(This article was generated by Google Gemini AI from the creator's video)
Malaysia stands as the world's ninth-largest exporter of wooden furniture, but the country's manufacturing sector is confronting mounting pressures that threaten its long-term momentum.
The town of Muar in Johor serves as the heart of the nation's industry, housing around 800 furniture factories and contributing more than half of Malaysia's total furniture exports. However, in 2025, wooden furniture exports dropped by 6.2 percent.
Three Main Pressures on Manufacturers
Malaysian furniture manufacturers are experiencing headwinds from three directions. First, roughly half of the country's furniture exports go to the United States, meaning tariffs imposed under Donald Trump make Malaysian products more expensive for American buyers.
Second, domestic production expenses are climbing across Malaysia due to higher minimum wages, EPF contributions for foreign workers, and other operating costs. Third, producers are facing fierce competition from regional competitors, including China and Vietnam.
Volume Facilities Struggle With Smaller Orders
Beyond trade and cost pressures, factory owners face structural challenges. Malaysian plants were developed to produce massive volumes efficiently, such as single orders of 200,000 units of the same design for American clients. Now, some manufacturers are receiving smaller orders while still having to cover the expenses of large factories, machinery, and existing workforces.
Timothy Tiah (timtiah.newswavcreator@gmail.com) is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
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