KUALA LUMPUR: The Export Furniture Exhibition 2025 (EFE 2025) is set to play a crucial role in strengthening Malaysia’s furniture industry, despite rising concerns over potential US tariff hikes that could impact exports.
Plantation and Commodities Minister Datuk Johari Abdul Ghani highlighted EFE 2025’s significance in boosting gross domestic growth and reinforcing buyer confidence in Malaysian-made furniture, with an estimated sales target of RM3.5 billion this year.
“This milestone highlights EFE’s reputation for delivering high-quality Malaysian furniture that meets diverse market demands,” Johari said in his speech, which was read out by Deputy Minister Chan Foong Hin at the event today.
Johari said the furniture sector is equally important, citing Malaysia’s RM9.9 billion wooden furniture exports in 2024.
“This accounted for 43.2% of the country’s total timber export value. Congratulations to our local players on achieving an 8.4% growth in export value compared to the previous year, reinforcing the sector’s competitiveness in the global market.
“The furniture industry’s performance is an impressive achievement, reflecting its resilience and ability to adapt to global challenges,” he said.
Meanwhile, Chan addressed industry concerns over potential trade challenges, particularly the risk of higher US tariffs.
He noted that more than 50% (RM5 billion) of Malaysia’s furniture exports are destined for the US, making it a key market for local manufacturers.
“Any tariff increase would pose significant challenges to businesses that depend on this market. While no official announcement has been made regarding Malaysia, concerns have been rising due to discussions about a possible 25% tariff across all products under President Donald Trump’s trade policies.
“Exporters are already preparing for potential disruptions, as such a tariff could make Malaysian furniture less competitive in the US market. The uncertainty alone has sparked industry-wide worries about trade stability,” Chan told reporters after the event.
He assured industry players that the government is closely monitoring developments. “Asean, as a regional bloc, will present a collective stance to the US at an upcoming special summit,” he said.
While details of the diplomatic effort remain undisclosed, Malaysia is expected to push for policies that protect its export interests.
Beyond furniture, Chan noted that Malaysia’s glove industry will also face the risk, as the US remains one of its top buyers.
“Any increase in tariffs could affect export revenue. Both sectors fall under the purview of the Plantation and Commodities Ministry, and the government is committed to ensuring minimal disruptions to these industries,” he said.
To address industry concerns, the Plantation and Commoditie Ministry will continue engaging with key stakeholders to gather feedback.
“The information will be shared with the Ministry of Investment, Trade and Industry (Miti), the primary agency responsible for trade negotiations. This collaboration aims to ensure that Malaysia presents a strong case in trade discussions with the US,” Chan said.
He said exporters worry that higher tariffs could lead to a drop in demand, forcing companies to explore alternative markets or adjust pricing strategies.
“The potential economic impact extends beyond businesses, as reduced exports could affect thousands of workers employed in the furniture and glove industries. Ensuring continued market access remains a priority for both the government and industry players.”
