OPENING CEREMONY SPEECH BY

YAB DATO’ SRI HAJI FADILLAH BIN HAJI YUSOF
MINISTER OF PLANTATION AND COMMODITIES

MALAYSIAN INTERNATIONAL FURNITURE FAIR
(MIFF) 2023

1 March 2023 (Wednesday)
11.00 am
Malaysia International Trade and Exhibition Centre (MITEC)

Bismillahirrahmanirrahim

SALUTATION

Assalamualaikum Warahmatullahi Wabarakatuh and a very good
morning.

1. It is both an honor and a great pleasure for me to join you here this morning and let me extend my heartfelt congratulations to Informa Markets Malaysia and the MIFF Team for successfully
organising the Malaysian International Furniture Fair (MIFF) 2023.

2. Indeed the MIFF team has done extremely well in its mission to promote the Malaysian furniture industry to the world. As I understand it, MIFF is ranked as the number one furniture fair
in Southeast Asia, and continues to consistently rank amongst the top 10 worldwide. Over the years, MIFF has spearheaded the furniture trade scene and I am very delighted that a year
after Malaysia reopened its borders after the pandemic, MIFF has staged a strong and robust comeback.

Ladies and Gentlemen,

3. The Malaysian furniture industry is a remarkable success story of growth, resilience, and sustainability. It has come a long way from its humble beginings as a cottage industry that began in
the early 1980s using rubberwood from old trees, which were mostly used as firewood then.

4. Over the course of several decades, the industry has demonstrated a reputation for its quality and strength, enabling it to become a prominent global exporter to more than 160
countries around the world. Malaysian furniture is in high demand among the world's most affluent markets including the United States, Japan, Singapore, Australia, and the United Kingdom.

5. The industry is highly export driven, with an export value of RM11.15 billion in 2022. While many industries have been negatively affected by the COVID-19 pandemic, Malaysian
furniture exporters managed to do fairly well with exports of RM10.64 billion in 2020 and RM10.42 billion in 2021. For MIFF 2023, I have been made to understand that the expected sales
generated during this fair could reach up to RM 4.88 billion. This is a most inspiring target and I hope it will be realized.

Ladies and Gentlemen,

6. According to the Global Industry Insights Inc. report in September 2021, the global wooden furniture market is expected to reach USD550 billion by 2027.

7. This means, there is a tremendous opportunity for Malaysian manufacturers to get a bigger slice of the market and move up the value chain by developing their products and brands.

8. However, this opportunity comes with great challenges. With the lingering impact of the COVID-19 pandemic and a projected slowdown in the global economy in 2023, businesses need to
re-look at their strategies, in particular with regard to sourcing and procurement of supplies. A key lesson from the pandemic is to ensure adequate stocks and alternative supply sources
should any event occur that would disrupt the supply chain. A larger network of suppliers would serve to future-proof furniture manufacturers against unexpected disruptions.

9. Exporters also should consider broadening their target market and explore any promising opportunities closer to home. This includes the emerging markets of Southeast Asia, South Asia,
the Middle East, and Africa. The fact that Malaysia is located in the heart of Southeast Asia and strategically placed between the shipping routes between the Indian Ocean and East Asia

Source: https://www.mida.gov.my/securing-the-future-of-malaysias-furniture-industry/

gives us a great advantage. And with a ready platform such as MIFF at their doorstep, Malaysian companies have a simpler and more cost-effective way to enter the international market. I strongly encourage more Malaysian companies to utilize platforms such as MIFF to expand their international reach.

Ladies and Gentlemen,

10. Timber is one of eight commodities identified under the National Agricommodity Policy 2030 (DAKN 2030) to be transformed in a more sustainable, competitive and market-oriented manner. This is to ensure the product remains as a strong driver for Malaysia’s economic growth, as we target the export value of timber and timber products to be at RM28 billion by 2025 and
RM32.8 billion by 2030.

11. In order to achieve this, I believe, there should be a continuous synergy between the furniture industry and the Ministry as well as its agencies such as the Malaysian Timber Industry Board (MTIB), Malaysian Timber Council (MTC) and Malaysian Timber Certification Council (MTCC).

12. As a major producer and exporter of tropical timber products, Malaysia has made tremendous efforts to ensure our timber products are sourced from sustainably managed forests.

13. The Malaysian Timber Certification Scheme (MTCS) is the first tropical timber certification scheme in the Asia Pacific that has been endorsed by the international accreditation body
Programme for the Endorsement of Forest Certification (PEFC), the world’s largest forest certification system.

14. In 2020, Malaysia was awarded the gold medal for achieving the biggest increase in forest area certified by PEFC with over 950,000 hectares of certified forest, making it a total of more than 5.2 million hectares.

15. I am proud to announce, as of January 2023, 37 Forest Management Units (FMU) covering a total area of 5.81 million hectares have been certified under MTCS. While 362 timber
companies have been awarded the Chain of Custody (CoC) certificate which qualifies them to use the PEFC logo when they export their MTCS/PEFC-certified timber and timber products.

Ladies and Gentlemen,

16. Furniture making is both a manufacturing and a creative industry in which innovative design is paramount. Even before the pandemic, factory floors across the world have seen the advent of industry 4.0 digital technologies.

17. The disruptions of the pandemic have only accelerated a digital transformation in the manufacturing chain for better efficiency and cost.

18. As an industry that thrives on innovation and competitive price points, the furniture sector must step up to the digital challenge to enhance design, quality, productivity and long-term
sustainability. Automation will also help to reduce the dependence on low-skilled labour.

19. On top of that, I urge furniture industry players to be vigilant of different trends catering for different markets, and to remain cognizant of the fact that the furniture industry runs the gamut
from the most basic to the most luxurious, and that we, as producers of furniture should examine opportunities across the different market segments to find untapped opportunities
including high-value, niche premium segments unexplored by some mass furniture producers.

20. I believe, with years of experience in the global markets and having weathered extreme hardship during the COVID-19 global pandemic, the Malaysian furniture sector is wellpositioned to take on new opportunities in the post-pandemic environment and, with the right strategies and proper market research, I am sure we will continue to to do well.

21. I congratulate the organizers once again for convening the MIFF 2023 with the fervent hope that this year’s MIFF will meet all it’s targets and objectives. On that note and without further ado, it now gives me great pleasure to officiate the Malaysian International Furniture Fair 2023.

Thank you,

Wassalamualaikum Warahmatullahi Wabarakatuh.

MINISTRY OF PLANTATION AND COMMODITIES
1 MARCH 2023