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thiago japyassu that burden businesses. Aside from having to deal with the
expanded sales and service tax (SST), the US-imposed tariffs
on Malaysian exports are an added burden for those focused
on the American market,” he said.

Ong, who’s Association represents more than 800 members,
pointed out that high electricity tariffs and mandatory the
Employees Provident Fund (a national retirement fund)
contributions for foreign workers are also adding to the
pressure on businesses.
He said MFA has continued to call for a temporary
suspension of the SST, electricity tariff hike and EPF contribution
for foreigners.
a strong market reputation. Ong also urged the government to provide financial incentives

Initiatives like the ‘Royal Perlis Jati Craft’ and the push for or assistance to help companies transition effectively. He said
Geographical Indication status are expected to increase the that while the government is encouraging automation many
value and marketability of Perlis teak products, Dr. Ismail added. industry players are hesitant to make the change.
“If local furniture makers are forced to shut down or
Overall trade growth relocate overseas it will not only affect jobs but the entire
The recorded cumulative trade value increase by 4.8 percent to supply chain will suffer,” he said.
RM1.465 trillion in the first half of 2025 reflecting the strength The MFA held a dialogue session with industry recently

and resilience of Malaysia’s external trade position. to listen to their concerns.
The country’s trade surplus surged to RM8.59 billion in Many participants, including a furniture maker who has
June compared to RM759.9 million in May 2025 marking the been in the business for over four decades, lamented about
62nd consecutive month of surplus since May of 2020. The the “policies that are not business-friendly” which are hurting
key factors driving exports in June included palm oil and palm the economy.
oil-based agricultural products which recorded double-digit Malaysian Furniture Council president, Desmond Tan,
growth for 15 consecutive months. who is also MFA executive adviser, said the council received
over 180 petitions from industry players about the untimely
Muar Furniture Association—outlook tough policies. He added that the council had submitted a petition

The furniture sector is struggling under mounting international to Plantation and Commodities Ministry over the matter.
and domestic pressures leading to some long-standing
manufacturers shutting down after decades of operation. Value of timber trade
Muar Furniture Association (MFA) president, Steve Ong, Malaysia’s total value of wood and wood products trade
said some businesses had ceased operation over the past (exports and imports) reached RM 9.95 billion in the first four
two years, including several original equipment manufacturers months of this year, said Sarawak Timber Industry Development
as they felt the future of the industry was not promising. Corporation (STIDC) General Manager, Zainal Abidin Abdullah.

“The situation has become increasingly tough for local Last year, timber exports earned RM22.9 billion, a solid
furniture makers who are already grappling with policies almost five percent increase from the previous year.