In the wake of the global COVID-19 pandemic and the subsequent movement control order (MCO) in Malaysia, an on-line survey was undertaken involving 748 small and medium enterprises (SMEs) in the furniture industry. The main objective was to examine the impact of the pandemic and the subsequent MCO on the various business aspects of the SMEs as well as to make recommendations to the government on supportive measures for the SMEs. The survey found that although all aspects of the business were impacted, the two major concerns of the SMEs during this crisis were the financial management and the supply chain disruptions. Inevitably, it was found that most of the SMEs were operating well below capacity, which was a huge financial strain on their business viability. It was recommended that the government provide measures to help the SMEs manage their cash-flow and ease the restrictions to facilitate supply-chain commencement that is crucial to their business. The survey also revealed that most SMEs acknowledged the importance of automation and the adoption of technologies. Respondents regarded the shift towards Industry 4.0 was inevitable as a means increase their resilience when facing future uncertainties.
The National Timber Industry Plan was the first major dedicated policy framework for the wood products industry in Malaysia. This plan aimed to transform the industry into a high value-added products manufacturer and exporter, with a targeted export value of USD 13 billion in 2020. Unfortunately, this target was revised downwards in 2017 due to stagnating growth; in 2020, wood products export was valued at USD 5.43 billion. A survey of 914 different wood products manufacturers, involving sawmillers, molding, furniture, and joinery manufacturers, were conducted to examine the constraints faced, and the weaknesses of the policy framework that hampered its intended objectives. The results revealed that the policy framework did not have much impact on transforming the industry, and its growth continued to be fueled by incremental factor inputs, rather than by productivity gains. Uncertainty with the policy framework, especially with addressing raw materials supply and workforce, were highlighted as the two most important constraints faced. In essence, the outcomes suggest that business confidence, associated with industrial growth factors, are the prerequisite for the policy framework to succeed, and if confidence falters, it will adversely affect the targeted outcome of the policy.
Entrepreneurs and small and medium enterprises are the foundation of the Malaysian furniture industry. Yet, in a multi-ethnic society such as Malaysia, the success factors of entrepreneurs and small and medium enterprises (SMEs) in the furniture industry have not been studied. Therefore, this study evaluated the success factors of entrepreneurs of the Malay and Chinese ethnic groups in the furniture industry and discerned the growth trajectory of young entrepreneurs from wood science and technology programs in the furniture industry. A questionnaire-based survey was used with the assistance of relevant trade associations and universities. The results were statistically analyzed to establish the significant differences between the two ethnic groups in their perceived success factors. The results revealed that Malay entrepreneurs pay more attention to political and socio-cultural factors to gain success, whereas Chinese entrepreneurs focus on enhancing their competitiveness to remain viable. Further, young graduates showed a reduced desire to pursue a career in the furniture industry, as they deem it not environmentally sustainable in addition to limited career growth. These results suggested that current entrepreneurship development programs may need to be revised, so as to assist in producing more resilient and successful entrepreneurs in the future in the furniture industry.
The furniture industry is the fastest growing sub-sector in the Malaysian wood-based industry. Although it has grown tremendously over the years, it is characterized by stagnating value-addition. To improve industrial competitiveness, automation and technology application has emerged as a possible solution. A study was conducted to evaluate the influence of company size towards their readiness and adoptability of automation and Industry 4.0. A questionnaire-based survey involving large-, medium-, small-, and micro-sized furniture manufacturers throughout Malaysia was conducted with 160 respondents. The analysis of the results from the survey showed that there was a significant relationship between company size and their readiness for Industry 4.0. The results showed that small- and medium-sized enterprises (SMEs) are more hesitant in adopting technology due to the high cost required and the lack of skilled workers to cope with the new technology, compared to the large sized companies. The factor analysis revealed that the three main groups of the factor affecting decisions towards adopting industry 4.0 are government policy, difficulty in implementation, and expected benefit. This study suggests that providing incentives for the application of automation and technology will be required when the goal is greater uptake of technology among furniture manufacturers.
As the world intensifies efforts to mitigate the effect of global climate change, an on-line survey was carried out involving 1,081 wood products and furniture manufacturers in Malaysia. The main objective was to evaluate the level of awareness, extent of adoption, and challenges faced by these manufacturers in adopting environmental, social, and governance (ESG) practices. The survey found that large-sized companies were more receptive to adopting ESG practices, as opposed to the medium-, small-, and micro-sized companies. Respondents were apparently more responsive to environmental requirements, followed by governance, and finally the social factors. Within the environmental sphere, compliance with using certified and legal wood and wood products, waste management, and conformance to emission standards were well received among respondents. The survey revealed that market forces and legislative requirements were the two most important factors that enticed respondents to comply with the ESG practices; among those respondents who did not comply with ESG requirements, the primary deterrent factors include lack of awareness, no direct benefit from adopting ESG, and the high cost involved. The ESG compliance may transform the wood products and furniture industries into a more sustainable industry, offering equitable wages and green jobs while producing high value-added products.
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