This article first appeared in The Edge Financial Daily on December 17, 2019

KUALA LUMPUR: The Kuala Lumpur and Selangor Furniture Association (KSFA) president Datuk Eric Lee clarified yesterday that he was not blaming the government when he highlighted the labour issue plaguing the furniture-making industry recently.

Rather, he said he was trying to explain the industry’s challenges.

“The furniture industry has faced long-term challenges in recruiting foreign workers and we are grateful that the relevant ministries and government agencies have been consulting stakeholders to try and resolve this matter by looking into the process [involved],” Lee said in a statement yesterday.

“From January to September this year, furniture exports increased 9.7% to RM7.79 billion from RM7.10 billion for the same period last year, facilitated by government policies favourable to businesses and increased efforts in promoting trade,” he added.

His clarification came after The Edge Financial Daily reported yesterday, quoting an interview with him, that labour shortage is stopping furniture makers from taking more orders.

In the article, it was reported that Lee blamed the government’s decision over two years ago to freeze the hiring of foreign workers.

The problem, he said, caused the local furniture industry to miss out on “as much as 80% of chances” that come their way.

“Since the government [froze] the import of foreign workers, a lot of local factories ended up not daring to take many orders, while their experienced workers went back and [many factories] cannot get replacements,” he was quoted as saying.

Lee was also quoted as saying furniture exports rebounded this year as the government “relaxed” its foreign labour hiring policy in recent months.

According to him, the industry currently employs some 50,000 foreign workers and needs another 20,000.