BUSINESS is booming among the furniture sector as a result of the work-from-home culture necessitated by Covid-19, said manufacturers.

Demand for office furniture is worldwide, with some manufacturers taking orders for up to 2022, they said.

However, they are also facing difficulties, such as high cost of raw material and shipping, and labour shortage.

Malaysian Furniture Council president Khoo Yeow Chong said orders in the sector increased about 30%, with queues stretching up until next year.

The bulk of the orders comes from Japan, Singapore, Australia and the US, with the last one taking up to 60% alone.

Even though there is no shortage of orders, Khoo said, the pandemic has presented a multitude of logistical issues, including a shortage of containers, which led to shipping costs soaring from US$1,000 (RM4,100) to US$2,500.

This, in turn, led to a drastic hike in the cost of raw materials, such as wood, sponge, chemicals, steel and others. For example, the price of sponges has gone up by as much as 60%.

Khoo told The Malaysian insight that the surge in demand is due to the increased number of people working from home, especially those who are setting up home offices, which require different furniture.

“For the work-from-home model, many people will take the opportunity to change or add furniture. Even property developers are now promoting their products with integrated workspace.

“Some companies are also providing work-from-home allowances, letting workers buy more furniture for work use.”

Meanwhile, the sector continues to struggle with labour shortage and similarly has fears of Covid-19.

The government also requires employers to provide foreign labourers with suitable accommodation since last year to avoid any outbreak.

Housing woes

Khoo said the sector supports the foreign worker housing requirements and is now grappling with the question of whether to set up accommodation outside or within the factory premises.

MFC has told all members to adhere strictly to the Covid-19 standard operating procedure and test workers.

Khoo said he is also thankful that there have been no serious outbreaks within the furniture sector so far.

“When we think about the possibility of a migrant worker getting infection, these workers rarely leave the factory compound when working. If a case is detected at the factory, it’s more likely that a local worker had brought in the disease from outside.

“We agree with the government’s requirement to house foreign workers, but we are still discussing the finer details such as location.

“We have the idea of having a centralised dorm in an industrial area and all foreign workers from different industries staying in the same dorm.

“Then the question now is if the developer has invested millions to build the dorm, then are foreign labourers from other sectors also allowed to stay here?

“The other option is to have the accommodation within the factory compound itself, but that is up to the owner of the premises.

“Another option is to rent properties in residential areas, but that may raise the ire of neighbours. These are all questions that need to be addressed.”

Khoo added that foreign labourers typically have their meals provided by the employers and work from day to night, which means a lower risk of contracting Covid-19.

Production hiccups

Kuala Lumpur and Selangor Furniture Association president Eric Lee said there had been a 5% increase in orders since the pandemic began, mostly from Europe, the US, Australia and South Korea.

Even though the furniture sector is not an essential industry, sales of such products are still ongoing amid the pandemic.

He added that any infection among factory workers in the sector will inevitably slow down production.

“There were quite a few factories with confirmed cases, about 30% or three out of 10 workers were confirmed to have Covid-19 and many of these cases were found in workers’ dorms.

“After contact tracing was conducted and three weeks have passed since the initial outbreak, transmission of the disease is under control.”

The furniture sector is also facing constant labour shortages amid the pandemic.

With a portion of industry workers exiting the country before the pandemic began, current border restrictions are preventing their return, thereby exacerbating the issue.

“Plus, when workers get infected with Covid-19, the whole factory has to shut down for disinfection works. Some industry players that have factories set up abroad will then divert manufacturing to other factories, or find another factory to rush orders to avoid further delays.”

Besides shutting down for disinfection, Lee said, the factory can only open after 10 days, inevitably causing a loss in productivity.

It then has to explain the delay to clients and workers will have to work overtime to complete the orders once the factory reopens.

With the constant labour shortages and the reluctance of locals to work in the industry, Lee said, businesses must automate the manufacturing process as much as they can.

The association has 700 members in the Klang Valley alone, and 2,000 members nationwide. – January 30, 2021.