According to recent reports from Malaysian media, this year, due to weak demand from US customers and excess inventory, the order volume of Malaysian furniture companies has slowed down significantly. However, a slight recovery in the country's furniture industry recently, coupled with a stronger U.S. dollar, has led to improved quarterly financial results for some companies, with the North American market being a major source of profit for many companies.
Analysts are generally optimistic about a gradual improvement in the furniture industry, but acknowledge that the long-term outlook remains unclear given the possibility of further global economic downturn next year.
Thye May Ting, an analyst at PublicInvest Research, attributes the recent increase in furniture orders to low inventory levels in the United States. The upcoming Christmas and Chinese New Year are expected to further drive furniture order growth, which will likely keep the industry growing through the first half of 2024.
However, the current rebound in orders is relatively weak compared with the profit surge caused by the surge in orders during the new crown epidemic, when working from home and isolation boosted demand for furniture.
Thye said: "We expect near-term furniture industry earnings to be driven by the year-end holiday season and demand growth, while the real estate industry will remain sluggish in the short term due to high interest rates, so we do not expect a significant surge in overall orders for the furniture industry.