KUCHING: Malaysia’s furniture exports are expected to take a heavy hit following the 25 per cent trade tariff imposed by the United States, the country’s largest export market. In 2024, Malaysia exported RM9.89 billion worth of furniture, accounting for 43 per cent of all wood product exports.
Of this, RM5.71 billion or 58 per cent went to the US, according to the Malaysian Timber Council.
During the first seven months of 2025, Malaysia earned RM5.46 billion from furniture exports, out of a total RM12.64 billion in wood product exports. US orders typically consist of bedroom furniture, dining sets, and upholstered items.
“With more than half of Malaysia’s furniture exports going to the US, the 25 per cent tariff on imported kitchen cabinets, bathroom vanities and upholstered furniture is likely to hit the industry hard.
The local furniture industry is now looking to the government to provide support,” reported the International Tropical Timber Organisation (ITTO) in its Tropical Timber Market Report (Oct 1–15, 2025).
Malaysian Furniture Council (MFC) chief executive officer Desmond Tan said the government could consider measures such as short-term financing, tax relief, equipment upgrades, and export market incentives to help furniture manufacturers navigate the challenges ahead.
Mi Kuang Furniture Centre director Philip Fong noted that any increase in raw material costs due to global factors could also push local furniture prices higher.
However, he said there could be a silver lining: “If exporters see reduced orders from the US, some of their production capacity may be redirected to the domestic market.”
Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz earlier said Malaysia was actively engaging with the US on tariff-related issues, particularly those affecting furniture products.
Malaysia and the US are expected to sign a reciprocal trade agreement during the upcoming 47th ASEAN Summit in Kuala Lumpur from Oct 26 to 28.
The ministry’s deputy secretary-general Mastura Ahmad Mustafa, who also serves as chief negotiator on US tariffs, recently said the ministry was “actively engaging with the US to seek tariff exemptions for various products, including furniture.”
MFC’s Tan added: “We remain hopeful for a positive outcome but we are not sure of this,” noting that both countries share a mutually dependent economic relationship.
He also urged the government to step in with support as the US tariffs come at a time when the American economy is slowing and the US dollar is weakening both negative factors for Malaysia’s furniture exports.
