The Malaysian Insight

THE furniture industry was just recovering 70% to 80% of business after the movement-control order (MCO), but it now faces a new challenge – labour shortage as a result of the government’s decision to freeze the hiring of new foreign workers.

Malaysian Furniture Council president Khoo Yeow Chong said the industry was already facing a shortage of 20,000 foreign workers before Covid-19.

A survey of 147 furniture shops showed a shortage of 13,000 such workers.

“And this was only from a survey of 147 shops. If we include all furniture players in Malaysia, the number is definitely more than this,” Khoo told The Malaysian Insight. 

“The furniture industry requires working in a hot and dirty environment. No locals are willing to work in it. The industry still has to rely on foreign workers.

“If the pandemic situation improves, I hope the restrictions on foreign labour can be relaxed.”

Kuala Lumpur and Selangor Furniture Association president Eric Lee Kong Sim said foreigners are “dominating” the furniture industry.

Many are married to locals, and use their marriage as a means to start businesses in the sector.

“They have also attracted many of our legal employees. They don’t pay taxes and they sell at cheaper prices,” said Lee.

“Naturally, they attract many customers, which seriously impact the local, formal furniture industry.”

Human Resources Minister M. Saravanan recently said the hiring of new foreign workers has been frozen for this year to help locals secure jobs in view of growing unemployment caused by the Covid-19 pandemic.

The government will assess the situation at year-end before deciding when to lift the freeze.

Lee said the industry’s bigger concern is whether a second wave of infections will result in a return of stricter movement controls and affect purchasing power.

Fair-based furniture sellers are the ones reeling the most at the moment because of restrictions on large-scale gatherings like exhibitions, he said.

The local furniture industry is divided into retail stores and those that display and sell at exhibitions.

“Because exhibitions are still prohibited, the industry is still somewhat affected, but it is being helped by those in the retail segment as customers can go to furniture shops,” said Lee. – August 3, 2020.