Batu Pahat furniture industry hit hard by GST

Nanyang Siang Pau, June 4, 2015

Batu Pahat, June 3 – Furniture industry in Batu Pahat was hit hard by the implementation of Goods and Services Tax (GST) which has already enforced for two full months, the retail business has dropped by 50% to 70% with sales in domestic market dropped by 40%.

Chairman of Batu Pahat Furniture Association Chua Chee Hieng said in an interview that Batu Pahat furniture industry had been facing with great pressure under the domino effect of GST which was implemented on April 1.

He said the furniture factories and the furniture retail outlets had felt the sequel of the GST on second week of April, to date two months after the implementation of GST the sales of furniture in domestic market and retail business of furniture had been facing with poor business.

“The industry was experiencing the ‘Honeymoon’ period in March with high volume of sales, however, after all the goods had been delivered in April, they began to face with sluggish sale with business dropped by 50%,” he lamented.

Chua Chee Hieng is also the proprietor of Taishi-Tech Industries Sdn Bhd, he said prior to the implementation of the GST, the furniture industry operators had attended three sessions of talk on GST organized by the association and they were well prepared to face with the challenges under the GST. Unfortunately, the high turnover in March could not cover the loss caused by poor business performance in April and May.

“Take our company as an example, the ratio of export sales and domestic sales is 6:4, the export sales performance is only affected by the weaker ringgit, sales volume has not changed much; however, the poor sales of domestic market had worried the furniture industry operators,” he added.

Furniture fair begins today

He said in order to help its members to sail through the difficult time the association would organize the Batu Pahat Home Deco and Furniture Fair 6.0 at the Summit Batu Pahat from June 4 until June 7. Apart from stimulating the market, the furniture fair is also aimed to restore the consumers’ confidence in consumption, to instill upon them the desire to buy and to consume for a better living.

Chua Chee Hieng: Optimistic about the prospects for the local furniture industry

Chua Chee Hieng said with large industrial output and driven by market force, the furniture have become much cheaper. Today one set of high end furniture cost only about RM10,000 while in the past it could price up to RM20, 000.

He also said the same furniture set which cost about RM5, 000 previously now only selling at about RM3, 000 and the price was going down. Even the furniture industry operators in east Malaysia who visited Batu Pahat furniture factories have also felt that the prices of furniture in Batu Pahat are very much cheaper than in east Malaysia.

“The materials and machineries used in production lines of Batu Pahat furniture factories could match those in US and European countries, the local furniture factories are domestic oriented, we are optimistic about the prospects for the local furniture industry,” he stressed.

In safeguarding the interests of its 170 members, Chua Chee Hieng said the association would make extra efforts to grab the furniture market within 30 km radius and looking forward to the market in Southeast Asian regions.

Original Source: 消费税猛挫营业额 峇株家居展刺激家具销量