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DEVELOPMENT OF THE FURNITURE INDUSTRY
IN SABAH
Presented by:Emmeline PatrickDepartment Of Industrial Development And Research Sabah
Formed in 1977 by a State Cabinet directive and placed under the jurisdiction of the Ministry Of Industrial Development.
Responsibility of promoting and coordinating industrial development in Sabah.
The mission of the department is to promote development through planning and research, investment promotion and provision of industry services.
Background of Department Of Industrial Development And Research Sabah
1. To promote foreign and domestic investment in Sabah, especially in the manufacturing sector.
2. Undertake research/studies on the economy of Sabah, mainly on the manufacturing sector
3. Process manufacturing licence and approval to set up manufacturing projects in Sabah
4. Assisting in solving problems faced in the implementation of investment projects
5. To carry out activities/programme to enhance capability of Small and Medium Enterprises (SME)/Small and Medium Industry (SMI)
Main functions of DIDR:
Sabah Industrial Master Plan
Formulated in 1995.
Create a knowledge intensive and competitive industrial sector based on the clustering concept.
MANUFACTURING SECTOR IN SABAH
The State's major industrial development strategies spelt out in the SIMP consist of:
Provision of basic infrastructure facilitiesCreating higher order of production, including;
Industrial clusters; Human Resource Development; Research & development
Industrial Development strategies
Resource‐based industries that have been identified by the SIMP as having comparative advantage for development and promotion include:1. Wood‐based industry2. Palm Oil industry3. Cocoa industry4. Processed‐food industry including meat, marine
products, dairy food, vegetables and fruits.
Targeted Industrial Sectors
Contribution of the manufacturing sector to the State's GDP
NO INDUSTRY 2007 2008 2009 2010 2011 2012
1 Basic & Fabricated Metal Products 81 87 87 90 91 94
2 Beverage Industries 23 23 23 23 23 23
3 Biomass 10 11 12 12 12 12
4 Chemical & Chemical Products 39 44 49 49 53 53
5 CPO 86 86 86 87 87 87
6 Electrical & Electronic Products 8 8 8 8 9 9
7 Food Manufacturing 213 216 220 222 223 224
8 Furniture & Fixtures 39 39 39 39 42 45
9 Miscellaneous Industries 14 14 14 15 15 15
10 Non‐Metallic Mineral Products 62 62 64 65 66 66
11 Paper, Printing & Publishing 26 27 28 28 28 28
12 Petroleum Products 11 11 11 11 12 12
13 Plastic Products 59 60 61 64 65 65
14 Rubber Products 13 13 13 14 14 14
15 Textile & Textile Products 4 4 5 5 9 10
16 Transport Equipment 44 45 46 49 51 51
17 Wood & Wood Products 224 227 228 229 230 230
TOTAL 956 977 994 1010 1030 1038
Sabah's Manufacturing Structure
SOURCE: DEPARTMENT OF INDUSTRIAL DEVELOPMENT AND RESEARCH
Status of the outdoor garden furniture in Sabah
Generally in Sabah, outdoor furniture is referred to as garden furniture.
Most furniture manufacturers are using Acacia (plantation timber) to produce garden furniture.
Based on DIDR's database, there were 18 manufacturing companies for garden furniture approved as of July 2012.
Of these, 5 companies are currently operational. Most of these factories are located in Kota Kinabalu Industrial Park, Menggatal
A new player in the industry is Cosmopolitan Wood (Sabah) Sdn Bhd which is also located in Kota Kinabalu Industrial Park. Started operation in 2011.
Source: Sabah Forestry Department
The Export of garden furniture slowed down in 2010. However, in 2011 the export of garden furniture increased to 24,894.3 m/t from 10,752 m/t in 2010. Major importing countries are United Kingdom, Germany and Italy.
EXPORT OF GARDEN FURNITURE, M/T( 2009‐2011 )
2009 2010 2011
16,136.4483 10,751.9876 24,894.3271
Initiatives by Ministry Of Industrial Development
Integrated Timber complexes in Seguntor, Sandakan (5,856 acres) and Sungai Imam, Tawau (460 acres) in 1990s.
Kota Kinabalu Industrial Park in 1995 in Menggatal, covering an area of 3,679 hectares. Out of these, 1,627 hectares are developed for industrial zones.
Promotion of the outdoor furniture in international market in a smaller scale through participation in international furniture fairs.
MID’s PERSPECTIVE‐MOVING FORWARD
For any industry to grow, it will have to produce products based on design innovation, specialized niche product segments and marketing efforts which eventually lead to own brand names and reputation.
Strong focus on design and niche products. Important for Sabah furniture manufacturers to find new ways of marketing and promoting their products.Need to create an identity for their products and services locally and abroad by differentiating through branding. Furniture manufacturers should also target niche markets to sell their products at a premium prices.
Manufacturers need to invest in R&D and value‐add their products to produce creative furniture designs that reflect aspirations, fashion and latest design technology.
Sabah outdoor furniture should be promoted not merely as a product for general usage but as a piece of art.
Companies intending to design, develop and produce wooden furniture and companies embarking into Research and development of products are eligible for consideration of Pioneer Status and Investment Tax Allowance . Applications for incentives should be submitted to MIDA.
Although the government has a clear role to play in industrializing Sabah, the private sector is expected to take this lead role in charting the business path.
The Ministry will continue to work together with the other Government agencies in the Federal and State level to assist in the development of the furniture industry in Sabah.
CONCLUSION
Thank You