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MARKET Beats                                           5


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          Furniture Manufacturers                               Muar, located in Johor state, is pivotal to Malaysia's furniture

          Face Trade Uncertainty Due                         exports, with the United States accounting for approximately
                                                             60 percent of total exports.
          To Tariff Issues                                      One corporate kitchen furniture company’s factory, which


                                                             exports 100 percent of its products to the US, has ramped
          As US tariffs loom, exporters in Malaysia, Guyana, and India   up operations significantly.
          scramble to adapt and fulfil orders, as reported by evrimagaci.org.  Chief Financial Officer Peihing Tsai reported that the factory
            Furniture manufacturers in southern Malaysia are racing   has shipped out over 30 containers in just four days—equal
          against  time  as  they scramble  to  fulfil  orders  for  American   to its typical monthly output.
          customers, driven by the looming threat of tariffs under US   "We are working overtime now and trying our best to
          President Donald Trump’s trade policies.           motivate our workers, because these three months will be
            Following Trump’s announcement of a proposed 24 percent   very busy," Tsai said.
          tariff on all imports from Malaysia, he subsequently revealed   Trump’s proposed tariffs threaten to increase prices on

          that most countries, including Malaysia, would receive a   a wide array of imported goods, including clothing, mobile
          temporary 10 percent rate for a 90-day period.     phones, and furniture, potentially ending a long-standing era
            This unexpected reprieve has led factories in Muar, a key   of affordable consumer products in the US.
          hub for Malaysia's furniture industry, to maximise shipments   Tsai expressed concern that if tariff rates exceed 10 percent,
          before the higher duties take effect.              US distributors might abandon Malaysian manufacturers



                                                                                                              Office Furniture Trade Centre
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