter of furniture in the world, is Johor – one of the most developed and industrious states in Malaysia. Being one of the largest manufacturer and exporter of furniture in Malaysia, it goes without saying that it is impossible to talk in length about furniture manufacturing in Malaysia without including Johor.

The reason behind 79.4% shown in the statistics figure above

Anyone involved with the furniture industry in Malaysia at any level, be it locals or foreigners, would definitely know of the southernmost state of Peninsular Malaysia, and Muar Town, the second largest city in Johor after Johor Bahru and the internationally known furniture manufacturing industry hub in Malaysia. As of 2011, total export of furniture was worth RM7.67 billion, with Johor contributing RM4.2 billion or 54.76 per cent.

Peninsular Malaysia, and state of Johor in red
The city that is the furniture hub of Malaysia

The significance of furniture manufacturing industry to the state is fully reflected in Johor’s furniture manufacturer association. While these associations are present in all states of Malaysia, Johor is the only state in Malaysia with a furniture manufacturing association consisting of five district associations. The ‘Federation of Johore Furniture Manufacturers and Traders Association (JFA)’ consists of: -

1. Johore Bahru Furniture Industry Council
2. Kluang Furniture Association
3. Batu Pahat Furniture Association
4. Segamat Furniture Association
5. Muar Furniture Association

The association currently has approximately 700 members in its ranks, out of around 2,000 throughout the country. The most prominent of the five listed, Muar Furniture Association, stated that it contributed RM3.6 billion out of RM8 billion of total furniture export in Malaysia in year 2012. Being the furniture manufacturing hub, its 700 factories also accounted for 45 to 50 percent of Malaysia’s furniture export.

Headquarters of Muar Furniture Association, the most prominent of the five

Despite hurdles like economic downturn and increasingly strong competition from other countries like China and Vietnam, the furniture manufacturing industry in Malaysia continues to stay strong, by holding steadfast to principle of manufacturing premium quality and durable furniture, as well as acquiring strong government backing in the form of tax exemptions and allowances. Johor as a whole, and especially Muar Town, will continue to play a role in sustaining the furniture manufacturing industry.

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