saltedfish

Strong buy

2014-12-26 22:34

KBYap

Posted by KBYap > Dec 28, 2014 08:50 AM | Report Abuse X


Furniture makers face labour and rubberwood shortage

By CHONG CHEE SEONG MUAR
johor@nstp.com.my

MALAYSIAN furniture manufacturers are facing two acute problems -- shortage of labour and rubberwood -- resulting in a 4.6 per cent drop in the country's total export last year.
Johor Furniture Association president Bo Eng Chee said the country's export from January to November in 2010 was RM7.3 billion as compared with RM6.9 billion in the same period of last year.

He said the drop affected the export of wooden, metal and plastic furniture.

Bo, who is also the Muar Furniture Association (MFA) president, said the MFA and the Malaysian Timber Industry Board would jointly submit a memorandum to the Plantation Industries and Commodities Ministry next month to address the two problems.

He said the shortage of rubberwood in the country had resulted in the price of the wood going up from RM1,400 to RM1,800 per metric tonne since last October.

He called on the government to stop the export of rubberwood and ensure a sufficient supply for the domestic market.

On the shortage of foreign labour, Bo said the implementation of the amnesty programme (codenamed 6P) for legal and illegal foreign workers was the main cause.

He said the shortage compelled furniture manufacturers to reject foreign orders for fear of it affecting their production and delivery of export goods.

Bo said it had a significant impact on export, adding that the furniture industry is one of Muar's economic lifelines and accounted for about 45 per cent of national furniture export.

He said a good opportunity had come to Malaysia in recent years when China's furniture industry lost its competitive edge and manufactuers in Thailand were affected by floods.

"Unfortunately, we are unable to capitalise on it because of the lack of workers and rubberwood."

Bo said the government should formulate a plan to ensure a sustainable supply of foreign workers and rubberwood to avoid interruptions in plant operations which have adverse effects on productivity.

He said with the introduction of the 6P programme, the industry was facing a 30 to 50 per cent drop in foreign labour, forcing small factories to close down.

The 6P programme comprises registration, legalisation, amnesty, supervision, enforcement and deportation of foreign workers.

Bo called on the government to monitor the programme closely to prevent job-hopping of legalised foreign workers.


The problems only can get more acute.




Posted by KBYap > Dec 28, 2014 08:54 AM | Report Abuse X

Have you asked yourself how sales have conveniently gone up in 2013 just right for the bull market.

Have you asked yourself how is this possible when US housing is in the slump and Euro unemployment rates are so high?

Mind you they are not selling high end furniture to the very very rich who are not affected by the economic slow downs.



Posted by KBYap > Dec 28, 2014 08:57 AM | Report Abuse X

With China slowing down and its property market crashing..... I keep it vague too, you go and do your own thinking.

2014-12-28 14:10

KBYap

The problems only can get more acute.

Have you seen rubber plantations around nowadays??? Of course not as all have been replanted with oil plam.

Local furniture business is a sunset industry as their size is limited by the limited supply of rubberwood in Malaysia.

2014-12-28 16:03