WITH the ongoing growth of Malaysia's timber sector, industry players are hoping that the country can regain its top five position as a global furniture exporter.
However, they noted that this could only be achieved if 'friendlier' business policies were provided by the government, adding that it could further increase export values in the country.
Following this, Malaysian Furniture Council president Desmond Tan hoped the government could make foreign labour policies more flexible for industry players as the sector had been affected by the shortage of labour.
He added that while the government's move to adopt and encourage automated manufacturing processes was feasible, the move could backfire as product finishing would not be up to par.
"Our government always encourages and emphasises fully automated processes where the machinery can totally substitute labour but such a process is not suitable in Malaysia due to our product type.
"It is also because Malaysia is an expert in wooden furniture manufacturing where the final stages and touchups of the finishing process require manpower skills. The fillings also cannot be done by a machine.
"These are steps that will raise the value of the product to middle or high-end, because you need certain steps to be done by human labour," he said when interviewed by the New Straits Times.
Tan added that friendlier policies could allow Malaysia to become a furniture hub for Southeast Asia.
"Malaysia is among the top three exporters in Asia, after China and Vietnam. However, the difference between Malaysia and the two countries is that the majority of the industry players here are local companies.
"When you do business in your homeland, you wouldn't want to move somewhere else, especially if the environment is friendly because you are comfortable.
"This is why we want a friendlier environment to allow business to sustain as Malaysia is a good and strategic location."
Malaysian Timber Industry Board chairman Datuk Larry Sng Wei Shien said Malaysia had many opportunities ahead in the timber industry due to the substantial increase in export value last year.
Citing the recent development in Sweden where the country is developing a city based on timber, Sng said a resurgence in the timber industry could happen if such a trend persisted and was emulated in other countries.
"If that trend persists and is emulated in Europe and elsewhere, I believe we will be seeing a resurgence of timber, not just in furniture making but also in the construction industry as well.
"Malaysian timber is largely sustainable and we are keen to continue promoting this. This is an important industry, not just for locals, but also to encourage replanting of local tree species."
Sng added that such initiatives were important to ensure that there would be sustainable timber for the future.
Malaysia exports wooden furniture to 160 countries, with Japan, the United States, Singapore and the United Kingdom being its main markets.
According to data from the Plantation and Commodities Ministry, Malaysia's wooden furniture exports raked in RM25 billion in 2022.