Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Challenges Impeding Competitiveness of the Wooden Furniture Manufacturing Industry

07.02.2012
The Case of Furniture Industry in Sarawak, Malaysia

Sarawak, being the largest state in Malaysia, is a major producer of tropical timber and timber products in the world. However, despite being blessed with abundant timber resources, it has a relatively small wooden furniture manufacturing industry, with insignificant exports compared with other timber-exporting countries.

The world production of furniture in 2010 is estimated to worth US$376 billion while annual trade in furniture for the past three years surpassed US$100 billion (CSIL 2010). Furniture has the highest value-added component among the major wood-based products. The industry promotes efficient use of timber resources and expands the range of economic activities within the forestry sector from the current harvesting of raw logs and downstream secondary timber-processing, to tertiary-level manufacturing and marketing of finished timber products. For timber-producing countries that seek to promote and develop downstream wood-processing industries, furniture manufacturing is therefore an ideal option.

Malaysia is currently the tenth largest exporter of wooden furniture in the world, with export value expecting to reach RM10 billion in 2010. Most of the furniture manufacturing activities are concentrated in the West Malaysian states of Johor, Selangor and Perak. In comparison, the East state of Sarawak has a relatively insignificant export-oriented furniture manufacturing industry. Sarawak’s earnings from wooden furniture export in 2008 amounted to RM27.82 million, which constituted a mere 0.42 percent of Malaysia’s total earnings of RM6.7 billion in the year.

Sarawak, nevertheless, is endowed with rich timber resources and is among the largest supplier of semi-finished tropical timber products in the world. While these may provide the state with a comparative advantage in furniture manufacturing, the industry is small and oriented towards the domestic market. In 2008, wooden furniture accounted for only 0.37 percent of the state’s total export earnings from timber and timber products. Hence, by dint of its uniqueness, Sarawak is chosen in this paper as our case study.

We aim to analyze the key challenges faced by furniture manufacturers in the state and discuss the role of the state government in the industrialization of the forestry sector. We also suggest the possible steps that can be taken to foster the development of the furniture manufacturing industry. The competitive advantage of Sarawak lies in the production of timber and timber products which constitute key inputs to furniture manufacturing. However, the industry hitherto remains insignificant despite.

Malaysia being one of the largest producer and exporter of timber produce in the world. To identify the impediments to the growth of furniture manufacturing and to capitalize on the competitive advantage in timber production, we collect primary data using qualitative method of unstructured in-depth interviews. Unstructured interviews are defined as interviews in which neither the question nor the answer categories are predetermined (Minichiello et al. 1990).

Punch (1998) described unstructured interviews as a method to understand complex behaviour of people without imposing any a priori categorization, which might limit the field of inquiry. Patton (2002) described unstructured interviews as an extension of participant observation. Unstructured interviews rely heavily on spontaneous generation of questions in a natural flow of the interactions. Care was taken to collect data on all possible perspectives on the challenges faced by the industry. A total of seven interviews were conducted. The interviewees comprise three owners of wooden furniture manufacturing companies, two owners of sawmills, a committee member of the Sarawak Timber Association and a committee member of the Sarawak Furniture Industry Association.

Associated links
http://www.insipub.com/ajbas/2011/September-2011/1135-1145.pdf
Journal information
Australian Journal of Basic and Applied Sciences

Dr. Anand Agrawal | Research asia research news
Further information:
http://www.ibsindia.org
http://www.researchsea.com

More articles from Business and Finance:

nachricht Mathematical confirmation: Rewiring financial networks reduces systemic risk
22.06.2017 | International Institute for Applied Systems Analysis (IIASA)

nachricht Frugal Innovations: when less is more
19.04.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Fizzy soda water could be key to clean manufacture of flat wonder material: Graphene

Whether you call it effervescent, fizzy, or sparkling, carbonated water is making a comeback as a beverage. Aside from quenching thirst, researchers at the University of Illinois at Urbana-Champaign have discovered a new use for these "bubbly" concoctions that will have major impact on the manufacturer of the world's thinnest, flattest, and one most useful materials -- graphene.

As graphene's popularity grows as an advanced "wonder" material, the speed and quality at which it can be manufactured will be paramount. With that in mind,...

Im Focus: Exotic quantum states made from light: Physicists create optical “wells” for a super-photon

Physicists at the University of Bonn have managed to create optical hollows and more complex patterns into which the light of a Bose-Einstein condensate flows. The creation of such highly low-loss structures for light is a prerequisite for complex light circuits, such as for quantum information processing for a new generation of computers. The researchers are now presenting their results in the journal Nature Photonics.

Light particles (photons) occur as tiny, indivisible portions. Many thousands of these light portions can be merged to form a single super-photon if they are...

Im Focus: Circular RNA linked to brain function

For the first time, scientists have shown that circular RNA is linked to brain function. When a RNA molecule called Cdr1as was deleted from the genome of mice, the animals had problems filtering out unnecessary information – like patients suffering from neuropsychiatric disorders.

While hundreds of circular RNAs (circRNAs) are abundant in mammalian brains, one big question has remained unanswered: What are they actually good for? In the...

Im Focus: RAVAN CubeSat measures Earth's outgoing energy

An experimental small satellite has successfully collected and delivered data on a key measurement for predicting changes in Earth's climate.

The Radiometer Assessment using Vertically Aligned Nanotubes (RAVAN) CubeSat was launched into low-Earth orbit on Nov. 11, 2016, in order to test new...

Im Focus: Scientists shine new light on the “other high temperature superconductor”

A study led by scientists of the Max Planck Institute for the Structure and Dynamics of Matter (MPSD) at the Center for Free-Electron Laser Science in Hamburg presents evidence of the coexistence of superconductivity and “charge-density-waves” in compounds of the poorly-studied family of bismuthates. This observation opens up new perspectives for a deeper understanding of the phenomenon of high-temperature superconductivity, a topic which is at the core of condensed matter research since more than 30 years. The paper by Nicoletti et al has been published in the PNAS.

Since the beginning of the 20th century, superconductivity had been observed in some metals at temperatures only a few degrees above the absolute zero (minus...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Call for Papers – ICNFT 2018, 5th International Conference on New Forming Technology

16.08.2017 | Event News

Sustainability is the business model of tomorrow

04.08.2017 | Event News

Clash of Realities 2017: Registration now open. International Conference at TH Köln

26.07.2017 | Event News

 
Latest News

Nagoya physicists resolve long-standing mystery of structure-less transition

21.08.2017 | Materials Sciences

Chronic stress induces fatal organ dysfunctions via a new neural circuit

21.08.2017 | Health and Medicine

Scientists from the MSU studied new liquid-crystalline photochrom

21.08.2017 | Materials Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>