theSun | THURSDAY MARCH 5 2009 15

business

Zeti: Local banks

still well capitalised
KUALA LUMPUR: Malaysian
banks remain well capitalised
with adequate liquidity in the
system and this has enabled
them to continue lending even in
times of uncertainty, said Bank
Negara Malaysia Governor Tan
Sri Dr Zeti Akhtar Aziz.
In an interview with the
Oxford Business Group (OBG),
Zeti said faced with the chal-
lenge of the slowest economic
growth for eight years, it was
this liquidity which would be
one of the prime tools for pro-
moting growth and staving off
an economic downturn.
“Another step is to provide
funds for small and medium
enterprises.
“These measures follow
lessons learned from the
Asian financial crisis, such as
encouraging banks to restruc-
ture the loans before they turn
bad,” Zeti said in a statement
released by the OBG here yes-
terday.
Zeti said Malaysia was well
placed to weather the current
global financial crisis.
“Several years of reforms,
institutional development and
capacity building, continuous
efforts to enhance corporate
governance and risk manage-
ment standards and practices
have significantly strengthened
Malaysia’s banking system,” she
said. – Bernama

Go for niche markets, local

furniture industry told
by Tim Leonard
newsdesk@thesundaily.com

KUALA LUMPUR: The government has urged the local

furniture industry to compete in the export markets
by offering differentiated products to suit the needs of
niche markets.
“The idea is to re-strategise from competing with
price to that of product differentiation and niche
market,” said Deputy International Trade and Industry
Minister Datuk Jacob Dungau Sagan.
“Despite the global financial crisis, the furniture
industry is encouraged to tap the upper middle class
consumers who are willing to pay higher prices for
quality furniture,” he said after launching the Malaysian
International Furniture Fair 2009.
Jacob said efforts are being made by the government
to intensify the promotion and designing of value-added
furniture products for domestic and export markets,
as well as to ensure the furniture industry remains
resilient in the current economic downturn.
“Malaysia is feeling the domino effects of a global
economic crisis and under the present economic
situation, our industry needs to review its business
strategies and reinforce its strength and competency Asian
in order to remain competitive and resilient.
“The increased demand from the export markets budget
has gained a competitive edge due to declining global airlines
furniture production. launch
Jacob said incentives are in place to attract invest-
ments into the industry in Malaysia and manufacturers price war
are eligible to apply for pioneer status to enjoy 70% pg 16
tax exemption on statutory income for a period of five
years or investment tax allowance of 60% on its qualify-
ing capital expenditure for the same period.
“The government will also provide a boost for the
furniture industry by organising various promotional
programmes through Matrade to raise the profile of
Malaysia brands overseas to counter the challenges
faced by the industry.
He also said the furniture industry will remain a
major contributor to the country’s export earnings in
years to come.
“Export earnings from downstream products, mainly
furniture and panel products are estimated to reach
RM53 billion by 2020 based on the Industrial Master
Plan 3 (IMP3),” said Jacob.
He said Malaysia’s furniture industry recorded a
growth of 1.7% for the first 10 months of last year with
total trade amounting to RM8.73 billion.
Exports for the same period totalled RM7.12 billion
with a growth of 1.2% for the same period in 2007.
The United States was the largest export market
for Malaysia with exports totalling RM1.87 billion last
year.
The Malaysian International Furniture Fair (MIFF), to
be held until March 7 at the Putra World Trade Centre
(PWTC) and the Matrade Exhibition and Convention
Centre (MECC), will see some 500 exhibitors from 13
countries showcasing their products.
Last year’s MIFF recorded a total of US$690 million
in sales.
Exhibitors not only provide a selection of designs
from each nation, but will also exhibit diverse choices
of furniture types for bedroom, living room, dining,
kitchen, office, outdoor and a wide range of accessories
and upholstery.