Malaysian Furniture Manufacturers have agreed to launch a company in Dubai created to represent them in their joint efforts to expand business in the Gulf Cooperation Council (GCC) countries and further develop markets in the wider Middle East region. The move comes on the heels of strong sales growth for Malaysian furniture in the UAE, which topped 18 percent this year, and is aimed at positioning Malaysian furniture manufacturers more competitively in a booming market by being able to provide major customers with more value added services.
The announcement was made by Abu Zaki Abu, CEO of Raudhah Resources Sdn Bhd, a major furniture manufacturing corporate at INDEX 2006, who stated that the company would be launched during the second half of 2007.
“Manufacturers are aiming for the company not only to sell their products but rather to take big turnkey projects, from interior design to fixing and supplying furniture. Demand for Malaysian furniture has witnessed significant growth which was a major reason behind our decision to establish the company in Dubai. We are in communication with major regional and international real estate developers such as Nakheel and Emaar, to ensure positive relationships and future cooperation.”
The company will be set up under the supervision of FITEC, the Furniture Industry Technology Centre, a government body that represents and promotes Malaysian furniture companies, which recently executed projects in the UAE and Saudi Arabia.
“The company will support its customers by having expertise and experience in home and office furnishing manufacturing and interior design, all under one roof. The competitive nature of our products in terms of superior quality and priced, has provided us with a competitive edge here in the UAE, which we intend to use as a platform for regional expansion,” he continued.
Analyzing the market, Abu Zaki noted that “the regional construction boom, particularly in the UAE and GCC generates opportunities for the furniture sector. We expect to achieve an additional 20 percent sales growth from in fiscal 2006.”
“Despite strong international competition, the Malaysian furniture industry is witnessing strong growth because of its reliability, high quality of wood, elegant designs and competitive prices,” said Khadijah BT Kasni, representative of FITEC. “FITEC represents over 550 furniture manufacturers in Malaysia, a number that is growing at an increased rate given the booming Malaysian economy.
“FITEC assists furniture manufacturers in developing plans to penetrate different markets including in the GCC region. At INDEX this year we intend to achieve different objectives mainly to introduce our offerings and services, initiate joint ventures and partnerships, assign agents and resellers and further publicize Malaysian furniture products.” she concluded.
