The Malaysian Timber Council continues its annual tradition of sponsoring timber-based SMEs at two furniture fairs that leave international buyers in awe

KUALA LUMPUR, March 15 (Bernama) -- Nothing beats the benefits that trade fairs have got to offer. March brought together thousands of international buyers and sellers for the Malaysian International Furniture Fair 2018 (MIFF) and Export Furniture Exhibition 2018 (EFE).

MIFF was held from 8-11 March at the Malaysia International Trade and Exhibition Centre and Putra World Trade Centre while EFE was held at the Kuala Lumpur Convention Centre from 9-12 March. Both fairs are widely recognised as premier sourcing platforms all over the world.

For years, the Malaysian Timber Council (“MTC”) has been a fervent supporter of both the fairs and has encouraged many SMEs by sponsoring the booth space.

“There are many ways to source for products and suppliers and one of the best places to do this is at trade fairs as they are deemed as powerful marketing channels,” said MTC Chairman Dato’ Gooi Hoe Hin at the EFE 2018 Awards Presentation and Buyers’ Networking Night in KLCC, here, on 10 March 2018.

MTC has been mandated to undertake the promotion of Malaysian timber and timber products in the global markets. Greater market access and diversification could be achieved through expanding market shares in traditional markets, greater penetration in emerging markets and in developing niche markets for specific products. Malaysia’s timber export enjoyed a rise of RM1.1 billion from RM22.1 billion in 2016.

“The RM23.2 billion of timber and timber-based exports in 2017 is bringing us closer to reaching our national target as per the National Timber Industry Policy (“NATIP”) of RM26 billion in 2020. We are expecting a 5% increase in timber exports this year,” added Gooi.

In 2017, the export of wooden furniture was RM8.1 billion and as outlined in NATIP, the industry is envisaged to achieve RM12 billion in total furniture export earnings, including wooden furniture by 2020.

“Many incentives are in place for this purpose with the recent launch of our Financial Incentive for Purchase of Machinery programme (“FIPM”). Under FIPM, an allocation of RM3 million has been set aside where RM1 million will be disbursed yearly over a period of three years to encourage SMEs to mechanise or automate their operations to improve production efficiency with a view of potentially reducing labour dependency,” he said.

Gooi added that MTC’s FIPM programme was in line with Budget 2018 where RM1 billion worth of loans as well as an additional RM100 million with a 70% guarantee by the government are made available to SMEs to automate their production.

MTC’s Mechanisation & Automation programme and FIPM are geared towards improving production efficiency by reducing dependency on labour and wastage as well as increasing output with consistent product quality.

The issue of raw material supply is another challenge for many timber-based manufacturers, especially for furniture-makers who have been dependent on rubberwood.

“In this regard, MTC is always supportive of efforts and initiatives that provide for alternative sources of raw material such as oil palm trunks,” said the CEO of MTC, Richard Yu.

MTC has also increased its allocation for its Import Assistance Programme from RM5 million to RM7 million this year to aid manufacturers in augmenting raw material supply.

“The Import Assistance Programme (IAP) which facilitates the import of raw materials would assist Malaysian furniture manufacturers to have alternative sources of raw material that would help them sustain their production to fulfil orders from international buyers visiting MIFF and EFE fairs.” said Yu.

This year, MTC sponsored 280 square metres of floor space at both MIFF and EFE for seven SME furniture companies to make their debut on the international stage. For EFE this year, MTC has also sponsored 15 furniture companies to exhibit their best products at MTC’s Export to Asia Pavilion.

Since 2015, MTC has been sponsoring special pavilions focusing primarily on countries with promising market outlook for timber-based manufacturers. The first pavilion MTC had set up focused on the UK market and this was followed by the China Pavilion in 2016. Last year, MTC had the India Pavilion and had brought in several prominent furniture buyers from India to visit MTC’s pavilion.

“This year, as we pay close attention to the Asian market, the Export to Asia Pavilion in EFE has served as a good trade and networking platform for our local manufacturers to connect with their potential customers in the Asia region. It has been both exciting and inspirational for us to see how these special pavilions have advanced business opportunities for our industry members, both onward and upward,” said Gooi.

Last year, the total export of wooden furniture to Asia was worth RM2.6 billion with Japan being the largest importer followed by Singapore, India, China and the Philippines.

“As we are always looking for new markets and better business opportunities, Asia with its over 4.1 billion population, has much to offer. We have much to gain from Asia’s growth in consumerism and urbanisation. I trust Malaysian furniture manufacturers have made good use of their presence at this pavilion and the fair as a springboard to expand their business,” said Gooi.

This year, MTC-sponsored SMEs at MIFF and EFE recorded a total of RM901,200 in sales while the manufacturers at MTC’s Export to Asia Pavilion chalked up sales of RM1.73 million.

Gooi attributed the sales figures to the Malaysian furniture manufacturers’ abilities to continuously innovate and pragmatic in their business approach, qualities with which have enabled Malaysian furniture players to be able to anticipate and address any changes in market conditions and demand.

About the Malaysian Timber Council
 

The Malaysian Timber Council (MTC) was established in January 1992 to promote the development and growth of the Malaysian timber industry globally. MTC's main objectives are to promote the Malaysian timber trade and develop the market for timber products globally, to promote the development of the industry by upgrading the industry's manufacturing technology base, to augment the supply of raw materials, to provide information services and to protect and improve the Malaysian timber industry's global image. Further information on the Council’s activities can be obtained from www.mtc.com.my.

Issued by the Malaysian Timber Council

SOURCE : Malaysian Timber Council
 
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Name : Noraihan Abdul Rahman
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